Hamilton City School Board hears forecast showing $3.1 million projected loss, warns of $3.3 million annual property-tax credit

Hamilton City School Board members on June 9 heard a financial forecast from district finance staff that projects a $3.1 million loss for the current fiscal year and flagged an ongoing revenue reduction tied to recent state property-tax changes.

"We are up about $1.7 million [this year] because we got an early Medicaid reimbursement," Mr. Fraser said, explaining that the timing of that payment narrowed the current-year shortfall from $4.8 million in February to about $3.1 million in the June forecast. He said the forecast covers the general fund and now shows three years of history with four years of projection following recent statutory timing changes in forecast requirements.

Fraser and board members spent the bulk of the presentation on the effect of new state property-tax legislation that retroactively capped growth at an inflation-based rate and produced a recurring credit to taxpayers. "What they're saying now is you can't get more in property tax revenue than what the current inflation rate is," Fraser said, describing how the state applied the cap retroactively and how the district calculates a roughly $3.3 million credit to taxpayers that reduces district revenue each year going forward.

Superintendent Andrea Blevens and board members praised the district's recently approved deficit-reduction plan for lengthening the district's cash runway. Fraser showed "days of cash on hand" scenarios demonstrating that the approved reductions materially improve the district's projected cash position in later years compared with the February forecast.

Board members pressed staff on the human impact of cuts. Dr. Copus asked whether staff reductions had hurt core services; staff and other board members said the district tried to preserve instructional programs and that, as of the meeting, fewer than 10 employees remain in positions still affected by recall or relocation. "We've been able to offer many of our staff who were once told they did not have a job a permanent position here in the district," Superintendent Blevens said.

Presenters also emphasized enrollment as a key risk: staff reported greater "choice" options (charter, private, online, homeschool and Ed Choice programs) are moving students and their state funding out of the district. Mike (district staff) told the board Hamilton still has a similar pool of students who could enroll but that many now choose alternatives; he noted kindergarten class sizes have fallen sharply in recent years.

Board members linked those trends to broader state funding choices. "As the state reduces funding for public education," Dr. Hopkins said, "the burden falls to local property taxpayers." The board discussed legal and constitutional challenges to school funding and said the outcome of the governor's race and the biennial budget could sharply alter the district's outlook.

Votes at a glance: the board also approved routine items during the meeting'including agenda and minutes approval, human-resources personnel reports, the consent agenda (which included playground replacements and sprinkler inspection contracts), and finance items summarized on the agenda. Recorded roll calls on routine motions showed board members present voting in the affirmative.

The board will monitor enrollment and state budget developments and said staff will return in August/February with the next mandated forecast update. The next regular board meeting is set for June 23 at 9:00 a.m. at the board office.