School leaders feel they dodged a budget bullet

CELINA - Area school superintendents breathed a sigh of relief last week as Gov. Mike DeWine signed the state's biennium budget into law with a record 67 vetoes, preventing the enactment of multiple clauses that would have resulted in cuts or changes to public school funding.

Nearly all local school board members and district administrators shared concerns in the months leading up to the budget's passage about the multiple provisions billed as property tax relief that would have cut into public school funding.

However, Republican lawmakers' property tax reform efforts were foiled by DeWine in the budget's 11th hour.

The governor vetoed a provision that would have required county budget commissions to reduce rates on current school district expense levies in circumstances where a district's carry-over balance is more than 40% of its general fund expenditures in the prior year. It would have mandated county budget commissions to reduce rates on current expense levies until the carry-over balance is decreased to below the 40% threshold.

While DeWine said he understood lawmakers' intention with the provision, he said it would have "significantly" limited the amount of funding that schools can carry over from year-to-year, "resulting in more districts asking taxpayers to pass levies more often, which could very well exacerbate property tax increases instead of reducing them."

"While seeking periodic taxpayer approval of levies is appropriate, this item is contrary to local control and will undermine efforts by school districts to manage their finances responsibly and follow best business practices," he wrote in his veto explanation. "Further, the increased levy cycle could cause more levies to fail due to levy fatigue, impacting the overall financial stability of school districts."

As well, DeWine vetoed a provision that would have eliminated the authority for political subdivisions to levy replacement property tax levies and the authority for school districts to levy fixed-sum emergency, substitute emergency levies and combined school district income tax and fixed-sum property tax levies. Republicans who approved the provision were advocating it as another way to curb property taxes.

Within that veto, DeWine again recognized the "great need" for property tax reform in Ohio and said instead of enacting the specific provision, he will "convene a working group that will include legislators, agency officials, school officials, community members and property tax experts to ensure this critical topic is given the attention deserved."

DeWine additionally vetoed a plan that would have required certain levies be included in the 20-mill floor.

As a superintendent, Josh Meyer of Minster Local Schools said the vetoes were incredibly significant for Ohio's public schools.

"With these vetoes, Governor DeWine has demonstrated his commitment to strong public education, essential public services, and, most importantly, the children of Ohio," he said. "The veto of the 40% carryover provision, for instance, was crucial. Had that provision remained, it would have created financial instability for many districts. Schools have a carryover balance because it is responsible fiscal management."

Specifically at Minster, Meyer said they use their carryover balance for unexpected expenses, long-term maintenance and improvement projects, and to guard against an unpredictable financial future, especially given the nature of Ohio's funding cycle.

Meyer also stressed that replacement and emergency levies are tools used for local control, and that "eliminating these options would have severely restricted a school's ability to respond to local needs and maintain the high-quality education our students deserve."

"These vetoes demonstrate Governor DeWine's commitment to preserving the stability that public schools and the children of Ohio need to be successful," he concluded.

In a legislative alert to Ohio's public school administrators and board members, the Ohio School Board Association said that Gov. DeWine's veto of the proposal limiting school district cash balances was a critical step in protecting student programs and academic services.

"This has been one of the most challenging budget cycles in recent memory," the OSBA alert stated.

Coldwater Superintendent Doug Mader echoed their relief, and said that he was thrilled the Fair School Funding Plan was included in the final state budget.

"The House's proposed 'Bridge' formula would have been devastating for districts like Coldwater," he said. "While not all promised updates were included, we are especially thankful that several harmful provisions-such as the manipulation of the 20-mill floor-were vetoed."

Although Mader noted that the 40% carryover balance wouldn't have impacted Coldwater Schools directly, he said its veto was the right move for districts that have responsibly set aside funds for future needs or projects.

"These decisions support sound financial planning and help ensure a more stable future for Ohio's schools," he added.

However, in its same alert, OSBA also warned school administrators that the issue isn't over, as lawmakers may try to override the vetoes.

Lawmakers can vote to override any of DeWine's vetoes at any time during the current general assembly session, which ends Dec. 31, 2026. Override votes must have at least a three-fifths majority vote in the House and Senate, or 60 votes in the House and 20 in the Senate.

"I am concerned about that," Meyer said when asked about possible veto overrides. "Generally, the governor has been pro child and pro strong public education in Ohio. While there's some need for property tax reform, what was proposed by the general assembly was too much, too fast, and may not have had the long term impact they desired."