How could state bill impact Fostoria Local Schools?

FOSTORIA — Local school board officials considered how pending state legislation could affect the district's finances. Members of the Fostoria Board of Education met on Monday for their regularly scheduled meeting to primarily discuss the future of the district due to the newly proposed House Bill 96, as well as other changes within the state budget. School districts could face significant financial cuts with millions in carryover funds distributed back to taxpayers should HB-96 receive approval. End to local revenues? During the meeting, district treasurer Dan Russomanno shared the following: "A joint committee of property tax reform was put together to try to deal with the soaring property tax values, with their report being issued in December 2024. Those particular recommendations will not generate suitable property tax relief for the house, so a provision was put into House Bill 96 that requires county budget commissions to reduce local funding for school districts with a cash balance carryover exceeding 30%." Russomanno continued, explaining that if the district's carryover in 2025 is more than the district's expenditures for the 2025 fiscal year, then the district's local tax revenue will be significantly reduced. Adding to this, he shared that if the bill is passed, Fostoria could stop seeing local revenue as early as the 2026 fiscal year. Another issue Russomanno noted with HB 96 is the removal of the Fair School Funding Plan. As a result, the district's state revenue would also significantly drop in the 2026 fiscal year, this time from $946,283 to $65,242 — nearly a 93% reduction. Several members of the board asked whether or not the elementary expansion could contribute to meeting that 30% threshold, to which Russomanno noted it would help — but there would still be a fair distance to cover. "The rise in property taxes is the No. 1 complaint our legislators and representatives get, but it is actually a local issue. Escrows will be refunded because they are not owed, and then mortgage payments will go back up when we do make a full collection, which I believe will cause unrest with some people," Russomanno said. Thirty percent of the 2025 fiscal year's expenditures — about $25,517,000 — comes out to $7,655,100, meaning the district would need to spend roughly $17,655,100 based on recent projections. The discussion surrounding the bill will continue at the district's work session in June. More topics discussed Also discussed at the meeting were the implementation of metal detectors, following an incident last week where a student was found in possession of a BB Gun on campus at the Jr./Sr. High School. "This is an extremely relevant topic," stated board member Nichole Jones, who originally proposed the idea. Jones shared that she has spoken with other districts in the state who have implemented metal detectors already, some of which were paid for in full through grant funding. Superintendent Jason Longbrake noted in his report that state testing is completed in the district, with commencement coming up on Saturday, May 24. Regarding the elementary expansion project, Longbrake shared that construction will begin in June and is projected to be finished in July 2026. Following all their other regular agenda items, members of the board entered into an executive session for the consideration of the employment or compensation of an employee.