Welcome
A proposal in the state budget bill, also known as House Bill 96, includes a provision that would limit school districts’ cash reserves to 30% of their annual budget, a measure intended to provide “tax relief” to local taxpayers.
To be clear, this proposal will not provide tax relief, nor will it reduce the funding needed to operate schools. Rather, it will result in tax collection timing differences that jeopardize the financial stability of school districts and create unpredictable tax obligations for taxpayers.
Here’s why this change is concerning:
- The proposed limit ignores the typical levy cycle for Ohio school districts. Most school districts gradually build up their cash reserves over time until expenses “catch-up” and those reserves are gradually depleted, at which time the cycle begins again with a new levy. Placing limits on cash reserves would require school districts to return to voters more frequently for levy requests.
- The proposal undermines local control. The Grandview Heights Schools Board of Education has pledged to not return to voters for additional operating levy funds through at least 2028. This proposal jeopardizes the Board’s ability to fulfill that commitment and make decisions that best serve our local community and students.
- Restricted reserves create cash flow challenges. School districts operate year-round but receive property tax revenue just twice annually. Reserve funds ensure districts can meet payroll and operational needs without interruption - especially in between semi-annual tax settlements.
- Districts manage reserves based on local needs and voter-approved strategies. Grandview Heights Schools earmarks more than $1 million annually from Grandview Yard to provide tax relief for our taxpayers. The limit proposed in House Bill 96 would, ironically, jeopardize our district's ability to use that revenue for this purpose.
- Volatile tax bills may harm homeowners. Escrowed property tax payments could initially decrease under the proposal, but as tax collection adjustments are made the following year, families could see sharp increases - creating unexpected financial hardships.
- Uncertainty in federal funding is real. With unpredictable federal support - such as for special education - maintaining robust cash reserves provides a financial safety net for essential student services.
Arbitrary reserve caps will weaken financial stability, increase financial risk, and limit local control of school districts like Grandview Heights Schools. Local communities - through elected school boards and voter-approved-levies - are best positioned to determine appropriate reserve levels that reflect their values, priorities and long term goals.
Meet Beth Collier, CPA, Treasurer/CFO
Beth Collier joined Grandview Heights Schools as Treasurer on July 1, 2014, with 17 years of governmental accounting and financial reporting experience. Prior to joining Grandview Heights Schools, she served as Treasurer of Pleasant Local Schools in Marion County since 2007. Prior to becoming a school district Treasurer, she spent about 10 years with the State Auditor’s Office, serving most recently in the position of Senior Audit Manager.
As Treasurer, Ms. Collier also serves as the Chief Financial Officer of the school district and reports directly to the Board of Education. She is responsible for all aspects of accounting and financial reporting, including financial forecasting, payroll and benefits, accounts payable and receivable, investing district funds, and record keeping of district assets.
Ms. Collier is a graduate of Heidelberg University with a Bachelor of Science Degree in Accounting and is also a Certified Public Accountant.
