Treasurer warns proposed 30% carryover cap could slash reserves; board discusses November levy

Treasurer Todd Hopkins warned the Westlake City Schools Board of Education on May 19 that a House budget proposal to cap school districts— carryover at 30% could sharply reduce the district—s reserves and accelerate the need for a tax levy.

Hopkins told the board that using fiscal 2024 figures — roughly $60 million in expenditures and a cash balance of more than $33 million — a 30% cap would limit carryover to about $18 million and could amount to a roughly $15 million reduction in the district—s available cash in fiscal year 2026. "When we remove the million-plus this year of deficit spending plus the $15,000,000 next year, we would end next fiscal year somewhere around 8 to $10,000,000," Hopkins said during a discussion about the forecast and potential responses.

The board twice approved the district—s required five-year forecast and related resolutions during the meeting. Hopkins said the forecast, prepared under state law, already assumes conservative spending and projects deficit spending this fiscal year even before any new carryover limit is applied; he called the 30% cap "devastating" for many districts if it stands as written in the House proposal.

Why it matters: Hopkins said the proposed cap would remove local decision-making about how much of the district—s revenue to set aside for future needs such as facilities work. The board has a $10 million shortfall in immediate facilities needs and roughly $15 million in identified five-year projects, he said, and without reserve flexibility the district would need to consider significant cuts or a new operating levy sooner than previously planned.

Hopkins walked the board through timing and strategy for a possible levy. He recommended the board consider placing a levy on the November ballot because a levy passed in November can be collected for half of the current fiscal year (starting July 1), providing revenue earlier than a levy passed the following May. He said examples he has modeled include millages in the 4–6 mil range but declined to set a specific proposal without certainty about how the House proposal would be implemented.

Board members and staff discussed uncertainty in the legislative process: the House and Senate must reconcile differences, then the governor may sign or line-item veto. Hopkins noted the cap could be altered in conference committee or removed entirely; if the final law is less restrictive, the district might delay ballot action. Several board members urged quick planning in case the House language survives, saying a November ballot would require resolutions certified by the county in late summer.

What was decided: The board approved the five-year forecast by roll call (motion passed). Hopkins said that if the 30% cap remains, the district could need to place an operating levy on the ballot quickly or make deep program cuts. He recommended the board prepare for either outcome and begin community communication and levy planning now.

Next steps: Hopkins and Superintendent Dr. Goggin (Dr. Scott Goggin) agreed to continue outreach to state legislators and to provide the board with levy scenarios when the state budget language and the Senate position are clearer. Board members asked staff to prepare ballot-mechanics drafts and to be ready to act on a compressed summer timeline if required.