Parma City School District is dropping a levy attempt for the November 2024 ballot as some residents potentially face large tax increases due to Cuyahoga County's reappraisal of property values.
It’s been almost a decade and a half since the school district had a new operating levy approved, but Superintendent Charles Smialek said after hearing from residents about their property values jumping so much, they’re tabling their plans for the operating levy on the November ballot.
"We were at Seven Hills Home Days (a local festival) and we had a booth set up there to interact with residents. And, I mean, everyone wanted to talk about their property values, which, we understand," he said. "I was standing next to a woman, actually, one of our employees, who lives in the community. Hers (valuation) went up 52%. So folks are really working through some some sticker shock here."
The average estimated property value increase in Parma was 32%, in Parma Heights it was 30% and in Seven Hills it was 25%, according to a map on Cuyahoga County's sexennial reappraisal website. However, only a portion of those property value increases will actually result in an increase in taxes for residents; an Ohio law stops most voted taxed levies, like school levies, from drawing in increased taxes when values increase. Schools and other taxing agencies do receive smaller increases on inside mills, however. Inside mills are 10 mills of taxes split between taxing agencies in an area that are allowed to increase with property values under HB 920.
The county estimates the school district will receive an additional $3.46 million per year from the associated tax increases in the communities it serves, based on that inside millage. For context, that's only about 2% of the school district's overall budget; the school district had about $163 million in expenses during the last fiscal year.
The school district is facing a budget deficit but has been budgeting conservatively, Smialek said, and won’t be out of cash until 2027 or 2028. He said the increase in funding from the reappraisal will help them get to that point with fewer cuts necessary. The district's last four attempts at getting taxpayer approval for new operating money failed..
The state's funding formula, although it has been adjusted over the last several years to provide more funding for public schools, is not "fixed," Smialek argued. About 68% of the school district's total budget comes from local property taxes.
"If you're looking for a fix that isn't going to mean coming back to property owners and asking for increases in property taxes, we still don't have that in Ohio," he said.
