Cincinnati schools warn state budget changes could cut millions; district weighs levy and tax options

Cincinnati Public Schools’ finance leaders told the Board of Education on Feb. 24 that proposed changes to Ohio’s school-funding formula and other elements of the governor’s biennial budget could sharply reduce the district’s state aid and require additional local revenue or program adjustments.

Treasurer-designate Michael Guston and outgoing Treasurer Jennifer Wagner walked the board through formula mechanics, examples of cost mismatches and a set of local planning options that include renewing or revising an upcoming property-tax levy, pursuing a permanent improvement (PI) levy, considering an income-tax levy, or borrowing against future PI revenues to finance immediate repairs.

District simulation presented at the meeting estimated roughly $10.1 million in lost state aid in the next fiscal year and an additional roughly $5 million in the second half of the biennium under the proposal the treasurer’s office reviewed. The analysis also showed the district’s state share of funding could fall to about 25% at the end of the biennium from current levels near the mid-30s, sharply increasing the local share the district must raise through property tax or other local revenue.

The presenters explained three main drivers: the state’s base cost…