Treasurer warns House Bill 96 could reduce state school funding share; district issues bonds to fund construction
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Summary
The district treasurer presented a five‑year general fund forecast showing revenue shortfalls in later years if House Bill 96 is enacted as described; the treasurer also noted the district issued bonds the same day to finance construction projects.
The Bedford City Schools treasurer presented the district’s five‑year forecast at the May 15 board meeting and told trustees the district’s general fund faces widening gaps in later years if proposed changes in House Bill 96 become law.
The treasurer said the forecast covers the general fund only and cited Ohio Revised Code section 5705.391 as the statutory backdrop for forecasting requirements. He reported total projected revenue for the current year of about $57,491,000 and projected general‑fund expenditures near $61,632,000. He said general property taxes represent approximately 48.97% of revenue and that the district’s current tax rate collection stands near 28.82 mills.
Explaining the effect of House Bill 96 as discussed in the state legislature, the treasurer said the bill would slow increases to the funding base and thereby lower the state’s share of school funding. He cited a reduction in the state share from about 38.4% toward an estimated 32.2% in a later fiscal year if base costs are not updated. The bill also includes a proposed 30% limit on carryover balances, which the treasurer said would reduce next fiscal year’s tax collections for districts that currently hold larger carryover balances.
"We did issue all of our bonds today," the treasurer said, noting that bond proceeds are in hand to fund the district’s construction program. He framed that step as positive for ensuring construction cash is available while the district continues to seek operating efficiencies.
The forecast showed operating cash and days‑cash‑on‑hand declining across the forecast window; the treasurer noted a projected drop to roughly 26 operating days by one projection year and deeper shortfalls after that under the House Bill 96 assumptions. He recommended continuing budgetary controls and said staff would keep the board apprised of legislative activity.
No board action was taken on the forecast itself; the presentation accompanied multiple consent and contract votes later in the meeting.