Treasurer warns tax changes will shave district revenue; board asks administration to model impacts

The Marion City Schools treasurer presented the board with a monthly financial report on Dec. 15 and warned that recently passed state tax changes will reduce district revenue in coming years.

Jolene told the board that an early estimate from district finance software shows "about $841,000 a year that will be credited back to taxpayers," and that the credit will operate roughly like a 7% reduction in the school portion of property bills for many taxpayers. She said the distribution timing means the district will not see the full impact until fiscal year 2027 and that the administration will incorporate the change into the February forecast.

Board members pressed for clarity on how the credit will be applied to individual taxpayers and where the district will make up the revenue loss. One board member warned the change could translate to about $1.2 million in lost district revenue beginning in 2027 and noted that related changes to the state formula and fixed-sum levies could reduce state funding as well. The board discussed that county auditors and the governor still had steps to complete; the treasurer said the governor had received the bills and had 10 days to act.

The board debated the broader policy context: a board member criticized the Ohio General Assembly for continuing to increase funding for charter schools and vouchers while making these tax changes, saying the combined effect is damaging to public schools. School leaders said they will continue to use the finance and legislative liaisons and convene the finance committee to study long-term options, and the treasurer said she will present an updated forecast in February.

No formal financial policy was changed at the meeting; the board approved routine financial items (November checks, fund balances, and the November financial report) by roll-call vote.