Centerville officials warn state budget and property-tax proposals could cut millions from schools

5074108 · June 26, 2025

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Summary

Board members and staff told the Centerville City School District board that provisions in the state budget and a separate property-tax reform bill could eliminate emergency-levy renewals and inside millage, costing the district about $15 million and forcing service cuts unless lawmakers alter the proposals.

Centerville City School District officials told the board June 16 that pending state budget and property-tax legislation could sharply reduce local school revenue and force program and staffing cuts.

The board discussed elements packed into the state biennial budget (House Bill 96 and related conference committee work) and a sweeping property-tax reform proposal often referenced as House Bill 335. Dr. Graff said the budget was in conference committee and that conference members could forward a final package to the governor within days; the governor retains line-item veto authority.

Board and staff members said several provisions matter locally: changes that would eliminate the ability to renew emergency levies, requirements to disclose carryover cash balances on future ballots and a proposed carryover cap (the house and senate proposals have differed, with the house proposing 30% carryover and the senate 50%). Staff warned that under one scenario the district could lose about $15 million in annual revenue if the state eliminates inside millage that currently allocates 5.25 of the statewide 10 inside mills to the district.

"That is $15,000,000 per year of lost revenue for us," a district staff member said when describing the potential effect; staff later estimated the city would lose about $2,300,000 under the same change. Administrators and board members said the scale would require significant staffing reductions: in a prior levy failure the district eliminated 15 certificated and 30 classified positions for roughly $3 million in savings; a $15 million cut could scale those reductions several times over and push elementary class sizes above 30 in some scenarios.

The board also reviewed simulations staff received that projected an increase in foundation funding under some senate scenarios — Dr. Graff said those simulations showed roughly $1.7 million in additional state funding in fiscal 2026 and an additional ‘‘performance’’ supplement that could total roughly $1 million per year for the district — but she cautioned that the district had not received detailed line-item explanations and that the numbers were preliminary.

Board members and staff urged residents to contact legislators and the governor’s office during the conference-committee and post-conference windows. Officials said timelines were fast: the Ohio Association of School Business Officials (OASBO) indicated conference findings could be assembled quickly and votes could occur within days, so the district and education associations were coordinating outreach.

Dr. Graff said the board would monitor outcomes and, if necessary, could call a special meeting to address budget changes, including creating an internal severance or reserve fund to preserve taxpayer funds if legislative changes required midfiscal-year adjustments.

Why it matters: Centerville officials said the proposed changes go beyond schools; they noted cities and counties could also see revenue losses. The district framed the discussion as contingent on final legislative language and possible vetoes by the governor. Board members repeatedly emphasized uncertainty about final text and timing and recommended constituent advocacy while details are being finalized.