Cincinnati school board adopts budget cuts, authorizes TIF talks and property review as state budget threatens funding

The Cincinnati Public Schools Board of Education on June 23 approved a package of contract and staffing reductions, temporary 30‑day appropriations and authorized continued negotiations with the city over tax‑increment financing (TIF) and community reinvestment agreements (CRA), while urging swift public outreach after lawmakers in Columbus circulated budget language that district leaders said would reduce CPS funding.

Board members voted unanimously on multiple items after a detailed presentation from Treasurer Wagner and district finance staff that outlined three competing state budget proposals and the likely effects on CPS revenues. Treasurer Wagner told the board a governor’s proposal would cut the district more deeply, the House version would keep revenues nearly flat for some districts and the Senate approach would reduce CPS funding by roughly $6.3 million in the first year because it updated income measures but not the cost factors used in the formula.

The nut graf: CPS officials said the district is unusually exposed because the state formula and state policy changes under discussion would reduce the state share of funding and limit local options—such as fixed‑sum levies—that the district relies on, forcing the board to cut now to preserve reserves and operational continuity.

The board approved a master list of vendor contract reductions and central‑office impacts; approved schedule‑E reductions; accepted spring teacher allocation (TAC) staffing realignment that the district described as 109.9 teaching positions equivalent (41 filled positions could be reassigned); and approved temporary 2025–26 appropriations to give the district time to react to the state budget outcome.

Treasurer Wagner and the district warned that proposed state language could remove or change fixed‑sum levies and alter the 20‑mill floor calculation, shift levy types to income taxes, and even propose eliminating portions of inside millage — any of which would materially reduce CPS revenues. Wagner urged parents and community members to contact conference committee members meeting the next day.

District leaders also asked the board to authorize continuing discussions with the city to extend existing TIF agreements and to negotiate a higher payment to CPS (the board was told the proposal would increase the district’s share of pilot payments from about 27% to 33%). The board authorized staff to continue talks under parameters presented and to seek a final agreement for later approval.

The board also voted to authorize administration to review possible surplus property sales and to begin related steps. Treasurer Wagner said property sales and additional TIF/CRA revenue were part of a set of revenue options that, if realized, would materially reduce the remaining budget gap.

Quotes and attribution: Treasurer Wagner briefed the board on the state versions and their likely dollar impacts. Board member Craig urged community outreach, saying the state proposals both cut state support and narrow local revenue options. Vice President Bolton framed the stakes as a removal of local control over school funding. "When the funding formula changed and we got wealthier as a district because we have high property wealth, our state share gets diminished," Treasurer Wagner said. "Just 5 years ago we were at 47% state share; now we're down to 36.9% and projected to 30% next year." (Treasurer Wagner, presentation to the board.)

Ending: The board asked district leaders to bring back a full appropriations update at a July meeting after the state conference committee and possible vetoes play out. For now, the district will operate under a 30‑day temporary appropriation and begin implementing the approved vendor and staffing reductions.

Votes at a glance: The board recorded unanimous or majority votes on several finance items: master list of reductions (approved, roll call recorded), impact positions (approved), spring TAC staffing realignment (approved), schedule E reduction (approved), temporary 2025–26 appropriations (30‑day temporary appropriations approved), authorization to continue TIF/CRA negotiations with the city (approved), authorization to review potential property sales (approved). Specific roll calls and tallies are documented in the actions array below.