Ohio schools fear budget cap hurts planning

Ohio school districts are opposing a state budget proposal that would cap their cash reserves at 30% of operating expenses, fearing it will hinder long-term planning. The policy change is seen as a significant shift in public school tax policy. Treasurers and superintendents from multiple districts, including Bath, Lima, Spencerville, St. Marys, and Ottawa-Glandorf, have voiced concerns about the proposed cap. They argue it could lead to significant revenue losses and impact planned infrastructure projects. The Ohio House's budget bill includes the reserve cap, which is now being debated in the Senate. The final budget, which must be finalized by June 30, will determine school funding for the next two years and the future of the Fair School Funding Formula.