Treasurer: state tax law changes could cut Pickerington school revenue by millions

Treasurer Mr. Walsh warned the board that changes in state law will reduce future property-tax revenue for Pickerington Local Schools. He told trustees the district began July with a "cash balance for July 1 ... at a better position of 1,600,000" and described timing variability in county tax settlements that affects monthly cash flow.

Mr. Walsh walked trustees through recent receipts and the mechanics of two state measures. "We receded 9,900,000 for the 0.25," he said, and later noted that "the tax settlements from the counties compared to last year is $15,000,000 less than it was in ... July '25." He said House Bill 186 (the 20-mill floor) and House Bill 335 (inside-millage adjustments) will limit growth on inside millage and reduce property-tax revenue by about $800,000 in fiscal year 2027 and an estimated $3.7 million by 2031 compared with how revenue would have grown without those laws.

Board members pressed staff on timing: when days cash on hand might fall below 45 days and how a successful local levy would change receipts. Mr. Walsh said the timing depends on when county settlements and income-tax advances arrive and that levy proceeds would alter the district's revenue mix—he estimated the district would receive just under 6% of the first levy-related income-tax receipts in FY27 if voters approve a levy in November.

The board voted to accept the treasurer's items as presented. The discussion will inform the five-year forecast, scheduled for the Aug. 24 meeting, where trustees will revisit cash-day projections and levy assumptions.