As the push to eliminate property taxes continues in Ohio and state funding for public school districts loses steam, many school systems across Ohio are reconsidering how they'll generate local revenue to keep afloat.
While levy renewals that don't raise taxes have received consistent support from voters in recent elections, efforts to bring in new money have mostly struggled to get off the ground.
In Southwest Ohio, seven local school districts will have issues on the ballot for the May 5 primary. [LINK] Four of those districts are looking to pass either a new traditional income tax, which would apply to all income earners, including those receiving retirement and disability income, or a new earned income tax, which doesn't tax those receiving retirement or disability income.
Fairfield City Schools
Fairfield Schools is proposing a 1.25% earned income tax to help retain staff, student services and transportation services. The district says more local funds are needed because its current expenses are outpacing the school system's revenue by about $9 million.
Due to its projected negative cash balance by the 2028 fiscal year, the school district was placed in a state of fiscal caution by the Ohio Department of Education and Workforce. In early March, Fairfield's Board of Education approved a list of potential budget cuts to be made if the earned income tax fails. Those cuts include the elimination of several administrative jobs, five instruction specialists, 15 teaching positions through attrition, 10 English tutor positions, one school psychologist, increased student fees for extracurricular activities and the elimination of all school field trips.
Fairfield City Schools previously attempted to pass a property tax in 2024, but the levy failed.
Franklin City Schools
Franklin City Schools tried and failed to pass a 1% continuing traditional income tax last fall. Now, the district is putting that same 1% tax back on the ballot, but this time, the levy is set to expire after 10 years. If passed, the income tax would raise about $6.68 million for the school district each year.
Kelly Bennett, a Fairfield parent and advocate for the ballot issue, says that although the last income tax levy failed, it was more successful with voters than a previous property tax levy proposal in 2024. She says now there's even more at stake, and she hopes more voters will recognize that the district is relying on local support.
"I'm hoping that the community will see a need with this one," Bennett told WVXU. "We've made a lot of cuts, and unfortunately, if we can't get a levy passed, that'll just continue with more and more cuts."
Franklin's superintendent says by the 2029 fiscal year, the school system is expected to have a negative cash balance, and new funding from the district's residents is needed to close its financial gap. The district already has reduced its transportation services to state minimums, increased student fees and eliminated all-day kindergarten to cut back on costs. Further cuts are likely coming for the upcoming school year.
Mt. Healthy City Schools
This election will be Mt. Healthy Schools' fourth attempt in two years to bring in new local revenue to offer some financial relief. The district has been in a fiscal emergency since April 2024 and already has made sweeping cuts to get its finances back on track. Property tax proposals have consistently failed, so district leaders are trying something different with a 0.75% earned income tax levy.
District leaders say money generated from this levy will maintain jobs, academic programs and extracurricular activities at Mt. Healthy Schools. If it doesn't pass, the district likely will eliminate some of its athletic programs, cut busing for athletic events and reduce or eliminate electives, including music, art, chorus and band.
New Richmond Exempted Village Schools
After failing to pass an 1.25% earned income tax levy in Nov. 2025, New Richmond Schools is taking a different approach this time around. The school system is putting a five-year, 8-mill property tax levy on the ballot to cover its current expenses. If passed, the new tax would generate nearly $4.4 million each year.
At the end of 2025, the school district's Board of Education approved a state-mandated fiscal reduction plan to balance its budget, resulting in more than $1 million in initial cuts for the upcoming fiscal year, with more on the way. So far, the district has cut five teaching positions, an administrative job, a position in its transportation department, several school aides and a mental health counselor.
The district says it's been struggling to generate revenue for years. New Richmond Schools has been heavily reliant on income from two power plants, Beckjord and Zimmer. However, both plants are now closed, shifting more of the financial burden onto local homeowners. Local property taxes make up more than 85% of the district's total operating budget.
North College Hill City Schools
North College Hill says it will put a 1.25% earned income tax on the ballot this May to ease the financial burden on property owners in the district. The small urban district has been struggling financially due to flat revenue and increased expenses.
The district's superintendent, Eugene Blalock, said in March that North College Hill was forced to lay off 18 teachers and five educational aids for the 2026-2027 school year due to the funding shortage.
If passed, the income tax revenue would allow the district to retain more staff. If it fails, North College Hill likely will cut even more jobs and possibly reduce or eliminate certain programs.
Southwest Local Schools
Southwest Local Schools is looking to pass a 4-mill property tax levy lasting five years to cover its current expenses. If passed, the levy would generate more than $4 million a year for the district.
The district's treasurer says Southwest expects to see a state funding decrease of about $3 million for the upcoming fiscal year.
Xenia Community Schools
Xenia is looking to renew a single permanent improvement levy for another five years. The levy, which would not raise taxes, has been renewed several times since it was first proposed in 1986.
The district says the levy will cover expenses related to building maintenance, repairs and renovations. That includes replacing an alarm system at its preschool, adding secure door access in all of its eight school buildings, and installing a backup generator and replacing the bell system at Xenia High School.
Read more:
