Sylvania board advances income-tax option, asks state for rate estimates with 1-mill property-tax rollback

The Sylvania Board of Education on June 29 voted to pursue state rate estimates for income-tax options to address a projected budget shortfall, approving a resolution of necessity that asks the state tax commissioner to return estimated rates for both an earned-income tax with a 1-mill property-tax rollback and a traditional income tax with a 2-mill rollback.

Board members said the action is intended to preserve the district’s options while meeting tight statutory deadlines: staff noted the district would have roughly 100 days to pass a first resolution if an income tax is selected, and the Department of Taxation would have about 10 days to return rate estimates. The board emphasized the estimates are a procedural step, not final tax levies.

Trustees reviewed the district’s recent cost-control work — staff reductions, building budget cuts and benefit-plan changes that administrators said yielded about $2.246 million in expense reductions and roughly $9–10 million in benefit-cost avoidance — but said efficiency alone would not close the projected gap. Administrators and board members warned that failing to secure new revenue would require an estimated $11.6 million in cuts next year.

Public comment at the meeting included remarks from Jeff Wilson of Toledo, who urged the board not to pursue a levy now because parcel values have risen and property owners are already shouldering higher valuations. "After having over 23,000 parcels paying Sylvania property taxes and all of those parcels' values going up on the average 30% plus, there should be no levy request at this time," Wilson told the board, and he offered his volunteer assistance to review district ledgers.

Board members discussed which tax structure would be most likely to pass and the equity trade-offs: several trustees said an earned-income tax (EIT) paired with a 1-mill rollback seems likelier to succeed in the current public climate, while others said a traditional income tax distributes costs more evenly. The board settled on advancing the estimate request to allow time for public education and any technical adjustments once county and state numbers are returned.

The board approved the resolution by roll call. Trustees also approved a companion resolution asking the Lucas County auditor for certification to implement the proposed property-tax reduction if the tax plan proceeds.

Votes at a glance:
- Resolution requesting Department of Taxation estimates for income-tax options (earned income with 1-mill rollback; traditional income with 2-mill rollback): passed by roll call (all present voting yes). (Provenance: timeline SEG 826–SEG 911)
- Resolution requesting Lucas County auditor certification for property-tax rollback: passed by roll call (all present voting yes). (Provenance: timeline SEG 912–SEG 939)
- Item 3.1 (Lake Erie West ESC annual cost agreement): approved (no increase to cost reported). (Provenance: timeline SEG 199–SEG 221)
- Consent agenda items 4.1, 4.2, 5.1, 5.2 (licensed and classified personnel/actions): approved. (Provenance: timeline SEG 222–SEG 253)

What happens next: district staff will submit the requested forms to the Department of Taxation and the Lucas County auditor for estimates and certification. Once the district receives rates and certifying numbers, the board can consider the second required resolution to set final rates and, if desired, place a levy question on the ballot. The board indicated it will continue to pursue internal efficiencies while conducting public outreach on any ballot measure.