Worthington board raises alarm over proposed state budget cap on school carryover funds

Board members and district financial leaders used their April meeting to discuss a proposed change in the state budget that would cap how much cash a school district can carry over from year to year.

Superintendent Trent Bowers told the board that under the governor’s initial budget proposal Worthington was projected to lose state funding; he said the Ohio House restored $2,200,000 in its version but proposed a cap on districts’ carryover balances. Bowers said the change "overrides local voter decisions, which raises serious legal and governance concerns about local control."

Treasurer T.J. Cusick framed the carryover-cap proposal as a policy that would "penalize districts for good financial management." Cusick said the cap "is equivalent to overturning what a local voter approved" for districts not on the so-called floor and warned it could incentivize short-term spending decisions that reduce the useful life of district assets. He also explained why school districts need larger cash balances than other governments because district levy revenue is flat year to year while cities and states receive revenue streams that grow with inflation.

Board members and staff noted specific possible fiscal impacts discussed in the meeting: Cusick said the district would potentially be required to return locally approved funds in a sum described in the meeting as "$79,000,000 in tax paper approved funds," and that the House’s carryover cap proposal could require earlier replacement of capital items and damage long-term planning. Staff also reported other fiscal indicators: residential property tax collections were a few percentage points under projection this year and interest income has been higher than projected due to elevated rates.

The board discussed outreach steps during the Senate recess, including drafting a board resolution and contacting legislators. Superintendent Bowers said the district posted a blog and planned newsletter and guest-column outreach; he said the governor’s office had acknowledged receipt of the district’s materials. Board members agreed to consider a resolution at the April 28 meeting and noted that Representative Samani is scheduled to speak to the board that night; one member suggested inviting Senator Beth Liston as well.

Ending: District leaders said the budget process remains fluid, with a state budget expected by June; board members urged coordinated communication with legislators and community members while the Senate considers the House proposal.