Westerville board weighs earned‑income levy, shifting reserves as state school funding falls short

The Westerville City Schools Board of Education discussed on June 9 moving millions from the district general fund into separate capital and termination‑benefits accounts and signaled interest in asking voters this fall for an earned‑income tax to cover an ongoing funding gap created by reductions in state school aid.

District staff said the state funding picture has deteriorated: "The cost of education in Ohio is a shared responsibility between the state and the local community," said district staff member Nicole during a work session, and the district has already lost formula funding this school year. Nicole said the district had “lost $4,000,000 in state formula funding” from last year to this year and that the district’s revenues and expenses are “upside down by over $20,000,000 a year.”

The board’s discussion moved beyond the state budget to practical steps the district could take locally. Staff proposed creating or replenishing two dedicated funds: a termination benefits fund to cover retirement and severance payments and a capital projects fund for equipment, technology, roof and HVAC work, bus and vehicle replacements, and other fixed assets. The district proposed transferring roughly $6.6 million to the termination benefits fund and approximately $40.6 million to a capital projects fund now, with a wider ten‑year spending allowance noted for capital projects.

Why it matters: the district’s presenters said state aid has not kept pace with costs. Nicole repeatedly urged that local officials press the legislature for a larger state share while the board determines what to ask voters locally. "We need…