by Nicole Piscitani • Jan. 12, 2025
County budget commissions (CBC) began in Ohio in 1911 and have evolved over the past century, with the most recent changes occurring in House Bill (HB) 309. Before detailing the changes, it is important to understand who sits on a CBC and its primary responsibility. The county auditor, county treasurer and prosecuting attorney make up the CBC. These three positions obtain the seat because they don’t levy any property taxes, essentially avoiding any conflict of interest. CBCs are mandatory in each county, and they primarily are responsible for reviewing and approving the annual tax budgets of local governments.
Over the past few years, CBCs operated differently among counties, which led to questions regarding what they should be doing and to what extent. The Ohio General Assembly views CBCs as an oversight tool to regulate local property taxes and believes that additional responsibilities will help limit increases in local property taxes.
HB 309 expands the CBCs’ authority to reduce property tax levies to avoid unnecessary or excessive collections. An “unnecessary collection” is legislatively defined as those beyond the reasonably anticipated financial needs of the taxing authority for the specific purpose of the tax after accounting for current fund balances, projected expenditures and other available funding sources. The legislature also defined “excessive collection” as those in an amount or rate that exceeds what is required to provide services at a level that is consistent with statutory obligations. School districts and other local governments must annually meet with CBCs to provide certain financial information. It is important to note that there are 255 school districts in multiple counties; those impacted districts will have CBC meetings in all counties where the school district has territory.
While CBCs have the authority to reduce certain levies, there are several restrictions that the Ohio Legislature included in the bill. The first is that a CBC cannot modify a newly passed levy in its first year of collection. This restriction does not apply to renewed levies, meaning voters can approve a renewal levy and the CBC can immediately modify it. The second restriction prevents a CBC from reducing levies collected so that it will collect less than what it collected in the preceding year. However, CBCs must look at funds available in reserve balance accounts, nonexpendable trust funds or carryover amounts and could reduce amounts if the CBCs deem there are sufficient funds to offset the reduction. The last restriction is specific for school districts and prevents a CBC from reducing a levy to fall below the 20 mills required to qualify for state funding. The bill contains a state-funding safe harbor if the school district voluntarily foregoes increased revenue from inside millage or operation of the 20-mill floor.
Gov. Mike DeWine signed the bill on Dec. 19, 2025, and it will take effect after 90 days. School board members should work with superintendents and school treasurers as districts prepare for CBC meetings. Implementing cash balance and facility planning policies will aid management teams as they discuss the district’s financial health with CBCs.