Lebanon City Schools warns property tax reform could cut $13 million from forecast; board told to plan for new revenue by 2028
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Summary
District finance staff told the board that Ohio property tax reform and reappraisals could reduce projected revenues by about $13 million over four years, pushing reserves below safe levels by 2029 and requiring the district to seek new revenue (levy or other) by fiscal 2028.
At its Feb. 17 meeting, Lebanon City Schools officials warned that statewide property tax changes have materially altered the district’s multi‑year financial outlook and that leaders should prepare to seek new revenue in order to avoid steep service and staff cuts.
Finance staff presented a February forecast showing only a small net change from the October snapshot — roughly $131,000 — but told the board that the real driver of future deficits is recent state property‑tax reform. The presentation projected an aggregate revenue shortfall of about $13,000,000 over four years attributable to the reform and related effects on state aid and tangible personal property collections.
“Over the four years, we are gonna lose $13,000,000 in revenue projections from property tax reform alone,” the finance presenter said during the briefing, adding that the district’s current plan uses a mix of actuals and assumptions about enrollment and construction to model future years. The presenter also highlighted that the district’s cash‑on‑hand metric falls below 90 days in 2029 and reaches roughly 16 days by 2030 under current assumptions: “16 days is all we will last in 2030.”
Superintendent Sievers said the administration will return in March with proposals related to an energy project (lighting upgrades and other conservation work) funded partly through a low‑interest loan; he told the board the district did not receive a state grant but “we still qualified for the 0.25% loan,” and staff expect much of the work could be done over the summer.
Board members and staff discussed the limits of savings through attrition — staff cited approximately $600,000 in one‑time personnel savings from recent retirements — but agreed that attrition alone would not close the long‑term gap. The forecast also reflected enrollment trends and recent property reappraisals, with local property taxes representing about 57–60% of the district’s revenue mix.
Finance staff outlined policy and timing options for raising revenue, including the possibility of a November ballot measure or alternative revenue sources, and said the district may need new money in 2028 to be collecting in 2029. “We could see a new money as soon as this November request,” the presenter said, adding the administration will run scenario modeling for different levy or tax options.
Next steps: staff will bring more detailed recommendations and scenarios to the district’s citizen advisory/finance committee (CAT committee) and to the full board in March for deliberation. The board emphasized outreach and plain‑language materials to explain the forecast and potential voter choices to the community.
