House Bill 96 Information

House Bill 96 is the Ohio House of Representatives’ version of the biennium state budget. Among its provisions is a proposal to cap the amount of cash reserves school districts can maintain at 30%. 

This legislation would risk approximately $16.1 million of our responsibly saved reserves. These funds are critical to maintaining academic programs, managing building repairs, delaying future levies, and ensuring long-term financial stability.

Fairview Park City Schools has built its cash reserve through years of disciplined financial planning and responsible decision-making. We’ve reduced costs by not replacing certain staff positions when employees retire or resign, streamlined programs, applied for grants to offset costs, and consistently looked for ways to operate more efficiently without compromising the quality of education.

During the pandemic, we strategically utilized a large portion of federal Elementary and Secondary School Emergency Relief (ESSER) funds by charging eligible expenses normally reserved for the General Fund to those ESSER funds. This decision was made instead of adding new programs or permanent staffing that would have eventually increased long-term costs to the General Fund. This careful approach has allowed us to maintain stability, prepare for future needs, and reduce the frequency of levy requests, all while honoring our commitment to use taxpayer dollars wisely.
 

If passed, HB 96 would:

• Penalize districts for saving responsibly.
• Create uncertainty in long-term planning.
• Produce more frequent levy requests, increasing taxpayer pressure and reducing predictability for families and staff.
• Potentially force the district to sell off portions of its long-term investment portfolio early, resulting in an unprecedented amount of wasteful penalties and fees. 

Much like a household savings account, school district reserves are used to:

1. Cover unexpected expenses ( e.g., building repairs, enrollment shifts).
2. Save up for long-term capital improvement projects ( e.g., playgrounds, boilers, HVAC, parking lots).
3. Minimize the need for frequent levy requests.
4. Preserve programs and maintain appropriate staffing levels during economic downturns.

While the bill is framed as a tax relief measure, it is short-sighted and would come at a cost.  If a district’s reserves exceed the 30% carryover cap, local tax collections would be paused until the reserves are under the cap. However, this would force districts like ours to return to the ballot sooner and more often, creating long-term uncertainty and potentially leading to higher taxes later.

House Bill 96 does not allow districts to adjust for emergencies or rising costs after the budget year is set. Even if a district’s financial needs grow mid-year, it cannot adjust its reserve level to respond, making it harder to manage unplanned events like facility failures or tax collection delays.

Not necessarily. If a district’s reserves drop below the 30% threshold in the future, the county may restore levy collections to prior levels, but the law doesn’t guarantee it. And if voter-approved levies expire during a suspension, there’s no guidance on how to handle that either.
 

House Bill 96 is the Ohio House’s version of the state’s two-year budget, which sets funding levels and priorities across the state. The process begins with the Governor submitting an executive budget proposal. The House then developed its version, HB 96, which was passed and sent to the Senate on April 9. The Senate is now reviewing and amending the bill before sending it back to a conference committee to reconcile differences. The Governor must approve and sign the final budget by July 1.

One key element in recent budgets has been the Fair School Funding Plan (FSFP), a bipartisan effort to make school funding in Ohio more equitable and predictable. The FSFP calculates funding based on the actual cost of educating a student and considers a community’s capacity to contribute. Fairview Park City Schools strongly supports the legislature's full funding of this plan to ensure all students across Ohio have access to high-quality public education.

However, while we support the FSFP, it’s important to recognize that 85% of our district’s revenue comes from local property taxpayers, not the state. That means a smaller percentage of our overall funding comes from the Fair School Funding Plan. For districts like ours that rely heavily on local revenue, the proposed 30% cap on cash reserves in House Bill 96 would have a devastating impact. It would punish us for saving responsibly, create long-term planning uncertainty, and threaten the programs and stability our community has worked hard to build.

It is critical that elected officials hear directly from concerned constituents. We encourage you to make your voice heard, especially with those who chair influential committees:

• Senator Nickie Antonio
• Representative Bride Rose Sweeney
• Senator Jerry Cirino (Finance Chair)
• Senator Andrew Brenner (Education Chair)

If you choose to take action, here is a sample phone or email script you can customize to make your voice heard.