Pickerington Local treasurer warns state tax changes could cut millions from district operations

The Pickerington Local School District Board of Education received a financial update Tuesday in which the district treasurer warned that expected seasonal cash shortfalls and proposed state tax changes could reduce district revenue by millions.

“Cash flow from May was negative, just under $7,000,000. This was anticipated,” said Mr. Postage, who presented the treasurer’s report, noting the district finished the period with about $30,500,000 in cash across funds. He said year-to-date the general fund remained “positive, just under $4,000,000,” but that forecasted seasonal swings will push the district into negative cash in June and reduce projected ending cash to about $23,000,000.

The report matters because the treasurer said legislative proposals in Columbus — including changes tied to House Bill 335 and related property-tax reforms — would affect how districts calculate the so-called 20-mill floor and the ability to move “inside millage” between purposes. “That’s 3 and a half mills. So that’s … $8,000,000 on a full tax year,” Mr. Postage said when describing the local revenue implications if inside millage limits are imposed and emergency levies are counted against the floor.

Why it matters: the board uses transfers of inside millage and other local tax tools to cover operations and to pay debt-service on construction borrowing; the treasurer said ongoing construction pay applications are the biggest contributor to recent negative fund balances. He referenced the district’s prior use of millage—“we moved a half mill 2 different times to pay for the $30,000,000 COPS that we borrowed for construction”—as an example of how limits on moving millage could reduce operational revenue.

Board members pressed for clarity about next steps and whether the legislature had contingency plans. A board member asked, “So do our friends downtown have a plan B if they’re going to eliminate property taxes and movement of inside millage and how we can come up with the 20 mil floor?” Mr. Postage replied that such policy questions are for the legislature.

District staff said the Senate and House versions of the K–12 funding changes differ and that the Senate’s proposal at the time included phase-ins of the Fair School Funding Plan years five and six but reduced some components tied to DPIA and CEP district calculations. The treasurer said the fiscal effects compared with the House version look “$700,000 to $800,000 lower over a 2-year period,” though details were not available at the meeting.

The board voted to accept the financial report. Board members were told the legislature likely will produce an omnibus bill, followed by a conference committee before the June 30 budget deadline unless an extension is granted.

The treasurer’s figures and the board’s discussion were presented during the routine finance report portion of the meeting; no formal new revenue or tax measures were proposed by the board at this session.