Oakwood board braces for state budget carryover cap; schedules special meeting on transfers

Oakwood Board of Education finance staff and trustees on June 25 told the public the conference committee’s two‑year state budget includes a 40% cap on how much collected property‑tax revenue a district may retain as carryover, and the district is preparing transfers to avoid losing locally raised funds.

The carryover limit is part of a package approved by the Ohio House and Senate conference committee late June 24 and released in the early hours of June 25; the governor must still act. Treasurer Sauer said districts and advocacy groups had earlier seen alternative proposals — a 30% House cap and 50% Senate cap — and that 40% appears to be the committee’s compromise.

“Originally, the Ohio House proposed a 30% cap. The senate then countered with a 50% cap. The final agreement sets the carryover limit at 40%,” Treasurer Sauer said. She told the board the district currently projects roughly a 55% carryover at fiscal‑year end and has scheduled a special board meeting Monday at 5 p.m. to consider transfers to keep those dollars in the district.

Why it matters: carryover limits determine how much of locally collected property tax a district may hold in reserve; reducing that limit can force districts to reallocate or return funds and can affect multi‑year planning for programs and capital needs. Treasurer Sauer said there are supposed to be carve‑outs in the budget bill that could allow some districts to exceed 40%, but she had not yet seen those details in official guidance.

Board members approved several finance items during the meeting to close FY25 and open FY26. The board voted to: establish an education foundation fund to receive a recent trust gift; adopt the certificate of estimated resources and several transfers and final appropriations for fiscal year 2025; approve initial appropriations for fiscal year 2026; adopt a post‑issuance compliance policy related to the district’s bond issuance; and authorize disposal of surplus technology equipment. Those items were presented by the treasurer’s office and carried on roll calls recorded at the meeting.

Treasurer Sauer said the district will continue to analyze details of the state budget and update the board and community as clarifications arrive. She said she was “holding on to hope” that Governor DeWine might veto the carryover provision before June 30, which would change the district’s next steps.

Looking ahead: the district will use the special meeting to consider specific transfer actions meant to preserve locally raised funds for district purposes pending further state guidance.