Submitted photo This is the new bulldog logo for the Lakeview Local School District, which was created by graduate Rachel Clark.

CORTLAND — A proposal by the Trumbull County commissioners to expand property tax rollbacks could cut into Lakeview Local Schools’ revenue at the same time new state tax laws already are limiting future increases.

Treasurer Terry Armstrong told the Lakeview Board of Education last week the district remains financially stable heading into fiscal year 2026. But if the county moves forward with an expanded rollback for owner-occupied and homestead properties — and if the state does not reimburse schools for that discount — the district would see a direct loss in revenue beginning in fiscal year 2027.

Historically, rollbacks have been reimbursed by the state, Armstrong said. Under the current proposal, reimbursement is not guaranteed.

“If you go back to when the state income tax was enacted in Ohio in the 1970s, it says right in the law that part of this money will be used for property tax reform or rollbacks,” Armstrong said.

He said the law provides that local entities will be reimbursed so services are not affected.

Forecast projections show the rollback could reduce revenue by more than $212,000 in fiscal year 2027 if both options are adopted, with larger impacts in future years. Without reimbursement, Armstrong said, any expanded rollback would mean a significant reduction to district finances.

While property taxpayers would see some relief, the proposal comes as the district adjusts to changes at the state level. Property tax reforms passed last year through House Bills 129 and 186 limit increases to tax collections tied to rising property valuations.

Fixed-sum emergency levies now count toward the 20-mill floor calculation. Lakeview has about 26 effective mills on the books, meaning the district will not see additional revenue as property values increase in the future.

Between fiscal years 2023 and 2025, property tax revenue increased by more than $2.2 million, largely due to higher property valuations. That increase helped stabilize the district’s finances in recent years.

“When the reappraisal happens, as it did in 2023, property values went up more than I’ve ever seen in my lifetime,” Armstrong said. “What happens now will never happen again.”

The district’s forecast shows revenue increasing by less than 1% annually through 2030, while expenses are expected to rise at an average rate of about 3% per year. That gap results in deficit spending beginning next year, with a projected shortfall of about $149,000 in fiscal year 2027. However, that figure does not include the potential county rollback.

To manage costs, five positions will be eliminated through attrition next year as employees retire. Armstrong said the district also is reviewing capital spending and shifting certain expenses — including a planned $650,000 athletic turf replacement project — out of the general fund and into the permanent improvement fund.

“We understand that this is the reality,” Armstrong said. “The revenue’s going to be rather flat and we’ll keep working on getting expenses under control.”

Also at the meeting, the board:

* Approved a new official mascot, which was created by Lakeview graduate Rachel Clark.

* Recognized the following students who received perfect scores on state testing: Everest Esposito, Brady Shackelford, Jack Susa and Jonah Swiger, grade 3 math; Brent Miller, grade 5 ELA; Vincent Bacher, grade 5 science; Ava Sarkos, grade 5 ELA/math/science; Blake Beerbower and Connor McKowan, grade 5 math/science; Henry Keck, grade 5 math; Cecelia DeToro and Thomas Rawl, grade 9, geometry; Grayson Candor, Hudson Lasher, Lindsay Ratell and Paige Swartz, grade 10, American history; and Alex Bates, grade 11, government.

By the numbers

Fiscal Year annual excess revenue over expenses or deficit spending

FY21 — $408,569 deficit

FY22 — $331,064 deficit

FY23 — $369,108 deficit

FY24 — $1,602,117 carryover

FY25 — $1,088,259 carryover

FY26 — $22,002 carryover

FY27 — $148,912 deficit