by Chuck Hoven

   (Plain Press May 2026) Many Clevelanders are wondering why the Cleveland Metropolitan School District (CMSD) is laying off teachers and other staff members during a time when many residents are complaining about property taxes that have increased substantially.

   A September 30, 2024, commentary by Zach Schiller of Policy Matters Ohio offers some explanation. In the commentary, titled “For most, the big increases in property values won’t translate to a bunch more taxes”, Schiller points out the limitations on tax rates brought about by House Bill 920 which passed in 1976 and was later enshrined in the Ohio Constitution.

NEWS ANALYSIS

   Schiller says HB920 requires a “decrease in the rate of most property tax levies any time property valuations go up. As a result, existing levies generate the same amount of revenue regardless of property valuations.”

   However, there are some exceptions that Schiller points out. He says, “Property taxes will not remain entirely flat because HB 920 includes some exceptions. The first 10 mills, which do not require voter approval and are called “inside millage,” as well as certain levies such as those created by city charters, aren’t covered. That’s why taxes are going up.”

   In his commentary, Schiller points out the amount of increased revenue the Cleveland Municipal School District can expect to see after the new property tax valuations are in place. He says that “for most of the county’s school districts, which rely on the property tax and account for the bulk of such taxes, the tax increases are modest, at best. For instance, the Cleveland Metropolitan School District is expected to see a $6.4 million revenue increase if it collects the full amount of additional taxes. In Fiscal 2023, CMSD billed overall property taxes of $336 million, so that $6.4 million works out to less than a 2% gain.”

   With the contributions to school systems from the Federal Government and the State of Ohio either declining or remaining the same, a 2% increase from local property tax revenue simply leaves little room for inflationary costs incurred by the Cleveland Metropolitan School District. With wage increases, increased cost of employee health insurance, and increases in other operating costs, the Cleveland Metropolitan School District is left in a position where costs are increasing faster than revenue.

   Schiller also explains why some homeowners are experiencing substantial property tax increases. He says, “While that’s the overall picture, there is good reason why some homeowners are screaming about property tax increases. That’s because House Bill 920 adjusts tax rates based on the average valuation increase in the community. If your home’s value has gone up by more than that, you will see a bigger tax increase – and that’s what’s happening to some homeowners.”

   As residents living in neighborhoods where a lot of new housing is being built can attest, they are experiencing the bigger tax increases that Schiller is referring to. However, many of their neighbors living in the new housing that is going up are paying little or no property tax due to the City of Cleveland’s 15-year tax abatements being handed out on all new housing or the increased value of substantially rehabilitated housing.

   The City of Cleveland has recently tweaked its tax abatement policy to reduce the abatements from 100% to 85% in some neighborhoods, and to limit the abatement to the first $400,000 in value. However, the amount of the abatements is still climbing and represents a substantial amount of revenue that the school system is not receiving. The administration will point out that the school system will receive increased revenue after 15 years when the abatements run out. However, the revenue from property tax has not increased substantially as properties come off abatement. Other factors, such as property foreclosure, property abandonment, property reassessments, and people moving out of the city to seek better schools, all contribute to the lack of a substantial increase in property tax revenue.

   On April 4, 2026, Signal Cleveland published an article titled, “Cleveland schools’ unavailable revenue.” It says, “Last year, abatements waived the equivalent of almost $41.5 million in property tax payments for the Cleveland schools, according to CMSD’s most recent state audit. That’s up from $34.7 million the prior year.”

   While the City of Cleveland may have its reasons for abating properties to attract new residents, there is no excuse for shortchanging school children to do it. This is especially true in Cleveland which has for years had the highest child poverty rate among big cities in the United States of America. While the City of Cleveland may be able to justify the tax abatements within its own budget by citing increased payroll taxes from new residents, it cannot justify the devastating impact of loss of property tax revenue on the Cleveland Metropolitan School District.

   The City of Cleveland has a budget surplus and has the freedom to add new personnel and new departments. The school system on the other hand is continually facing deficits. The City’s priority should be the education of Cleveland’s children. We need to properly fund our educational system before any other new expenditures are contemplated. Cleveland needs to begin reimbursing the Cleveland Metropolitan School District each year for the amount of property tax it abates. It can start with sending $76.2 million to the CMSD for compensate it for the last two years of tax abatements.

   Protesters at the Board of Education are misdirecting their wrath. The Board of Education is just reacting to the deficit caused by the tax abatement policy of the City of Cleveland. Protests need to be directed at City Hall and Cleveland City Council to seek change in the tax abatement policies and to reimburse the school system for abated taxes.

   Cleveland voters have done their part in passing levies. It is unethical for the City of Cleveland to give away money voters intended for the school system. If Cleveland City Council refuses to act on passing legislation requiring the City of Cleveland to reimburse CMSD for abatements, efforts should be made to place this issue on the ballot for the voters to decide.