Tiffin Schools hears financial updates

TIFFIN — At the Tiffin City Schools Board of Education meeting Monday evening, Treasurer Anne Spence presented the district's updated five-year financial forecast for fiscal years 2026-2030. The following is a breakdown of the forecast and key financial concerns outlined by the treasurer. Revenue and expenditures According to the presentation, total general fund revenue is projected to grow by less than 1% annually over the next five years, while expenditures are expected to increase by 3.9% per year. The district began deficit spending in fiscal year 2023 and the trend is forecasted to continue and accelerate. The district maintains a 60-day cash reserve through fiscal year 2028, but the ending cash balance is projected to fall sharply beginning in fiscal year 2026. By fiscal year 2030, the district is expected to have a negative cash balance. Wages and benefits are estimated to make up 72.6% of general fund expenditures in fiscal year 2026, with purchased services as the second-highest cost category. State and local funding The district receives approximately 51% of its revenue from the state and 49% from local sources. The presentation notes that current funding places the district on the Fair School Funding Plan formula through fiscal year 2027. However, future state funding is uncertain beyond that point. House Bill 96, Ohio's current state budget, provides only small increases in foundation funding. The presentation also outlines 17 proposed bills in the Ohio legislature that could impact property tax structures and reduce local revenue for public schools. One set of bills, referred to as the "Taxpayers Freedom Trilogy Act" (HB420, HB421, HB422), could eliminate continuing levies and require more than 50% voter approval for new levies. The presentation states these changes "would be devastating to our local revenues we count on to educate our children," Spence wrote. Additionally, the district could lose $441,606 in revenue due to a new Piggybank Tax Exemption law, which allows county commissioners to offer additional tax credits without reimbursement. November ballot measure To address the projected deficit and maintain instructional programs, the district is asking voters to approve a new income tax measure on the Nov. ballot. The proposal reads: "Shall an annual income tax of 0.75% on the earned income of individuals residing in the school district be imposed by Tiffin City School District for 6 years, beginning January 1, 2026, for the purpose of current expenses?" The levy would generate about $3 million annually for the district. According to the Levy Committee, the cost to households earning the median income would be about $34 per month, or 75 cents for every $100 earned. The tax applies only to earned income and does not affect retirement, Social Security, pensions, or investment income. Committee members presenting at a recent League of Women Voters meeting noted that the district has not received new local operating funds since 2013. According to committee chair Jimmy Flint, the district spends roughly 15% less per student than the state average, and teacher salaries are about $6,000 below the state average. Parent and volunteer Callie Cessna said students were using textbooks from 2010 until about 18 months ago, and emphasized the need for updated resources and support. Superintendent Jerry Nadeau said the proposed levy would be used strictly for operational costs, not new buildings. If passed, it would help preserve classroom instruction, extracurricular programs, and student services such as counseling, special education, and mental health supports. Planning ahead The presentation also notes that HB126 limits the district's ability to challenge property valuation reductions, which could further impact local tax revenue. A decline of 77 students in fiscal year 2025 also contributed to a decrease in state funding. The district is expected to monitor legislative developments and evaluate options for budget adjustments or new revenue sources. The presentation states that if the state reduces funding and limits the district's ability to raise local revenue, "our district will need to make cuts and/or pass new levies in response to maintain our instructional programs for our students."