1% Earnings Tax and a 6.483-mill Emergency Operating Levy
MORROW, OHIO - After four consecutive defeats at the ballot box, the Little Miami Local School District is quickly headed toward "fiscal emergency" and state takeover, according to a release issued this morning.
"The administration and Board of Education believe this community has sent a clear message to the district – find another way," said Kym Dunbar, Little Miami Board of Education President.
After last Tuesday's defeat of an emergency operating levy, district officials quickly began forming a new game plan.
"We held small group meetings, listened to community phone calls and emails and even met with our organized opposition," said Superintendent Dan Bennett. "The district is conceding, and we will be entering 'fiscal emergency' this summer."
"At the same time, however, Little Miami will return to the ballot in May with two issues, which are both vital to the district's financial health,” said the news release.
The Board of Education voted 5-0 in a special meeting Saturday, to move forward with a 1% earnings tax and a 6.483-mill emergency operating levy – both for five years. Estimates given by the District are that the operating levy will cost $199 annually for every $100,000 of home valuation. The final vote to place these issues on the ballot will occur at the regular meeting of the Little Miami Board of Education on February 16.
"We listened to our community, who said they support our schools but can’t afford to keep us out of fiscal emergency," said Bennett. "We need to stop the divide and place a solution on the ballot that the community can rally around and support. Although it does not solve our financial distress, it provides relief during these difficult times. Our administration and board will begin the process of redesigning a different way to offer education with existing staff."
The statement by the Board said, “Since the defeat of an earning tax in November 2008, the district has heard that constituents now support a 1% earnings tax as a long term solution for school funding. Unfortunately, it would require nearly a 3% earnings tax to overcome the district's deficit. Placement of the smaller 6.483-mill tax levy is an acknowledgment by the board that during these tough economic times a reduced millage request is more appropriate.”
“Since the district will go into fiscal emergency regardless of the May 4 election, should the issues pass, Little Miami will be working with a state oversight commission to determine which previous cuts will be reinstated and a timeline for implementation. Among the issues that will be assessed are busing, facility use, length of school day, course offerings and extracurricular activities.”
"While this approach won't avoid state intervention, it will limit the amount of time we are placed in 'fiscal emergency' and get Little Miami back on the road to local control more quickly," Mr. Bennett said.
Coupled with the ballot issues is a planned capital fundraising campaign, that is still in the early stages of development, Little Miami will seek donations from the community to further reduce the dollars that the district will have to borrow going into the 2010-11 school year. Further details are to be forthcoming.
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