2024 Levy Information

Operating Levy: A 6.9 mill operating levy, costing homeowners $242 per $100,000 in home valuation.

Bond Issue: Authorizes the District to issue $142 million in bonds to construct, renovate, and improve facilities.  This levy will appear on the ballot at 1.84 mills, but due to existing debt that is maturing, no additional millage will be collected.  The District is currently collecting 4.0 mills for debt service and will continue to collect 4.0 mills, even with the passage of the bond issue.

In a resolution passed by the Board of Education on June 10, 2024, it was stated that in 2024, the district used about 4.00 mills in property taxes to pay off existing bonds, as calculated by the Franklin County Auditor.  If voters approve the new bond issue on November 5, 2024, the district plans to keep the property tax rate for paying off bonds at no more than 4.00 mills for 2025 and the following years.

The Board determined that this request is essential to finance the construction and acquisition of specific School District facilities improvements. This funding will support Phase 1 of our Master Facilities Plan, estimated to cost $142 million.

Phase 1 Initiatives:

• Replace and build three new elementary schools: Brown, Beacon, and Ridgewood.
• Expand Beacon with an addition for a second preschool location.
• Renovate Brown to become a 6th-grade center, with Tharp remaining a 6th-grade center.
  • Britton Elementary School will remain an elementary school.
  • High school programming currently at the Hub will move to the two-story portion of Station.
  • Middle school programming at the Hub will move to Tharp.
  • Ridgewood Elementary School will temporarily relocate to the Hub.
  • Station will remain a 6th-grade center until it moves to its permanent space at the renovated Hub after Phase 1. No official date for this move is set.

• Renovate elementary school playgrounds.
• Renovate extracurricular areas, including a new Darby Weight Room, High School and Middle School Athletic Fields, and Performing and Fine Arts spaces.
• District-wide safety improvements, including visitor entry security and ADA compliance.
• Begin the boundary planning process to create clean feeder patterns K-12.

For more detailed information and updates and to learn more about the Master Facilities Plan process, please click here to visit our Master Facilities Plan web page.

The Hilliard City Schools Board of Education has outlined a contingency plan should Issue 39 not pass in November. While the district remains committed to delivering high-quality education, the plan addresses potential financial shortfalls and directs the Superintendent and Treasurer to make reductions of $7 million – $10 million prior to the 2025-26 school year if Issue 39 is not successful.

The contingency plan, as outlined in the chart below, includes reduction guidelines to maintain cash reserves as mandated in Board policy while continuing to prioritize the safety and educational needs of students. These reductions include staffing cuts, increases in Pay to Participate fees, reductions in programming, and the delay of certain building projects.

“Nothing on the list of reductions is something that I believe is best for our students and their families,” said Superintendent David Stewart. “Our goal remains to provide a safe, enriching learning environment for all students. However, if Issue 39 is not successful, it will mean that difficult decisions will need to be made by the Board of Education. We believe that voters deserve to know what those realities likely will be.”

While the district cannot ask residents to vote a certain way, we remain transparent about the potential effects of a failed levy and the necessary steps we will take to safeguard the district’s financial future. It is important to remember that this contingency plan will be implemented only if Issue 39 is not successful.

Elementary	Secondary	District-Wide
Eliminate Noon Assistants	Increase Middle and High School Pay to Participate Fees to $300 and $600	Reduce additional Certified (Teaching) Positions by 26
Eliminate Innovation and Discovery Assistants	Reduce Innovation Campus Programming/Staff by 5	Reduce additional Classified (Non-Teaching) Positions by 13
Reduce Innovation and Discovery Specialists by 8	Reduce Educational Assistants (Hall Monitors) by 6	Reduce Administrative Positions by 4
Eliminate Arrow Program	Eliminate 1 College Counselor	Reduce Building, Department and Professional Development Budgets by $1.5 million
Schedule class size to contractual maximums	Reduce Music Staff by 3	Reduce Counselors and/or Social Workers by 5
	Schedule class size to contractual maximums	Eliminate Summer School
		Increase Building Usage Fees by 50%
		Expand walking zones to reduce bus routes/drivers by 5
Total Savings from Reductions:	$10,096,000

As of June 30, 2024, the district’s cash balance was $91 million. However, this balance is expected to decrease significantly over the next few years. Our expenditures are projected to exceed our revenues by $20 million in the current fiscal year (FY2025), which will result in a direct reduction of that cash balance. That balance will decline by another $28 million in FY2026, leaving the cash balance nearly depleted by the end of FY2027.

Since FY2023, the district’s expenses have exceeded its revenues, and this trend continues. Expenses are growing at 3% to 5% per year, while revenues are only increasing by 1.5% or less.

The Board has a policy requiring the district to maintain a cash reserve equal to 20% of its operating expenses to ensure sound financial management. By FY2026, our cash balance will fall below this 20% threshold.

We are on the ballot now because delaying the request would result in an even larger levy request. The more our current cash balance is depleted, the larger the request would need to be to overcome the annual spending deficits and prevent a negative cash balance in FY2028.

The Board of Education unanimously combined the operating levy and bond levy into one vote to address both immediate operational needs and long-term capital improvements more efficiently. This approach allows the district to address the budget shortfall for day-to-day operations (such as staff salaries, utilities, and educational programs) while also funding necessary facility upgrades and construction projects. Due to the existing debt maturing, no additional millage will be collected for the bond portion. The District is currently collecting 4.0 mills for debt service and will continue to collect 4.0 mills, even with the passage of the bond issue.

By combining them into one vote, the district can streamline the process, avoiding the need to go back to voters multiple times, which can be costly and time-consuming. It also ensures that both needs are met simultaneously, ensuring stability and growth. This is not a new option for school districts in the state. The last Hilliard School levy, eight years ago, was also a combined operating and bond issue.

Contrary to rumors, Hilliard Schools has minimized administrative costs, eliminating multiple administrative positions over the past eight years. According to the Ohio Department of Education and Workforce, this places us with the lowest administrative expenditure per pupil in Franklin County.

Over the past few years, the district’s per-student budget has grown by about 3.9%. During the same time, the Consumer Price Index (CPI), a standard measure of inflation, has averaged 4.3% annually. This means that while our costs have risen, they have remained below the broader inflation rate in the economy.

Keeping an eye on the future enrollment of Hilliard City Schools is an important part of our financial and facilities planning. There is no question that the Hilliard community is growing. Despite the new housing developments throughout the district, our latest enrollment studies and experts tell us that these communities will take years to develop fully. As a result, overall enrollment for the district is expected to remain flat over the next 10 years. You can read the enrollment reports on the Master Facilities Plan web page. However, addressing the needs of our aging facilities is the highest priority for this bond issue.

We are experiencing a shift in our current enrollment demographic that could impact our future needs. Over the past ten years, we have seen a significant increase in students requiring special education support, along with our students who are English language learners. Our special education enrollment has gone up by over 1,000 students, and in our EL program, we have seen an increase of close to 70% over the past six  years. We are closely monitoring this trend, its financial impact on our staffing needs, and how many new classrooms we need to accommodate the growth.

Individuals in apartments do not directly pay taxes to any political entity. However, the complex owners pay real estate taxes, generally assessed at commercial rates, which are higher than personal property tax rates. Typically, the complex owners build those property tax costs into the rent or lease charged to the people living in the complex.

Home valuations and their effect on property taxes are a complex formula. In Hilliard, residential property values have increased by an average of 26%. However, this does not mean your taxes will increase at the same rate, nor does the school district gain extra funds.

A law passed in 1976, House Bill (HB) 920, protects homeowners from significant tax increases by limiting growth on taxes. While rates go up, each property owner will be impacted differently. You can
click here to access the Franklin County Auditor’s web page and search for your specific property.

HB 920 also prevents school districts from collecting extra revenue from rising property values unless approved by voters. An exception is the “inside millage,” or the 4.45 mills of property tax that Hilliard receives that grows with inflation, which may fluctuate with property assessments.

For more questions about school finances, please click here for our Fiscal reports on the District web page.

Yes, the district is receiving an additional $4.6 million in property taxes in the 2024 collection year due to the reappraisal’s impact on our inside millage. $4.6 million represents approximately 2% of our projected revenues. However, it’s also important to note that our state funding will decrease by $4 million during the same period. This means that while there is an increase in local property tax revenue, it is largely offset by a reduction in state funding. Both the additional revenue and the decrease in state funding are already reflected in the 5-year forecast, which projects the district falling below the required 20% cash reserve in FY 2026 and having a negative cash balance in FY 2028.

If the November 2024 levy is unsuccessful and no reductions are made, the next levy request would need to be upwards of 8.9 mills. The district has been spending more than it brings in since FY2023, with expenses increasing by 3% to 5% per year, while revenues grow by only 1.5% or less. The Board has a policy requiring a cash reserve equal to 20% of operating expenses to maintain financial stability. By FY2026, our cash balance will fall below this 20% threshold and be negative in FY 2028.

No school district in Ohio, including Hilliard, receives all funding directly from sports gaming or the Ohio Lottery. Rather, the Ohio General Assembly determines the total amount it will provide to Ohio’s public schools via the Fair School Funding Formula and other funding sources. These amounts are determined as part of the biennial budgeting process, which takes place every two years.

Section 265.10 of HB 33 (the 2024-25 biennium budget) shows the various sources of revenue that the state of Ohio uses to comprise the total funding provided to Ohio’s public schools via ODEW. The principal source of funding for the state funding formula comes from the state’s general fund. The state of Ohio also includes funding from the State Lottery Fund Group and the sports gaming fund to supplement the funds provided for by the general fund. The budget bill and Ohio law determine each district’s formula funding, but the law does not include Ohio Lottery proceeds or sports gaming profits in addition to formula funding.

A recent article published by WBNS 10TV on its website might lead some to conclude that public schools throughout Ohio received additional funding or a windfall from the legalization of sports gaming. Specifically, the article noted that “Other school systems in the Columbus area are receiving millions in funding, which is also a combination of gambling money and general funds.” It is important to note that the statement clearly denotes that the money schools are receiving…“[are] a combination of gambling money and general funds.” In other words, the amounts noted for the various Ohio public schools are the amounts provided by the Ohio Fair School Funding Formula when the budget was enacted effective July 1, 2023, NOT an increase or windfall in new funding for the listed schools on top of the funding formula.

One form of gaming money is paid directly to Ohio school districts. The state of Ohio makes two direct payments each year to Ohio public schools from Casino profits. For the 2023-24 school year, Hilliard received a payment in August of 2023 and another payment in February of 2024. This totals $1,537,694, which is about $69 funded per pupil. In subsequent fiscal years, the District budgets for about $69-$70 per pupil in casino funding, which will bring in revenue for the District that accounts for less than .5% of total general fund revenue in any fiscal year.

The District will redistrict students whether the levy passes or not. While the process will start in 2025, no decisions have been made regarding the implementation timeline. Nothing will be implemented if the levy is successful until the third-sixth-grade building opens.

While our overall enrollment size is expected to stay the same over the next ten years, some areas are experiencing growth, leading to unbalanced school boundaries. Our community values neighborhood schools with clear boundaries from K-12, so a community committee will work with district staff to transparently make recommendations to the Board. While no decisions have been made on which areas or schools will be affected, historically, around 80% of students remain in their current feeder patterns during redistricting.

The Ohio Auditor of State presented the district with the Auditor of State Award with Distinction. This award puts the district in a select group of approximately six thousand entities that the Auditor of State audits every year. Just 4 percent are eligible for this award. The Auditor of State Award with Distinction is presented to local governments, school districts, and other entities upon the completion of a financial audit that meets these criteria to be considered a clean audit report.

The audit report does not contain any findings for recovery, material citations, material weaknesses, significant deficiency, uniform guidance findings, or other questioned costs. This award represents the hard work of all Hilliard City School District staff and employees who make every effort to attain accounting excellence every day. The district was recognized for doing an outstanding job watching over every dollar. This truly means that the district has the people and processes in place that understand fiscal accountability across the entire organization.

On the 2022/23 Ohio School Report Card:

• #1 in Overall Growth Index out of 607 public school districts – Click here for more details
• #15 in Effect Size out of 607 districts
• 4.5 out of 5 stars overall – Click here for more details
  • 5 stars in Progress (measuring student growth) and Gap Closing (reducing educational disparities)

These scores reflect our commitment to every student’s growth and success, regardless of where they start.

Additional Highlights:

• 6485 college credits earned by students last year, saving families thousands in college costs
• 952 students earned scores of 3, 4, or 5 on AP exams, making them eligible for college credits
• 14 students entered Military Careers after graduation in 2024
• The Graduation rate for the district is currently 93%
• Graduating Students earned approximately $50 million in scholarships in 2024
• 3 students were National Merit Finalists, 13 Commended Scholars in 2024

We are dedicated to providing high-quality education and ensuring all students are prepared for the future.

Understanding property tax can be tricky, especially with different terms used by the Franklin County Auditor. Here’s a breakdown:

• Parcel: The land and structures you own.
• Appraised Value/Market Value: What the Auditor thinks your property would sell for, updated every three years.
• Taxable Value/Assessed Value: 35% of the Appraised Value. For example, if your Appraised Value is $100,000, your Taxable Value is $35,000.
• Mills/Millage: One mill equals 0.1% of the Taxable Value. For a $100,000 property, a 1 mill levy adds $35 to your tax bill.

When calculating the cost of the levy for you, you should use the Appraised Value (if looking at the Auditor’s website) or the Market Value (if looking at a paper tax bill).

For the upcoming 6.9 mill levy:

• $100,000 home: Adds $241.50/year.
• $300,000 home: Adds $724.50/year.

This applies to all properties, whether residential or commercial.

For more information, visit the County Auditor’s website where you can look up your property details. Hilliard Schools is just one of the many agencies funded by your property tax.

Since FY 2021, the District has added a total of 67 positions. Most of the positions added are a result of our changing demographics and to support our special education, economically disadvantaged, and EL populations. We also reduced staffing in some categories (noted in parenthesis).

Highlights include:

Regular Education Teacher	(24.50)
Special Education Teacher	50.50
Intervention Teacher	5.00
EL Teacher/Tutors	8.00
Tutors	(17.50)
Counselors	10.50
Speech	5.00
Aides	31.00
Maintenance	( 1.00)
	67.00

During this timeframe, 46.5 positions were paid for with federal ESSER funds, of which the primary focus was to reduce learning loss as a result of the pandemic. The District also contracted with the Educational Service Center of Central Ohio (ESCCO) for 8 additional Social Workers. The ESSER funds were fully spent in August 2024 and these positions are now paid with general fund dollars.

The 5-Year Forecast is a projection of the District’s General Fund, which covers daily operations like teacher salaries and classroom supplies. It’s required by the Ohio Department of Education and Workforce, and approved by the Board of Education twice a year—in November and May. The forecast shows what we expect in terms of revenues and expenditures over the next five years, but it only includes the General Fund, not other funds like debt service or building improvements. For example, in May 2024, we projected a cash balance of $84 million for June 30, 2024, but due to slightly higher revenues (1.5%) and lower expenses (1.2%), the actual balance was $91 million.

By law, the 5-year forecast only includes the general fund and that is noted in the assumptions, which are a critical part of the forecast.

On the other hand, the Budget Document includes all funds for the district, not just the General Fund. This document, prepared each June, shows historical financial data, the budget for the upcoming year, and projections for the next three years. It also includes restricted funds that are designated for specific purposes and cannot be used for general operations. For example, at the end of June 2024, the budget document shows a projected ending fund balance of $116 million for all funds. The Debt Service fund was projected to have $15.8 million, the Permanent Improvement fund $6.7 million, Benefit Self-Insurance fund $3.4 million; and Food Service fund $3.2 million.

While the 5-Year Forecast is a requirement, the Budget Document offers a full picture of the District’s financials and is recognized by the Association of School Business Officials for transparency. Hilliard has received the Meritorious Budget Award each year since 2006-07.