Buckeye Valley treasurer warns House Bill 96 could shrink local revenue; board approves five-year forecast, appropriations and begins bond-refinancing review

Treasurer Kelly told the Buckeye Valley Local Board of Education on Sept. 1 that proposed property-tax changes in House Bill 96 and potential county actions could materially reduce the district's local revenue and complicate long-term budgeting. The board approved the district's five-year forecast and final appropriations for fiscal 2026 and later authorized staff to pursue possible refunding (refinancing) of outstanding general-obligation bonds issued for elementary schools in 2015.

Kelly, the district treasurer, said about 47% of the district's revenue currently comes from property taxes and that about 80% of total revenue is local. "Forty-seven percent of our revenue is property tax," Kelly said, emphasizing how dependent the district is on local taxpayers and how sensitive the forecast is to changes in state or county policy.

The treasurer framed the forecast as unusually uncertain because the state's budget-related changes arrived sooner than in prior years and because the governor's signings were followed by potential legislative line-item changes. Kelly said some provisions were vetoed but that several proposals affecting valuations and local tax credits remained live. One specific risk she described was a county-level piggyback homestead exemption that, if adopted by Delaware County commissioners with a Jan. 1 effective date, could reduce the district's revenue by ‘‘over half a million dollars.'

Why it matters: Buckeye Valley relies heavily on local property taxes; changes from House Bill 96 or county action would reduce revenues used for salaries, benefits and district operations. Treasurer Kelly highlighted that salaries and benefits account for roughly 73% of expenditures and that benefits compose about 20% of payroll-related costs. Under the current forecast, expenditures are growing faster than revenues and the district projects it will fall below its 60-day cash policy in later years of the forecast unless corrective measures are taken.

Details and board action - The board approved the treasurer's normal monthly financial reconciliation for August and the routine financial reports submitted for board consideration. The motion to approve those financial reports passed on roll call.

- The board formally approved the November-adopted (submitted in September) five-year forecast. The treasurer explained that the state moved required forecast submission dates earlier and that the district will continue preparing a five-year forecast even though state deadlines now compress the timeline. Kelly said the new statutory timing means the district must submit earlier forecast updates (October 15 this year; future dates change to Aug. 31 and Feb. 28 in subsequent years) and that she intends to continue producing a five-year view for local planning.

- The board approved final appropriations and estimated resources for fiscal year 2026 (referred to in materials as fiscal 2026). The treasurer said these documents incorporate beginning fund balances and estimated resources and will be submitted to the county as required.

- The board voted to authorize the treasurer to begin researching refunding (refinancing) outstanding general-obligation bonds originally issued in February 2015 for elementary schools. Kelly explained that those bonds become callable after 10 years and that, based on current market conditions, the district could realize roughly $1 million in present-value savings across the life of the debt. She said any refunding would only proceed if it produces net present-value savings and that the district would return to the board for any final approval required to execute a refunding.

Treasurer Kelly described the refunding authorization as administrative authority to pursue the work and prepare required offering documents. "If there ever is a sense to refund them, the ones that are left, we are able to do so," she said.

Context and next steps The treasurer repeatedly cautioned that the forecast is contingent on unresolved state and county policy decisions; she said figures could materially change and that she may need to bring revised forecasts back to the board as proposals are resolved. The board also discussed a planned $5 million transfer to capital projects that affects the district's available cash balance and noted that negotiated salary increases and rising benefits are key upward pressures in the expenditure forecast.

Board members asked clarifying questions about the timing and conservatism of assumptions in the forecast; Kelly said she will monitor state developments and continue to update the board.

Votes at a glance - Approve monthly financial reconciliation and reports: approved (roll call) - Approve five-year forecast (submitted November/September adoption): approved (roll call) - Approve fiscal year 2026 final appropriations and estimated resources: approved (roll call) - Authorize treasurer to research/refund eligible 2015 bonds (refinancing study): approved (roll call)

Ending: The treasurer said she will continue to monitor state budget activity and county decisions and will bring updated forecasts or revised appropriation requests to the board if new legislation or county action materially alters the district's revenue outlook.