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Mason City Schools board authorizes up-to-$24 million contingency transfer amid state budget uncertainty
Summary
Facing potential state budget changes and a proposed limit on operating reserves, the Mason City Schools Board approved authority to transfer up to $24 million from the general operating fund into the capital improvement fund as a contingency measure; board members and district leaders urged community advocacy to legislators.
The Mason City Schools Board of Education voted unanimously to authorize district leaders to transfer up to $24,000,000 from the district's general operating fund to a capital improvement (PI) fund if a cash-reserve cap in the state budget takes effect.
Board members approved the contingency as part of the district’s fiscal year closeout resolutions and temporary appropriations, saying the action is a protective step while the state’s biennial budget (House Bill 96) and a recently introduced property-tax bill (House Bill 335) move through conference committee.
The measure matters because House Bill 96 discussions have included a proposed cash-reserve cap. “If that 30% cap was enacted tomorrow … that would be an impact of $24,000,000 for our school district,” Treasurer Sean Bevin said during the presentation. The district’s current general-fund reserve was cited as about 44%; the house proposal would cap reserves at 30% while a senate version under consideration would set a 50% cap and have no immediate effect on Mason’s reserves.
Superintendent Jonathan Cooper framed the vote as a precaution while the legislature finalizes decisions. “We have been working diligently at the state level, advocating on behalf of Mason City Schools,” Cooper told the board, and described the district’s outreach to state legislators and community contacts.
Board members pressed for clarity on mechanics: Bevin explained the cap would be enforced by the state reducing local inside or voted millage if a district’s operating cash exceed the limit, effectively removing locally approved levy revenue to bring reserves into compliance. The transfer authority would allow the district to move funds into a capital fund (where they would be restricted for facilities projects such as roofs and pavement) rather than have the state reduce local millage.
Board members described the decision as a risk-management step to avoid emergency governance action if the legislature enacts a cap before the board can meet again. Cooper and Bevin also urged community members to contact state legislators, stressing respectful, persistent advocacy. Cooper highlighted the practical impact of a separate bill being discussed in Columbus: “If House Bill 335 goes through, that's a 160 teachers” (as an illustrative example of scale), and district leaders warned of wide service impacts if inside millage were eliminated without local replacement revenue.
The board approved the fiscal-year closeout and temporary appropriations, which included the transfer authority. Roll call recorded five aye votes: Orr, Steele, Yingling, Galvin and Bache; the motion carried 5–0.
District officials said they will only enact the transfer if necessary after the legislature finalizes the budget and cap language, and that moved funds would be used for capital work rather than day-to-day operating costs.
The board encouraged residents to contact state representatives and described specific legislative items under watch: House Bill 96 (the state budget/biennium funding), a proposed cash-reserve cap discussed in the house and senate versions, and House Bill 335 (a more recent proposal that would eliminate certain inside millage revenue streams for local governments).
If enacted as written by the house sponsors, district leaders warned, the proposals could require rapid changes to how local taxes and district reserves are applied in Mason and across Ohio. For now, the board’s vote preserves an option to protect the district’s fiscal stability while the state process concludes.
