Ohio House introduces budget bill limiting school district fund carryover to 25%

Cincinnati Public Schools (CPS) is bracing for a challenging budget year ahead, as highlighted during the CPS Board Business Meeting on April 7, 2025. Board members expressed concerns about the financial landscape, particularly in light of recent legislative changes that could significantly impact school funding.

Treasurer Whitener emphasized the need for caution regarding the upcoming budget, acknowledging the difficulties faced over the past three years. While there is optimism about future celebrations and success stories within the district that could bolster public support for funding, immediate requests for additional financial resources are not on the table. The board is currently focused on renewing existing funding rather than seeking new revenue.

A key topic of discussion was the Ohio House's recent budget proposal, which introduces a cap on how much money school districts can carry over from year to year, limiting it to 25%. This change aims to prevent districts from accumulating excessive reserves, but it raises concerns about potential revenue reductions for CPS. Currently, the district operates with a carryover of approximately 10-11%, and while the cap may seem aspirational, it could lead to complications if CPS exceeds the limit in the future.

The House budget also includes a slight increase in state funding for CPS over the next two years, which is viewed as a positive development. However, the proposal pauses the state funding formula, meaning CPS will receive a fixed amount based on last year's funding with a minor increase, rather than a recalculated share based on current needs.

Other legislative measures discussed include House Bill 186, which could limit revenue growth based on inflation, and Senate Bill 66, which would incorporate various levies into the 20-mill floor, potentially reducing funding for the district. The board is urged to engage with legislators as the budget process moves to the Senate, emphasizing the importance of community involvement in advocating for fair funding.

As CPS navigates these financial challenges, the board remains committed to ensuring that the district's budget aligns with its revenue, preparing for a future that may require strategic adjustments to maintain educational quality and support for students.