Bexley City School District officials are keeping a watchful eye on the state budget process to determine exactly what impact Gov. John Kasich's biennial budget will have on district finances.

Bexley City School District officials are keeping a watchful eye on the state budget process to determine exactly what impact Gov. John Kasich's biennial budget will have on district finances.

District treasurer Chris Essman says it is too early to determine what the impact of Kasich's budget will be.

"I don't know enough to be able to tell," he said. "The next two to three weeks will give us better information."

Essman said school districts will have to wait to see how the different pieces and parts of the budget are going to affect them.

Kasich's budget, designed to deal with a projected $8-billion deficit, was unveiled earlier this month. It is now in the hands of state legislators, who will review it and likely make some adjustments. The budget must be approved by June 30 in order to take effect on the first day of the new fiscal year on July 1.

"As it goes through the legislative process, there are changes," Essman said. "Different things are added or subtracted. We are a little ways away from detailed information."

Superintendent Mike Johnson said one area that won't have a major impact on Bexley City Schools is the phase out of the tangible personal property tax.

"We don't get much of that money as a school district," Johnson said. "(Our) budget is not affected as much as school districts with a lot of businesses, warehouses or factories."

Essman said tangible personal property tax is paid by businesses on inventory and office equipment. Utility companies also pay on the value of things such as pipes and electric lines, he said.

"Some districts with big warehouses or office complexes receive a lot of tangible personal property taxes," he said. "The state has been phasing this tax out and promised to provide funds to schools to make up the loss."

Essman said the school district never received a large amount of tangible personal property tax. The most the school district ever received was in calendar year 2001 when the district received $378,661, he said.

In calendar year 2010, the district received $16,965. Calendar year 2010 is the last year the school district will receive any tangible personal property tax, Essman said.

Essman said the school district is waiting on additional information from the Ohio Department of Education to get a better idea about the revenue situation facing the district.

School board president Joan Fishel said the district doesn't have complete figures yet but has planned for the reduction in state aid.

"We knew this was coming and took appropriate steps," she said. "Obviously, we will keep an eye on the bottom line and how the budget talks progress, of course with every hopeful attitude that the economy will improve," she said.

School board member Craig Halliday said there is still a lot of unknown information.

"We have to wait and see what happens," he said.

He said the loss of the state funding is somewhat of a mixed blessing for Bexley, in the sense that Bexley gets a small percentage of its operating funds from the state.

"Any cuts that they would push through would be relatively small as a portion of our overall budget," he said.

Essman said that while working on the district's five-year financial forecast, he factored in the loss of federal stimulus money. School districts started receiving federal stimulus money two years ago when the state made education cuts.

In the 2009-2010 school year, the school district received $269,409 in federal stimulus money. For the 2010-2011 school year, the district is expected to receive, $261,225, Essman said.

The loss of the federal stimulus money results in a 2-percent decrease in total revenues for the school district.