OHIO SCHOOL FUNDING + PROPERTY TAX CHANGES: WHAT THIS MEANS FOR ORRVILLE CITY SCHOOLS
You may be hearing more about school funding and property taxes across Ohio.
THE MAIN POINT
Recent changes at the state level mean Orrville City Schools should expect less funding growth than we would normally anticipate (and potentially less than prior projections), even while the cost of operating schools continues to rise. This does not mean immediate day-to-day changes, but it does mean we must plan carefully to keep programs stable for students.
A MAJOR LOCAL CHANGE: ORRVILLE WILL BE “OFF THE 20-MILL FLOOR.”
A significant new development is that, because of recent legislation, more than 200 school districts across Ohio, including Orrville, will no longer be subject to the “20-mill floor.”
WHAT IS THE 20-MILL FLOOR?
Ohio has a long-standing property tax rule that aims to prevent voted school levies from automatically triggering large, unvoted increases when property values rise. The “20-mill floor” is an exception in that system. When a district is on the floor, it can experience larger revenue increases tied to reappraisals than districts that are not on the floor.
WHAT CHANGED—AND WHY IT MATTERS
A recent law modifies the calculation of the 20-mill floor by incorporating additional voter-approved levies, including certain fixed-sum levies. In practical terms, this can move a district above the floor, meaning the district will not see the same “automatic” revenue growth from some voted levies that are affected by property tax reduction factors until the district falls back to the floor again.
In other words, being lifted off the 20-mill floor may help reduce unvoted tax spikes for taxpayers, but it can also reduce the rate at which school revenue grows from existing levies during reappraisals, making revenue growth less predictable.
WHY THIS HITS AT THE SAME TIME AS STATE FUNDING PRESSURES
Ohio’s school funding formula also uses a calculation that considers what the state believes a community can support locally (based largely on property values and income). As those measures rise, the state's share can shrink. Tax policy changes can constrain local revenue growth, causing districts to experience a squeeze: costs rise, but revenues don't keep pace. By far the most significant aspect of the FY26-27 funding formula was the legislature's failure to update the base cost data. The combination of updating the data used in the state/local share calculation and failing to update the base cost input data led to a significant decrease in the state share for over 80% of Ohio’s school districts in the FY26-27 biennium.
WHAT THIS MEANS FOR ORRVILLE
For Orrville City Schools, these combined changes will mean:
Smaller increases (or less growth) or flat revenue in state funding over time
Less predictable growth in local revenue from existing voted levies
A greater need for careful long-term budgeting to maintain stability
This information is being shared for transparency. Orrville remains focused on strong instruction, safe schools, and student supports while planning responsibly around state-level changes.
OUR COMMITMENT
Orrville City Schools will continue to:
Prioritize student learning, safety, and essential supports
Use conservative multi-year forecasting and transparent updates
Communicate clearly as new state guidance and local impacts become more defined.
WHERE TO FIND MORE INFORMATION
Why Ohio Schools Rely More on Local Levies—and What It Means for Orrville
https://www.orrvilleschools.org/article/2669944
Ohio Property Tax Fact Sheet
When the Formula Works on Paper but Fails in Practice: Ohio's FY 2027 School Funding Reality
https://acrobat.adobe.com/id/urn:aaid:sc:VA6C2:1e46d8d1-3830-418d-ad02-eb424aff4876
On The Money: A Hannah News Publication: Analysis & Discussion of the FY26-27 School Funding Formula
https://acrobat.adobe.com/id/urn:aaid:sc:VA6C2:3e14e4f7-b930-4b2b-968b-dd1fd06d7f59
Ohio Department of Education & Workforce: Overview of School Funding
https://education.ohio.gov/Topics/Finance-and-Funding/Overview-of-School-Funding
School Payment Reports (SFPR)
https://education.ohio.gov/Topics/Finance-and-Funding/School-Payment-Reports
Ohio Legislative Service Commission/Legislature: H.B. 129 (20-mill floor calculation change)—Bill Analysis PDF
https://www.legislature.ohio.gov/download?key=26759
Millage Floors (LSC background brief)
If you have questions, please contact the district office. We appreciate your support of Orrville City Schools and your partnership as we navigate state-level changes together.
— Dr. David M. Toth, Superintendent