Westerville superintendent warns state budget proposal to claw back reserves would force cuts, more levies

Superintendent Hamburg warned the Westerville City School District board at its April 2025 meeting that a House budget amendment proposing to reclaim any district cash balance above 30% of the prior year’s expenditures would be “detrimental” and could force steep local cuts.

The superintendent said the change — described as a clawback of reserves — could leave the district facing ballot measures nearly every year and would likely require future levies to be “at least 2 mills higher than it was last November.”

Why it matters: The board’s leaders said the proposal comes as districts already face shrinking state revenue and rising operating costs. Without access to reserve balances, the district said it would have fewer options to maintain programs and staffing while responding to funding shortfalls.

Discussion details: Superintendent Hamburg told the board that the House amendment initially proposed a lower threshold and that members have been urging lawmakers to remove the cap. She said Westerville already lost about $4 million in state funding compared with the prior year and noted the district has used reserves as a temporary bridge because the state formula has not fully adjusted for inflation. “This 30% anything over 30% expenditure callback would be detrimental to our community,” Hamburg said. “It would mean we would be on the ballot nearly every year going forward.”

Treasurer Nicole Marshall provided the budget context the board reviewed earlier in the meeting: March month‑end figures show year‑to‑date general‑fund receipts of $224,200,000 and year‑to‑date expenditures of $168,300,000, producing an unencumbered general‑fund balance of $209,200,000 (a timing effect tied to property‑tax settlements). Marshall and Hamburg both urged community members to contact state lawmakers.

Board and staff outreach: Hamburg and Marshall said they and board members have testified before lawmakers and met with representatives and senators, and they encouraged residents to contact legislators to explain how the proposal would affect their district. They noted the Senate education committee planned hearings beginning April 28 (as communicated to the board) and urged residents to press for removal of the cap.

Context and limits: The superintendent referenced guidance from the Auditor of State’s office about financial health indicators — including a cautionary note if a fund balance falls below 50% — but said those metrics and state policy proposals can send mixed signals when considered alongside the proposed clawback. Hamburg and Marshall emphasized that their comments described the potential local consequences of the state proposal; no formal board action was taken at the meeting on the matter.

What comes next: Board leaders asked the community to contact state legislators now and said they will continue to report developments on the state budget as hearings proceed.