School business officials warn House panel that House Bill 186 could create major funding gaps and constitutional issues

COLUMBUS — At the House Ways and Means Committee’s third hearing on House Bill 186, witnesses representing school business officials warned the committee the bill’s property-tax credit mechanics would create sizable revenue losses for districts, raise constitutional questions about uniform taxation and equal protection, and mostly affect districts already at the 20-mill floor.

Katie Johnson, executive director of the Ohio Association of School Business Officials, told the committee that the Legislative Service Commission’s fiscal note projects property-tax credits under House Bill 186 would total “nearly $42,000,000 in tax year 2025 and increase to $64,000,000 in 2026.” She said the bill’s state funding adjustment would only offset “approximately 30 to 40% of the lost revenue and wouldn't begin until fiscal year 2027.”

“House Bill 186 would create an immediate and significant funding gap for school districts while raising constitutional concerns,” Johnson said, citing Article 12, Section 2 of the Ohio Constitution, which requires that real property…