The Beaver Local School District honored its school board members at their January meeting as part of School Board Appreciation Month. Board members, from left, Brad Buchheit, Louis Volino, Greg Eisenhart, Brian McKenzie and John Campbell. (Submitted photo)

LISBON — Changes at the state level will significantly impact the Beaver Local School District financially, according to District Treasurer Stacy Williams.

Williams told the board of education during its recent meeting that Ohio House Bill 129 and House Bill 186 will result in a total revenue loss of $445,000 by 2028.

Williams explained that House Bill 129 modifies how the 20-mill floor is calculated and House Bill 186 imposes a two-year cap on increases in the amount of taxes a district can collect.

“Previously only operating levies and inside mileage were applied toward the 20-mill floor. Under HB 129, all operating levies and emergency levies are now included in the 20-mill floor calculation,” Williams said.

This means that the district will be losing revenue that had been previously generated through emergency levy millage, she explained.

“To mitigate this impact, the state has issued temporary tax credits to offset these losses. In our district’s case, these credits currently replace the lost revenue, however they are not a permanent solution,” she said.

An explanation of the bill issued by the House of Representatives states that HB 129 “implements a check on tax hikes by counting emergency, substitute, incremental growth, conversion levies and the property tax portion of combined levies toward the 20-mill floor, closing loopholes and slowing tax spikes.”

The House of Representatives explanation further states that the measure lifts 237 districts off the 20-mill floor over the next four years and provides a new alternative levy option, which is that those districts with an existing emergency or substitute levy can renew those levies indefinitely as a “fixed sum levy.”

The idea is to slow revenue increases from levies when property taxes rise.

As for House Bill 186, Williams said that while it limits taxpayer increases, the two-year cap results in reduced purchasing power for the district when inflation is taken into account, “effectively creating a structural funding loss over time.”

Williams said that while the combined $445,000 revenue loss to the district from the new laws will not be immediate, it will require careful planning and proactive financial management from the district moving forward.

Gov. Mike DeWine signed both bills into law in December and they take effect in March of this year.