Voters will ultimately be asked to approve either a 1% or 1.25% traditional income tax, or a 1.25% or 1.5% earned income tax, which would impact fewer residents.
The board on Jan. 26 will determine which option it will pursue, how long the tax will remain in place and when it will appear on the ballot.
Regardless of the choice, board members say it will be a difficult measure to pass.
“The voters have spoken. We have some decisions to make,” said Lori Raleigh, the board’s longest serving member.
Without new revenue, the district will be operating with a negative cash balance by the 2028-2029 school year, Treasurer Kevin Hawley said.
In November, voters said no to a 1% income tax expected to generate about $6.4 million annually, with 60.4% voting against the measure, according to final results from the Warren County Board of Elections.
In May, a five-year, 6.301-mill property was was defeated at the ballot, with 64.8% voting against the levy and 34.2% voting for it.
The levy would have raised $4.5 million a year and cost homeowners $220.54 for each $100,000 of appraised home value.
The district cut $1.2 million from its budget after the May levy failed, reducing busing to state minimums, increasing classroom sizes and participation fees, and eliminating all-day kindergarten.
About $3 million in programming and staffing cuts have been made over the past two years, while the district has been in Fiscal Precaution with the state.
Hawley said a combination of state and federal funding cuts coupled with rising program and other costs have put the district in a difficult position.
He presented the board with forecasts that included no base salary increases for staff.
“I think you can easily say that we will not be competitive,” Hawley said.
The last time Franklin Schools passed a levy was 2013. At the time, school officials promised it would last at least eight years.
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