Over the past several weeks, we’ve been closely following the developments of House Bill 96, first through discussions with our local political representatives and now as it moves to the Ohio Senate. We want to take a moment to speak directly to our RV community, not just as your superintendent and treasurer but as fellow taxpayers, parents, and neighbors who care deeply about the financial health and future of our schools.

 

What is House Bill 96?

House Bill 96 is being labeled as the “state budget” by many, but in its current form, it’s far more than that—it’s a fundamental shift in how local school districts like River Valley are allowed to manage your taxpayer dollars. Unfortunately, that shift is not for the better.

Among the most concerning provisions:

• A 30% Carryover Cap: If this bill were passed, school districts would be limited to carrying over no more than 30% of their previous year’s operating expenses into the next fiscal year. Think of this like a district’s “savings account”—a responsible reserve that allows us to sustain operations during the early years of a levy cycle and stretch funding over a longer period without returning to the community to ask for new money. These cash balances are not signs of excess or inefficiency; they are evidence of sound fiscal planning and prudent stewardship of taxpayer dollars.
• If districts were to surpass this 30% carryover amount, this bill would require county budget commissions to reduce property tax collections - even on voter-approved school levies, without the approval of local voters. 
• Abandons the Fair School Funding Plan (FSFP) and instead uses a “bridge” formula that would provide less state funding for public schools, compared to if the FSFP had continued to be implemented for the final two years. 

 

Why should this matter to you?

River Valley Local Schools has worked hard to be fiscally responsible. With the support of our community passing the bond, permanent improvement (PI), and income tax levies in November of 2023, we’ve built a financial model that stretches those levy dollars across multiple years while spending wisely throughout. Our goal was to develop a strategy based on the state’s Fair School Funding Plan that allowed us to maintain our facilities and support the great educational programs our community values. It’s the same logic any responsible household would use when planning for retirement, emergencies, or major life expenses.

Yet under HB 96, that exact practice—the kind of long-term financial planning that keeps us off the ballot and stable—would be punished. The bill assumes that if a district has more than 30% of one year’s expenses saved, it’s hoarding money. That couldn’t be further from the truth. It would also erase the 5+ years of conservative fiscal planning done by the district and require us to go back to the taxpayers much sooner than promised.

Let us be very clear: River Valley’s cash balance is not a luxury. It’s a necessity. It’s how we avoid layoffs, cutbacks, and uncertainty when unexpected costs arise. It’s how we protect and expand academic programs and services when state funding fluctuates. And it’s how we honor the trust you placed in us when our community passed our last levy issues in 2023.  

 

Strong Cash Balance = Better Bond Rating 

Here is a perfect example of how River Valley’s cash balance is a benefit to taxpayers:  After River Valley voters passed the combination Bond/PI issue in November 2023, the district had to go through an extensive bond rating evaluation with Moody’s Investment Service.  As a result of this process, the district received a strong Aa3 rating, which is considered a High Quality or High Grade rating.  Having a strong rating means a lower interest rate on our bond, directly benefiting our taxpayers.  

How did RV receive such a good rating?  In Moody’s Credit Opinion report, they cited River Valley’s “strong fund balance.”  In other words, our cash balance reserve was viewed as a strength and a sign of solid fiscal management.  This fact was a significant reason River Valley received a favorable rating.

 

However, Moody’s also warned that a downgraded rating could occur if River Valley’s cash balance failed to “..grow as forecasted to around 40% of revenue by the end of fiscal 2024 and continue to materially increase thereafter.”  River Valley, in Moody’s evaluation, should keep a cash balance of 40% or more to be fiscally responsible and keep a solid bond rating.  Currently, River Valley has met this recommendation with a cash balance of 45% of the previous year’s operating expenses.

 

The district has worked to be good stewards of the resources entrusted to us by our community, including completing the bond projects we promised, including:  roof replacement on all four schools, parking lots, and this summer, there will be HVAC work occurring at three of our schools.  But HB 96 would remove our ability to be good fiscal stewards and, more importantly, it would remove the local control of our voters and community.

 

Local Control Removed

Now imagine this: Under HB 96, if River Valley responsibly saves funds and exceeds that 30% threshold, the three members of the county budget commission, not the residents of River Valley, would be required to step in and reduce our tax collection—without a public vote, without a hearing, and without input from our community. What may seem like tax relief in the short term will only lead to additional levies and taxes in the long term, while straining the relationship between the school and community.

This kind of political interference would introduce instability, pit schools against their own communities, and jeopardize the rich tradition of River Valley Schools.  

In fact, HB 96 would be undemocratic and damage rural communities like River Valley.

What does this mean for River Valley?

In simple terms, HB 96 would:

• Force us to go back to the ballot more often.
• Penalize us for doing what you’ve asked us to do: be responsible stewards of your tax dollars.
• Create uncertainty in our long-term planning.
• Make school funding vulnerable to political manipulation.
• Undermine the very principle of local control over public education.

We don’t need less flexibility—we need more. And we certainly don’t need legislation that ties our hands and dismantles the hard work we’ve done as a community to build a strong, stable school system.

 

What can you do?

HB 96 has now moved into the Senate. Please take a moment to reach out and voice your concerns to our elected officials, especially our State Senator.  Let them know that rural communities like River Valley—and districts like us across the state—deserve better.  Below are emails and phone numbers for our State Senator and Representative (use the search tool link below to find out which State Rep. is for your area):

• Sen. Bill Reineke:  Email:  reineke@ohiosenate.gov  Phone:  614-466-8049 (Sen. Reineke represents all of Marion County)

Search Tool:  Locate your Representative in the Ohio House here: https://www.legislature.ohio.gov/ 

• Rep. Riordan McClain:  Email:  Rep87@ohiohouse.gov  Phone:  614-644-6265
• Rep. Tracey Richardson:  Email:  Rep86@ohiohouse.gov  Phone:  614-466-8147

We need them to know that House Bill 96, in its current form, is unacceptable. It’s a solution in search of a problem and threatens to undo decades of responsible financial planning.

Thank you for your continued support of River Valley Local Schools. We’ve built something strong here—but that strength depends on our ability to plan for the future, without interference, and with your continued trust.

 

Let’s stand together to protect the future of our children and the future of River Valley Schools.

Thank you,

Adam Wickham, Superintendent

Brittany Keller, Treasurer

River Valley Local Schools