Cincinnati board adopts $634.7 million FY26 budget after state aid uptick; federal Title funds temporarily held pending review

The Cincinnati Public Schools Board of Education approved the fiscal year 2026 general fund operating budget July 9, adopting a $634,682,007 revenue target and passing the annual appropriations resolution.

Treasurer Wagner and senior staff told the board that an updated state settlement and several one-time items narrowed the district’s budget gap. An increase in state-aid settlements and corrected student categorical counts contributed roughly $6 million in additional revenue; the budget also incorporated a $5 million TIF payment from the city, proceeds of $1.5 million from property sales and the use of $2.2 million from prior-year preschool cash to reach the approved target. The administration described a multistep “pathway to balance” that combined a master reduction list (about $28.9 million), additional reductions approved earlier (about $21.1 million, including 109.9 teacher positions and RIFs), and final budget refinements to produce a balanced FY26 plan.

Treasurer Wagner publicly thanked staff, unions and community members for working through difficult choices and credited Governor Mike DeWine’s line-item vetoes for preserving some state support; administration urged continued advocacy because several vetoes remained subject to a possible legislative override.

Administrators warned of two major fiscal risks going forward. First, state-level changes to property-tax calculations (the “20-mil floor” and other rollback proposals) and pending bills such as House Bill 335 and Senate Bill 66 could reduce local revenue; the board was told a full repeal of property taxes would be catastrophic for local budgets. Second, on June 30 the U.S. Department of Education instructed states to pause allocations for several federal programs—Title II, Title III and Title IV—and an adult-education grant (SPIRE), putting roughly $5.2 million of expected FY26 federal money into a temporary hold for the district. The administration described the hold as reimbursement-based funding that states and districts normally draw down; no timeline was given for release of those funds.

Board members and public commenters raised concerns about program impacts: reductions to school social workers, the reassignment or pairing of some schools for social-work coverage, potential deferred IT lease payments, and cuts to instructional positions. Teachers and parents who spoke during the public-comment period urged protections for student services and stability at high-need schools; Taft and Withrow staff and community members asked the board to consider year-long interim leadership or other measures to minimize classroom disruption.

After extended discussion the board voted to adopt the superintendent’s FY26 recommendation and the annual appropriations resolution. The roll-call votes were recorded as unanimous in favor of both the budget adoption and the annual appropriations.

The board also directed several follow-ups: administration will provide school-by-school budget documents and a revised financial-reserve policy; the policy and finance committees will continue monitoring pending state and federal developments; and staff will begin earlier planning for FY27 given the ongoing revenue uncertainty.