Jefferson Twp. Schools seek 1% income tax; state takeover possible, officials say

Inside the Jefferson Twp. schools high school and middle school Monday, Sept. 9, 2024.  MARSHALL GORBY\STAFF

Inside the Jefferson Twp. schools high school and middle school Monday, Sept. 9, 2024. MARSHALL GORBY\STAFF

Jefferson Twp. Local Schools is asking for a three-year, 1% income tax that would generate just under $1 million per year for the district.

The levy would cost $500 per $50,000 of earned income, said Jefferson Twp. Schools treasurer Craig Jones. Earned income excludes retirement income, such as pensions and social security.

Jefferson Twp. Schools have been in deficit spending for the last eight years, according to the district’s five-year forecast, a required, district-generated document that shows a school district’s financial state.

The income tax would go toward regular expenses, such as teacher salaries, electricity and other reoccurring expenses. By Ohio law, school districts have to operate with a positive cash balance. Those that do not risk state takeover.

“There are several hundred districts in the state that have a school district income tax but most of our residents here, as you probably know, are just fed up with property taxes, and with the high property values,” Jones said. “So, we listen to our community.”

In May, Jefferson Twp. voters rejected a 1.5%, ongoing income tax, which would have brought in $1.4 million per year for the schools, according to the district. About 31% of voters approved the levy, while 69% were opposed, according to the Montgomery County Board of Elections.

The district made cuts last year that were planned no matter if the district passed the school levy. The cuts included four certified staff: one substitute teacher, going to a daily rate; one credit recovery teacher, one foreign language teacher and one third grade teacher. Two paraprofessionals and one cook were also cut.

Cost-of-living-adjustment increases have dropped from 1% increase to 0% increase for the years 2026 to 2029.

The district has not had new money since 2008, Jones said.

“We need additional revenue to continue educating our students, preparing them for the future,” Jones said.

Jefferson Twp. Schools previously was placed on fiscal watch, which requires the school to submit plans to the state that would restructure finances, from February 2004 to August 2008. The district was then elevated to fiscal emergency, meaning the state will appoint a commission to restructure the district’s finances, from August 2008 to April 2011.

Jones said the district is at risk of being in financial oversight from the state if the levy does not pass. The district’s entire budget was about $8.3 million last school year, and this school year is projected to be about $8.5 million.

Jones said the district has cut all that they legally can cut, without affecting mandatory programs like special education.

“If we don’t pass the levy, we’ll have people from the state come in and make decisions for us over and above the locally elected board of education,” Jones said.

Jones said he thinks how the district has been underfunded has contributed to the low academic rating. The district got 2 stars on the most recent 2024-2025 report cards, but in the two previous years, Jefferson Twp. got 1.5 stars and was the only district in the state to do so.

“It’s difficult to improve and get better, to hire high-quality teachers and provide educational resources to students when there isn’t adequate funding there,” Jones said. “And we’re not getting that from the state, so it’s up to the local community to provide at least some of that funding.”

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