CANFIELD — A big challenge for Canfield Local School District is trying to keep on track amid a flurry of ideas on the state level when it comes to funding.

Like most districts in Ohio, the future is uncertain for 2026 when it comes to funding.

“Right now we depend on property tax, income tax and sales tax,” Canfield Superintendent Joe Knoll said. “It is a three-leg stool. Remove one leg and you’re in trouble.”

He said, to start, this year’s forecast is now in a new format. What used to be a five-year forecast (showing the district’s estimated financial status over the next five years) is now a current year plus three forecasted years. For Canfield, the new forecast is not in the red in the coming three years, but is deficit spending right now.

“This year we are deficit spending and will continue to do so throughout the forecast,” said Canfield Treasurer Pattie Prince. “We have enough rainy day funds to cover it right now.”

She added it will eventually run out if something is not done to solve the funding situation.

The problems grew with the passage of H.B. 920 in 1976. Up to that time, property taxes increased as values rose and new construction took place. The old way allowed school districts and other entities dependent on property tax to see increases that kept pace with inflation.

The 1976 change put a cap on what could be collected. The amount was stated on the ballot and that would be the limit to what could be collected from that levy as long as it is a renewal. That fact is the reason the tax collects at a much lower amount of mills while still raising the same amount.

A good example of how it works can be seen in the Canfield Local School District’s emergency levy first passed in May of 1986. When it first passed, it brought in $890,000 for the district, according to Prince.

“It still only collects at that amount,” she said.

When first passed, the emergency levy collected at 6.5 mills. It was renewed every five years until November of 2020 when it was passed for a period of 10 years. It would have been renewed in 2031, but that has changed because of property tax reform legislation passed in Ohio earlier this year.

“We are no longer allowed to renew an emergency levy,” Prince said. “It would have to be replaced with a brand new levy.”

She said it can be harder to do as it is typically harder to pass a new levy than a renewal.

The district’s other levy is a current expense levy that was first passed in 2013 for 5.9 mills. It was renewed in 2017 and 2022, and will be up for renewal again in 2027. That levy brings in $3.7 million and is collected at a rate of 4.82 mills.

“It is important to note that we are deficit spending,” Knoll said. “That means we are using our savings (carry-over cash balance) to operate. At this time we have two choices to stay in the black — either increase revenue or decrease expenses. We have not been on the ballot for new operating money for 12 years.”

Another situation affecting Canfield and other districts considered to be “wealthy districts” is the “20-mill floor.” Knoll said districts at the 20-mill floor got additional state funds. Canfield didn’t meet that criteria after the revaluation and therefore did not receive additional state funds, which went to other districts.

DEFICIT PREDICTED

As the district continues to move forward, Prince’s department has to consider expenses and the expected increases. She said to expect a 3% increase in budgeted contractual increases. Another budgeted increase is the health care costs budgeted at 7% for fiscal year 2025. Going forward. Prince said the increases are expected to jump by 10%.

The final expense item involves services, supplies and equipment, which are budgeted at inflationary increases.

The bottom line is the district is finding it hard to increase income while facing increases all over the board.

To top off the uncertainty is the talk of placing property tax on the ballot in May. If Ohioans vote to eliminate the tax, it would force the state to scramble and find a new funding source. That likely wouldn’t happen right away, so school districts, police, fire and local governments are trying to prepare for the unexpected.

“Current property tax reform legislation could have a significant impact on this forecast,” Prince said. “The forecast as presented is based on current law.”

Prince also serves as the Cardinal Joint Fire District’s treasurer. She said the fire district board is putting together a Plan B in case property tax were to change next year. In the school district, the carryover “would not sustain the district.”

“It’s like a tsunami all hitting at once,” Knoll said. “We must first take a deep breath and not overreact. I hope we don’t get to the point where we have to decide what we want our district to look like.”

One thing Knoll and the entire school board are pleased with is Prince and her dedication to Canfield Schools over the past 39 years. At the Wednesday board meeting, former board member and Canfield Rotary President Dave Wilkeson presented Prince with the Paul Harris Fellows Award, the highest award Rotary presents for those who contribute to the ideals of what Rotarians represent.

Prince’s retirement takes place at the end of December, but she plans to stay around for a short time to ensure the next treasurer can come up to speed. That person will be Benjamin Marko, who was named at a special meeting a few weeks ago.

Marko has served as Treasurer of Newton Falls Exempted Village School District in Trumbull County for the past three years. Prior to that position, he spent 17 years as a mathematics teacher at Lake Middle / High School in Uniontown.

During his tenure at Newton Falls, Marko successfully guided the district through strategic staffing adjustments to align resources with enrollment and fiscal realities. Within the past six months, he also oversaw the completion of both certified and classified staff contracts, strengthening labor relations and operational stability. Additionally, he implemented the Community Eligibility Provision (CEP), a federal program that allows schools to provide free breakfast and lunch to all students without requiring individual applications for participation.

“Ben’s background as both an educator and a treasurer gives him a well-rounded perspective on how fiscal decisions impact students, staff, and the classroom,” Knoll said. “We are confident that his experience and leadership will continue the district’s strong record of financial responsibility.”

Marko said he looks forward to joining the Canfield District and working with Prince to get up to speed.

“I am so excited, honored, and humbled to be joining the Canfield team,” he said. “I’d like to thank the board, Mr. Knoll, Mr. John Vitto and Miss Prince for putting their faith in me,” he said. “I know I have some really big shoes to fill and am grateful that Miss Prince is willing to stay on to help with the transition. My promise is that I will do my absolute best each day to help our district, community, staff and students reach their fullest potential.”