Tiffin board approves 5-year forecast as state budget bills loom, warns of levy need

The Tiffin City Schools Board of Education on Thursday approved the district's five-year forecast and accompanying assumptions as staff warned that proposed state legislation could sharply reduce local school funding.

The forecast projects revenue growth of about 1.3% annually against expense growth of roughly 3.79%, producing consecutive years of deficit spending that could force the state to require a financial recovery plan. A staff member who presented the forecast said, "Consecutive years of deficit spending would trigger the state to mandate the district to develop a financial recovery plan. And let me be the first to tell you that we don't want to be in a situation where we needed to develop a financial recovery plan."

The presentation placed particular emphasis on House Bill 96 and other pending bills that the presenter said could alter how property tax and school funding work in Ohio. "House Bill 96 would eliminate the fair school funding, limit our cash balance carry over to 30%, and discontinue the 20-mil floor," the presenter said. Board members repeatedly raised questions about timing and implementation, noting the May forecast must be filed before the state budget and potential tax changes finalize.

Board members were shown charts that place state funding at 50.8% of the district's general fund revenue and local resources at 49.2%. The presenter noted the district benefited from House Bill 33 (the state funding formula change) in fiscal years 24–25 and from the Community Eligibility Provision (CEP) for school meals, but said some one-time federal funds (ESSER) have run out. The forecast shows a projected negative cash balance by fiscal year 2029 unless revenue or expense patterns change.

Administrators urged the board to consider options for new local revenue, saying an emergency levy or an earned income tax on the November 2025 ballot would be the realistic pathways to maintain the district's current 20-mill floor under the legislative scenarios described. The presenter gave an example: an earned income tax in the range of 0.75% was discussed as one option to sustain operations through fiscal 2029.

Board members and administrators discussed uncertainty from the spring legislative session and the need to update the November forecast if the state budget or property tax laws change. The board voted to approve the forecast and assumptions as presented.

The district will continue monitoring state budget developments and present updated forecasts and recommended public outreach if a levy campaign becomes necessary.