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Dublin schools warn proposed state carryover cap could force more frequent levies, affect bond rating
Summary
Superintendent and finance staff told the board that a House budget proposal to cap district operating fund carryover at about 30% could shorten levy cycles, reduce available cash for planning and threaten the district triple-A bond outlook, potentially reducing borrowing capacity and increasing future costs.
Dublin City School District leaders warned the board that a proposal in the Ohio House budget to cap operating-fund carryover at roughly 30% would shrink the district's financial flexibility and could force more frequent levies.
At the board meeting, Dr. Marshhausen, the district superintendent, and a district finance official said Dublin is heavily reliant on local property taxes and typically holds carryover to smooth the levy cycle. "We are 85% funded by our local taxpayers," Dr. Marshhausen said as he explained why the carryover cap would have an outsized impact on Dublin.
The superintendent said the House version of the proposal began at a 25% cap and the final House draft moved to about 30%; the district's analyses show that applying that cap to the district's current forecast could reduce next year's collections by about $23 million. A district finance speaker said credit-rating agencies expect districts to hold at least one to two months of reserves and warned that a new carryover limit could lead to a negative outlook or downgrade on future borrowing.
School leaders framed the issue as one that could shorten levy cycles from multi-year to biennial or even annual ballot timelines, complicate collective bargaining and limit the district's ability to plan for enrollment growth, special education needs and capital projects. The board discussed engaging with local legislators and community stakeholders to explain Dublin's budget process and seek carve-outs for large suburban districts.
Board members agreed to continue public engagement and coordination with community groups before any formal call to action. The superintendent said the district will not change its five-year forecast unless the budget language becomes law and emphasized outreach to parents, senior groups and local partners to explain potential impacts.
The district referenced multiple pieces of fiscal policy and legislative language in public remarks but did not present final statutory text at the meeting. No formal board action on the budget proposal was taken during the session.
Ending
District officials said they will keep the board and the public updated as the state budget process progresses and when specific statutory language is finalized.
