Current Year Breakdown

Local Revenue in 2023:

• Dollar amount: $ 46,520,600
• Percentage of total revenue: 50%
• Dollars per pupil: $6,978.70

State Revenue in 2023:  

• Dollar amount: $ 29,773,184
• Percentage of total revenue: 32%
• Dollars per pupil: $4,444.86

Federal Revenue in 2023:

• Dollar amount: $9,304,120
• Percentage of total revenue: 10%  
• Dollars per pupil: $1,444.80

Other Financing Sources in 2023:

• Dollar amount: $ 7,443,296
• Percentage of total revenue: 8% 
• Dollars per pupil: $1,130.30

Total Revenues Per Pupil 2023: $13,999
Total Revenues and Other Financing Sources in 2023: $93,041,200

Overall, As student populations grow, educational requirements evolve, or facilities age, school districts may need to seek additional funding to address these changing needs. Regular ballot measures allow districts to adapt to these changes and maintain the quality of education they provide.

Ohio's school funding system relies heavily on local property taxes. On average, over 50% of school funding comes from local sources, primarily property taxes. State and federal funding, that make up the other half, does not always keep pace with rising costs. State and federal funding policies can also change for a variety of reasons outside of the school district’s control. Compensating for insufficient or changing state and federal funds will create a need for districts to seek additional local funding through ballot measures.

Districts may propose tax levies to generate additional operating funds for day-to-day expenses, such as teacher salaries, educational programs, or extracurricular activities. When voters approve a new levy, the dollar amount generated is fixed based on the property values at that time. These levies often have a limited duration, but school expenses increase every year due to inflation, rising employee costs, unfunded mandates, growing enrollment, etc. Eventually, expenses outpace revenues.

A law known as House Bill 920, passed in 1976, prevents schools from receiving additional revenue (based on voted millage rates) when existing property values rise. When values go up, the effective millage is rolled back so schools still receive the same dollar amount as when the levy originally passed.

The "fixed" revenue from a levy meets expenses for a period of time, but a gap develops within a few years, requiring schools to seek new money from voters. This creates a 3-5 year cycle of needing to pass new operating levies. Proposed solutions like allowing schools to receive growth on voted millage have failed to gain traction with voters. Until a more sustainable state funding model materializes, periodic local levies will likely remain necessary to keep up with rising costs and maintain educational programs.

In the case of West Clermont, the school district’s millage is under a special protection provision known
as the 20 Mill Floor. A unique provision in statutory law enacted the year after HB 920 and only enacted
for school districts guaranteed an effective rate equal to 2% or 20 mills of value for operating expense
purposes. This provision provides districts an increase with the property reappraisals conducted by the
County Auditor every three years. Because of an historic increase in property values in 2023 (collected
in 2024) the district’s property tax revenue increased.

Additionally, school districts often seek voter approval for bond measures to fund capital projects such as constructing new schools, renovating existing facilities, or upgrading technology infrastructure. These expenses are budgeted separately and bond money cannot be used for operating expenses. Bonds are paid off over a defined period, typically 20-30 years, similar to a mortgage. The tax expires once the bonds are fully repaid. Voter approval is required to approve the principal amount (e.g. $50 million of bonds), an estimated average annual millage (rate of repayment through property taxes), and a maximum number of years to repay the bonds.

Accountability and transparency is also a key factor for West Clermont School District. Putting measures on the ballot at regular intervals allows voters to have a say in how their tax dollars are being used to support local schools. This process promotes accountability and transparency in school district finances and decision-making. A 3 to 5-year cycle is common, as it allows for a balance between long-term planning and the need for regular community input and support.

The Metrics of School Finance

West Clermont monitors several key metrics to assess their financial status and guide decision-making. Together this information resembles the dashboard of a car.

The metrics are similar for all school districts in the United States:

1. Operating budget: The operating budget includes revenues and expenditures for day-to-day operations. Monitoring the budget helps identify potential shortfalls or surpluses and allows for timely adjustments.
2. Fund balance: The fund balance represents the district's financial reserves. West Clermont aims to maintain a healthy fund balance to cover unexpected expenses, revenue shortfalls, or emergencies. Many states have guidelines for minimum fund balance levels.
3. Revenue sources: West Clermont monitors the stability and diversity of our revenue sources, including local property taxes, state funding, and federal grants. Over-reliance on a single source can make us vulnerable to economic fluctuations.
4. Enrollment trends: Student enrollment directly impacts a district's funding and resource allocation. West Clermont tracks enrollment trends to anticipate changes in revenue and adjust budgets accordingly.
5. Per-pupil spending: Monitoring per-pupil spending helps West Clermont compare our resource allocation to other districts and state averages. This metric can highlight areas of efficiency or potential overspending.
6. Debt levels: The district keeps track of our long-term debt obligations, such as bonds issued for capital projects. Monitoring debt levels ensures that the district can meet its repayment obligations without straining the operating budget.
7. Facility conditions: Maintaining safe and functional school facilities is crucial. West Clermont has assessed the condition of buildings and infrastructure in order to budget for necessary repairs and upgrades.
8. Academic performance: While not strictly a financial metric, academic performance is closely tied to a district's financial health. West Clermont tracks student achievement, graduation rates, and other academic indicators to ensure that resources are being used effectively to support student success.
9. Staffing levels: Staff salaries and benefits make up a significant portion of West Clermont's budget. Monitoring staffing levels and trends helps the district make informed decisions about hiring, class sizes, and resource allocation.
10. Long-term financial projections: West Clermont has developed long-term financial projections that account for anticipated changes in revenue, enrollment, and expenses. This project, in the form of a Five Year Forecast, helps the district plan for the future and make proactive decisions to maintain financial stability.

By regularly monitoring these metrics, West Clermont maintains a comprehensive understanding of their financial health and identifies potential challenges early, allowing us to make data-driven decisions to support the educational needs of students while maintaining fiscal responsibility.