Berkshire Board Postpones Decision on Potential Levy or
Earned Income Tax Increase Pending State Tax Calculations Due in April
Berkshire Board of Education – Special Meeting, January 29, 2026
Meeting Details: The meeting was held in the Auditorium of the Berkshire Local Schools complex, 14155 Claridon-Troy Rd, Burton, Ohio 4402. A video of the meeting is posted here. View the agenda online and any attached documents here by selecting the meeting tab and then the meeting date. The notation of minutes refers to the time posted on the video for the discussion of the item listed.
Board Members Attendance: John Manfredi, President, Linda Stone, Vice President, and members Dan
Berman, Brandon Townsend and Bryan Wadsworth.
Staff Attendance: Superintendent John Stoddard and Treasurer Beth McCaffrey.
Opening of Special Meeting - The Special Meeting was called to order at 6:00 pm by Mr. Manfredi, who led the Pledge of Allegiance. The roll was called.
Approval of Agenda – Approved unanimously without discussion.
Approval of Minutes – No Minutes were presented for approval.
1:30 Min. School Finances Discussion – No action was taken. The Board agreed to wait to decide on potential ballot issues until April when they expect to have revenue projections from the Ohio Department of Taxation.
Mrs. McCaffrey and Dr. Stoddard gave a lengthy presentation with slides about the district’s financial history, its current status and approaches to address predicted funding shortfalls. Questions and comments from the Board followed.
Mrs. McCaffrey started with a short review of the current tax structure for Berkshire Schools. Highlights included:
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Berkshire operates at the 20-mill floor, meaning property tax revenue growth is limited despite rising property values. Dr. Stoddard gave a detailed explanation of the 20-mill floor at 2:18 Min. of the video.
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The district currently has a 1% earned income tax, a 2.45-mill bond levy (for the new school building), and has not passed new operating money since 2007. Dr. Stoddard discussed how the school has been able to reduce levy collections through loan refinancing.
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Though 2023 reappraisals increased home values by nearly 30%, House Bill 920 limits inflationary growth in property tax revenue to schools.
4:53 Min. Mrs. McCaffrey discussed four property tax reform bills (HB 186, HB 129, HB 335, HB 309) passed by the legislature in December 2025, effective March 2026. She noted that HB 186 will have the greatest impact on Berkshire:
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HB 186 caps property tax revenue growth for districts at the 20-mill floor and doubles homeowner/rollback credits to the homeowner.
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While the State will reimburse some losses retroactively (2023–2025), the long-term 20-mill floor calculation beyond FY 2027 is still unknown.
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The Ohio Department of Taxation is expected to release final calculations on the impact of the tax changes by mid-April 2026.
7:42 Min. Financial Outlook
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The district expects a total of $1-3 million in revenue losses through 2030 based on total tax funding calculations, with about $1 million in the early years.
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Five-year forecasts show the district’s cash balance turning negative by FY 2028 or 2029, sooner and more severely under property tax reform.
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Expenditures are growing slower than inflation, but due to funding caps, revenues fail to keep pace. Dr. Stoddard pointed out, “we’ve tried to do our part to be careful with taxpayer dollars, and HB 186 makes it harder, even for districts that are very well managed, to keep up with the realities that are beyond our control.”
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By FY 2028, the district would enter state fiscal precaution, which will require the school to file a 60-day plan as to how the school will rectify the shortfall.
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Berkshire receives about 31% of its funding from the state and 69% locally, a shift from past decades that places increasing burden on local taxpayers. In 1997, state funding was 47% and local funding was 53%. Dr. Stoddard said, “Essentially, the issue is the state shifting the balance of who’s going to fund education from their end to our end here locally.”
Response to Public Concerns
13:55 Min. Dr. Stoddard addressed common criticisms of the district by the public:
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“Didn’t we just pass a bond issue?” The $30 million bond issue funded only the building, not operations, and refinancing lowered the millage rate (from 3.45 to 3.29), saving taxpayers $4 million over the life of the loan.
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“How about we discuss taxpayers’ finances?” The district is “acutely aware of this issue” and has actively pursued cost containment and alternative revenues, including grants ($1.8 million in the past two years), preschool tuition, in-house special education services (saving $400,000 annually), and extensive business partnerships with such firms as Preston Superstore and Great Lakes Cheese.
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“It would be one thing if our outcomes were improving, but they haven’t been.” Dr. Stoddard pointed to the Ohio Department of Education website graphic that showed student outcomes are improving, with the performance index rising each year since 2021. He also pointed to the expansion of their career and workforce pathways, all without more taxpayer dollars.
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“Administration to student ratios and student to teacher ratios are increasing while literacy rates are decreasing.” Administrative staffing and class sizes are below or comparable to similar districts.
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“It seems like funds are being misappropriated.” Financial transparency is emphasized through public audits and participation in the Ohio Checkbook.
24:25 Min. Cost-saving and Revenue Strategies
Dr. Stoddard presented expenditure reduction options, saying that there will be cuts but their “strategy will be to start as far away from the classroom as possible, and then work inward.”
Revenue sources include:
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Workforce Pathways and Vocation programs currently generate revenue by selling seats to other districts and partnering with local industries. Dr. Stoddard noted that Preston Auto pays the school monthly rent and utilities for their space on the Workforce Development campus. The school plans to increase the number of seats available to other districts
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Ongoing pursuit of grants, donations, and partnerships to offset general fund expenses. Over $1.8 million of these funds were collected over the past two years.
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Possible Permanent Improvement (PI) levy.
26:55 Min. Board discussion included:
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The PI levy generating about $480,000 annually failed at the ballot box in November 2024, shifting those costs to the general fund.
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The move to a “one bus” schedule mornings and afternoons has reduced spending per mile and saved wear and tear on the buses. Older students who live on the bus routes are picked up, but the district is very close to the state minimum for busing.
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The school uses contracted services (busing, custodial, grounds) which save employee benefit costs.
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The school cafeteria is self-sustaining. It had been subsidized by the school in the past.
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Mr. Manfredi asked whether a future earned income tax increase could be phased in, to help families gradually adjust to the increase. Mrs. McCaffrey said she will ask legal counsel.
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Dr. Stoddard spoke about how the school handles open enrollment and addressed the issue of school vouchers and changes to open enrollment rules in 2022. He noted that public schools do not benefit from vouchers in the same way that private schools do and posited, “if it’s school choice, why does choosing a different public school not count the same?” He continued, “if we received a voucher for every open enroll student, we wouldn’t be in a financial situation.”
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Board members discussed the push from the State for school systems to consolidate into county-wide districts.
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Board members agreed it would be premature to place a levy or earned income tax increase on the May ballot due to uncertainty around HB 186 and other potential tax law changes.
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A potential November ballot measure remains an option, pending clearer data from the State.
During discussion, Board members emphasized that Berkshire’s challenges stem less from local spending decisions and more from state funding policy shifts. They encouraged community members to stay informed, engage legislators, and understand the complexity of school finance as the district works to maintain educational quality while addressing looming fiscal constraints.
The Board consensus recommendation was to wait for the state’s tax calculations in mid-April and then evaluate a combination of expenditure reductions, new revenue streams, and a possible levy and/or earned income tax increase, aiming to minimize the burden on taxpayers.
58:35 Min. Public Participation
A resident, who identified herself as a school administrator in another district, said she moved to Burton two years ago and has “been extremely happy with this district.” She commented that she does “not like when taxes increase at all” but reminded residents that “if you vote down levies, your property value tanks too.” She also asked Dr. Stoddard what the goal is for the school performance index and how they planned to increase it. Dr. Stoddard replied that they target children individually and work with them to help students improve one level higher than the previous year.
Next Regular Meeting dates – The February 9, 2026, and March 9, 2026 meetings will be held in the Auditorium of the Berkshire Local Schools complex, 14155 Claridon-Troy Rd, Burton, Ohio 44021 at 6:00 pm.
Executive Session – No Executive Session.
1:02 Min. Meeting Adjourned.
Observer: Rooney Moy
Editor: Harry Rees
Reviewer: Sarah McGlone
Date Submitted: February 3, 2026
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