June 17, 2025
Dear Princeton City Schools Community,
I am writing to inform you of a serious legislative threat to our district's financial future and to the principle of local control.
House Bill (HB) 335 is a fast-tracked tax reform measure that would strip school districts of key funding tools and override decisions made by local voters. The bill, sponsored by David Thomas and currently being referred to the Ways and Means Committee, proposes sweeping changes to how public school districts like Princeton are funded. If passed, this property tax reform bill will remove the ability to collect inside millage. All Hamilton County schools are currently collecting revenue from inside mills that the County has allotted. HB 335 would cap property tax collections, eliminate local millage authority, and allow county officials to override voter-approved levies. This bill would force the largest K-12 funding cuts in state history.
Combining elements from several prior proposals (HB 129, HB 186, and HB 309), HB 335 would fundamentally change how property taxes are levied, limited, and allocated in Ohio, with devastating implications for public school districts. This bill is poised to be folded into the final version of the Fiscal Year (FY) 2026-2027 state budget, making it a critical time for members to help protect stable, voter-approved revenue.
House Bill 335 punishes that exact fiscal responsibility by capping cash balances at 30% and allowing unelected officials to override locally approved levies. Our 40% cash balance at the end of FY25 reflects responsible stewardship, aligning with the Princeton Board of Education’s policy. If this legislation becomes law, Princeton will be penalized for having reserves in place to protect programs and staff.
No financial impact statement accompanies HB 335. No protections for school districts, like Princeton, that have already made tough choices, passed levies, and made significant cuts. There is no path forward for public schools that rely on what voters approve to fund programs.
House Bill 335 proposes to:
Eliminate inside millage for all political subdivisions except townships
Limit township inside millage to amounts levied in the tax year 2024
Allows counties to have optional sales tax increases
Expand the types of levies that count towards the 20-mill floor
Create inflation-driven tax credits to further limit revenue owed to school districts due to the 20-mill floor
Eliminate emergency levies, and renewals thereof, and convert them to current expense
Eliminate substitute levies and renewals
Expand the scope of review of levies by the county budget commission
Allows the county budget commission to reduce levies, including in connection with a 30% carryover cap
Prohibit changes to inside millage by school districts that would lead to increased property taxes
Shift the burden of proof to taxing authorities that appeal reductions
Here’s what this means for Princeton City Schools:
Our 2025 levy was passed after $5.8 million in cuts. House Bill 335 dismantles any options to continue that levy in the future.
Our 40% cash balance at the end of FY25 reflects responsible stewardship, aligning with the Board’s policy. If this legislation becomes law, we will be penalized for having reserves in place to protect programs and staff.
House Bill 335 punishes that exact fiscal responsibility by capping cash balances at 30% and allowing unelected officials to override locally approved levies.
Voters passed levies in 2012, 2019, and 2025 after we clearly communicated that we are a levy district.HB 335 strips control from the Princeton community and hands it to the state and county officials with no obligation to protect student learning or school operations.
You can help by contacting legislators and urging them to:
Oppose the sweeping changes in House Bill 335.
Demand full committee hearings, not a fast-track amendment to the state budget.
Protect voter-approved levies and the right of local communities to plan their financial future.
Princeton City Schools is empowering each student for college, career, and life success. House Bill 335 puts the financial stability of our school district and community at risk.
Sincerely,
G. Elgin Card
Superintendent
Princeton City Schools