Superintendent Presents Plan to Address Fiscal Caution,
Proposes School District Income Tax Increase on November Ballot
Berkshire Board of Education – Special Meeting, May 4, 2026
Meeting Details: The meeting was held in the Music Room 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.
Others in Attendance: Members of the community and this LWV Observer (virtual).
Opening of Regular Meeting - The 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.
1:05 Min. Old Business
Dr. Stoddard gave a presentation with accompanying slides on the district’s current finances. He informed the Board that Berkshire was placed in Fiscal Caution by the Ohio Department of Education and Workforce because their five-year forecast in February projected a negative fund balance in fiscal year 2028. As a result, the district must submit to the state a corrective financial plan by May 18th demonstrating how they will eliminate the projected deficit. Reviewer Note: See the LWVG Observer Report for the April 13, 2026 Berkshire BOE meeting for initial discussion regarding the fiscal caution letter from the Ohio Department of Education. Learn more about the ‘fiscal caution’ determination at the Ohio Auditor of State - Fiscal Distress - Schools webpage.
Dr. Stoddard said they are still waiting on final calculations from the Ohio Department of Taxation related to the effects of House Bills 186 and 309, after missing an expected April 20 deadline because state agencies and organizations were still disputing how the funding formula should be applied. The lack of the data required Berkshire to use the state’s “best estimates” in their budget calculations which project annual revenue losses of about $715,000 through fiscal years 2028–2030.
Dr. Stoddard’s presentation discussed the loss of revenues over the last decade, including Orwell-Trumbull Pipeline revenues, loss of open enrollment monies, and Cost-Effectiveness Index (CEI) valuation decreases as well as clawbacks from HB186. Reviewer Note: See the LWVG Observer Report from the March 16, 2026 Budget Commission meeting for discussion of the latest legal action taken to request the Ohio Supreme Court to review the District Court of Appeals decision regarding the Orwell-Trumbull pipeline tax delinquencies. He discussed increasing fees as well as reducing the number of administrative positions and potentially five classroom positions. Observer Note: At the May 11, 2026 Board meeting, the five classroom positions to be cut included leaving two teacher resignations unfilled and eliminating three permanent substitute positions. He stressed the need to be on the November 2026 ballot, stating that they believe an increase in the school district income tax from the current rate of 1.00% to 1.50% has the “greatest odds” of passing since it would not adversely affect those on fixed incomes and spread costs beyond property owners. Reviewer Note: Learn more about the ‘school district income tax’ here. In Geauga County, only the Berkshire School District currently has an income tax, which is 1.00% of earned income.
Highlights included but are not limited to:
-
Projections of increased revenue included:
-
New residential construction revenue raised from $1M to $2.5M;
-
Estimated commercial real estate revenue from $100K to $250K;
-
Adding tuition revenue from additional out-of-district Career-Tech students. Currently, the revenue received is $7,500 per student;
-
Increase in the assumption for the growth of income tax revenue from 1% to 3%. Reviewer Note: This would not include any growth due to the potential approval by voters for a school district income tax rate increase.
-
Expenditure reductions already implemented include:
-
Eliminating two administrative positions;
-
Replacing two retiring teachers with lower-cost hires;
-
Reducing Chromebook purchases by $120,000 annually;
-
Cutting district supply and purchase service budgets by about 21%.
-
Multiple unexpected revenue losses worsened the district’s financial outlook, including:
-
About $690,000 annually from changes to open enrollment funding;
-
About $943,000 annually from the loss of Orwell-Trumbull Pipeline utility tax revenue;
-
A newly discovered $168,601 shortfall in property tax payments from the Illuminating Company, which may become permanent if the valuation reduction the company has requested is approved.
-
The district historically managed cyclical deficit spending because property reappraisals allowed revenue to return to Ohio’s 20-mill floor, but HB186 now limits that recovery mechanism by capping increases at inflationary growth levels.
-
State funding changes have shifted more of the financial burden onto local taxpayers while reducing state support.
-
The district no longer receives interest income from its depleted permanent improvement fund after voters rejected renewal of the levy.
-
The district’s updated five-year forecast still projects a fiscal year 2028 deficit of about $961,000 which must be eliminated through actions directly under the Board’s control.
-
The state will not allow a future levy to count toward the fiscal caution recovery plan because only actions directly within the district’s control can be included.
-
A successful future levy could stabilize district finances, but failure to pass one could result in continued fiscal caution and additional cuts.
-
Most remaining expenditures are tied to salaries and benefits, limiting where future cuts can be made.
23:20 Min. Comments from the Board and public:
-
The Board defended maintaining open enrollment, explaining that eliminating those students would trigger additional state funding losses under the guarantee formula, potentially costing the district another $690,000 annually.
-
It was noted that the district is already operating near the state minimum for busing, using a “one bus” morning and afternoon schedule and transporting students living more than two miles from campus, along with older students whose homes are already on bus routes.
-
Athletics costs were reviewed, with total “all in” athletic expenses reported at $562,683.39 paid from the general fund, including team, coaching, and transportation costs.
-
Dr. Stoddard warned that eliminating athletics could drive away up to one-quarter of the district’s students, causing additional enrollment and state revenue losses. He noted that the athletic, music and art programs provide important student outlets.
-
The Board proposed seeking targeted fundraising help from school support groups such as PTO, Athletic Boosters and Tunebackers for operational expenses such as sports transportation and school supplies. Members of these groups in the audience expressed interest in the idea.
-
Reinstituting “pay-to-play” athletic fees was discussed. An audience member noted that parents already pay significant fees for travel sports and would probably not object to “pay-to-play.” Board members said that they’d tried the requirement in the past but abandoned it because collecting payments was time-consuming and often unsuccessful.
-
Dr. Stoddard spoke about how, compared to other school districts, there is an unusually large amount of tax-exempt land in the district, including almost 6,200 acres owned by the City of Akron and the Park District’s 2,383 acres. With a combined market value of over $28 million, the annual property tax loss translated to over $393,000.
-
Potentially increasing school fees was discussed. Fees have remained unchanged-at $55 for elementary and middle school students for at least the last nine years. Dr. Stoddard noted that 25% of students are economically disadvantaged and exempt from fees, while emphasizing the district has tried not to pass costs on to families. He plans to research fees at comparable schools to help in a fee increase decision.
-
Dr. Stoddard cautioned that even if a school district income tax levy passed in November, collections would not begin for 18 months, leaving a funding gap in 2028.
-
Mr. Manfredi said any future levy passing would not necessarily restore previously eliminated programs or services because of continuing fiscal uncertainty.
-
Mr. Manfredi suggested considering a gradual or incremental tax increase, such as one-tenth of one percent over several years, because he worried a 0.5% increase might fail. The legality of such a format would have to be investigated, he said.
-
Mr. Berman questioned whether a smaller incremental levy would improve voter support, and Dr. Stoddard warned that phased increases could confuse voters and complicate public messaging.
-
The Board stressed that many Ohio districts are facing similar financial challenges and said schools must convince the public the problem is systemic rather than the result of poor financial management.
-
Mrs. McCaffrey referenced an upcoming voucher lawsuit hearing on May 19 and criticized lawmakers for claiming schools have adequate funding while expanding voucher programs.
-
Mrs. McCaffrey summarized the rapid increase in EdChoice (voucher) participation at Berkshire:
-
6 students in 2023
-
69 students in 2024
-
103 students in 2025
She pointed out that the vast majority of the voucher students had “never set foot in our schools.” Reviewer Note: See article here about the history of the voucher program.
-
Mrs. McCaffrey explained that Berkshire must provide transportation for private and parochial school students according to those schools’ schedules or face fines from the Ohio Department of Education. Additionally, if the district cannot provide transportation, it must compensate parents for transporting students themselves, with some families reportedly receiving about $1,200 annually.
-
Mr. Berman emphasized that Board members were not blaming families who use school choice programs but rather criticizing the poor funding system itself.
-
Dr. Stoddard reiterated that the plan does not call for any classroom full-time teacher to lose their position and that Berkshire is not out of alignment in the number of administrators per student when compared to Geauga County and similarly sized districts. He noted that he is the lowest paid superintendent in the county and the new treasurer will be the lowest paid in the county “by a lot.”
-
Responding to a question from a resident, the Board discussed what must happen for the district to be thriving again. They noted that the lack of stability in state funding and impending gubernatorial changes can affect the type of educational model Berkshire will have. Dr. Stoddard emphasized that their current model has resulted in improved academic performance year after year with the district currently in the top 10% of Ohio schools based on the College, Career, Workforce and Military Readiness metric.
-
The Board and audience members all agreed that the levy team needs to invite community participation, including business owners and those who don’t have children in the school. They said residents need to know what the cost could be if the levy doesn’t pass, not only in money but in lost services. They stated that transparency was key and that residents should understand that the school is fiscally responsible and not “spending lavishly.” Mrs. Stone emphasized that PTO, Booster Club and Tunebacker members (many of whom were in the audience) will be important educators and advocates for the levy to the public.
Next Regular Meeting Date – May 11, 2026 at 6:00 pm in the Auditorium of the Berkshire Local Schools complex, 14155 Claridon-Troy Rd, Burton, Ohio 44021.
Executive Session – No Executive Session was called. Observer Note: During the meeting, the Board decided they would go into Executive Session at the beginning of the May 11 Regular Meeting in order to make personnel decisions that were included in the Fiscal Caution Written Deficit Plan that was to be presented and voted on at the meeting.
1:40:10 Min. Meeting Adjourned
Observer: Rooney Moy
Editor: Gail Roussey
Reviewer: Carol Benton
Date Submitted: May 16, 2026
The League of Women Voters Geauga is a 501(c)(3) nonpartisan political organization that encourages informed and active participation in government, works to increase understanding of major public policy issues, and influences public policy through education and advocacy. They do not support or oppose individual candidates or parties. Learn more about the LWVG at www.lwvgeauga.org.