Firelands superintendent warns of growing budget gap as state changes cut revenue

Superintendent Mike Von Gunten told the Village of South Amherst council on Feb. 23 that Firelands Local School District’s revenues are straining to keep pace with costs and that recent state and county actions have already reduced local school income.

Von Gunten outlined the district’s revenue mix — roughly 45% local, 38% state and just over 7% federal — and said the district has shifted from several years of revenues exceeding expenditures to a deficit position beginning around 2024. He said staffing remains the district’s largest expense and noted that many academic programs are tied directly to individual staff positions, making further cuts likely to require program eliminations.

Treasurer Keri Angney told council that the county adoption of expanded Homestead and Owner-Occupied tax credits lowered district revenue by about $432,000 a year. Von Gunten also summarized several state bills that he said will limit local revenue-growth: House Bill 129 alters the 20-mill floor calculation in a way the district estimates could reduce revenue by about $2 million annually beginning in FY 2028–29; House Bill 186 introduces inflation-based adjustments that curb sharp tax increases while limiting the district’s ability to match inflation; House Bill 309 gives county budget commissions authority to alter a district’s revenue if they determine collections exceed need; and House Bill 335 caps growth on inside millage. Von Gunten said implementation details remain unclear for some measures.

The presenters reviewed the district’s recent experience passing levies: a 1% earned income tax proposal failed in November 2024 by roughly a 60–40 margin, and countywide property reappraisals last year pushed property tax bills higher for many residents. With the district already spending the third-lowest per pupil in the county, Von Gunten said the district will continue to pursue efficiencies, use attrition where possible and explore partnerships, but that meaningful budget reductions now typically mean eliminating programs.

Von Gunten urged local officials to advocate to state legislators and to monitor proposals that would remove or substantially change the property tax base that funds roughly 45% of district operations, saying such changes would have “significant consequences for all local governments.” He also said the district may need to return to voters for new revenue despite a history of unsuccessful levies.

The council did not take formal action on the presentation. The district staff answered council questions on the limited local options for revenue (property or income levies) and the uncertain timetable and effects of the cited state laws.