Wooster City Schools treasurer says state funding shift will flatten district revenue

Amy Welty, treasurer of Wooster City Schools, told the board and public that the district's revenue will be essentially flat for the next three fiscal years because limits on property-tax growth and a change in state funding are reducing avenues for revenue growth.

Welty said the district receives its revenue from two main sources: property taxes and state funding. "About 2/3 of our revenue comes from property taxes," she said, and that property-tax revenue is made up of two components: outside (voted) millage and inside millage.

Welty explained that House Bill 920 functions as a reduction factor on outside, voted millage, so the district does not see increased revenues on that outside millage when property values rise. She said that previously the only sources of revenue growth were new construction and increases in inside millage, but that Columbus has passed House Bill 330, "which actually puts a cap on the growth of inside millage" to 8 percent, compared with the 30 to 35 percent growth the district has seen in the past.

On state aid, Welty described the current system as formula-driven, where funding is allocated based on the number of students enrolled. She said the district will move in fiscal year 2027 from formula funding to a state "guarantee," meaning the district will receive a fixed amount each year rather than funding that varies with enrollment.

Welty attributed the change in state funding status in part to rising property values in Wayne County, which make the district appear wealthier under state metrics and lead to reduced formula aid. As a result, "Wooster City Schools basically is going to be flat funded for the next three fiscal years," she said.

Welty said the district is sharing the forecast with the public to inform future financial decisions. The presentation did not include a formal board vote or a staff direction recorded in the transcript.