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Treasurer: New state bills likely to constrain millage growth; Ravenna currently ahead in forecast
Summary
Ravenna School District treasurer warned that several recently passed House bills will cap valuation growth at 9% and expand county authority over levy collections, but said the district's five-year forecast currently shows $462,000 more revenue and a rising cash balance.
The Ravenna City Board of Education heard a treasurer's update on state legislation and the district's financial forecast during its regular business meeting. The treasurer framed several bills as potentially limiting local tax growth and affecting surrounding districts while saying Ravenna is not immediately impacted.
"For the first 1 is house bill 1 29," the treasurer said, describing it as implementing a "20 Mil Floor" calculator; the treasurer said Ravenna "isn't at the 20 Mil Floor, so that's not impactful to Ravenna School District." The treasurer said House Bill 186 will impose an "inflation credit cap" that will cap property growth at 9 percent and that House Bill 335 applies a similar 9 percent cap to inside millage distributed to cities (Ravenna currently receives about 4.2 mills of that allocation). The treasurer also summarized House Bill 309 as expanding the county budget commissioner's authority to reduce levy collection amounts, calling details "a little bit vague" and noting that discussions with treasurers, auditors and the commissioner's office are expected.
The treasurer said the district is currently ahead of projections, reporting that year-to-date revenues exceed the five-year forecast by $462,000 and that expenditures are trending lower by "a little over $1,000,000," producing a cash balance the treasurer estimated at approximately $1,500,000 based on an October forecast. The treasurer said those numbers were preliminary and subject to change between October and the time of the meeting.
The treasurer said staff will continue to monitor the bills' implementation and will revisit the district's forecast in February to quantify any long-term effects on Ravenna. The treasurer closed by welcoming a new board member, Heather, who will be formally recognized at the January meeting.
Next steps: the treasurer said monthly updates will follow and the district will factor the bills into the February financial forecast.
