School Funding: How to Help
Solon Schools: Navigating Ohio's State Budget Process
Advocating for Fiscal Stability and Local Control
Key Points at a Glance
- Solon Schools is actively working with state education partners and legislators to address concerning elements in Ohio's proposed state budget
- We're advocating for amendments to cash balance requirements that would preserve our district's carefully developed fiscal plans
- Senate Finance Committee Chair Jerry Cirino has invited our direct input as the legislature considers amendments
- Our financial reserves were strategically established to protect against legislative budget uncertainty during the TPP phase-out
- Our current cash balance reflects careful planning for $34 million in already-approved infrastructure improvements, with $14 million already spent and approximately $20 million being implemented over 2024-2026
Our Advocacy Efforts
As we pass the midpoint of Ohio's state budget process, Solon Schools' administration is working diligently behind the scenes to protect our district's financial stability. We are:
- Collaborating with statewide education partners and lobbyists
- Engaging directly with our elected representatives in the Ohio House and Senate
- Advocating for commonsense amendments that preserve local control
- Providing clear evidence to help legislators understand our strategic financial planning
- Suggesting modifications to ensure districts can maintain appropriate fiscal safeguards
Our Financial Journey
Building our district's financial safeguard required difficult decisions and collective sacrifice:
- Teaching staff accepted six years of base salary freezes
- Administrators accepted seven years of base salary freezes
- Our administrative team implemented numerous efficiencies and cost-saving measures
- Board members stood firm on fiscal responsibility and accountability
- Parents and community members supported our strategic plans and ballot initiatives
Throughout this process, we maintained transparency through our Strategic Plan and Finance Action Team, ensuring our community understood our strategy of building reserves as a TPP buffer while planning for future infrastructure needs.
Infrastructure Improvements
Our plan for the use of our cash balance includes important infrastructure improvements:
Air conditioning and exterior window/door replacement for Lewis and Roxbury
Security electronics, window laminate and PA systems at multiple schools
Roxbury parking lot addition to alleviate traffic on Solon Boulevard
LED lighting upgrades at Solon Middle School, Parkside Elementary and Orchard Middle School
Roof replacements at Lewis, Roxbury, and Parkside
Masonry restoration at Lewis, Roxbury, Parkside and Solon Middle School
HVAC upgrades at Solon Middle School and Parkside
Natatorium roof replacement and locker room HVAC upgrade
Turf field and fencing at Solon Middle School stadium
Turf field and lighting at Solon High School stadium
Turf field for Solon High School softball
Understanding Ohio's School District Cash Balances
As we navigate Ohio's complex educational funding landscape, it's important to understand the state's unique funding system and why school districts maintain cash balances:
Ohio's School Funding Framework
- Ohio's K-12 funding relies on a shared responsibility between the state and each local community
- Districts receive funding from two primary sources: local property taxes and state funding determined by Ohio's school funding formula (Which Solon receives the state minimum)
- Each district's state share is unique based on enrollment, property wealth, and community income
- This creates significant variation in both state funding levels and local tax revenue across Ohio's 600+ school districts
The House Bill 920 Effect
A key aspect of Ohio's school funding system is House Bill 920, which affects how districts manage their finances:
- HB 920 prevents districts from automatically receiving more revenue when property values increase due to inflation
- When property values rise during reappraisal, tax rates are rolled back for districts so that levies only generate revenue equal to the dollar amount originally approved by voters
The Levy Cycle: Due to HB 920's restrictions, school districts often implement "levy cycle" strategies. After a successful levy, cash balances are higher for a period of time, then gradually spent down as expenses increase. When reserves reach a critical threshold, another levy becomes necessary to replenish funds.
Why School Districts Maintain Cash Balances
There are several important reasons why Ohio school districts may carry relatively high cash balances:
- Cash flow management is essential as school officials practice responsible stewardship of public tax dollars
- Five-year forecasts include predictions for maintaining healthy cash balances through revenue/expense cycles
- Strategic reserves help districts navigate state law changes, such as the phase-out of Tangible Personal Property tax replacement payments
- Appropriate cash balances allow districts to implement planned infrastructure improvements without additional tax burdens
- The school funding system itself, with its fixed revenue and growing expenses, necessitates maintaining prudent fiscal reserves
Our Commitment
We remain committed to advocating for amendments that recognize responsible fiscal management and collaborative local decision-making, allowing us to fulfill our commitments to students, staff, and community members.