School District Considers Income Tax to Address Revenue Shortfall

The Westerville City School District Board of Education meeting on May 19, 2025, highlighted critical discussions regarding the district's financial future, particularly the potential introduction of an income tax to diversify revenue sources. This proposal aims to provide stability amid ongoing budget challenges, as officials emphasized the need for additional funding to meet operational needs without eliminating existing property taxes.

During the meeting, board members discussed the timeline for placing an income tax on the ballot, noting that the deadline for submission to the state is July 2025, with a target for the November ballot. This timeline aligns with the need for a resolution regarding property taxes, which also requires timely filing with the county auditor and board of elections.

The board acknowledged that while property tax revenues would be collected in the following fiscal year, income tax revenues would take longer to materialize due to the time required for employers to implement the new tax assessments. Officials projected that full revenue collections from the income tax might not be realized until the 2027-2028 fiscal year.

Additionally, the board discussed the importance of maintaining a five-year financial forecast, despite state recommendations for shorter projections. This long-term planning is crucial for managing the district's finances effectively, especially in light of anticipated flat or declining revenues. Board members expressed concerns about the unpredictability of state funding and the necessity of preparing for potential shortfalls.

In conclusion, the discussions at the meeting underscored the district's proactive approach to addressing financial challenges and ensuring that local schools remain adequately funded. As the board prepares for upcoming deadlines, community members can expect further developments regarding the proposed income tax and property tax resolutions in the coming months.