NELSD Urges Lawmakers to Protect School Funding and Local Resources

The Northeastern Local School District (NELSD) recently sent letters to Senator Kyle Koehler and Representative Bernie Willis to express our concerns about two pending bills in the Ohio General Assembly, House Bill 186 and House Bill 335.

These proposed laws would reduce the amount of local tax revenue available to schools across Ohio—funding that directly supports classroom instruction, staffing, and student programs. While we understand that the intent of the bills is to limit property tax growth, which we know can benefit our families, the result would be a major loss of funding for education. In reality, this could shift the tax burden elsewhere or lead to difficult cuts in services that benefit our students. Given that the Northeastern Local School District is already impacted by the incomplete phase-in of the Fair School Funding Plan, we felt it was important to advocate for our students, staff, and community by sharing what these changes could mean here at NELSD and in Clark County.

The letter below was sent individually to both Senator Kyle Koehler and Representative Bernie Willis on October 9, 2025.

October 9, 2025

To: Senator Kyle Koehler and Representative Bernie Willis
From: The Northeastern Local School District
Re: Current Legislation

Dear Senator Koehler and Representative Willis,

On behalf of the Northeastern Local School District (NELSD), concern is once again expressed regarding the revised version of House Bill 186 and the addition of House Bill 335. These measures would impose severe financial consequences on school districts across Ohio, particularly those with already limited resources. According to recently released legislative estimates, the proposed legislation would result in a reduction of more than $1.7 billion in statewide school property tax revenue over the next three years. Such a loss would significantly undermine the ability of districts such as ours to maintain essential educational services and programs.

For the Northeastern Local School District, a district pushed into deficit spending for the first time in eight years due to the state’s continued underfunding of the Fair School Funding Plan, the implications are devastating. The Local Impact on Northeastern Local Schools includes:

• Budget Shortfall: Our district has not yet received the full phase-in of the Fair School Funding Plan. That shortfall leaves us reliant on local property taxes to maintain essential programming. HB 186 and HB 335 would further erode this already fragile foundation by applying caps to property tax revenue growth. NELSD is unique in that the increases in assessed value were simply absorbed by House Bill 920. In FY2010, Northeastern Taxpayers contributed $12.1 million; fifteen years later, in FY2025, we received $13.7 million, a 14% increase in fifteen years.
• State Support for Northeastern adds to the issue. In FY 2010, the state foundation was $13.9 million. Fifteen years later, the state provides Northeastern $14.8 million. The numbers provided are during a period in which the State built a $4 billion rainy-day fund and cut income taxes for the State to appear fiscally responsible.
• Specific Fiscal Impact under HB 186: Under current law, the Northeastern Local School District was projected to receive approximately $14.07 million in property tax revenue in tax year 2025. Under the HB 186 formula, that figure drops to just $13.421 million, a loss of more than $1.3 million per year. This reduction repeats annually through 2027, stripping nearly $4.5 million in total revenue from our classrooms.
• Specific Fiscal Impact under HB 335 (Modeled): Using Clark County’s most recent reappraisal growth trends (25–35%) and applying HB 335’s inflation cap (3%), Northeastern could forfeit between $1.4 million and $1.96 million per reappraisal cycle compared to current law.

For example:

• At 25% valuation growth, Northeastern would collect $13.3 million under current law, but only $11.9 million under HB 335, a loss of $1.4 million.
• At 30% growth, the shortfall rises to $1.6 million.
• At 35% growth, the district loses $1.9 million.
• These are modeled calculations based on statewide legislative methodology (inflation cap tied to the GDP deflator) and Northeastern’s estimated tax base. Those numbers equate to 3.5%-5.0% of our budgeted reviews. They demonstrate the magnitude of harm Northeastern will face if this legislation is enacted.
• Our Challenge: Serving approximately 3,000 students, Northeastern struggles with a growing number of students with disabilities (15% of the student population), and 39.7% of our students are economically disadvantaged students.

Our Record of Progress
Despite these challenges, Northeastern has scored admirably on the State Report Card:

• Overall Report Card: Three Stars overall, with our elementary, Northeastern Elementary School (NEES), receiving a four-star rating.
• Graduation Rate: The four-year graduation rate rose to 94.7%

Why This Matters for Clark County
The Northeastern Local School District is the second-largest educational institution in Clark County, shaping the workforce, economy, and future of this community. Our success is directly tied to the county’s vitality. Reducing our ability to fund education will weaken not only the opportunities for Northeastern students, but also the long-term economic health of the region you represent. While HB 186 and HB 335 were drafted to address taxpayer concerns over property valuations, in their current form, they shift the burden onto the backs of children in communities like Northeastern Local Schools. We cannot afford to balance the books of state policy on the future of our students.

For that reason:

• On HB 186, I urge you to oppose this legislation or, at the very least, to restore it to its original version that excluded retroactive cuts to school funding.
• On HB 335, I urge you to oppose this legislation or, at a minimum, to ensure that the inside millage cap is set no lower than the annual rate of inflation, so that school districts are able to keep pace with rising costs.

I respectfully ask you, as both our representative and a fellow Clark County resident, to pursue a more balanced solution—one that provides taxpayer relief without crippling public education. The Northeastern Local School District stands ready to assist in any way possible.

With appreciation for your service,

Jack Fisher
Superintendent