Kings board previews Nov. ballot: 1% earned income tax paired with property-tax reduction

Superintendent Sears and Treasurer Morrow told the Kings Local School District Board of Education that the administration will place a combined 1% earned income tax with a property-tax reduction on the Nov. 4 ballot to create a steadier revenue stream and reduce homeowners' property taxes.

The proposal pairs a new 1% earned income tax with a reduction of the district's 2022 operating levy collection rate from 6.4 mills to 5.4 mills. "A vote on this issue is voting for or against the 1% earned income and the property tax reduction," Morrow said, adding that the ballot language is set by state officials.

Why it matters: District leaders said the change aims to reduce the frequency of operating levies and produce inflation-driven revenue growth that property levies do not provide. Treasurer Morrow told the board the district is "projecting to have a negative cash balance in August 2027" if revenue conditions continue, and administrators said the measure would fund day-to-day operations including salaries, benefits and student programs while offering property-tax relief to homeowners.

Details of the plan and fiscal context - The district modeled two paths: continuing the traditional operating-levy approach (roughly a 6.9-mill levy recurring on a roughly three-year cycle in model scenarios) or adopting the combined earned-income/property-tax reduction plan intended to produce a more consistent revenue stream and fewer future levies. - Administration reported it has cut or generated a little over $8 million in savings since the 2022 levy without major classroom impacts; officials warned that without new revenue the district could face substantial reductions up to the scale discussed in 2022. - Morrow noted the district receives comparatively low state aid: "We are the lowest in Warren County, and 91% of districts in Ohio receive more than we do," a function, he said, of the state's funding formula that assumes higher local property wealth. - The ballot language will appear as a single issue; Morrow said the Secretary of State sets that language under the Ohio Revised Code and the district cannot alter the wording.

Cash-balance policy and future reductions Administrators also proposed a board cash-balance policy that would require an annual property-tax review and automatic reductions if specified thresholds are met. The draft policy uses a 35% cash-balance threshold, which staff described as lower than a previously proposed 40% threshold discussed at the state level. The district said the policy would be revisited in future board legislation and could enable additional property-tax relief if cash projections allow.

Facilities funding and long-range planning Superintendent Sears and staff said the plan is for operational revenue only and does not require new bond money for facilities. The district is building a new high school and a Columbia addition under the Ohio Facilities Construction Commission (OFCC) ELP program; administrators said credits earned by building to OFCC standards could return roughly 26% of eligible construction costs, producing multi-million-dollar facility reimbursements the district intends to use for facility needs.

Uncertainties and next steps Board members asked for comparisons to nearby districts that have enacted earned-income taxes, and staff said they will provide examples and follow-up data, including gross enrollment figures after the school-year start. Officials said the district will publish FAQs and presentation materials on the district website and host community forums in the run-up to the election. No formal board vote on the ballot issue or the cash-balance policy was recorded at the meeting.

Ending District leaders said the combined measure is intended to create longer-term revenue sustainability while lowering property taxes for homeowners; they urged the community to review the district's FAQ and to attend upcoming forums for additional details.