Toledo, Ohio (WOWO) — Ohio lawmakers are advancing a proposal that could deliver more than $1.7 billion in property tax relief to homeowners, but school officials warn it could create funding shortfalls for public education.

House Bill 186 would limit how much additional revenue school districts can collect once they reach the 20-mill base level according to WTOL Toledo 11. Lawmakers supporting the bill say it’s designed to ease the tax burden on property owners.

School district leaders across northwest Ohio have voiced opposition, saying the measure could result in significant financial losses. Some superintendents estimate losing between $2 million and $3 million over the next three years. They warn that the impact could include reduced staffing, fewer bus routes, and cuts to extracurricular programs.

“House Bill 186 sounds like a property tax relief bill, but for small public schools like us, this will have a devastating impact,” said Kevin O’Shea, superintendent of Otsego Local Schools.

Chris Lake, superintendent of Swanton Local Schools, said the legislation could create “an immediate financial crisis,” pushing more districts to seek levies from voters.

While acknowledging that Ohio’s school funding system relies heavily on property taxes, district leaders argue that this bill does not provide a long-term fix. Instead, they advocate for full funding of the state’s Fair School Funding Plan as a more sustainable solution.

The bill is currently in committee, where it will be subject to additional review and potential amendments. State Rep. Josh Williams (R–Sylvania Township), a co-sponsor, said the legislation is part of a broader effort to deliver meaningful relief for Ohio homeowners while maintaining essential services.

Rep. Elgin Rogers Jr. (D–Toledo), also a co-sponsor, has not yet issued a public statement.