by Nicole Piscitani • April 26, 2024
The Joint Committee on Property Tax Review and Reform reconvened to learn the complexities of school funding. The panel of legislators heard invited testimony from Michael Sobul, a retired research administrator with the Ohio Department of Taxation and former treasurer for the Granville EV School District. Sobul provided historical knowledge and a detailed explanation of the portions of the Ohio Constitution that govern property tax laws and, in particular, the funding that school districts receive through inside and outside millage. Additionally, Sobul described how the tax reduction factors that are outlined in the Ohio Constitution are administered. He also provided insights, tied to case law, on what the legislature can and cannot do within its legislative authority. Lastly, Sobul described how local and state funding are intertwined and provided examples to show that when one lever is moved, unexpected outcomes can occur.
In addition to Sobul’s testimony, a panel of treasurers and superintendents shared individual school district experiences with the state and local elements of school funding; the 20-mill floor; cash balances, five-year forecasts and levy cycles; a shift in the school tax base; and the growth of economic development tools. The panel included:
- Dr. Michael Barnes, superintendent, Mayfield City School District
- Tony Thomas, superintendent, Northmont City School District
- Ann Ferraro, treasurer, Northmont City School District
- Matt Bunting, treasurer, Athens City School District
- Dr. Philip Wagner, superintendent, Johnstown-Monroe Local (Licking) School District
- Jenni L. Logan, treasurer, Sycamore Community City School District
The panel represented a diverse group of school districts with various typologies, including one at the 20-mill floor, one on the funding formula’s guarantee, one funded according to the state formula and one experiencing rapid growth. Their experiences emphasized the varied needs and situations among school districts across Ohio.
Legislators on the committee mostly asked clarifying questions to both Sobul and the panelists but, overall, legislators recognized that school funding is extremely complex. Additional questions focused on the use of five-year forecasts, cash balance policies and the use of economic development incentives.
The joint committee’s next session will feature invited testimony from local governments, including the Ohio Township Association, County Commissioners Association of Ohio, Ohio Municipal League and Ohio Mayors Alliance.
As these property tax conversations continue, another committee has finalized its work. The Senate Select Committee on Housing released 23 recommendations to not only address increasing the housing supply in various portions of Ohio but also included recommendations on lowering home prices. The select committee's work will factor into the joint committee's work as some recommendations pertain directly to property tax reform and some could indirectly impact property taxes. The recommendations — intended to improve Ohio’s housing and property tax laws —need to be carefully considered so they don’t impede the work of either committee.
The Ohio Senate has responded to the report by introducing several placeholder bills that will serve as vehicles to implement the housing recommendations. The following were sponsored by Sens. Michele Reynolds (R-Canal Winchester) and Hearcel F. Craig (D-Columbus):
- Senate Bill (SB) 243 would declare the General Assembly's intent to enact legislation addressing local zoning regulations that impede the development of housing in Ohio.
- SB 244 would authorize local governments to create residential stability zones where homeowners may qualify for a partial property tax exemption.
- SB 245 would revise the law governing eviction, real estate representation agreements, residential building code enforcement and real property transfers.
- SB 246 would rename the Ohio Department of Development as the Ohio Department of Housing and Development and otherwise modify the law related to housing.
Additional bills are likely to be introduced regarding the housing recommendations. Senate President Matt Huffman (R-Lima) had the following to say about the recommendations and the timeline to implement them: “I think these are things we need to discuss right now and I'm happy to see that the House is active … some recommendations may take six months, while others would take two to seven years. We've done a lot of public policy things that just sort of get added to the bulletin board. We're trying to reorganize the bulletin board here.”
Click here to watch the Joint Committee on Property Tax Review and Reform and click here to read the housing recommendations.