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House budget proposal halts projected funding drop for Kings Local; district wins money for enrollment growth

2939413 · April 10, 2025
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Summary

Kings Local Treasurer reported the Ohio House budget would prevent a multi-year funding decline the district expected under the governor's plan and add money for districts that gain students; board heard details and discussed state cash-balance limits and ongoing advocacy.

Treasurer Morrow said Kings Local School District would likely avoid a roughly $2 million projected funding loss over three years under the Ohio House budget proposal and that the House added a targeted provision to give districts additional funding when enrollment grows.

The change matters because Kings is a growing district and had faced cuts under the governor's earlier proposal; the House version would largely hold funding flat for the district and add incremental funding for new students, Treasurer Morrow told the board.

Morrow said the House is effectively moving away from the Fair School Funding formula toward what he described as a residual budgeting approach — “you get what you got last year, and then we’ll give you a little bit more” — and that two priorities the district advocated for were included: not taking money away from current funding levels, and giving districts additional dollars when they gain students.

The treasurer told the board the district is tracking roughly $7.2 million in cost savings or new revenue generation so far, with a goal of $8 million by the end of 2025, and that Kings’ cash balance has typically stayed below 20 percent of prior-year spending. He said that under the House language the state would cap allowable cash balances at 30 percent of prior-year spending, a rule that would not immediately affect Kings but could “be devastating” to other districts that carry large reserves for capital plans.

Superintendent Sears and Treasurer Morrow said they had discussed the enrollment funding point with State Senator Wilson during recent advocacy outreach and that the House language reflects the district’s request that growing districts receive additional aid. The board and staff emphasized continued outreach to the Senate, which had not finished its proposal at the time of the meeting.

Board members asked how the Senate might treat cash balances and property-tax reform; Morrow and Sears said the Senate was still developing its response and that local advocacy would continue. Board President Skerrill thanked community members for respectful advocacy and noted parents and families had communicated with legislators.

The district will continue to monitor the Senate process and report updates to the board as the budget moves through the legislature.