Dear Liberty-Benton Community,

Recently, some Ohio legislators have promoted a plan in the Ohio House Budget as “property tax relief” for families. But for school districts like Liberty-Benton, this proposal would do more harm than good, and it’s important our community knows why.

Under the current proposal, school districts would be forced to return any taxpayer-approved carryover funds above 30%. There is also language that would neutralize the positive impact of the 20 mill floor.  While this may sound like savings, it’s really just a delay in tax collection. In the long run, this will destabilize rates, rates that you approved with your vote, and the consequences for schools will be immediate and long-lasting.

Let’s be clear:
This proposal doesn’t offer real relief. It threatens both the immediate and the long-term financial stability of Liberty-Benton and will likely result in forcing Liberty-Benton and all schools in Ohio on the ballot for additional funds sooner than necessary.  In effect, because the state proposes to liquidate the funds we’ve so prudently managed, we will be forced to ask for replacement.  

At Liberty-Benton, we’ve worked hard over the past 20+ years to build a responsible carryover, which all schools were advised to do under the Kasich administration. It’s how we ensure stability in uncertain times, especially when state budgets shift every two years. Our community has trusted us to be good stewards of public funds, and we’ve delivered:

This careful planning allows us to support students, retain strong staff with multi-year contracts, and stay off the ballot for new taxes. But if this proposal becomes law and our carryover is liquidated, everything changes

These reserves are essential for schools to manage inflation driven cost increases, cover unexpected expenses, and prepare for economic downturns. If districts are forced to drain their savings, they will struggle to sustain essential services, retain staff, and invest in necessary infrastructure-forcing taxpayers to shoulder the burden of frequent levy requests or painful budget cuts directly impacting students.

Despite practicing sound financial management, schools are being unfairly targeted. Financial experts recommend maintaining at least a 50% general fund balance as a percent of revenues to preserve strong credit ratings and secure low borrowing costs. Yet, the House proposal arbitrarily caps reserves at 30%, which could drive up interest rates and create unnecessary financial hardship. Additionally, school district cash flow fluctuates throughout the year, making it unrealistic to assess financial stability based solely on a single date, such as June 30. 

The proposed requirement that restricts property tax collection based on cash reserves disregards the realities of school district finances.  Our local policy does not permit cash reserves to fall below 120 days at the end of the year or 90 days at any time during the year, recognizing that balances fluctuate throughout the year.

It would make it harder for us to plan responsibly, harder to weather unexpected expenses, and harder to provide consistency for our students. Capping reserves would create volatility in local tax bills. If implemented, taxpayers may experience a sharp reduction in school taxes one year, followed by an equally sharp increase when districts drop below the 30% threshold. This cyclical effect will create confusion and strain district-community relationships.

Even more concerning: this proposal appears to override the legal process that governs local tax levies. Levies passed by Liberty-Benton voters reflect the will of the people. That’s local control—and it matters.

By undermining that, the state is essentially saying our community’s decisions, your votes, don’t count.

We believe in thoughtful financial planning, just like any responsible household or business. Carryover funds are not excess; they’re a necessary safeguard. In fact, to qualify for the best borrowing rates and bond ratings, districts are encouraged to maintain at least a 25% carryover. Without it, we risk higher costs, less flexibility, and limited options.

We’re proud of the trust our community has placed in us. You’ve supported levies, elected school board members, and helped shape a high-performing school district. That support built the foundation we stand on today and it should not be undone by a state-level decision that ignores the will of our voters.

We’ll continue to advocate for what’s right for our students, our staff, and the future of Liberty-Benton and we encourage you to do the same.

If you have questions or would like to talk more about how this proposal could affect our district, please reach out.

With Eagle Pride,

Bruce Otley, Superintendent              Lisa Dobbins, Treasurer                     Jim Mace, Board President 

Email: [email protected]        Email: [email protected]    Email: [email protected] 

____________________________________________________________________________

Please contact our state legislators and respectfully share your concerns. Here’s a message you can copy and paste or personalize as you please:

Dear [Representative/Senator],

As a resident and taxpayer in the Liberty-Benton Local School District, I am deeply concerned about the proposal requiring school districts to return carryover funds exceeding 30%. This is not true property tax relief; it threatens the financial stability of our schools and overrides locally approved funding decisions. I urge you to oppose this proposal and support legislation that protects local control and allows school districts to manage their resources responsibly.

Thank you for your attention to this important matter.

 

Sincerely,
  [Your Name]
  [Your Address]
  [Your Email Address]
  [Your Phone Number]

Representative Ty Mathews                                    Senator Rob McColley
 Email: [email protected]                                     Email: [email protected]