Kings Local board approves statement of facts and advances ballot plan pairing a 1% earned‑income tax with a 1‑mill property‑tax reduction

The Kings Local Board of Education on Tuesday heard a financial presentation from district leaders outlining a proposed November ballot measure that would create a 1% earned‑income tax and simultaneously reduce an existing 2022 property‑tax levy by 1 mill.

Superintendent Sears and Treasurer Morrow told the board the package is intended to produce a stable revenue stream that, according to the district’s five‑year forecasts, would avoid another operating levy request during that forecast period. “We do not anticipate, we will not be requesting another levy during the 5 year forecast, and potentially much longer,” Superintendent Sears said during the presentation.

District staff said the proposed earned‑income tax would apply only to earned income; retirement income, Social Security, disability, dividends and interest would not be subject to the tax under the plan described to the board. The property‑tax component would reduce the collection from a 2022 levy that was passed at 6.4 mills down to 5.4 mills, a 1‑mill reduction that will appear on the single ballot measure language provided by the Warren County Board of Elections.

Officials told the board the district has already cut more than $8 million in expenses or added revenue since its last levy and that, without additional revenues, the forecast projects a negative cash balance by August 2027. To formalize a mechanism for future tax reductions, Treasurer Morrow presented a cash‑balance policy the administration has drafted; under the policy the superintendent and treasurer will review the district’s forecast annually and prepare a plan if the cash‑balance thresholds are met.

Board members asked clarifying questions about the five‑year forecasting horizon and whether the board’s cash‑balance review would be a public process. Treasurer Morrow said the forecast is the district’s formal five‑year projection submitted to the state and that the board’s review would take place in a public meeting tied to the spring forecast (the district noted the timing could shift to February under pending state changes). He also said the board would present the assumptions and the forecast publicly when the review is conducted.

The board voted to approve treasurer consent items by roll call, and later voted to approve a superintendent “statement of facts” about the ballot measure so the district may communicate consistent information to the public. The superintendent said the statement of facts and the presentation materials have been vetted by the district’s attorneys and are meant to explain the financial context and expected outcomes if the measure passes or fails. Both votes were recorded in the meeting as unanimous among the board members present.

The proposed ballot measure and the cash‑balance policy change the district’s approach to operating revenues; the ballot will be decided by voters in November. If approved, district leaders said they would use the new revenue for operations — staff salaries, benefits and student programs — while continuing to use bond proceeds for construction work authorized in March 2024.