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Treasurer: HB 186 could cost district about $1.2M this year; board places 0.5% earned income tax on Nov. 3 ballot
Summary
Treasurer presented a five-year forecast showing state law changes (House Bill 186) will reduce local property-tax revenue; he estimated a $1.2 million hit this fiscal year and projected possible further losses, and the board placed a 0.5% earned income tax on the November 3 ballot.
The treasurer presented the district's five-year financial forecast, explained recent state changes to filing dates, and identified House Bill 186 as a major driver of projected revenue losses. He told the board, "we estimate that house bill 186 will cost us about 1,200,000 this fiscal year and possibly 3,800,000 through the end of fiscal year 31," and showed graphics projecting the district's cash balance running negative by fiscal year 2029 under current assumptions.
The treasurer explained that the new law establishes inflationary cap credits for property taxes and includes temporary retroactive credits that can claw back revenue for districts that experienced recent reappraisals; he noted Berkshire saw reappraisals in Geauga County. The presentation cited local revenue comprising roughly 66% of the district's revenue in fiscal year 2027 and warned that the state share is not expected to offset the projected local losses.
To address the gap, the board placed a 0.5% earned income tax measure on the November 3 ballot. The motion to approve the forecast and related resolutions was moved, seconded and approved by roll-call vote.
