Worthington Schools is in a strong financial position through the end of the decade, despite a significant reduction in state funding, according to Treasurer TJ Cusick's presentation to the Board of Education on October 13, 2025. The district does not anticipate needing to go to voters with a levy request until fall 2028.
New Forecast Format Required by State
For the first time, school districts across Ohio are presenting what Cusick called a "seven-column, three-year forecast" instead of the traditional five-year forecast. This change was mandated by the state legislature, with the timing shifted from November to August (though districts were given until October this first year). While the public forecast now covers only three years forward, Cusick emphasized that the district continues to maintain internal 10-year financial projections for long-term planning.
"I do believe in all seriousness that it is imperative that governments take a long-term view of finance," Cusick said. "If you imagine yourself as a young parent you send your kid to kindergarten you expect the district to have a plan for 13 years while that student is with us."
State Funding Reduction of $1 Million Annually
The updated forecast reflects approximately $1 million less per year in state funding compared to May's projections. This reduction stems from the state's decision not to increase the "base cost inputs" in the Fair School Funding Formula—the calculated amount Ohio determines it costs to educate a child.
The state's share of Worthington's funding has dropped dramatically. Just a short time ago, the district received approximately $1,600 per student in state funding. Under the current budget, that figure falls to just $809 per student by the end of the biennium—the minimum "10% floor" allowed under Ohio law.
"Worthington has dropped correspondingly down to that 10 percent floor," Cusick explained, noting that the district is now receiving what they got in 2020, even though costs have increased significantly since then.
Statewide, the state's share of public education funding has fallen into the low 30% range, well below the approximately 50% target that school funding advocates have long sought.
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Property Taxes and Local Revenue
Over 80% of Worthington Schools' revenue now comes from local sources, with nearly 79% from local property taxes specifically. This high reliance on local property taxes is a direct result of declining state support.
Cusick noted that property tax collections are slightly lower than projected for the current year and next year due to more commercial property owners successfully challenging their reappraised values. However, under Ohio's House Bill 920, those taxes will shift to other commercial property owners the following year, keeping long-term revenues stable.
The district will receive the final increment of its 2022 levy next year, after which that revenue stream will flatten out.
Expense Projections and Challenges
On the expense side, the district is running approximately $2 million per year lower than expected on salaries. This is due to slightly higher-than-anticipated retirements at the end of last year and staff turnover, even among mid-career teachers.
However, Cusick expressed significant concern about health insurance costs, which are projected at 8% annual increases. "If you had to ask me one area where I was most worried about on the cost side, health insurance is it," he said, noting that 60 new drugs costing $3 million or more per year are hitting the market in 2026.
The district has also adjusted up its budget for students placed in specialized out-of-district educational settings. While the number of students remains about 40, the costs charged by those outside entities have increased substantially—some by 30-40% overnight.
10-Year Outlook and Levy Timing
The forecast shows the district will begin spending more than it takes in starting next fiscal year, at a rate of approximately $9 million annually. However, thanks to the $48 million the district transferred into a capital reserve fund, the district will not fall below its targeted minimum fund balance (60 days of operating expenses, as recommended by the Government Finance Officers Association) until fiscal year 2030.
This means the district would look to have a levy discussion in fall 2028 (for fiscal year 2029). At that point, the district would still have approximately $40 million remaining in the capital reserve fund.
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Risks and Uncertainties
Cusick outlined several major uncertainties that could affect the forecast:
- Property tax law changes: Multiple bills are pending at the state level that could affect how property taxes work, including giving county budget commissions authority to override voter-approved levies
- Federal funding: Uncertainty around whether programs like Title I and IDEA could be reduced or eliminated, though Cusick believes complete elimination is unlikely
- Enrollment and staffing: The kindergarten class was larger than expected; whether this trend continues could require additional staffing
- STRS (State Teachers Retirement System): Continues to hint at a potential increase in the employer contribution rate
- Artificial intelligence: Could bring operational efficiencies but may also cause some job disruption
Alternative Revenue Sources Discussed
The Finance Committee discussed whether Worthington might consider an income tax instead of, or in addition to, property taxes—something Westerville Schools is currently asking voters to approve. Historically, suburban districts haven't supported income taxes, but Cusick noted "times have changed."
If the district were to pursue an income tax, it would likely need to start that process in 2027, as there's an 18-24 month delay between when an income tax is approved and when the district actually receives the revenue.
Cusick also noted that Ohio has the eighth highest property taxes in the country, but ranks 42nd in overall state tax burden, suggesting that residents aren't being taxed as heavily in other areas like income or sales tax.
Board Response
Board members expressed appreciation for Cusick's long-term planning approach and his ability to navigate the uncertainty created by frequent state-level changes to forecast requirements and funding formulas.
"I appreciate you showing the full 10 years out so that we have the big picture," said one board member "I don't know how a district could make any kind of staffing or levy decisions without knowing at least five to 10 years out."
The Board will formally vote to approve the forecast, which must be submitted to the state.