Olentangy officials warn proposed state "clawback" could strip millions from local levies

Board President Brandon Lester and district officials spent substantial time at the Olentangy Board of Education’s April 24 meeting outlining concerns about a provision in the Ohio House’s biennium budget—contained in House Bill 96 and referenced in the bill text as Ohio Revised Code section 5705.316—that would limit school districts’ cash-balance carryover and require county auditors to reduce levy collections when carryover exceeds a set threshold.

The district’s treasurer, Ryan Jenkins, estimated the provision could cause “between $90 million and $100 million” in lost levy collections for Olentangy for the 2025–26 tax year if the clawback were enacted, and said that the district would likely need to run frequent, smaller operating levies moving forward. Jenkins recorded and played a short video for the board explaining the mechanics and urging residents to contact state lawmakers.

Why it matters: the board said limiting carryover would reduce reserves Olentangy uses to plan for growth, rising expenses and unexpected costs, and could push the district into a state-defined fiscal watch or emergency if operating deficits exceed thresholds in law. Superintendent Todd Meyer and Treasurer Jenkins described how the auditor-of-state’s financial-health indicators and the statutory definitions in Ohio Revised Code section 3316.03 (fiscal watch/emergency thresholds) intersect with the proposed clawback, arguing the provision could rapidly increase the district’s risk of state intervention.

Details and district response District leaders said the House’s substitute budget increased overall funding relative to the governor’s initial proposal but added the clawback late in its amendment process. Jenkins and Meyer told the board they had briefed state legislators, including Representative Lorenz, and planned further outreach to the Ohio Senate and Senator Brenner. Meyer said the district had prepared template messages and phone scripts on the Olentangy website to make it easier for residents to contact lawmakers.

Board members pressed administration for timeline and context. Meyer described the House passage schedule: after the House acted, the bill moved to the Senate where public testimony and deliberations are scheduled; he listed dates the district was watching on the budget calendar, including expected Senate testimony and floor votes in May and June and the governor’s legal signature deadline on June 30.

What district officials warned could happen Treasurer Jenkins and Superintendent Meyer said that, by reducing cash balances that were approved by local voters and that the district uses to plan multi-year operations, the clawback would either force near-annual levies or produce operating deficits that meet the statutory definitions for fiscal watch (an operating deficit above 8% of prior-year revenue plus an inability to pass levies) or fiscal emergency (15% threshold). Meyer described the possible role of a commission under statute to address fiscal emergency and said such a commission focuses on balancing budgets and could alter contracts or policies in ways that affect programming.

Board call to action Board President Lester and the administration urged residents to review materials on the district website, use provided template letters and scripts, and contact state legislators to express how the clawback provision would affect local services and long-term planning.

Ending No formal board action on state advocacy was taken at the meeting; district officials said they will continue outreach to lawmakers while the budget moves through the Senate.