Board hears warning that governor’s budget and House Bill 96 could cut Lakewood City Schools funding, trigger 60% capacity rule

At the Lakewood City Schools Board of Education meeting on Feb. 25, Treasurer Ken Zeman warned that provisions in the governor’s proposed biennial budget, currently in the Ohio House as part of House Bill 96, would reduce Lakewood’s state funding guarantee and add restrictions that would cut the district’s discretion over spending.

Zeman told the board the proposal would reduce the district’s guarantee by 5% in fiscal year 2026 and another 5% in fiscal year 2027. “That would be approximately $700,000 for next school year and then an additional $800,000 in FY ’27,” Zeman said, calling the combined effect “about $1,500,000 going forward.”

The treasurer framed the changes as part of a larger shift in state support. He said Ohio now provides, on average, about 42% of K–12 funding; under the governor’s proposal that average would fall to about 35%. Lakewood, a guaranteed district, currently receives roughly $17 million from the state and — Zeman said — could see that figure fall to about $15.5 million over two years. He also said the proposal would increase the share of state dollars designated as restricted, reducing local discretion on how funds are used.

Board members pressed Zeman for practical effects. Zeman described a new “capacity” provision in the proposal tied to Ohio Facilities Construction Commission (OFCC) capacity ratings: if a building’s enrollment drops below 60% of its OFCC capacity in a given year, the district may be required to offer the building first to a community school in Lakewood, then to a high‑performing community school outside the district, and if none accept it the site could be converted into a STEM school. Using Horace Mann as an example, Zeman said OFCC lists that school’s capacity at 500; if enrollment falls below about 300 the 60% threshold would be triggered.

Board members and district leaders called attention to local differences that may not be captured by a single capacity formula. The superintendent noted Horace Mann was repurposed from a former junior high and has nonstandard square footage and specialized classrooms (including CHAMPS classrooms) that make simple capacity comparisons misleading. Board members said such programmatic and building differences should be considered in any enforcement of capacity rules.

Zeman said the governor’s proposal also shifts more funding toward community and STEM schools, voucher programs and joint vocational schools while reducing the relative share for traditional K–12 districts. He said some line items in the proposal increase by double digits — “scholarship programs would go up almost 16% ... joint vocational schools would receive an additional almost 14%” — even as general K–12 support declines.

Several board members urged advocacy at the local level. Zeman said the bill will move through the House and Senate and may be revised, but he expressed little optimism for large, favorable changes without concerted local advocacy. If enacted as proposed, Zeman said the changes would take effect July 1.

Public comment during the meeting raised related concerns about potential school closures and program impacts. Parent and physician Jim De Kroger urged the board to avoid closing high‑performing elementary schools, noting the district’s elementary report card ratings range from 3.5 to 5 stars and arguing that closing a 4.5–5‑star school would risk increasing class sizes at lower‑rated schools.

Zeman and district leaders said the district has been monitoring enrollment trends for years and trying to avoid unnecessary levy requests; they reiterated that local levies and community support remain crucial if state funding shrinks. The board did not take formal action on the budget update; the presentation was provided for information and to guide future advocacy.

(Ending) The board asked staff to continue tracking House Bill 96 as it moves through the legislature and to share additional fiscal scenarios with the board as details and amendments emerge.