MANSFIELD — Bradd Stevens did not mince words Thursday morning.
Stevens, treasurer of Madison Local Schools, told the Richland County Board of Commissioners that potential property tax reductions would likely leave the district with a negative cash balance at the end of the year.
“Mr. (Pat) Dropsey, (Richland County Auditor), knows we can’t do that. That’s not certifiable,” Stevens told commissioners.
Madison Supt. Rob Peterson said public education in Ohio is under attack from the state level.
“I just ask the three of you (commissioners), with this vote, that you not allow that to filter down to the local level,” Peterson said.
Stevens and Peterson were among local officials to speak during a meeting to discuss proposed tax reductions. About 70 to 80 individuals, representing entities in the county that receive property tax funds, filled a conference room in the county building’s lower level.
The state legislature — in the two-year budget approved this summer — recently handed counties a tool that could reduce local property taxes, but without any state assistance in replacing those funds.
Should county commissioners vote to expand, or perhaps even double, the current state-funded Homestead exemptions and 2.5% owner-occupancy credits, it would be done involving only local dollars.
That decision must be made by the end of October. Any tax reductions would take effect starting Jan. 1. Commissioners took no formal action Thursday.
Commissioner Tony Vero said another public meeting on the topic will be scheduled at a later date.
“I think we need to process it, look at the numbers and give residents an opportunity to reach out to us as well,” Vero said.
“We’re just trying to balance the harm it will do, particularly to our local schools, with residents that are absolutely contacting us seeking property (tax) relief,” he said.
‘It’s going to destroy the schools,’ says Ontario Local Schools treasurer
All three commissioners expressed frustration on Sept. 30 that state lawmakers had basically handed them the current hottest of political issues — one that could provide local property tax relief, while also potentially badly damaging local entities, including schools.
Mansfield City Schools Treasurer Tammy Hamilla told the board she doesn’t envy the position they’ve been put into. But much like fellow treasurers in the room Thursday, Hamilla said the proposed tax cuts would have a big impact on her district — the biggest, in fact.
If commissioners choose to offer the maximum amount of property tax relief, Mansfield City Schools could lose around $956,000 per year in operating revenue. For Madison, the loss would be around $670,000.
Randy Harvey, treasurer of Ontario Local Schools, said most people in the room would likely agree property taxes are an issue that need “dealt with.”
“This is not how to do it,” Harvey said of the proposed reductions. “It’s going to destroy the schools.”
Ohio property taxes have surged primarily due to a housing market boom during the last several years, which led to massive increases in assessed property values during the mandatory six-year re-appraisal cycle.
Ontario Local Schools could lose around $461,000 per year in operating revenue if commissioners choose to offer the maximum amount of property tax relief. For nearby Lexington, the loss would be around $686,000.
“Whether intentional or unintentional, and we may all have our own opinion on it, the decimation of public education is what is happening here,” said Lexington Local Schools Treasurer Jason Whitesel.
Several other officials from local school districts around the county either spoke or were in attendance on Thursday.
Below is a table representing the total loss for each entity in Richland County if commissioners choose to offer the maximum amount of property tax relief.
There are also separate columns representing losses if commissioners chose only the Homestead exemptions or owner-occupancy credits. There are three slides. Click the arrow on the right to toggle between them.
These numbers are according to Richland County Auditor Pat Dropsey.
Reductions would impact myriad of local entities
Vero told Richland Source in September he understands both sides of the issue.
Residents are being pinched by inflation and rising property taxes. But local governments, including schools and countywide agencies, depend on those taxes to perform statutory functions.
Besides school districts, property tax reductions would also impact a myriad of local entities, including 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, among others.
Impacts would also be felt by safety services, like police, fire and EMS, in several of the small villages and townships throughout the county.
Lexington Supt. Jeremy Secrist said all entities represented in the meeting room Thursday morning are all “interconnected.”
“It’s all of us together,” Secrist said.
“We’re all working together and when you take money from each one of us, yes it impacts our own entities, but it also impacts what we can do together for our students because this is a community.
“As leaders of the community, you (commissioners) need to stand up for your community and tell the people in Columbus (to) do their jobs, while you do yours,” he said.