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State budget cash-cap prompts caution; Dublin City Schools says short-term carryover safe but future levy cycles at risk
Summary
District officials said the states budget changes, including a cash-carryover cap, reduced the number of levers local governments can use for revenue. Dublin City Schools officials said they expect to finish the year near current forecasts but warned the cap could shorten future levy cycles and affect long-term planning.
District leaders told the board that changes in the Ohio biennial budget could limit how much cash school districts carry over from year to year and may affect future levy cycles.
Superintendent Dr. Marshhausen told trustees that the districts lobbying and coordination with local officials helped blunt the most severe proposals. "When the first cap that came out was 30%, which would have been incredibly harmful to our five-year forecast,... we got our senators involved, and they raised it up to 50%. It ended up landing at 40% for a cash cap," Marshhausen said. He added the district expects to finish the fiscal year at about 38.9% carryover and that the cap, as written, does not threaten the districts short-term carryover but could complicate multi-year levy planning.
Treasurer Mister Kern said the change from a five-year forecast to a four-year forecast may alter reporting timing and noted broader statewide effects: "There are 370 districts across the state that this will affect with a potential revenue loss of about $2,270,000,000." Kern cautioned there are exemptions for certain set-asides and that county budget commissions (county auditor, county treasurer and county prosecutor) will have new authority to adjust levy rates based on submitted finances.
Kern summarized district-year-end figures: the district closed its books for FY '25 with roughly $295,000,000 in revenues (about $650,000 under projections) and an expected reimbursement of about $706,000 for Science of Reading stipends to be received in July. He said expenditures ran approximately $780,000 over projections on a roughly $293,000,000 expense base; timing of payments explained part of that variance. Kern said the district expects the general fund position to be close to forecast after reimbursements.
The board approved related year-end financial actions on the agenda, including transfers to seed Bishop Elementary principal funds and temporary advances to cover grant reimbursement timing; the motions passed by roll call (items 6b through 6f approved 5-0). Kern said most advances relate to state and federal grant reimbursement timing, and one longer-standing negative balance in the Jerome tournament account will be researched.
Why it matters: The cash-carryover cap and forecasting changes reduce flexibility for districts statewide. While Dublin City Schools officials said short-term carryover is not in immediate jeopardy, the cap could force shorter levy cycles, lower millage in future levies, or incremental levies to maintain services if districts cannot build carryover beyond the cap.
