MANSFIELD — It’s been seven months since the Mansfield City Schools board of education voted on a plan to slash millions from its annual budget.
School officials say they’ve followed through with that plan and the district is in a better position financially. But recent decreases in state funding and the looming threat of property tax cuts could threaten that progress.
Treasurer Tammy Hamilla reviewed the district’s latest financial forecast during a school board meeting Tuesday night.
“We have made gains,” Hamilla said. “What’s frustrating to me is every time we figure out where we can save one dollar, somebody at the federal or state level wants two back.”
The district made budget cuts going into the 2025-2026 school year. Through attrition, retirements and a reduction in force, Mansfield City Schools lost about a dozen administrators and more than 60 other employees — mostly teachers.
Projected expenses for this school year sit at around $54 million, compared to $58.5 million for last school year.
What is an unreserved fund balance? An unreserved fund balance is the money a school district has available (not spent or committed to any outstanding bills) at the end of a fiscal year. For Ohio school districts, fiscal years run from July 1 to June 30.
The unreserved fund balances in this story refer to Mansfield City School’s general fund — the money the district uses to pay for day-to-day operating expenses.
A school district’s general fund doesn’t include federal dollars, which are typically earmarked to serve specific student populations (like students who have special needs, are economically disadvantaged or whose first language is not English.)
General funds also don’t include permanent improvement funds, which can only be used on new buildings, building maintenance or certain long term equipment purchases.
The cuts were outlined in the deficit reduction plan MCS was required to submit to the Ohio Department of Education and Workforce in February, due to negative unreserved fund balance projections from 2024.
Tuesday’s forecast predicts an operating surplus of just under $400,000 this school year and a positive unreserved fund balance through the 2027-2028 school year.
“For the time being, I think the Department of Education is satisfied with where we’re at and what we did. But we need to keep that up,” Hamilla said.
“If some of these (property tax measures) come to pass, like the piggy-back homestead exemption, we could be on DEW’s radar again.”
Mansfield City Schools one of 36 districts losing supplemental targeted assistance funds
Mansfield City Schools receives about 60 percent of operating funds from the state of Ohio — meaning the district is vulnerable every time state legislators create a new budget.
Ohio’s Senate and House went through that process this summer.
The final budget (House Bill 96) reduced Mansfield City Schools’ “formula funding” — which makes up the bulk of its state funds — by $255,236 over the next two school years.
The budget also got rid of Supplemental Targeted Assistance, which went to primarily lower-wealth urban districts. Mansfield City Schools was one of 36 districts receiving STA. Hamilla said the district would have received around $2.57 million in state STA funds over the next five years.
Below are screenshots from Mansfield City School’s most recent financial forecast. To read the full forecast, click here.
A breakdown of the Mansfield City Schools general fund in the district’s October 2025 financial forecast. Credit: Mansfield City Schools 
A breakdown of the Mansfield City Schools general fund in the district’s October 2025 financial forecast. Credit: Mansfield City Schools 
A breakdown of the Mansfield City Schools general fund in the district’s October 2025 financial forecast. Credit: Mansfield City Schools 
A breakdown of the Mansfield City Schools general fund in the district’s October 2025 financial forecast. Credit: Mansfield City Schools 
A breakdown of the Mansfield City Schools general fund in the district’s October 2025 financial forecast. Credit: Mansfield City Schools
Property tax relief could lead to less funding for public schools
Meanwhile, state lawmakers are trying to find ways to reduce Ohioans property taxes — which could result in less funding for public schools.
Local property tax revenue makes up nearly 40 percent of Mansfield City School’s operating funds.
Four provisions in House Bill 96 would have “heavily impacted school local revenue and cash balances,” Hamilla said.
Gov. DeWine used his executive power to issue line-item vetoes on each of them, but state legislators are mounting an effort to override three of the governor’s vetoes.
One initiative enacted in House Bill 96 allows county commissioners to expand current Homestead exemptions and 2.5% owner-occupancy credits — but local government entities would bear the entire brunt of lost tax revenue.
Such a change would mean less money for public schools, but also entities like Dayspring, Richland County Mental Health & Recovery Services, Richland Newhope, Richland Public Health, Richland County Children Services, the Richland County Park District and the Mansfield-Richland County Public Library.
Hamilla said if commissioners choose to offer the maximum amount of property tax relief, Mansfield City Schools could lose around $850,000 per year in operating revenue.
Commissioners must make a decision by the end of October, with any tax reductions taking effect starting Jan. 1.
The three-member board has invited every entity in the county that receives property tax funds to attend a Thursday meeting at the county administration building to discuss the proposal.
Hamilla said she plans to attend. She also said she “feels for” county commissioners.
“They’re in a really bad conundrum, because either they don’t give elderly people in the community the property tax relief that they need, or they take that away from schools,” she said.
Hamilla said she’s not against property tax reform, but she’s concerned there is no plan in place to provide alternate revenue for school districts.
“There’s been no clear sign of if, when, or how they’re going to replace those funds,” she said.
