Board hears levy forecast showing persistent deficits even with a proposed earned-income tax

The Alexander Local School District treasurer presented an operating forecast April 13 showing the district is currently deficit-spending and that even a proposed 1.0% earned-income tax would not fully eliminate multi-year shortfalls once capital needs are included.

The treasurer explained how earned-income tax revenue phases in: "With a 1% earned income, if it passed in November, the tax would begin in January '27," and state tax estimates put eventual annual revenue at about $2,100,000 when fully phased in. The board was shown modeled results for both a 1.0% levy and a 0.75% levy; the 0.75% option narrows but does not eliminate deficit projections in later fiscal years.

Board discussion emphasized that forecast figures in the operating account do not include large capital expenses. The treasurer and superintendent noted a likely roof repair estimated at roughly $2,000,000 plus other capital outlays that eat cash reserves. "Even with a levy, we'd be spending $2,500,000 in 2030 when you add in the capital outlay," the superintendent warned.

Members asked for clarity about timing, the differential between operating and capital funds, and what the district would present to the public. Several board members stressed the need to explain to voters that even a levy will not return the district to fully flat funding without further changes to expense levels.

Next steps: board members asked staff to refine levy modeling, incorporate capital project timing, and prepare public-facing materials explaining operating vs. capital needs before placing proposals on a ballot.