Lebanon superintendent warns state bills could cost district about $8 million over three years

Superintendent Isaac Sievers warned the Lebanon City Schools Board of Education on Oct. 20 that three Ohio bills moving through the legislature could significantly reduce the district’s local property-tax revenue over the next three years.

Sievers told the board that House Bill 129 would change how emergency and substitute levies are treated under Ohio law and, as drafted, would prevent the district from renewing its substitute levy after it expires. “It will no longer be an option for us,” Sievers said, adding that the current substitute levy “is generating $13,000,000 for us annually, which is 18% of all of our revenue for Lebanon City Schools.”

Why it matters: Sievers said a loss of that substitute revenue — together with proposed caps in other bills — could reduce the district’s locally collected tax revenue by roughly $8 million over three years, creating shortfalls that would intersect with already-budgeted collective-bargaining commitments and capital plans. “Over the next 3 years… that’s $8,000,000,” he said while outlining projections tied to the proposed changes.

Details of the bills and district concerns

- House Bill 129: Sievers described HB 129 as a bill that would make emergency and substitute levies count against the 20-mill floor and said an amendment under consideration might permit current emergency levies to be renewed once but would still exclude substitute levies unless lawmakers change the language. He urged the board and community to ask legislators to allow renewal of substitute levies similar to emergency levies.

- House Bill 186: Sievers said HB 186 would cap the growth of school tax rates tied to the 20-mill floor at the rate of inflation, rather than the higher rate that often follows a property reappraisal. He illustrated the difference using local numbers: Lebanon’s 2024 reappraisal produced a 29% increase in property values locally while inflation was about 16.5%. Under the bill’s formula, the district could lose roughly $2.3 million in the first year, $2.3 million in the second and $2.8 million in the third — “4 and a half percent of our revenue in the next year and 5.3% in the third year,” Sievers said.

- House Bill 335: Sievers said HB 335 would cap growth of unvoted (inside) mills at the rate of inflation as well, further compressing local revenue growth tied to property-value increases.

State funding and reappraisal effects

Sievers explained an additional complication: as local property values rise following reappraisal, the state formula may treat the district as having greater local capacity and reduce state aid accordingly. Combined with any clawback or cap on local tax growth, the net result could be a double hit to the district’s revenue.

What the district is doing

Sievers said he is communicating with state legislators — he copied board members on an email to Senator Wilson — and that he plans to testify in Columbus to represent the district’s perspective. “We need to look at a big-picture solution,” he said, urging a hold-harmless approach so districts do not immediately lose revenue while the state restructures tax policy.

Clarifying details and timeline

Sievers noted the district’s substitute levy runs through 2032 under its current term and that the district has a multi-year “runway” before the levy expires; his office is asking legislators to permit substitutes to be renewed at expiration rather than to force immediate changes that would take effect before the next reappraisal.

Board reaction and next steps

Board members and district staff were briefed and the superintendent said he will continue to monitor testimony in Columbus and share materials with board members and the community. He asked the board and residents to contact state lawmakers (he named Senator Wilson and Representative Adam Mathews) to press for changes that would allow a smoother transition if state policy is revised.

Ending

Sievers framed the issue as part of a broader, decades-long state funding problem and said district leaders will continue local advocacy while watching committee activity in Columbus.