Treasurer warns House budget proposal could force earlier levies, cut local control

Centerville City Treasurer Laura Sallborn told the Board of Education that the substitute state budget before the Ohio legislature includes a provision to cap school districts’ cash carryover at about 30 percent of annual operating expenses, and warned that adopting such a cap would create “unforeseen consequences” for local districts.

Sallborn said districts accumulate cash carryover for specific, long‑range needs — for example, boiler replacement cycles, bus purchases, and to stretch levy cycles when revenue is flat — and that a forced cap would likely prompt districts either to spend reserves quickly or to see their local tax rates automatically adjusted by state authorities. “I think the thing that’s important to understand, every district has their own story, and those cash balances are built up purposefully for various reasons,” she told the board.

Why it matters: Centerville passed a levy in November and the district’s forecasts project multi‑year carryover increases as that revenue phases in. The proposed cap could require rate adjustments or cause districts to spend reserves on one‑time purchases to avoid having the state reduce tax rates, which local officials said undermines long‑term planning and local control.

Sallborn said pandemic relief funds and equipment purchases have left statewide cash balances elevated, but those one‑time dollars have to be spent and will naturally lower reserves over the next year. She said the cap could also jeopardize districts’ credit ratings, because many rating agencies evaluate financial stability using carryover ratios. The budget proposal also included an item to shorten the statutory forecast horizon from five years to three years; Sallborn said that change would reduce the district’s ability to plan long term.

Superintendent Wazni and board members reported attending a county briefing and said several area legislators expressed concern about the policy. Board members discussed responses the community could send to the legislature through the Ohio School Boards Association and local contacts.

Sallborn presented numbers showing Centerville’s projected general fund carryover rising to roughly 39 percent by fiscal 2027 on the district’s current timeline; under the draft budget language those levels could trigger a county budget commission review and reduction of local levies or rate adjustments. “If we don’t do something with the funds that we have… districts are talking about transferring more money to the permanent improvement fund, it's just not a transparent way of doing it,” Sallborn said.

The board’s student and board representatives said they had organized a letter drive to contact legislators and the board urged residents to use the district’s outreach materials to contact state lawmakers ahead of the Senate’s scheduled budget hearings and potential conference committee negotiations.

What’s next: The legislature’s Senate education committee scheduled public testimony in early May; district officials said they would continue outreach and asked residents to contact legislators.