Ohio Largest School Districts Urge Budget Veto Over Property Tax Caps

Ohio's largest school districts are urging Governor Mike DeWine to veto parts of the new state budget that cap property tax carryovers at 40% of their operating budgets, warning this will hinder their ability to operate effectively and attract teachers. The Ohio 8 consortium argues that this cap forces districts to refund taxpayers and limits financial stability, contradicting past calls for fiscal responsibility. The budget also limits school districts' options to raise property taxes, requiring voter approval for new levies and potentially ending certain longstanding homeowner tax credits, which experts say may confuse voters and increase their tax burden. In response to constraints on property tax revenue, some districts may consider implementing or increasing school district income taxes, which apply to residents regardless of workplace location. Meanwhile, in Michigan, Secretary of State Jocelyn Benson, a Democratic gubernatorial candidate, proposes decoupling school funding from property wealth through a weighted funding formula, aiming to address disparities and invest in infrastructure, career programs, and wraparound services such as mental health and early childhood education. Benson's plan emphasizes transparency and equitable investment to improve Michigan's education system, which currently ranks near the bottom nationally.