Fairfield Union superintendent warns state budget proposal could force volatile property-tax swings for districts

Fairfield Union Local Superintendent Mr. Belden told the school board on an April meeting that House Bill 96 — the state budget bill — includes language that would link property-tax relief directly to school funding and could force sharp year-to-year tax and revenue swings for districts.

"The biggest, the biggest discussion point in the budget bill is ... the state trying to tie property tax relief for voters with school funding," Belden said. He described the House proposal as "a complete rewrite of how taxes are levied, how schools are funded," and said the bill would impose a 30% carryover cap on district general funds.

Belden said Fairfield Union carried roughly 60% of its general-fund expenditures into fiscal 2024—about $17,000,000—and that a 30% cap would reduce the district’s carryover to roughly $8.7 million. That drop, he said, would limit the district’s ability to pay for large capital repairs, citing a prior paving estimate of about $2,000,000.

Why it matters: Belden said the House language would give county budget commissions authority to reduce property taxes in districts that exceed the 30% cap, effectively shifting some revenue risk from taxpayers to school operating budgets. He warned that the combination of tax reductions tied to carryover levels and large one-time capital needs could produce unstable budgeting and complications for homeowners and mortgage escrows.

Belden told the board the Senate appears more open to discussion and that he has met with Senator Schaeffer’s office to underscore why Fairfield Union’s higher carryover was intentional. "We don't want to go back to our taxpayers and ask for a loan," he said, adding that some carryover was saved to address OFCC-related work and other capital repairs.

Belden also flagged another provision traveling with budget bills: a statewide restriction on student cell phones. "Both bills are going to make cell phones for students banned during the instructional day," he said, noting a timing difference: the budget bill text would take effect Sept. 1, while a standalone bill would begin Jan. 1.

Board response and next steps: Belden said he will circulate a detailed memo to the board and staff outlining other provisions in the 5,000-plus-page House document and that he and district staff will monitor the Senate process and conference committee activity ahead of the June 30 statutory deadline for a signed budget. He also confirmed the district will keep the board updated and that staff are meeting with legislators to explain the local funding picture.

The superintendent did not propose board action on the state language at the meeting; the remarks were provided as an update.