Parma City School District weighs income-tax levy options as budget shortfall looms

At a July 2 special meeting, Parma City School District officials discussed whether to place a school-district income tax on the November ballot to address a projected multiyear shortfall and avoid state review for fiscal concerns. Treasurer-presenter Mr. Nucio outlined three scenarios: the prior 1.75% proposal that failed in May, a straight 0.75% income tax (estimated to generate about $21.4 million annually), and a 0.5% income tax (about $14.1 million annually).

Mr. Nucio told the board the five-year forecast shows the district is negative in the third year and that the district’s days-of-cash policy requires seeking revenue when reserves fall below policy: "this days of cash policy says if we're less than 60 days cash you shall pursue revenue sources." He warned collections would ramp slowly if a levy passes: effective Jan. 1 after passage, the district receives quarterly remittances and only about 6% of full collections in the first calendar year, with full collections roughly 18 months after passage.

Why it matters: the district must submit two resolutions to the Department of Taxation and the board of elections before the Aug. 5 deadline to place any income-tax question on the ballot this year. Without action the earliest opportunity to begin collections would be delayed by a year, and staff said the state may place the district in fiscal-precaution status after it reviews the August five-year forecast.

Board members repeatedly raised two linked concerns: the long record of failed levies in the district and the need for a clear, shareable plan for cuts and outreach. Several members stressed that, even if a levy passes, the board had already directed $9 million in expenditure reductions over three years. Mr. Nucio said staff are already pursuing staffing and central-office reorganizations and that the board will receive further forecast-driven details in August.

The board debated tradeoffs between rate and term. Options discussed included asking for 0.75% with a shorter term (five to 10 years) to generate more near-term revenue, or 0.5% for a longer term to reduce the annual ask. One board member proposed preparing two certified scenarios for the department of taxation so the board could choose between them at a follow-up meeting: if both draft resolutions are accepted administratively, the board can later select which to send to the board of elections before the filing deadline.

Board members also discussed outreach and legal limits: district staff can provide factual, informational materials but cannot legally advocate for a ballot measure. The board noted Partners in Education, a separate 501(c)(3), has in the past provided fundraising and promotional support for levies.

What’s next: staff agreed to prepare draft resolutions for multiple levy scenarios and to seek Department of Taxation certification of estimated collections; the board plans a follow-up meeting after the July 16 regular session to select which certified question to forward to the board of elections. If no question is filed by the Aug. 5 deadline, the district must wait a full year to try again. The board adjourned after adopting resolution 2026-07-314 to close the special meeting.