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Board warns new state carryover rule could shorten seven-year levy and push districts to spend
Summary
Bellbrook-Sugarcreek officials said a recent state change raising allowable cash reserves to 30% could reduce future levy revenue and encourage one-time spending, and discussed contacting state lawmakers.
Bellbrook-Sugarcreek Board of Education members spent part of their April 10 meeting discussing a recently enacted change at the state level that raises the percentage of cash a district may carry over and how that could affect the district's seven-year emergency levy. Board members said the rule could reduce the district's revenue in later years of the levy and create incentives for short-term spending decisions.
District officials described the change as a shift from the previously lower threshold to a 30% carryover trigger in a state house bill. School leaders said if a district’s cash-on-hand exceeds the new statutory threshold on July 1, the state calculation will reduce the district’s allowable levy revenue in the following year, effectively returning some local property-tax receipts to taxpayers in the short term but shrinking resources available for future years of a multi-year levy.
Board members said the district pursued a seven-year emergency levy specifically to smooth funding over several years and that having larger-than-expected reserves in early years should not force deeper cuts later. They warned the new carryover methodology could “reward” districts that spend down reserves quickly and could pressure districts to accelerate purchases — for example, buying equipment or vehicles in June to avoid a projected reduction the next year.
Board members asked district staff and local superintendents to communicate concerns to state lawmakers. The board said Greene County superintendents were scheduled to meet with state Senator Andrew Kohler the day after the meeting and encouraged the board’s legislative liaison and the superintendent’s office to pass along talking points from Bellbrook-Sugarcreek.
No formal action beyond direction to the superintendent’s office and legislative contacts was recorded at the meeting; board members agreed to consider drafting a joint communication to state legislators that would explain how the change affects districts that rely heavily on local property taxes.
