Worthington treasurer warns state proposal could cut tens of millions from district budget

Treasurer TJ Cusick warned the Worthington Schools Board of Education on May 12 that a proposed state cap on districts' cash balances and competing House and governor budget plans could sharply reduce the district's revenues and shorten the runways available for future levies. The board voted to approve the district's May update to its five-year forecast.

Why it matters: The five-year forecast is the district's primary long-range financial planning tool. Cusick told the board the House's current budget language would effectively freeze state formula inputs and, combined with a proposed cash-balance cap that would limit districts to 30% of annual expenditures, could force the district back to voters sooner than planned.

Most important facts: Cusick said the May forecast shows roughly $4.0 million in added revenue and about $2.0 million in reduced expenditures over five years under the assumptions he used, a net swing of about $6.0 million or less than 1 percent. He said the district's revenue is about 80 percent local and that expenditures are similarly concentrated in personnel costs. He also said the House's approach essentially replaces the funding formula with a flat payment and that under the governor's proposal the district could lose about $2.0 million per year. On the proposed 30 percent cash-balance cap, Cusick said the district would face an immediate reduction of roughly $80,000,000 in the next calendar-year tax collections under the bill's current timing assumptions.

Cusick explained the timing issue: the proposal looks at cash balances in June and then reduces the next calendar year's tax bills to refund the amount above the cap. He said that because property-tax receipts are collected on a calendar-year basis, the mechanism could trigger a large, front-loaded reduction in district revenues and then repeat the calculation the following June before some tax receipts have been collected. "This cap on our revenue or our fund balance at 30%... is concerning and a bit of an overreach from the state," Cusick said.

Discussion and context: Board members asked whether there are state proposals Worthington should support. Cusick recommended targeted approaches such as circuit-breaker credits for low-income taxpayers and closing commercial-valuation loopholes rather than broad measures that would further shrink the revenue base. He noted recent recoveries of previously delinquent commercial collections and said residential collections remain something to watch in August. He also described other forecast assumptions: modest Medicaid and special-education threshold reimbursements, expected interest-income variance tied to Federal Reserve policy, and the district's recent responsible-staffing plan that reduced planned future hires.

Action taken: The board voted unanimously to approve the May 2025 five-year forecast as presented. Cusick and superintendent Dr. Trent Bowers urged community advocacy and provided a web page for constituents to contact legislators.

What's next: Cusick said the forecast assumes the House's version of the budget; the senate's actions remain uncertain and could change revenue projections. He and the board encouraged community members to submit testimony and contact legislators during the ongoing budget process.