Treasurer warns legislative tax changes could cut Brunswick’s reserves up to $12.8M; board adopts forecast and appropriations

Brunswick City Schools’ treasurer presented an updated financial forecast Sept. 16 and told the board that while the district’s current projections show it can sustain operations under present assumptions, several pending state legislative changes could sharply reduce district revenues.

Why it matters: About 60% of the district’s revenue is local tax receipts and roughly 40% is state aid, the treasurer said. Proposed or overturned line‑item vetoes and budget provisions — including restrictions on renewal (fixed‑sum) levies and a possible cap on allowable year‑end carryover — could reduce the district’s reserves or change how local taxes are calculated.

Treasurer Mark Rivera told the board he could not finalize long‑term projections until certified county tax valuations are available, which the county told the district would arrive in mid to late December. Rivera said the forecast published with the meeting uses current assumptions and that a revised forecast will be presented later this year once those valuations and additional legislative clarity are available.

“Quite frankly, we don't have all the information, in some regards to projecting out even as short as looking out into our current school year. And I know that's disappointing, but that's the truth,” Rivera said during the presentation.

Legislative risks highlighted Rivera reviewed several pending or vetoed budget provisions that he said would affect many Ohio districts if the vetoes are overturned or similar measures are enacted: - Line‑item 55: would expand county budget‑commission authority and could shift some fiscal control away from locally elected boards, Rivera said. - Line‑item 63: would cap allowable cash carryover at a percentage of expenditures; Rivera estimated an immediate, one‑time reduction to Brunswick’s carryover of about $12,800,000 under the 40% cap scenario used in the legislature’s most recent drafts. - Line‑item 65: would change the calculation of the state’s minimum 20‑mill floor and could reduce the district’s tax revenue under the proposed formula changes. - Line‑item 66: would eliminate or restrict renewal (fixed‑sum) levies, a change that Rivera said could force the district to seek new levies rather than renew existing ones and remove the current homestead/rollback protections for those levies, increasing the tax burden on residents if replacements are needed.

Rivera also showed how the district’s state aid relies in part on a funding guarantee: the district currently receives about $24.25 million in state revenue that mixes formula‑derived aid with guarantee funding inserted by the state to maintain baseline dollars during the funding formula transition. Rivera said discussions at the legislature have included proposals that would reduce or eliminate guarantees, which would materially affect districts like Brunswick.

Board action The board adopted a resolution directing the treasurer to continue preparing a five‑year forecast in addition to the four‑year forecast now required by House Bill 96 and the amended Ohio Revised Code. The resolution passed unanimously (Gessler, Hanadel, Weinauer voting aye).

The board also approved the fiscal forecast, appropriation and spending plan for fiscal year 2026 and several related financial motions that were presented during the meeting, including temporary appropriation modifications and acceptance of a $20,000 grant (Fund 516, SSIP Each Child On Track). Those votes were recorded as unanimous by roll call (Weinauer, Gessler, Hanadel — all “Aye”).

Rivera emphasized the difference between a forecast and an appropriation: the forecast is his projection of where the district will end the year under current policies and revenue expectations; appropriations are the legal spending limits assigned to departments and funds. He cautioned that the first forecast filed under the new, earlier state submission timeline will be less reliable because certified county valuations will not be available until later in the calendar year.

Financial outlook and next steps The treasurer’s forecast shows revenues and expenditures converging in fiscal years 2027–28 under current assumptions; absent legislative changes, the district’s cash balance is projected to decline gradually thereafter, which is a typical pattern in a standard levy cycle. Rivera said the district is monitoring several variables — certified tax values from the county, state legislative decisions and interest income trends — and will issue updated forecasts in December and February as new data arrive.

The board also approved a package of contracts and purchases tied to current construction and district operations (furniture for a new maintenance/board office, HVAC testing services, and several construction change orders tied to a high school project). Those actions passed by unanimous roll call.

Rivera concluded by urging careful legislative review and communication with the community if proposals that would reduce district revenue are enacted; board members echoed concerns about planning in an environment where several large policy changes are under consideration.

What the board approved (high level) - Resolution to prepare a five‑year forecast in addition to the four‑year forecast required by the state (unanimous). - Fiscal forecast, appropriation and spending plan for fiscal year 2026 (unanimous). - Temporary appropriation modifications (unanimous). - Acceptance of Fund 516 SSIP grant, $20,000 (unanimous). - Various procurement and contract approvals for furniture, testing services and construction change orders (unanimous).

The treasurer said he will return with updated projections after county tax values are certified in late December and with another forecast filing in February as required by state law.