Talawanda City School District trustees approved a five‑year financial forecast Thursday after district leaders said recent actions by the Ohio Legislature and Butler County are reducing the local revenue streams that pay for schools.

The district’s treasurer, Ms. Dafalski, presented the forecast and told the board it was prepared using the best available information and that “it is recommended that the board approve the 5 year forecast as presented.” The board voted unanimously to adopt the forecast.

Why it matters: board members and administrators said the district faces pressure on two fronts — new state law changes that limit some local levy tools, and a county rollback of property taxes — that together could reduce revenue available for classrooms and operations. The treasurer flagged a $242,000 estimated loss tied to this first county rollback, plus the prospect of larger reductions if commissioners apply additional rollback authority in later years.

What leaders said
- Mr. Wyatt, the board’s legislative liaison, described the statewide context and said officials in Columbus recently voted to limit replacement and emergency levies. He told the board: “On October 2, the Ohio Senate voted 21 to 11 to override Governor DeWine’s veto… School districts can no longer use replacement levies, emergency levies, or several other funding tools that generate a little over $1,300,000,000 annually for Ohio schools.”
- Ms. Dafalski said the May forecast has been updated with actual fiscal‑year 2025 results and early fiscal‑year 2026 data. She said projected revenues are roughly $589,000 higher than the May estimate but that expenses rose by about $1.5 million, largely because the board earlier committed district funds to a multi‑year curriculum and technology plan and to a severance reserve that moved $3.3 million out of the general fund in fiscal 2025.

Key details and numbers
- The district’s overall report‑card performance earned it a performance supplement that increased state support; the treasurer included a $141,000 performance payment for the current and next year in the forecast.
- Butler County’s recent homestead rollback is estimated to cost the district $242,000 in fiscal 2026; the treasurer warned that if the county also applies a 2.5% rollback in a later year the total reduction could rise to about $542,000 annually.
- The treasurer projected a one‑year jump in electricity capacity charges averaging about 21% for fiscal 2026 and built that into the expense side of the forecast.
- Because enrollment is falling, the district is increasingly dependent on the state guarantee; roughly $3.5 million of state revenue in the forecast comes from that guarantee, the treasurer said.

Formal actions
- The board approved items grouped under the financial report, including appropriation modifications, monthly financials, and an MOU with Butler County Educational Service Center (BCESC) for Union Day Therapeutics School services; the vote on items 5A, C, D, E, F and H was unanimous.
- The board later voted to approve the five‑year forecast as presented; roll call recorded five affirmative votes.

Discussion vs. decision
- Discussion: Board members spent time discussing the policy drivers behind the revenue changes (state levy law changes and the county rollback) and asked staff to keep the community informed. Mr. Wyatt framed the issue as part of a broader statewide policy debate.
- Direction/assignment: Treasurer Dafalski said staff will continue to monitor revenues and expenses closely and report updates monthly; she noted the forecast will be revised if material changes occur.
- Formal action: The forecast and the BCESC MOU were approved by roll call votes during the meeting.

What the board did not do
- Trustees did not adopt any new cuts or levy proposals at the meeting; several members said the district will continue planning and may act later if state or county actions make further changes necessary.

Context and next steps
- The treasurer warned that legislative and county actions remain fluid: new state budget cycles and possible additional county rollbacks could change revenue assumptions. She said the district will continue quarterly and monthly reviews, and she recommended stakeholders review the forecast assumptions document posted on the district’s board documents portal.

Quotes
- “The homestead decrease has been factored in for fiscal 2026,” Ms. Dafalski said, noting that the county vote was applied to the current fiscal year.
- Mr. Wyatt said the changes represent “a battle for the soul of Ohio” and urged transparent communication with residents about consequences for local schools.

Documents and where to find them
- The treasurer said the district’s annual financial information statement (AFIS) will be uploaded to the district website and that detailed disbursement summaries are available on the board‑docs site for each month.

Ending
- Trustees and staff said they will keep monitoring the combination of state policy changes and local tax rollbacks and report updates to the board and community as new information becomes available.