Big Walnut treasurer and superintendent warn House budget and proposed cash-cap could force $26.8 million return to state

Big Walnut Local Schools officials told the school board Monday that a proposed change in the state budget and a new House provision capping school district carryover could require the district to return roughly $26,765,699 in fiscal 2025.

The warning came during the district—s finance update and five-year forecast presentation, when Treasurer Scott Gooding and Superintendent Ryan McClain summarized current revenues, projected changes and how a cash-cap in substitute House Bill 96 might affect local reserves.

The forecast and why it matters

Treasurer Scott Gooding said the district remains in a strong financial position through March but emphasized the numbers are sensitive to state action and timing. "The revenue highlights for revenue and other financing sources, actual year to date through March 31 was 38,120,000.00," Gooding said, noting a year-to-date revenue variance of about $1.59 million over estimates and underspending on expenses that improved the district's cash position.

McClain framed the budget risk in blunt terms. "If that were put into placewe would be required Big Walnut would be required to return nearly $27,000,000 this year," Superintendent Ryan McClain said, describing the House budget—s proposed limit that would force districts to remit amounts above 30% of prior-year operating expenditures.

Why the district could be affected

McClain and Gooding walked the board through the forecast drivers: stronger-than-expected local property- and income-tax receipts, higher investment income, and one-time timing differences the district has recorded. McClain said those improved receipts moved the forecasted start of deficit spending from fiscal 2026 to fiscal 2028.

But the House budget proposal includes two linked changes that McClain said would affect Big Walnut differently than many other districts: a revision to the state—s school-funding formula (the Fair School Funding Plan) and a separate limit on districts— carryover cash balances. Using the administration—s FY-24 expenditures and projected FY-25 ending cash balance, McClain presented the arithmetic the administration said would follow if the 30% cap were enforced: a target 30% carryover would be about $15,248,268; projected cash balance was roughly $42,013,967; the difference equals $26,765,699.

McClain noted the cap would apply to public school districts only, not to cities or townships, and said the proposal would let county budget commissions reduce local property tax rates to recoup the excess carryover for the next tax year.

Open-checkbook pilot and forecast adjustments

Gooding showed a pilot of ClearGov, an online budgeting and transparency tool, and described an "open checkbook" capability the district plans to publish. "This will be linked to the financial page on the District's website, and we'll have that out there for folks to see," Gooding said, describing uploads of three years of actuals plus the current fiscal-year transactions.

Gooding also summarized line-item movements used to produce the May forecast: revenue collections exceeded the November forecast (total revenues up 4.37% vs. estimates), and expenses were under budget in several categories; buying buses earlier produced capital increases this year but reduced next-year projections. Gooding said those updates and stronger-than-expected tax and income collections pushed a projected onset of deficit spending out two years to FY 2028.

Policy response and next steps

McClain said the administration has drafted a cash-reserve policy for first reading that would require the superintendent and treasurer to present a plan if reserves fell below a minimum (the draft referenced 25%) or exceeded a high threshold (the draft included a 50% example). He said the board and staff are also exploring using some reserves now for an anticipated master facilities plan and other capital projects rather than seeing funds reduced through the county budget process.

Board members pressed for continued advocacy and clarity from lawmakers. Several described conversations they—ve had with state legislators and called for the board to continue outreach to Representative Beth Lear and Senator Brenner and to participate in professional advocacy through organizations including the Ohio Association of School Business Officials.

What the board decided and what remains

The board did not vote on the forecast or on the draft cash-reserve policy during the meeting; McClain said the May forecast (required by statute as an update to the November forecast) will be presented for approval at the board's May meeting after two additional state- and local data points are received: the second state foundation payment and a final income-tax distribution.

Ending

Board members and several members of the public urged the board to hold a community meeting and to keep residents informed about how potential state changes would affect local services and levies. Gooding said the district anticipates posting the ClearGov open-checkbook tool publicly in June or July and will present the tool to the board prior to the public launch.