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Talawanda treasurer warns of statewide tax changes, federal funding uncertainty that could affect district budget
Summary
District treasurer reported a stronger-than-expected fiscal year close but flagged pending state tax proposals and withheld federal K–12 funds that could reduce future revenue; the board discussed forecast timing and a temporary fund transfer used while grant reimbursements are pending.
Talawanda’s treasurer told the board on July 9 that the district closed fiscal year 2025 close to its May forecast but faces uncertainty from state-level tax proposals and federal funding actions that could change revenue in coming years.
The treasurer said the district ended FY25 roughly $426,000 better than its May forecast after a $359,000 positive variance in revenue — including a Medicaid reimbursement that arrived early — and expense variances of about $66,724. The report noted $295,430 of encumbrances did not become actual expenses and that the district performed a fund-to-fund advance while awaiting federal reimbursement for Title II A and IDEA Part B expenses.
On state policy, the treasurer reviewed the governor’s biennial budget signed June 30 and 67 line-item vetoes. Among vetoed changes were a 40% carryover limitation and revisions to property-tax calculations; the Ohio House is scheduled to return July 21 and may consider overrides. Using the state’s assumptions, the treasurer said Tallawanda is projected to receive an additional $255,000 in fiscal year 2026 and $232,000 in fiscal year 2027 if enrollment and other assumptions hold, and cautioned those estimates can change.
The treasurer also warned of federal withholding of K–12 funds that support before- and after-school programs, English-language learning, migrant education, enrichment and professional development. He said the district received roughly $148,000 in those federal grants last year and cited reporting (Newsweek) that the federal government was withholding $184 million from Ohio; he said a scenario in which Title I and IDEA Part B funding were withheld could reduce district general-fund revenue by about $1.2 million annually — roughly 3% of the general fund — though he did not say any withholding had been finalized for Talawanda.
The board noted procedural changes to the five-year forecast: the law now requires a four-year forecast (current year plus three future years) to be board approved and uploaded earlier; the treasurer said the district will need to schedule an October meeting to meet the new deadlines.
The treasurer also explained an unexpected increase in hours and cost for ESL tutors: the number of students served rose from 52 in FY24 to 92 in FY25, increasing average tutor hours from about 8–10 to 12–16 hours per week and prompting a new purchase order when invoices exceeded the original PO. Board members asked the treasurer to monitor invoices and adjust purchase orders after the first invoice in future years to avoid surprise overruns.
