Big Walnut officials warn proposed Ohio tax changes could cut district $8.1 million

Big Walnut Local School District officials told the school board on June 16 that proposed changes in the Ohio Legislature could sharply reduce the district’s property-tax revenue and force new local levies.

Interim Treasurer/CFO Jace Alcoutin submitted written testimony to the Ohio House Ways and Means Committee outlining concerns about House Bill 335 and related proposals and saying, “If the inside millage goes away, we'll lose $8,100,000.” He described the package of bills as “the most comprehensive changes to Ohio's property tax system in nearly 50 years” and urged lawmakers to reject provisions that he said would shift revenue burdens to residential taxpayers and penalize districts that maintain reserves.

Why it matters: Big Walnut depends heavily on local revenue. Alcoutin’s testimony summarized the district’s FY2025 revenue mix and warned that eliminating inside millage or imposing caps on cash balances would reduce predictable funding for operations and capital projects.

Alcoutin said the district is 81.77% reliant on local operating revenue in FY2025, with 50.52% coming from real estate taxes, 6.79% from public utility personal property taxes and 19.06% from income taxes. He told the board the bills under discussion include House Bill 129, House Bill 186, House Bill 309, and the new House Bill 335; he also referenced House Bill 96’s proposed cap on cash balances. Alcoutin described a likely combined effect: “these bills, when taken together, create a double bind,” and said they would “erode the stability and credibility of Ohio's public education system.”

District advocacy and next steps: Alcoutin said he submitted written testimony and will attend the committee meeting at the State House. Board and district staff reported meetings with local officials and legislators; Alcoutin said he and district staff met with Representative Leer and that he had spoken with Mayor Saint John and Galena Mayor Cannell to coordinate concerns. Public commenters also urged action: parent Molly Snodgrass told the board, “Making school boards partisan will inject politics into schools,” and urged the board to press lawmakers on the package and mobilize the community. Resident Michael Wagner also spoke about the broader public interest in public education funding.

Board response and procedural note: Board members discussed whether the board should formally endorse Alcoutin’s written testimony. Several board members expressed reluctance to take a formal board-level political position. The board did not adopt a resolution; Alcoutin’s written testimony was submitted individually to the committee and the treasurer said he would share it with local officials.

Background and potential scale: Alcoutin’s written materials said inside millage represents roughly half of school-district property tax collections statewide and that repeal would remove inside millage collection for all local governments except townships as of Jan. 1, 2026, under the bill’s language as presented to the committee. Alcoutin and others warned that the district could face immediate multimillion-dollar revenue losses and would likely need to return to voters to replace lost funding if the proposals become law.

What the district will do next: District staff said they are continuing outreach to legislators and local elected officials and will share information with the community. Alcoutin and district staff asked the board to monitor legislative activity and to provide data needed to advocate for alternatives to the proposed changes. No formal board vote on a position was taken at the June 16 meeting.