Kings Local board advances 1% earned‑income tax proposal while weighing property‑tax rollback

The Kings Local School Board on Thursday advanced a proposal to seek state certification for a 1% earned‑income tax, along with a framework for reducing property taxes if voters approve the measure, after a presentation outlining the district's financial outlook.

Superintendent Sears told the board the district has identified about $7.2 million in revenue generation and cost savings so far and expects that figure to approach $8 million by the end of the summer. He said state and federal funding appear effectively flat and that the district faces continuing cost pressures: “We spend 70,000,000 plus annually, and we're looking at less than, $350,000 in additional revenue over the next 2 years from the state,” Superintendent Sears said.

The presentation laid out two principal options to address recurring funding shortfalls. Option 1 would place a traditional property‑tax operating levy on the ballot (an example illustration in the presentation showed a 6.9‑mill operating levy). Option 2 would place a 1% earned‑income tax on the ballot while simultaneously reducing property tax millage for local homeowners. Under the second option the district would commit in board policy to “give back” some property‑tax relief if revenues from the income tax exceed projections.

Why it matters: The district said local property‑tax revenue remains the largest source of operating funds and that state and federal support are not increasing at the pace required to cover rising costs and enrollment growth. The board discussed the earned‑income tax as a potentially more sustainable revenue source because receipts would grow as incomes grow, rather than remaining fixed as many property‑tax levies do.

Key financial details in the presentation and board discussion - District identified approximately $7.2 million in revenue gains and cost savings to date; presenters expect that number to approach $8 million by the end of the summer (source: district presentation). - The district spends “70,000,000 plus annually” (presenter language) and projects less than $350,000 in additional state revenue across the next two years. - Federal funding uncertainty: presenters said a federal freeze could reduce district receipts by roughly $200,000 compared with prior years; those federal funds supported programs such as English for speakers of other languages, STEM and teacher professional development. - A pending state bill discussed in the presentation (identified in the transcript as “House Bill 335”) was described as potentially eliminating an estimated $7.9 million per year to Kings if it were enacted as proposed; presenters said the measure was not included in the approved budget but remains under discussion at the state level.

Board members and staff framed the earned‑income tax as a novel combination for a school district: the presenters said more than 200 Ohio school districts already have some form of income tax, but they could not identify a precedent where a school district paired an earned‑income tax with an explicit rollback of property millage. The superintendent described the pairing as “innovative” and said district attorneys are preparing language and templates.

Action taken and next steps - The board approved a necessity resolution to seek state certification for a 1% earned‑income tax (item 13 on the agenda). The resolution was updated to reflect the Department of Taxation's more conservative projections of income tax receipts; administrators said that change does not alter the board’s commitment to a 1% rate if the measure moves forward. - Presenters said a separate special board meeting will be required to file the formal resolution with the state and that the district would target a November election date if it proceeds. Administrators also showed a draft “cash‑balance” policy that would define thresholds and a process for returning surplus funds to taxpayers if revenues exceed forecasted needs.

Votes at a glance - Agenda approval — motion approved (unanimous as called on the record). - Approval of items 1–11 (minutes, 2024 audit results, monthly financials, forecast vs actual, gap conversion, bank/investment items, advances/loans between funds, public‑hearing notice for retire/rehire, public records log) — approved (roll call recorded on the transcript). - Necessity resolution to seek state certification for a 1% earned‑income tax (item 13) — approved by roll call. - Other routine approvals on the agenda that evening (a dance‑team field trip, personnel items, change orders and contract amendments tied to construction and operations, semiannual bullying report and school fees) were approved during the meeting.

The board and administration said they will continue outreach and refine revenue forecasts before any ballot language is finalized. Administrators cautioned that state projections of income varied in the Department of Taxation data for 2021–2022; the district said it used a conservative midpoint for planning and that an income tax would grow with incomes if passed.