Treasurer warns state budget proposals could cut Wyoming school revenue, flags '30% cash balance' risk

At the April meeting the district treasurer briefed the Wyoming Board of Education on the Ohio biennial budget process and what several competing proposals could mean for the district’s finances.

State revenue context: The treasurer told the board the district’s general‑fund revenue mix is roughly 41 percent real‑estate tax, 31 percent income tax and 20 percent state funding. The treasurer said state funding has been effectively flat for the district since fiscal 2019 and that the district has been on the Fair School Funding Plan guarantee for several years.

Why it matters: The treasurer said three competing budgets (governor, house, senate) were under consideration and that the governor’s initial proposal both paused updates to cost inputs and reduced the guarantee for districts on the guarantee formula — a change the treasurer estimated would cost this district roughly $850,000 over the two‑year biennium and about $2.5 million over a five‑year forecast if left in place.

Cash‑balance provision: The treasurer said the House version maintained guarantees but added a new cash‑balance provision that would require county budget commissions to reduce a district’s property‑tax revenue if the district’s June 30 cash balance exceeds 30 percent of expenditures. The treasurer said Wyoming began the fiscal year with a 33.41 percent cash balance and that, under the House measure, the county could immediately reduce property tax collections — a reduction the treasurer said could have equaled about 1.16 mills or roughly $530,000 for this district at the start of the year.

Bond‑rating impact: The treasurer also told the board that cash balance is a factor in bond ratings; Moody’s had cited a higher cash balance (50 percent referenced as a factor) as something that could lead to an upgrade, and a forced tax reduction tied to cash balances could affect debt service and interest costs.

What changed between proposals: The treasurer summarized the governor’s, the house’s and the pending senate’s approaches: the governor’s plan would shrink the state share of the funding formula and reduce guarantees; the House plan paused the phase‑in but maintained guarantees while adding the 30 percent cash‑balance trigger; the senate’s version had not been released at the time of the presentation. The treasurer urged advocacy to protect the guarantee and to remove the 30 percent cash‑balance provision.

Board discussion: Trustees pressed for further analysis and asked how district‑issued laptops and classroom devices might substitute if personal phones were limited in schools. Trustees and staff also discussed levy timing: the treasurer said the cash‑balance measure would make passing and timing local levies more difficult and could increase how often districts must return to voters.

Ending: The board did not adopt a fiscal action at the meeting but directed staff to continue monitoring the legislative process and to coordinate outreach, testimony and advocacy with local partners if the senate version includes the House cash‑balance language.