Three Rivers School discusses funding challenges and property tax impacts with Hamilton County

The Three Rivers Local School District Board meeting on April 8, 2025, highlighted significant financial developments that will impact the district's budget and operations in the coming year. A key takeaway from the meeting was the anticipated increase in real estate taxes, with a projected settlement sheet from Hamilton County expected within weeks. This increase is expected to contribute to a stronger financial position for the district, which has already seen nearly $60,000 in interest income year-to-date.

The board discussed the implications of a 10% increase in salaries and benefits, attributing a substantial portion of this rise—approximately $577,000—to new ESSER (Elementary and Secondary School Emergency Relief) funding. This funding is crucial as it helps offset the costs associated with staffing and other operational expenses. The board noted that while expenses are currently outpacing revenue, the situation is not as dire as initially feared, with a projected deficit significantly lower than the anticipated $2 million.

Another critical topic was the impact of state legislation on school funding. The board expressed concerns over proposed changes in the governor's budget that could affect guaranteed funding for the district. The proposed legislation includes a reduction in funding for districts with cash balances exceeding 25% of total appropriations, which could penalize the district for maintaining a conservative financial strategy. The board emphasized the importance of having sufficient cash reserves for operational stability and emergency planning.

In addition to these financial discussions, the board is optimistic about receiving additional TIF (Tax Increment Financing) funds, which have exceeded expectations this year. The anticipated increase in TIF receipts is expected to provide further financial relief.

As the board prepares for the next fiscal year, they remain focused on navigating the complexities of state funding and ensuring that the district remains financially sound while continuing to meet the needs of its students and staff. The next meeting in May is expected to provide further clarity on these financial matters as the board continues to monitor developments closely.