Across Ohio, school districts are being squeezed from two sides: rising utility costs and uncertainty around future property tax funding. Together, these pressures make it harder to balance budgets without cutting programs or delaying needed improvements. The good news? Smart energy efficiency investments can help schools absorb these impacts—often without raising taxes.
Rising Utility Costs
Electric and natural gas rates have increased sharply in recent years, with many public facilities seeing double-digit increases from pre-pandemic levels. These increases aren’t driven by usage alone. Higher generation, transmission, and capacity charges—along with major utility infrastructure upgrades—are pushing costs higher across the board.
For school districts operating multiple buildings, even a modest 5–10% increase in energy expenses can translate into hundreds of thousands of dollars in unplanned costs, putting immediate pressure on general fund budgets.
Property Tax Uncertainty
State leaders are exploring changes to property tax structures, particularly for schools. While tax relief is the goal, transitions can create short-term funding uncertainty for education, maintenance, and capital needs. With limited alternatives for raising revenue, districts may face tighter operating margins just as energy costs peak.
Energy Efficiency as a Budget Strategy
Energy efficiency is no longer just about sustainability—it’s about budget protection. Upgrades such as LED lighting, HVAC modernization, and advanced building controls can reduce utility costs by 25–40%. Today’s systems are non-proprietary and easier to maintain. Many districts are already seeing results, with projects delivering ongoing savings that help offset rising rates.
The Bottom Line
Schools can’t control utility markets or tax policy—but they can control energy use. Evaluating building performance, identifying cost-saving opportunities, and implementing facility improvements can reduce operating expenses while improving comfort and reliability. This makes energy efficiency a practical tool for long-term financial stability and responsible stewardship of public dollars.