Salem City Schools outlines next five fiscal years amid property tax uncertainty
Salem City Schools is one district in the Mahoning Valley region that could be seeing cuts after the passage of a statewide bill focused on property taxes.
Salem City Schools Treasurer Michael Douglas will present a five-year forecast during Monday's board meeting at 7 p.m.
Douglas tells 21 News that one of the big concerns of the next five years has to do with the recently passed House Bill 186.
House Bill 186, signed into law by Governor Mike DeWine and which takes effect on March 20, 2026, outlines that school districts could receive less revenue from property taxes.
The bill also addresses tax increases by creating caps based on inflation. House Bill 186 outlines that if property values grow faster than the rate of inflation, these laws will trigger tax credits for homeowners, as reported previously.
Douglas stated that with the passage of House Bill 186, the district will see a loss of $680,000 due to "claw back" guidelines in the language of the bill in the first fiscal year of 2027.
Through the next four years after that, between the 2028 and 2031 fiscal years, Douglas says that the district would see a loss of $460,000 each year.
He says that about 50% of the school's revenue currently comes from property taxes.
Douglas goes on to say that if a proposed amendment were to be added to the November ballot abolishing property taxes - an amendment backed by the Committee to Abolish Property Taxes - and passes by voter consensus, plans for funding the district would need to be discussed again.
As of right now, Douglas says that the district is in healthy financial standing, and the meeting on Monday is just to make board members aware of the fiscal situation.
One suggestion that Douglas outlined with 21 News is the possibility of "attrition", meaning that when and as staff retire from positions, the board would meet to discuss the position and if another person would need to be hired to fill the job.
This attrition would be a part of the school district's plan to consolidate a few of its schools.
Salem City Schools broke ground on a new pre-kindergarten through eighth-grade building in August of 2025, a building that will house three consolidated elementary schools and the junior high.
Douglas says that construction is moving along on schedule, with block walls completed and steel beams being installed in one wing of the building.
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