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EAST PALESTINE -- The East Palestine School District is asking voters to support a 1 percent continuous earned income tax levy on Nov. 3.
The district said that despite receiving roughly $2.2 million in grant funding over the years, and while reducing expenses, managing the overall financial situation requires additional funding.
According to the district, the purpose of the levy is to provide a stable source of revenue to help maintain its operations.
Information about the ballot measure has been made available to the public on the district's website, myepschools.org under the Parents and Community headline in the menu page.
"We recognize that residents have questions about the proposed levy, and we want to make sure information is available to make an informed decision. A 'Just the Facts' page has been established on our website to aid in answering questions. We encourage community members to visit the site and ask any questions that might arise," District Superintendent Dr. James Rook said when contacted by this reporter.
The district said on the website that the most recent five-year forecast shows a growing gap between the cost of operating the district and the revenue available to support those costs.
"The difference is largely the result of expenses increasing more quickly than revenue. This is not a problem that can be addressed by looking at a single year of the budget. It requires the district to consider its financial position several years into the future," the district said.
An explanation of the tax was also made available by the district, stating that the earned income tax applies to earned income, which includes wages, salaries, tips and other earned compensation, as well as certain self-employment income.
Different from a property tax, the amount a person pays is based on their taxable earned income, not on the value of their home, the district said.
For example, if a person makes $30,000 a year, they would pay $300 on the earned income tax levy.
The levy would not be taxed on those living on a retirement income.
"As a school district, it is our responsibility to provide students with a quality education along with meaningful opportunities where they have the chance to learn, grow, and prepare for their futures. This requires thoughtful financial planning and an understanding of the resources needed. We believe it is important for our community to understand how school funding works and how local funding fits into that overall picture," Rook said.
The district said that if passed, the levy is expected to generate roughly
$106,200 in 2027; $1.2 million in 2028; $1.91 million in 2029; and $2.04 million in 2030 and 2031.
According to the district, the first year is substantially lower because the levy would not be generating a full year's revenue in that fiscal year.
"The proposed levy is not being presented as a solution to one isolated expense. It is intended to provide an ongoing source of revenue as the district plans for future operating costs," the district said on the levy fact page.
The district said its largest expense is personnel and employee benefits and that efforts have been made to reduce those expenses, including eliminating several positions, eliminating several supplemental contracts for athletics, clubs and student activities; eliminating a contract for technology support services; absorbing at least three other positions; replacing retired staff members with lower-salaried employees; combining the preschool and superintendent secretary positions; and contracting for a school district treasurer using a retire-rehire model.
If the levy is not approved by voters, the district will continue operating, but additional financial decisions will need to be made, the district said.
"We realize that school funding and tax-related issues can be extremely difficult to navigate. As a district, it is our responsibility to explain the levy proposal as clearly as possible, be available to answer questions, and make information that is based on the facts available to the community of East Palestine," Rook said.