Buckeye discusses impact state legislation could have on revenue

YORK TWP. — State legislation that was passed last year will likely impact Buckeye Local Schools' revenue stream. Treasurer Mark Donnelly gave an update on district finances as part of a financial forecast presentation during the Board of Education meeting Tuesday. The following laws from the state will affect the property tax system: House Bill 129 includes emergency levies in the 20-mill floor calculation. House Bill 186 caps outside millage tax increases to the rate of inflation. House Bill 309 gives county budget commissions greater authority over school district finances. House Bill 335 caps inside millage revenue growth to the rate of inflation. The legislation will impact Buckeye's emergency levy that generates $3.2 million a year and expires in December 2027, Donnelly said. The value of the emergency levy will decrease as it becomes part of the 20-mill floor. "Our emergency levy will make us go above the (20-mill) floor because it's included with the floor calculation," he said. "Therefore, we do not get a reappraisal bump. We simply get what our effective mills will generate based on the balance." The new legislation will likely result in a decrease in revenue, Donnelly said. As a result, the district will have to review all current and future expenditures to ensure it has a good value, which he defines as "the best combination of price, quality and service." "Without the expected revenue increase of the property tax reappraisal, Buckeye Local Schools will have to search for new revenue streams and/or reduce costs to ensure we maintain adequate cash reserves, and we can sustain ongoing operations in the district," he said. "The sooner you make systemic changes, the less the impact is." Costs are also continuing to go up across the board even though revenue streams from the state and property taxes have flattened, Donnelly said. "Future increases and expenses will be much more difficult to fund due to the system change," he said. "The 20-mill floor reappraisal bumps will be reduced. Emergency levies will be meaningless after it reaches the floor. The once-in-a-lifetime property tax value increases have created a kneejerk reaction from our legislature that will hamstring school funding for decades." As a result, Buckeye is challenged to find a funding source that can increase over time and keep up with inflation as costs increase, Donnelly said. "People don't necessarily just want to keep spending money on schools, but we got to learn to value education," he said. "We got to be smart with our money and smart with the way we do things, so the public can trust what we're doing and help us move forward." Board member Kim Cecelich said she will not support discussions regarding the district increasing taxes. "We have to manage our costs very carefully over the next few years and look for ways to reduce costs without impacting the quality of our services to the Buckeye community," Donnelly said. "We need to find a sustainable revenue source that our community will support." The issues with funding are not because of the decision to build a new high school, he said. "It was created by state legislation that changed our expected revenue streams without a real solution to replace those lost revenues." Donnelly said. "The future of our community and our students depend on our school board, administration and our staff working together to find real solutions to problems we did not create." Donnelly said he will probably have an updated financial forecast in May after there is more information available regarding potential funding impacts. Contact reporter Madisyn Woodring at (330) 721-4049 or mwoodring@medina-gazette.com.