Funding freeze and HB 335 worry educators

FINDLAY — Proposed changes to Ohio's tax laws and funding freezes have caused concerns for school leaders across Hancock County. The proposed changes could result in significant losses in school funding for districts across Ohio. House Bill 335 Ohio HB 335, otherwise known as "Property Tax Relief NOW Act," is a proposed property tax reform bill that would eliminate inside millage, a significant source of funding for schools. Without the property tax revenue, school districts could face significant reductions in funding, leading to potential cuts in programs, services and staff. According to the Ohio School Boards Association, the bill would result in nearly $2 billion annually for public schools across the state. At Findlay City Schools, the district would be projected to lose $6.2 million, roughly 10% of its operating budget. FCS Superintendent Andy Hatton said the proposal could have the potential to force the district back on the ballot if passed, even after its successful levy back in May. "We are still extremely thankful for our local community supporting our own 1% earned income tax back in May by 66%," Hatton said. "We have promised this community that we will live within our means financially, to do that, we would be faced with cuts and I would anticipate the potential for us being right back on the ballot to operate our school district." Inside millage proposed in HB 335 refers to property taxes that school districts and local governments can levy without a vote. According to the Ohio School Boards Association, HB 335 could alter 20-mill floor calculation, including emergency and substitute levies, cap revenue growth for school districts at the rate of inflation and allow county budget commissions to reduce school funding on a district's cash balance "Inside millage has been around for a long time," Hatton said. "It gives municipalities the ability to function, provide basic services, basic infrastructure and basic education." Liberty-Benton Superintendent Bruce Otley shared similar concerns. "Without the benefit of the 20-mill floor and things like a local income tax and emergency and substitute levies, school districts will need to be on the ballot more frequently to ask for additional millage to offset the small gains that are made through those things," Otley said. While proposed as a form of property tax relief, school officials argue that the savings are not worth the cost to public education. "We know that we need some level of a tax system that provides relief, especially to those that can least afford it," Hatton said. "We also have, on the other end of that scale, to have incredible school systems, to hire and retain the best teachers, to provide the best opportunities for our children here in Hancock County, in Northwest Ohio, all across Ohio — that does take funding." While Hatton agreed that some form of tax reform is necessary, HB 335 is not the right solution. "It feels like we're taking a machete to a problem that needs a scalpel," Hatton said. "We need to get back to working together and bringing in experts who really understand the economic impact, fiscally, and tax experts who can explain the impacts of these broad sweeping legislative proposals." HB 335 is currently in the House Ways and Means Committee. The bill was introduced on June 1 and was referred to the committee on June 11. Federal funding freeze As school districts prepare for the upcoming academic year, uncertainty is also growing at the federal level. Just one day before federal education grants were set to be released on July 1, the Trump administration froze five crucial grant programs, totaling more than $6 billion. The administration froze funds to review the grants for compliance with the administration's priorities. A total of 24 states and Washington, D.C. have sued Trump and the Department of Education over the grants, Ohio was not among these states, but the federal funding freeze has placed $185 million in education funding for Ohio schools on pause. "The impacts in these delays are in programming we actually have here in Findlay, and in many school districts," Hatton said. "We pay people with this money and we don't have it yet, so we still have a lot of uncertainty around our budgets." Some FCS grants affected by the freeze include Title 2A (Supporting Effective Instruction), Title 3A (Language Instruction for English Learners and Immigrant Students), Title 4A (Student Support and Academic Enrichment) and Title 4B (21st Century Community Learning Centers). "We are just hoping that our own General Assembly and that the federal government does their job to continue to support public education," Hatton said.