Marysville board hears recommendation for 1.5% school income tax to close $7 million shortfall

Treasurer Todd Johnson told the Marysville Exempted Village School District Board of Education on July 16 that the district faces a mounting budget gap and presented levy and tax options to close it. "We're projecting an actual cash deficit in fiscal year 30," Johnson said, describing an operating shortfall that begins in fiscal 2027 and could reach roughly $7,000,000.

Johnson described how changes in state property‑tax law limit growth in revenue from traditional levies and make emergency levies less attractive. He reviewed three options: property‑tax levies, emergency levies and a school‑district earned‑income tax, and laid out revenue estimates based on Ohio Department of Taxation figures (2025 data). "A half‑percent of income tax would generate just over $6,000,000; three quarters would generate just over $9,000,000; and 1% would generate just over $12,000,000," Johnson said.

Administration recommended asking voters in 2027 for a combined 1.5% earned‑income tax — 1.0% for operations and 0.5% for facilities — arguing the structure grows with the community and would reduce the need to return frequently to the ballot. Johnson said the example used in his presentation assumed an average home value of $371,000 and produced a household increase of about $1,400 under a 1.5% income tax while reducing property taxes by roughly $700, yielding a net example increase of about $943 annually for that household; he noted retirees who do not pay earned income tax could see net reductions when bond millage falls off.

Superintendent Dr. Howard framed the recommendation in terms of services preserved. "We need additional staffing," Dr. Howard said, citing enrollment growth at elementary schools and the district's goal of preserving programs, arts and graduation pathways. Dr. Howard also said Marysville Schools ranks near the bottom of the state in revenue per pupil: "Marysville Schools has the 2nd lowest revenue per pupil in the entire state of Ohio." (This statement was presented as a superintendent's account during the meeting; supporting documentation was not included in the meeting record.)

Board members asked about timing and risk. Johnson said if voters approve a 2027 levy, collections would begin in 2028 and would ramp up over time; he warned that waiting to act would increase either the size of cuts or the size of a future levy. Johnson outlined key dates: the district's five‑year forecast is due in August; Oct. 26 is a key date for state‑funding clarity; a resolution of necessity for a May 2027 levy would be due Jan. 22, 2027; and a July 23 resolution of necessity would be required for a November 2027 ballot.

No formal resolution to place a levy on the ballot was taken at the July 16 meeting. Board members said they will continue public engagement and further work with administration in coming months to refine options before any formal vote.

What happens next: administration will post additional forecast detail in August and the board will consider deadlines and whether to bring a resolution of necessity forward for a 2027 ballot.