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Bexley board warns House Bill 96 could force faster tax-rate cuts by clawing back district reserves
Summary
Board member Kyle Smith warned that House Bill 96's proposed cash-reserve threshold (now 30%) and related provisions could trigger temporary property-tax reductions that would undermine locally approved levies and the district's financial planning.
Board member Kyle Smith outlined staunch objections to provisions in the state House's budget bill, House Bill 96, saying the measure would "claw back" locally approved property-tax revenue when a district's cash reserves exceed a specified threshold.
In a prepared statement, Smith said the House plan "essentially abandons the Fair School Funding Plan" and singled out a provision that temporarily reduces future property-tax rates when a district's cash balance exceeds 30 percent. "That's a one-size-fits-all item that fails to understand how funding works for schools," Smith said, describing levy cycles and long-term planning in Bexley.
Smith cited the district's recent reserve history to illustrate his point: Bexley entered a 2024 levy with a reported 56 percent cash reserve, and he said the district saw an 18 percent drop in a line of income-tax revenue in 2024 equal to about $2,100,000. Smith warned that those swings show why districts need flexible multi-year forecasting, not an across-the-board cap. "Looking at one stagnant year or month" is inadequate, he said, noting the bill would shorten the state forecast window from five years to three.
Chair (speaker 3) and other board members thanked Smith for laying out the fiscal impacts and said they would continue to follow the bill as it moves to the Senate. The board did not take a formal vote on a resolution about HB96 during the meeting; members framed the remarks as part of ongoing legislative monitoring and community education.
Why it matters: Board officials said the change could force districts to request levies sooner and more frequently, undercutting locally approved plans to spend reserves over multi-year levy cycles. Smith urged legislators to consider district-level differences and to preserve local control over financial planning.
Next steps: Board members said they will continue to track House Bill 96 as it advances in the Senate and to brief the community and legislators on the district's concerns.
