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How We Got Here In 2005, two events created enormous impact on the future of the Marysville schools and how they are funded.
HB 66 The first event was the passage of HB 66, which eliminated the tax on tangible personal property (TPP) - machinery, equipment, inventory, etc. These taxes were eliminated to help spur much-needed growth among Ohio businesses. Unfortunately for the schools, however, this elimination drastically reduced the entire taxable value of the Marysville Exempted School District.
State Funding / Growth Due to changes caused by HB66 and other tax cuts and balanced budget efforts, the State of Ohio financially "flat-lined" the Marysville School District to their 2004 funding level, regardless of any growth within the district. This flat-lining continued through 2006 and 2007. Prior to 2005, state funding for education increased as a district gained new students. However, while the Marysville schools were flat-lined to 2004 levels, nearly 500 new students arrived in the district between 2005 and 2007. As a result, the entire cost of educating these new students fell on the local community with no “state share” ever received. The per-student share of funding from the state roughly equalled $5,000 per school year. 500 additional students not funded by the state equates to nearly $2.5 million of state funds.
Shifting the Taxes to the Homeowner At the same time the district was growing by 500 students and the state had flat-lined their funding, HB66 reduced the taxable value of the district. As an example, a 1 mill levy assessed in 2007 would have brought in $723,000 in revenue. That 10% decrease requires homeowners to pay higher millage rates to accomplish the same amount, since tangible personal property is no longer taxable.
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