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School superintendents speak out on possible property tax law changes and hope lawmakers are listening. Guests are Superintendents George Wood of the Federal Hocking Local School District, Daryl Kubilus of Cloverleaf Local Schools and Trent Bowers from Worthington City School District.

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00:00:39	School superintendents
00:00:39	speak out on possible property
00:00:42	tax law changes and hope
00:00:42	lawmakers are listening.
00:00:45	That's this week
00:00:45	in the state of Ohio.
00:01:06	Welcome to the state of Ohio.
00:01:08	I'm Karen Kasler.
00:01:10	Ohioans paid $16.7
00:01:10	billion in property taxes
00:01:13	last year,
00:01:14	and a report released
00:01:15	this last week says those high
00:01:17	property taxes are not leading
00:01:19	to lots
00:01:19	of spending by schools,
00:01:21	but instead are making up
00:01:21	for low state
00:01:23	spending on K through 12
00:01:23	education.
00:01:25	A report from school
00:01:25	funding expert
00:01:27	Howard Pfleger and former
00:01:27	state budget director Greg
00:01:29	Browning concluded
00:01:31	Ohio was dropped to 45th
00:01:31	in the nation in the state
00:01:34	share of K through 12 revenue
00:01:34	from 35th a few years ago.
00:01:38	But the state has the eighth
00:01:39	highest property
00:01:39	tax rate in the nation.
00:01:41	The authors write that those
00:01:41	most hurt by those property
00:01:44	tax bills are the least able
00:01:44	to pay them.
00:01:48	A task force
00:01:48	convened by governor
00:01:49	Mike DeWine is expected
00:01:49	to deliver its recommendations
00:01:52	on property
00:01:52	tax law changes in a few days.
00:01:54	The panel is charged
00:01:54	with coming up with ideas
00:01:57	on combating
00:01:57	those soaring property
00:01:59	tax bills
00:01:59	while still funding schools,
00:01:59	police and other services.
00:02:03	But they'll have to deal
00:02:03	with a lot of issues,
00:02:04	including House Bill 920,
00:02:04	which blocks rising home
00:02:07	values from creating unwanted
00:02:07	tax increases on homeowners.
00:02:11	It reduces the tax rate on all
00:02:11	voted property tax levies
00:02:15	in proportion to increases
00:02:15	in property value.
00:02:19	There's an exception to that
00:02:19	that guarantees
00:02:20	a school district's effective
00:02:20	tax rate cannot fall below
00:02:23	2% of a home's assessed
00:02:23	value, or 20 mills,
00:02:27	which is known
00:02:27	as the 20 mill floor.
00:02:29	I sat down with three school
00:02:29	superintendents
00:02:31	to talk about the pressures
00:02:31	they're facing from property
00:02:34	tax payers, from lawmakers,
00:02:35	and from the families
00:02:35	of the kids that they serve.
00:02:38	First up, George Wood,
00:02:38	superintendent of the Federal
00:02:41	Hocking Local School
00:02:41	District in Athens County.
00:02:43	A consolidated rural district
00:02:43	that's huge in size,
00:02:46	but small enrollment,
00:02:46	just over 800 students
00:02:49	and around
00:02:50	70% of them are considered
00:02:50	economically disadvantaged.
00:02:54	The school board
00:02:54	voted to cut a handful
00:02:55	of teaching positions
00:02:55	earlier this year.
00:02:58	You know,
00:02:58	the state pressures us a lot
00:03:00	because we have made
00:03:00	the decision
00:03:02	that even though we're small,
00:03:03	we will keep open
00:03:03	our small elementary schools.
00:03:06	They're the center of life
00:03:06	in Coalville and Ames Field.
00:03:09	They're small schools.
00:03:11	There were people go to school
00:03:11	and get a great education.
00:03:14	They're
00:03:14	they're well-maintained.
00:03:17	We take great
00:03:17	care of these buildings.
00:03:20	They're safe.
00:03:21	The communities in and out
00:03:21	all the time.
00:03:23	They're community events.
00:03:25	But the state always pressures
00:03:25	us to close those buildings
00:03:29	and bring all the students
00:03:29	to the high school.
00:03:31	Middle school,
00:03:31	which, when you're on a 180
00:03:34	mile square district,
00:03:34	that means kindergartners
00:03:36	can run busses for an hour
00:03:36	and a half each way.
00:03:40	So that's
00:03:40	that's the big pressure.
00:03:43	Some state lawmakers
00:03:43	have anchored on this idea
00:03:45	that school districts
00:03:45	are holding a lot of money
00:03:47	in their operating budgets,
00:03:47	a big percentage
00:03:49	of their operating budgets,
00:03:49	billions of dollars,
00:03:52	and collected property
00:03:53	tax revenue from voter
00:03:53	approved levies
00:03:55	that could be returned
00:03:55	to taxpayers.
00:03:57	And the last budget,
00:03:57	there was a provision
00:03:59	that would cap that at 40%
00:03:59	of the operating budget.
00:04:01	Governor DeWine vetoed that.
00:04:03	That would have affected
00:04:03	your district, I can imagine.
00:04:06	Yeah.
00:04:07	I appreciate
00:04:07	what the governor did.
00:04:08	And here's what I'd say
00:04:08	to the legislators.
00:04:10	And I'm sorry, but this is
00:04:10	none of their damn business.
00:04:13	We raised those taxes.
00:04:15	We saved those taxes.
00:04:17	We saved that money
00:04:17	over years.
00:04:20	And then we're able
00:04:20	to do things
00:04:22	like we install a solar,
00:04:23	generating
00:04:23	plant on top of the school,
00:04:26	which virtually eliminates
00:04:26	our electricity costs.
00:04:30	But we did that
00:04:31	because we'd been saving money
00:04:31	for ten years.
00:04:33	I mean, that's bank robbery.
00:04:36	That's larceny.
00:04:36	That's our bank.
00:04:38	Our our community paid
00:04:38	that money in knowing
00:04:42	where it was going
00:04:44	and knew that we would do
00:04:44	things with that money
00:04:46	that would make our schools
00:04:46	better.
00:04:47	We put new rules on with that
00:04:47	money.
00:04:50	It's not like the state's
00:04:50	going to come down here
00:04:52	and put a new roof
00:04:52	on a school.
00:04:54	So this legislators,
00:04:54	I mean, they're bank robbers,
00:04:57	that's all there.
00:04:59	The goal of doing that
00:04:59	and that cap, that cap 40%,
00:05:03	with the rest
00:05:03	being returned to taxpayers,
00:05:05	was to provide
00:05:05	some property tax relief.
00:05:07	And certainly
00:05:09	there's some concerns
00:05:10	about property taxes
00:05:10	with this movement
00:05:12	that we
00:05:13	try to abolish property
00:05:14	taxes, that volunteers are now
00:05:16	gathering signatures
00:05:16	to put that before voters.
00:05:18	Is that something
00:05:19	because you are so dependent
00:05:19	on school, on property
00:05:22	taxes, for school funding?
00:05:24	Is that an effort that you're
00:05:24	worried about?
00:05:26	Well, sure.
00:05:27	But let's be clear
00:05:28	that effort is property
00:05:28	tax should be reformed.
00:05:31	I get it.
00:05:32	The property
00:05:33	tax system was put in place
00:05:33	in this country in the 1700s,
00:05:37	when only white males
00:05:37	could vote.
00:05:39	And only white males
00:05:39	could own property.
00:05:42	So it's what you
00:05:42	paid to get to vote, right?
00:05:46	Things have changed.
00:05:47	Yes, we
00:05:47	should do something different.
00:05:49	But can we just honest
00:05:49	for a minute.
00:05:52	This is not about property
00:05:52	taxes.
00:05:54	This is just about cutting
00:05:54	funding to public services.
00:05:58	We have a legislature
00:05:58	that seems to dislike fire
00:06:01	departments, police
00:06:01	departments, schools, roads,
00:06:05	cemeteries, parks, anyplace
00:06:05	they can cut taxes and taxes
00:06:10	pay for all those things,
00:06:10	right?
00:06:12	I mean, the other side of it,
00:06:12	Karen, is that
00:06:15	this is also the legislature
00:06:15	exceeding its bounds
00:06:19	and continuing
00:06:19	to try and cut local control.
00:06:23	Property taxes are
00:06:25	we can't we can't add
00:06:25	to the state income tax.
00:06:28	We can't just
00:06:29	raise the income tax
00:06:29	like they can't
00:06:31	we can't raise
00:06:31	a big sales tax.
00:06:33	We don't have many businesses
00:06:33	in our area.
00:06:35	The one thing we can do
00:06:35	is go to our voters and say,
00:06:38	do you like what we're doing?
00:06:40	Do you approve what's going on
00:06:40	in the schools?
00:06:42	Here's our situation.
00:06:44	Would you be willing to pay
00:06:44	a little bit more money
00:06:47	and they get to vote?
00:06:48	I think I think what
00:06:48	the legislature forgets is
00:06:51	these weren't
00:06:51	magically imposed on people.
00:06:53	People voted these in
00:06:55	should the system be changed
00:06:55	and improved?
00:06:57	Absolutely.
00:06:57	Happy to be a part of that.
00:06:59	But that's
00:06:59	not what this is about.
00:07:02	Do you think that schools
00:07:02	can get ahead of that message
00:07:05	to taxpayers
00:07:06	who are frustrated
00:07:07	and feel like they're
00:07:07	being squeezed,
00:07:09	that they can't afford
00:07:09	their property taxes?
00:07:11	And so, you know,
00:07:12	nobody wants to pay property
00:07:12	taxes, right?
00:07:14	How do you get ahead of that
00:07:14	message?
00:07:17	Let me first say I don't agree
00:07:17	that nobody wants to pay.
00:07:19	I happily write my check.
00:07:21	And I see the fire department
00:07:22	down the street,
00:07:22	and the streetlights
00:07:24	come on at night
00:07:24	and the children go to school.
00:07:27	Of course,
00:07:27	everyone would like to keep
00:07:29	all their money,
00:07:29	but taxes are what we pay
00:07:31	for living in the community,
00:07:31	in a civil society.
00:07:35	Look around the world.
00:07:36	You want to live somewhere
00:07:36	where the. No.
00:07:37	No schools,
00:07:37	no fire department?
00:07:39	No. That's
00:07:39	where you don't pay taxes.
00:07:42	I think the message to
00:07:42	our community needs to be,
00:07:46	and we need to be real
00:07:46	transparent and real public.
00:07:48	In fact, we've got a meeting
00:07:48	schedule in October where
00:07:51	we will roll out our
00:07:51	our three year forecast
00:07:55	and we will spend hours
00:07:55	with our community explaining,
00:07:58	here's
00:07:58	where this revenue comes from.
00:08:00	Here's what we spend on this.
00:08:02	We want to be
00:08:02	really transparent.
00:08:04	That's the important thing.
00:08:05	So people go away
00:08:05	thinking, yeah, that's good.
00:08:08	I like having Friday Night
00:08:08	Football.
00:08:10	I like basketball games,
00:08:10	you know.
00:08:12	Yeah, that's a good day.
00:08:15	What message
00:08:15	would you send to lawmakers
00:08:17	about that changes
00:08:17	that you think could be made
00:08:20	to help property tax payers
00:08:20	who are struggling, but also
00:08:24	protect school districts?
00:08:25	What would you like to see
00:08:25	lawmakers do
00:08:28	pay their bill.
00:08:30	They don't give us enough
00:08:30	money.
00:08:32	The only reason we do
00:08:32	this is because that they're
00:08:38	ever we've all known
00:08:38	the funding system is broken.
00:08:41	They made a shot
00:08:41	at fixing it.
00:08:44	It worked for a little bit,
00:08:45	and then they just threw
00:08:45	that one out.
00:08:47	Come up.
00:08:48	And I know that, honestly,
00:08:48	I know this is a pipe dream.
00:08:51	It's not going to happen.
00:08:53	They just need to come up
00:08:53	with a fair funding system.
00:08:55	And they need to fund schools,
00:08:55	not out of residual money
00:08:59	like what's left after
00:08:59	we've done everything else
00:09:01	schools need to be.
00:09:02	And I am not disrespecting
00:09:02	my friends
00:09:05	in the police force
00:09:05	or the firefighters, actually.
00:09:08	There you go.
00:09:09	Fund schools, law enforcement,
00:09:09	firefighters, then
00:09:13	do everything else I do know
00:09:13	people on limited incomes.
00:09:18	I do know people that have,
00:09:18	especially around here,
00:09:20	they've inherited
00:09:20	really large, beautiful farms.
00:09:24	And here
00:09:24	comes folks from other places
00:09:26	who think
00:09:26	they're really beautiful
00:09:27	and they start buying them
00:09:27	and the price starts going up.
00:09:31	And so their appraisal
00:09:31	goes up.
00:09:34	Maybe a cap
00:09:34	on appraisal increases,
00:09:36	maybe something like that,
00:09:36	something that prevents
00:09:39	an impact on the community.
00:09:41	This community can't control.
00:09:43	We can't control that.
00:09:44	There's a lot of money
00:09:44	in Cleveland,
00:09:46	Columbus, Cincinnati, etc.
00:09:48	and we live
00:09:48	in a beautiful place
00:09:50	and people
00:09:50	want to come buy it.
00:09:52	I can't control that.
00:09:53	But when they do it,
00:09:54	it runs up the value
00:09:54	of everybody's property
00:09:57	and everybody has to pay more.
00:09:58	I don't have any different
00:09:58	property now.
00:10:01	I don't have a different job.
00:10:02	I'm still retired.
00:10:04	So maybe if they looked at it,
00:10:06	it's good
00:10:06	to have this conversation
00:10:07	because
00:10:07	I never thought about it
00:10:08	until you ask that question.
00:10:10	I also spoke with Darrell
00:10:10	Cupolas of the Cloverleaf
00:10:12	Local Schools,
00:10:12	which is proposing
00:10:14	a fifth property
00:10:14	tax cut in five years.
00:10:17	The 2200 student
00:10:17	district is getting $23
00:10:20	million from the Ohio School
00:10:20	Facilities Commission,
00:10:23	which will allow it to pay off
00:10:23	construction debt.
00:10:26	And Medina is the only Ohio
00:10:26	county that has a point
00:10:28	5% sales tax for improvements
00:10:28	to schools.
00:10:32	So cloverleaf
00:10:32	gets some of that, too.
00:10:34	Well,
00:10:35	I think that some people have
00:10:35	the mentality that school
00:10:39	districts and school district
00:10:39	leaders just want to take,
00:10:42	take, take.
00:10:43	I guess the message
00:10:43	I'm trying to get out
00:10:45	is that we want to be
00:10:45	part of the solution.
00:10:49	I think that the nuanced
00:10:49	approach that the governor
00:10:53	is taking with his task
00:10:55	force is a great step
00:10:55	in that direction.
00:10:59	I think that some of
00:10:59	the proposals that come,
00:11:02	that we've seen out
00:11:02	of the General Assembly are,
00:11:07	very drastic solutions
00:11:07	that have dire consequences.
00:11:11	On the other end of those, I'm
00:11:11	not sure if those have been
00:11:15	vetted to the degree
00:11:15	that a task force like what
00:11:19	governor DeWine
00:11:19	is working with right now,
00:11:22	that group is looking at
00:11:22	the positives and negatives.
00:11:26	Every time you do something,
00:11:26	something is going to give
00:11:30	on the other end of that.
00:11:31	So it's taking that nuanced
00:11:31	approach and understanding,
00:11:36	what are the implications
00:11:36	of this?
00:11:38	And so I guess as a school
00:11:38	superintendent, I want to help
00:11:45	to be part of the solution
00:11:45	in my particular situation.
00:11:50	And I know that we are going
00:11:50	through unprecedented property
00:11:53	value increases.
00:11:56	As a 20
00:11:56	mill floor school district,
00:11:59	we have the ability to give
00:11:59	some of that revenue back.
00:12:03	That is a solution
00:12:03	that we are choosing to do
00:12:07	in cloverleaf.
00:12:08	And some state lawmakers
00:12:08	really have anchored
00:12:12	on the idea
00:12:12	that school districts
00:12:14	are holding a lot of money,
00:12:15	billions of dollars
00:12:15	in collected property
00:12:17	tax revenue from voter
00:12:17	approved levies
00:12:20	that could be returned
00:12:20	to taxpayers.
00:12:21	In the last budget,
00:12:22	there was a provision
00:12:22	that would have capped
00:12:25	the carryover balance
00:12:25	that a district can hold
00:12:27	as a percentage of its
00:12:27	operating budget, at 40%.
00:12:30	That was vetoed by governor
00:12:30	Mike DeWine.
00:12:32	That would have would that
00:12:32	have affected your district?
00:12:36	Oh, absolutely.
00:12:37	I think governor DeWine has,
00:12:37	an understanding of school
00:12:42	funding,
00:12:42	that that goes beyond
00:12:45	what that 40%, does.
00:12:49	Here's the problem
00:12:49	with the 40%,
00:12:51	cap on the carryover
00:12:51	school district.
00:12:55	We just talked
00:12:55	about the 20 mil floor.
00:12:58	So that is an exception.
00:13:01	I also talked about House
00:13:01	Bill 920 from 1976.
00:13:04	So in general terms, if you're
00:13:04	not at the 20 mil floor,
00:13:09	what happens is
00:13:09	you pass a levy
00:13:12	and your funding on that levy
00:13:12	is stagnant
00:13:16	over the course of the terms
00:13:16	of that levy for our
00:13:19	in our case, it's
00:13:19	usually ten year increments.
00:13:22	Cloverleaf.
00:13:23	So we pass a levy
00:13:23	for ten years.
00:13:25	What happens over the course
00:13:25	of that ten years.
00:13:29	Our personnel costs
00:13:29	go up, health care costs
00:13:32	go up, the price of goods
00:13:32	and services go up.
00:13:35	But yet
00:13:35	our revenue is stagnant.
00:13:38	So how do you
00:13:38	go from one levy to another?
00:13:44	With a
00:13:44	stagnant revenue source?
00:13:47	While when you first pass
00:13:47	a levy,
00:13:49	than you are spending.
00:13:49	you are bringing in more money
00:13:54	But in time,
00:13:54	when price and costs go up,
00:13:58	you're actually spending
00:13:58	more than you bring in.
00:14:03	That's
00:14:03	how school funding works.
00:14:05	That's how a levy cycle works.
00:14:07	So we utilize a cash carryover
00:14:07	balance to get us to a point
00:14:14	before we have to ask
00:14:14	for new revenue.
00:14:16	So it's part of our spending
00:14:16	plan.
00:14:20	Cash carryover
00:14:20	is not a rainy day.
00:14:23	That rainy day connotes
00:14:23	an emergency.
00:14:27	No cash carryover is part
00:14:30	of our metered spending plan.
00:14:33	And so to cut that,
00:14:37	to 40%, in our case,
00:14:37	that would cost us over
00:14:42	$20 million.
00:14:43	It would the bigger problem is
00:14:43	it would cost us needing
00:14:47	to go back on the ballot,
00:14:47	not just quickly,
00:14:51	but on the ballot repeatedly.
00:14:54	And the more we go on
00:14:54	the ballot, the more fatigue,
00:14:57	levy fatigue we're creating,
00:14:57	the bigger distance
00:15:01	we're getting between school
00:15:01	districts and taxpayers.
00:15:05	And the more,
00:15:07	infuriating it becomes.
00:15:09	So that's my concern about
00:15:09	a 40, 40%, cap on that.
00:15:15	I think the ultimate
00:15:15	representation of levy fatigue
00:15:17	may be this proposal
00:15:17	to abolish property
00:15:20	taxes, that you've got
00:15:20	a group of volunteers
00:15:22	that are circulating petitions
00:15:23	to try to put that before
00:15:23	voters next year.
00:15:26	You said you were concerned
00:15:27	about some of the things
00:15:27	that the legislature may be
00:15:30	doing when it comes
00:15:30	to property taxes,
00:15:31	but are you
00:15:31	concerned about this one?
00:15:33	And how do you get out there
00:15:33	in front of that?
00:15:35	And talk to homeowners
00:15:35	who are frustrated
00:15:38	about their property taxes?
00:15:39	But districts need money.
00:15:42	I have talked in person
00:15:42	to some legislators
00:15:45	that are very fearful of this,
00:15:45	property tax initiative.
00:15:50	But part of the conversation
00:15:50	needs to be
00:15:54	that there is another side,
00:15:56	and that other side
00:15:56	has not been discussed
00:15:59	at the state level,
00:15:59	much to my understanding.
00:16:04	And that is that
00:16:04	if such a proposal is
00:16:08	put out there, we still live
00:16:08	in a civilized society.
00:16:13	We still need schools,
00:16:14	we still need fire,
00:16:14	we still need police.
00:16:18	Our property taxes cover that.
00:16:21	If someone's having
00:16:21	a heart attack in your house,
00:16:26	you want a paramedic
00:16:26	to be there.
00:16:28	That requires a tax.
00:16:31	If your house is burning down,
00:16:31	you want someone to be able
00:16:35	to put that fire out
00:16:37	that requires a tax
00:16:37	in a civilized society.
00:16:41	We need kids to be educated.
00:16:44	That requires a tax.
00:16:45	If we're not doing it
00:16:45	through a property tax,
00:16:48	then the question is
00:16:48	how are we going to do it?
00:16:52	Some of the people I have
00:16:52	talked to non legislators,
00:16:57	have ended the conversation
00:16:57	with, I don't want
00:17:01	to pay a property tax.
00:17:02	That's great.
00:17:04	None of us do.
00:17:06	However,
00:17:06	how are you going to pay for
00:17:08	those other things?
00:17:10	What is your answer to that?
00:17:12	The only logical answer
00:17:12	would be
00:17:14	some sort of consumption tax.
00:17:16	So food, clothing,
00:17:20	those basic necessities
00:17:20	that we need.
00:17:23	Well what
00:17:23	percentage of a sales tax
00:17:27	are we going
00:17:27	to need to have in order
00:17:27	to have these services?
00:17:31	What other kinds of taxes
00:17:31	are we going to need to have?
00:17:35	And then the question becomes
00:17:35	and property tax.
00:17:39	The more value your property
00:17:39	has, the more you're paying.
00:17:43	But in a consumption tax
00:17:43	we all have to eat.
00:17:46	So who is harmed more by that?
00:17:49	I also talk with Trent Bowers
00:17:49	from the Worthington
00:17:51	City School
00:17:51	District in Franklin County,
00:17:53	which includes that suburb
00:17:53	and part of Columbus.
00:17:55	It's one of the state's larger
00:17:55	districts
00:17:57	with more than 10,000
00:17:57	students.
00:17:59	Worthington
00:17:59	passed a levy in 2022.
00:18:02	When we went to the voters,
00:18:03	we said, this is going to last
00:18:03	four years.
00:18:05	We're going to be back in 2026
00:18:05	for an eight
00:18:08	operating levy
00:18:08	and a bond issue.
00:18:11	We have now said, hey,
00:18:12	we want to extend
00:18:12	the life of that, right?
00:18:14	We think 2026 is too early.
00:18:17	We can make this last
00:18:17	until 2028.
00:18:19	But that cash balance
00:18:19	allows that to happen
00:18:21	because we are in deficit
00:18:21	spending.
00:18:23	And so we're spending down
00:18:24	some of that cash balance
00:18:24	we've planned to utilize that,
00:18:27	if arbitrarily,
00:18:27	there was a cap on that cash
00:18:31	balance that we had to refund
00:18:31	that to our taxpayers.
00:18:34	That is a win to our taxpayers
00:18:34	in the short term.
00:18:36	Right?
00:18:36	So in a single year,
00:18:36	you're going to pay less.
00:18:39	However, we're going to have
00:18:39	to come back and ask for,
00:18:45	you know,
00:18:45	an increase in our revenue.
00:18:47	And we're going
00:18:47	to have to do that
00:18:48	earlier than we had planned,
00:18:49	because we no longer
00:18:49	have that cash balance.
00:18:51	And so we, you know,
00:18:51	we obviously understand,
00:18:54	in many parts of Ohio,
00:18:57	House Bill 920 is not working
00:18:57	the way it was intended to.
00:19:00	Right?
00:19:01	So I think
00:19:01	one of the challenges
00:19:01	for our representatives is,
00:19:04	they are filling in
00:19:05	with historic property value
00:19:05	increases.
00:19:09	This part of this property
00:19:09	tax challenge,
00:19:12	in, in their
00:19:12	local communities
00:19:14	when there's a reappraisal,
00:19:15	their school district
00:19:16	might be getting all of that
00:19:16	money from the reappraisal.
00:19:19	And so that's a
00:19:19	that's a quirk in the system,
00:19:22	but I'm not sure
00:19:22	they understand that
00:19:24	in our suburban districts.
00:19:25	And we have lots
00:19:25	of advantages.
00:19:26	Let's be honest.
00:19:27	But in our suburban districts,
00:19:29	House Bill 920
00:19:30	is treating that differently
00:19:31	than it is and 3
00:19:31	to 400 other school districts.
00:19:34	And so I think people come to
00:19:34	Columbus as a representative.
00:19:37	They know
00:19:37	what happens in their area,
00:19:39	and they want to make sure
00:19:39	there's a shift.
00:19:41	And so part
00:19:41	of what we would be saying
00:19:42	is, okay, let's look at this,
00:19:42	more collaboratively.
00:19:46	We do appreciate
00:19:47	the governor's work group
00:19:47	because there's a couple
00:19:49	superintendents on there.
00:19:51	They can tell their story,
00:19:53	you know,
00:19:53	how does it work in Fort Frye?
00:19:55	Local.
00:19:55	How does it work in Dublin?
00:19:56	Those are totally different
00:19:56	stories.
00:19:59	And we need a system
00:20:00	that's
00:20:00	that's not a sledgehammer,
00:20:01	but that works
00:20:01	for all parties.
00:20:04	You're also concerned
00:20:05	and you've raised concerns
00:20:05	about a bill
00:20:06	that would eliminate
00:20:06	the 1% of property
00:20:08	tax value that schools
00:20:08	and local governments can levy
00:20:10	without voter approval,
00:20:10	known as inside millage.
00:20:13	Yeah.
00:20:13	I mean, so,
00:20:13	you know, inside millage
00:20:15	for us was about $14
00:20:15	million a year.
00:20:17	And so again, if, if those
00:20:17	two things were to happen.
00:20:20	Right.
00:20:21	So when we talked about that,
00:20:22	if all of a sudden we didn't
00:20:22	have our cash balance
00:20:25	that we that we had counted on
00:20:25	and we lost, say, $14
00:20:29	million a year,
00:20:30	then we obviously need to
00:20:30	either immediately
00:20:33	go back to our voters
00:20:34	and ask for a revenue bump
00:20:34	to replace that money we lost.
00:20:38	And we're fortunate
00:20:38	in Worthington.
00:20:39	There's a reasonable chance
00:20:40	our voters would approve that
00:20:40	and say,
00:20:42	hey, we don't want
00:20:42	to make reductions.
00:20:44	But the other option is
00:20:45	you have to make reductions,
00:20:45	right?
00:20:46	You have to reduce your budget
00:20:46	to meet the revenue.
00:20:49	That's talking
00:20:49	about cutting teachers.
00:20:50	You're talking about cutting.
00:20:51	Yes, you have to. Right.
00:20:52	Because we're a service
00:20:52	industry,
00:20:53	so 85% of our budget is salary
00:20:53	and benefit of employees.
00:20:56	We're just like a health care
00:20:56	organization.
00:20:58	We hire people
00:20:58	to work with kids.
00:21:00	We don't have a lot of,
00:21:00	extra fun stuff.
00:21:03	We have a water bill,
00:21:03	we have a gas bill.
00:21:05	We have an electric bill
00:21:06	just like everybody else,
00:21:06	a giant internet bill.
00:21:08	Right.
00:21:09	So, there's not all in that,
00:21:09	you know, budget.
00:21:12	Most of it is people.
00:21:13	So the only way to make
00:21:14	a meaningful reduction to
00:21:14	a budget is to modify people.
00:21:18	Now, that could be reducing
00:21:18	positions.
00:21:20	That could be changes
00:21:20	to a collective
00:21:22	bargaining agreement.
00:21:23	Right.
00:21:24	But employee compensation
00:21:24	is the driver of cost
00:21:28	when it comes to school
00:21:28	districts.
00:21:29	Because we're a service
00:21:29	industry,
00:21:31	Worthington often
00:21:32	makes the lists
00:21:32	of wealthiest suburbs in Ohio.
00:21:35	But your district is not
00:21:37	necessarily
00:21:37	a wealthy district.
00:21:39	I mean, 31% of your kids
00:21:40	are economically
00:21:40	disadvantaged, so
00:21:43	you don't have the advantages
00:21:43	that some wealthier districts
00:21:46	do in terms of the money.
00:21:48	That is coming in. Yeah.
00:21:50	So I mean, obviously,
00:21:50	you know,
00:21:52	Worthington
00:21:52	Schools is super fortunate.
00:21:54	We have an area
00:21:54	that cares deeply about kids.
00:21:57	It's been foundational
00:21:57	in our Worthington community,
00:21:59	and we are property
00:21:59	wealthy, right.
00:22:01	So, in a system
00:22:01	that relies on local property
00:22:04	taxes, Worthington is wealthy.
00:22:06	Now, the income of
00:22:06	our residents is more mixed.
00:22:09	You know, 30 some percent,
00:22:10	as you mentioned,
00:22:10	of our students,
00:22:11	do qualify for free
00:22:11	and reduced lunch.
00:22:13	That makes us,
00:22:13	like many of our suburbs
00:22:15	in the Columbus
00:22:15	region on the 270 outer belt.
00:22:18	So we have tons of advantages.
00:22:21	But we are a community
00:22:21	that serves a diverse
00:22:23	student population, 10,831
00:22:23	kids this year. Over
00:22:27	1000 of them speak a language
00:22:27	different than English.
00:22:30	1500 qualify as students
00:22:30	with special needs.
00:22:34	So obviously we need
00:22:35	a lot of resources to work
00:22:35	with, our student population
00:22:39	and provide for them
00:22:39	what our community expects.
00:22:41	What is the pressure
00:22:41	like for school districts
00:22:43	to come up with different
00:22:43	solutions with all of the hurt
00:22:47	that property
00:22:47	taxpayers are feeling,
00:22:50	what's the pressure like on
00:22:50	you folks
00:22:52	to come up with different ways
00:22:52	to do things,
00:22:54	come up with different ideas
00:22:56	to try to make this a little
00:22:56	bit easier on taxpayers?
00:22:59	Yeah.
00:23:00	I mean, so, you know,
00:23:01	with the historic rise
00:23:01	of property values,
00:23:05	and when I started my career,
00:23:05	so I started in the 1990s,
00:23:09	I've gotten old,
00:23:10	residents,
00:23:10	farmers and residents
00:23:12	are paying
00:23:12	about 50% of the property
00:23:14	tax and businesses
00:23:14	paying about 50%.
00:23:17	You know, we've made
00:23:17	a lot of state tax changes,
00:23:19	policy level changes
00:23:19	over the last 35 years.
00:23:23	So now residents are paying
00:23:23	67% of that
00:23:25	share of businesses,
00:23:25	paying 33% of that share.
00:23:28	Some of that's been positive,
00:23:28	right?
00:23:29	So we've
00:23:30	we have brought business
00:23:30	and jobs to the state of Ohio.
00:23:34	When we talk
00:23:34	about reducing the income tax
00:23:37	for working families, that
00:23:37	might be a positive change.
00:23:41	But the challenges
00:23:41	with that shift
00:23:44	to local property taxes
00:23:44	and residents paying more,
00:23:47	if I'm a senior citizen
00:23:47	or if I'm on a fixed income,
00:23:50	that's pretty significant.
00:23:51	Now, again, I think
00:23:51	in the suburbs, House Bill 920
00:23:56	has reduced the challenge,
00:23:56	as it was intended to.
00:24:00	So when there's a reappraisal,
00:24:02	Worthington values
00:24:02	have gone way up,
00:24:04	but our tax rate has gone
00:24:04	down.
00:24:06	As that happens.
00:24:07	And some people have seen
00:24:08	a reduction in taxes
00:24:08	when that happens.
00:24:10	And so I think the
00:24:10	conversation in the suburbs
00:24:13	might not be as acute as it is
00:24:15	in a small farming community,
00:24:17	because in some of those
00:24:17	communities, with reappraisal,
00:24:20	the school district
00:24:20	has captured
00:24:21	the full amount
00:24:21	of that reappraisal.
00:24:23	And I can understand
00:24:25	my farm might not be worth
00:24:25	more unless I sell it.
00:24:27	And all of a sudden
00:24:27	I've got a much larger bill.
00:24:30	So we obviously, you know,
00:24:30	we want a system,
00:24:33	that is predictable
00:24:33	and sustainable for schools.
00:24:37	Right?
00:24:37	We rely on
00:24:37	local property taxes
00:24:40	because that's the system
00:24:40	that Ohio
00:24:41	set up for schools to rely on.
00:24:43	And so that's the system
00:24:43	that we've used.
00:24:45	If that system shifts,
00:24:45	I think that's okay with us.
00:24:48	If there's a better model out
00:24:48	there,
00:24:51	we would just want that to be
00:24:51	thoughtful.
00:24:52	We'd want there
00:24:52	to be a plan in place,
00:24:54	something that can be phased
00:24:54	in so that it helps taxpayers.
00:24:58	But also provides the local
00:24:58	services for schools,
00:25:01	police, fire that honestly,
00:25:01	all of our communities desire.
00:25:05	Veteran Republican lawmaker
00:25:05	Bill Seitz,
00:25:08	the co-chair of DeWine's
00:25:08	working group.
00:25:10	He has suggested
00:25:11	there are two tax relief ideas
00:25:11	that could come up
00:25:13	in the group's recommendations
00:25:13	to the governor.
00:25:16	A circuit breaker
00:25:16	which cuts taxes
00:25:16	at a set percentage of income,
00:25:20	and an increase
00:25:20	in the homestead exemption
00:25:22	for older
00:25:22	and disabled homeowners.
00:25:24	But both of those would
00:25:24	require state funding.
00:25:27	That is it for this week
00:25:27	for my colleagues
00:25:29	at the Statehouse News
00:25:29	Bureau of Ohio Public Media.
00:25:30	Thanks for watching.
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