Treasurer warns proposed state tax changes could sharply cut local school revenue

Treasurer TJ Cusick briefed the board on several state-level tax proposals that he said could materially affect the district’s revenue. Cusick summarized bills under discussion — described in the meeting as a set of proposals dubbed the “taxpayer freedoms trilogy” — that would change levy rules, potentially eliminate continuing levies, repeal inside millage and raise the voter threshold for new levies to two-thirds. He also discussed House Joint Resolution 6, described as a proposed constitutional amendment that would cap property taxes at 1.25% of a property's true value.

To illustrate the potential scale of a change, Cusick said: “If we take a house in Worthington proper that's valued at 400,000, currently, it pays about $9,000 in property taxes. 1 and a quarter percent is $5,000. So we potentially would lose half of our property tax revenue.” He explained that a change of that magnitude would require legislative action to place the amendment on the ballot and then voter approval; he said the assembly would need a three-fifths vote to send the measure to the ballot.

Cusick said the governor’s working group is examining tax-deferral options and other proposals, and that the legislature could take up proposals in the fall. He urged the board to follow developments and noted that the district’s five-year forecast and property-tax planning could be affected. He also warned that some proposals — such as changes to inside millage or levy structures — could have complicated legal and debt-service consequences if enacted.

Board members asked procedural and practical questions about how reductions might be apportioned and whether bond levies would be exempt; Cusick said bond levies likely would need exemption and that changes could create significant legal and fiscal challenges for districts. No formal board action was taken; the discussion served as an informational briefing on state-level risks to local school funding.