Leaders from local school districts, social service agencies, and governments are worried about funding cuts if possible property tax relief measures are enacted by Hamilton County.
The commissioners are considering whether to double the homestead exemption and owner occupancy credit. It's an option state lawmakers recently allowed.
While the state reimburses local governments for the current tax credits, it would not pay for the expanded tax credits. Enacting both measures would cost taxing jurisdictions in Hamilton County nearly $40 million annually, according to a report from Administrator Jeff Aluotto.
Several school districts, social service agencies, and government officials voiced their concerns and opposition at the county commissioners meeting Thursday.
Schools fear revenue impact, potential cuts to staff and services
Cincinnati Public Schools Superintendent Shauna Murphy says the district stands to lose more than $7 million annually if Hamilton County were to enact the property tax relief measures. That equates to the salaries and benefits of 66 full-time teachers and comprises 2% of the district’s local property tax revenue.
“We feel we have worked really hard to build the highest performing urban school district. We also recognize there is still much work to do. A sudden, unexpected reduction of $7.5 million will make progress that much more difficult,” Murphy said.
She says funding cuts wouldn’t only hurt schools, but also resources students depend on, like the public libraries and Job and Family Services.
Suburban school districts, including Northwest Local, Oak Hills, and Sycamore, also voiced their concerns.
John Espy is chief financial officer at Loveland City School District. He says local taxpayers fund nearly 60% of the district's budget, including a majority of special education and gifted student programs.
“A cut of over half-a-million dollars annually would fundamentally cripple our capacity to maintain these critical services, directly undermining the quality of education for more than 50% of our students,” Epsy said.
He says he supports property tax relief, but it should not come at the expense of students.
“The conversation cannot be seniors versus students,” Epsy said. “We must design solutions that protect vulnerable residents today while ensuring children have the opportunities they deserve tomorrow.”
Commissioners divided on action
The Hamilton County commissioners agree on the importance of property tax relief, but they haven't come to a conclusion on how it should be provided.
President Denise Driehaus says discussions of expanding exemptions seems premature as more property tax relief bills make their way through the state legislature.
“I'm not in favor of bailing out the state,” Driehaus said. “They've given us the toolbox to piggyback on the homestead [exemption], without giving us anything in the toolbox, right? There's no money associated with that toolbox. So they say, ‘Well, you can do it, but you all have to pay for it, because we're not going to.’ ”
Vice President Stephanie Summerow Dumas says she has not yet decided her position.
“This is nothing to take lightly,” Summerow Dumas said. “This is something that impacts lives, jobs, services, and education.”
Commissioner Alicia Reece was absent from Thursday's meeting, but previously said she supports doubling both property tax exemptions and reducing inside millage.
The commissioners have until Oct. 31 to take action on expanding the homestead exemption or owner-occupancy credit for the 2025 tax year.
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