Lebanon schools warn of budget uncertainty as state, federal proposals could cut revenues

Finance staff presented the board with a March fiscal snapshot and a quarter‑three update, saying the district currently holds roughly 131 days of operating cash and anticipates ending the fiscal year with about 113 days of operating cash.

Miss Irvin, who led the presentation, said, “Currently, we're at a hundred and 31 days of operating cash,” and warned that pending state budget proposals could affect tax collections. Board members and staff discussed a House proposal that would instruct the county budget commission to reduce tax collections for districts with carryover balances above a 30% threshold; the presenters said Lebanon’s projected 113 days is roughly a 31% carryover and estimated the House approach could cut roughly $700,000 from collections for the district if implemented as described.

Missus Cope, the board’s legislative liaison, said both chambers of the Ohio General Assembly were on break but that the Senate is expected to begin budget deliberations soon, adding the department of education and workforce had opened public comment on scholarship‑program rules. The board expressed concern about several state proposals flagged in the presentation: changes to the Fair School Funding Plan inputs, expansion of private school voucher programs and an outlined cap on district reserves.

Finance staff also reviewed federal funding risks. The presentation noted ESSER funds were one‑time, the U.S. Department of Education had circulated a notice asking states to certify compliance with Title VI (the Civil Rights Act of 1964) following recent Supreme Court attention, and broader federal proposals could reduce categorical funding or remove programs. Miss Irvin said the district does not currently receive federal funds tied to DEI programs called out in some federal proposals.

The treasurer’s office said it will present an updated May forecast and run scenarios to show possible outcomes under different state budget proposals; staff emphasized that the May forecast will reflect known factors at that time.

Board members urged careful advocacy to state legislators and highlighted the need for clear, nonpolitical analysis because district funding relies primarily on property taxes while the state budget relies on income and sales taxes. Several board members noted the district’s current reserve level provides flexibility to weather short‑term changes but that the proposed policy approach could force earlier levy requests or other adjustments.

No formal vote was taken on the fiscal update; staff said they will return with the May forecast and modeled scenarios as legislative details become available.