Marysville board approves forecast as treasurer warns ‘We have a revenue problem’ after state tax changes
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Summary
Treasurer Todd Johnson told the Marysville Exempted Village School District board that House Bills 186 and 129, along with formula changes and a preschool mandate, will depress revenue and create multi‑year operating deficits; the board approved the February financial forecast and plans updates after state calculations in April.
The Marysville Exempted Village School District board on Thursday approved the district’s February financial forecast after Treasurer Todd Johnson warned the changes in recent Ohio legislation would sharply reduce local school revenue.
Johnson told trustees the forecast reflects immediate impacts from House Bill 186 and House Bill 129 and related changes to tax rollback and reappraisal rules. He said the district is projecting persistent operating deficits across the forecast and that the district faces “a revenue problem.”
“The biggest impact to that cash balance and why you see it drop so quickly is House Bill 129 and House Bill 186,” Johnson said during his presentation. He also described a risk he called “phantom revenue”: reappraisal increases that the state funding formula assumes will raise district receipts even when statutory changes reduce the district’s actual collections.
Johnson presented several figures to illustrate the gap: a projected cash shortfall that grows into a deficit by fiscal year 30 and potential revenue reductions he said could range up to roughly $13,000,000 in a worst‑case scenario. He told the board the Ohio Department of Taxation will provide calculations in April; he plans a revised forecast in May once those figures are final.
Board members pushed back on several assumptions in the forecast, including the district’s enrollment projection and the effect of tax increment financing (TIF) revenues not flowing to the district. One trustee raised a $12,000,000 figure for TIF revenue the district is not receiving; trustees urged coordinated outreach to state legislators to explain local impacts.
Johnson said the forecast assumes conservative enrollment growth (about 50 students per year) based on a recent enrollment study and that larger housing developments could change projections. He also noted changes to the county’s revaluation and the state funding guarantee could mute the district’s expected growth in state aid.
The board voted to approve the forecast on a roll‑call motion. Trustees were told the forecast will be updated when the Department of Taxation releases its calculations, and Johnson recommended a subsequent work session to explore revenue and expenditure options with the community.
What’s next: Johnson said the district will issue an updated forecast after the state’s April calculations and again in May. Trustees encouraged constituents to contact state lawmakers about the local effects of House Bills 186 and 129.
Vote: The financial forecast was approved by roll call during the same meeting.
