Board holds tax-budget hearing as administration warns revenue projections are declining

Lebanon City School District officials opened the annual public hearing on the district’s tax budget and told the board that legislative changes to property-tax policy have made the tax-budget process more consequential. The treasurer/finance presenter explained the tax budget’s role — it is a statement of projected revenues submitted to the county budget commission, not an operating budget — and said the district had adjusted projections using a new February forecast. "This tax budget has become very important," the presenter said, noting changes to county and state processes.

Administration showed charts indicating declining revenue projections under current assumptions and cautioned that recent property-tax reform bills will change collections and phasing. The presenter said the district previously saw annual revenue increases of $2 million to $3 million in some years and that, with the changes now rolling out, the district could see much smaller annual increases ("maybe a 600 to 800,000 increase a year" under certain scenarios). The presenter emphasized implementation uncertainty and said the district is on a phase-in/hold-harmless schedule for some changes.

The board also opened the federally required public hearing on ESEA (Title) and IDEA funds. Administration reported roughly $1,200,000 in total annual ESEA (Title) funding and approximately $1,200,000 in IDEA funding for special-education services; staff noted those federal dollars typically fund additional personnel and must meet maintenance-of-effort rules. "These grant funds have to improve, grow, what have you," the presenter said, adding that the funds primarily support personnel and purchase services.

No changes to levies or tax rates were proposed at this meeting; the tax budget will be submitted to the county and the board will return in April with an operating budget proposal tied to county-estimated resources.