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Superintendent and treasurer warn of state and federal budget risks as FY26 draft remains unbalanced
Summary
District leaders presented an updated FY26 budget outlook, warned about pending Ohio bills and potential federal grant reductions, and reconvened a budget task force. The board was told the draft exceeds the target and administrators will return with additional reductions and options before the May forecast filing.
Superintendent Murphy and Treasurer Wagner updated the board on the fiscal year 2026 budget, prospects in Columbus and Washington and the district’s plan to close a projected gap.
Administrators told the board that the district’s current FY26 draft budget exceeds the board’s target and that several pending state bills and possible federal grant reductions could materially change revenue assumptions. The treasurer summarized bills under discussion in the Ohio legislature that could reduce local revenue or change levy calculations, naming Senate Bill 66, House Bill 89, House Bill 186, House Bill 129, House Bill 28 and Senate Bill 93 as items the district is tracking. Treasury staff also reported concerns about proposed changes such as a higher required cash carryover percentage, tighter limits on administrative spending and a shorter forecasting horizon that could constrain multi-year contract commitments.
Why it matters: Several bills under consideration would change the way property tax revenue and levy replacement are calculated in Ohio and could remove a replacement-levy mechanism that had previously produced additional revenue. The district’s FY26 plan must be finalized and filed with state authorities by the end of May; board members emphasized the urgency of public education about the situation and requested options the board could act on.
Key points from the presentation - The house substitute budget passed April 9 contains provisions that could cap state payments and raises other constraints that would leave districts with little additional state support. Treasury staff highlighted Senate Bill 66 and similar measures as the most worrisome because they could reduce the district’s revenue by changing mill-floor calculations. - Federal grant reductions (Title I, II and III) were flagged as possible and remain uncertain; administration will monitor allocations as federal and state decisions proceed. - The district’s “pyramid” of fixed/obligated costs, state-funded minimums and operating needs shows that the FY26 draft remains above the board’s target; the superintendent reconvened the budget task force and asked union and administrative leaders to continue to participate in the redesign of priorities and proposed cuts.
Next steps/direction - Administration and the treasurer will continue work with the budget task force, return with additional options and refine the May forecast due to be filed with state education authorities by May 31. - The board directed staff to produce detailed analyses of obligations, savings tied to retirements and vacancy-driven savings, and the fiscal effect of potential state actions.
