May 2025 - Earned Income Tax Details - 5 Year Plan

ANSWER:

Quick Answer: The Milton-Union Board of Education voted on January 21st at their regular meeting to place a new income tax levy on the May 6, 2025 ballot for consideration.  The Income Tax request would be 0.75% for 5 years, for operations only. 

At the March 17, 2025 BOE meeting the Board laid out clear expectations for the District for the next 5 years, which intends to support operations and bring back services, but also pay off debt sooner. The highlights included:

• 5 Year Levy will generate $1.8 million annually, which will be used to cover operational expenses and get funding back at a level that is sustainable.

• They laid out a capital plan - which includes selling additional school buses (although they only sell for $2,000) and selling the property on Wright Road (old school site). These funds have to go into the PI fund, but would allow for the school debt to be retired in roughly 5 years, which would be 7 years ahead of schedule.

• They showed the current 5 year forecast, and explained clearly why the funding is necessary. The 5-year forecast goes red in 2027 even with the previous cuts. They CANNOT cut out of the deficit.

• They also listed $350,000 in additional cuts that will occur no matter what in 2025/2026 which are detailed below.

• Additionally, they laid out what would happen if the levy passes, and what happens if the levy fails.

The Board has provided a clear pathway to get back into the black, and has incorporated the feedback from the community about paying off the school and reducing the 1.25% primarily PI earned income tax that is in place. This plan clearly shows the forward thinking of the Board and their efforts to utilize the operational funding as efficiently as possible. With less funding coming from the state is extremely important to get this funding in place now, to assure the District doesn't continue to have a deficit in their 5-year forecast.

Long Answer:  The District provided a clear roadmap for their priorities and goals over the next 5 years. This 5 year plan is the same length This roadmap is clearly reflected in a powerpoint provided from the meeting, but also within the resolution they passed to assure that the actions are followed through.

Five Year Plan - Why a 0.75% Levy for 5 years?

Go to our chatter here to learn more - https://www.miltonunionalliance.org/chatter/may-6%2C-2025-income-tax-levy-request

The District laid out clear reasoning for the 5 year request, with goals to accomplish within that 5 year time line to assure they are making the District more financially stable, as well as finding ways to not have to ask for a renewal of the 5 year operating levy. Some of those ideas are to:

• As discussed over the last year, the 1.25% existing earned income tax is tied to the school debt and has to stay to meet the bond obligations that require a guaranteed funding source. By paying off the school debt, this obligation goes away, and the Board can remove or change the 92% to PI, 8% to operations of that earned income tax.

• In 2031 the Board would have the option to request a renewal of the 5 year 0.75% earned income tax, or likely remove one or the other of the 1.25% and the 0.75%, and request a reduced amount with the majority of the funding going to operations. This would mean that the overall tax burden would go down, and the overall funding into the operations fund would go up.

• The 5 year plan gives the community something to hold the Board to. If the Board meets the expectations of the community over the next five years, then the community will support the next request. If the Board doesn't, then the community will have a right to hold them accountable again.

Capital Plan

The District noted that they are also looking at ways to increase monies into the PI fund, to help speed up the payoff of the school debt. They noted they were looking at the following options to help bring additional funds into the PI fund:

• Sell unused buses and equipment. This will not bring in much money, as buses are going for $2,000 each, and are used by the transportation department to steal parts, but there are some in the community who feel this is a an important effort, so the Board is willing to do it.

• Sell the Wright Road property. 43 Wright Road is a 13.62 acre property that is partially utilized for the football practice fields. Selling a portion of this property could bring in some funding if a developer was interested in purchasing the property.

• Reduce PI spending. Work to reduce additional PI spending until the bond debt is paid off.

Cuts in 2025/2026 No Matter What

Due to the previous levies failing, the Board has to make additional cuts, which will total $1.6 million in total cuts since November, 2023 when the first levy failed. The Board has heard the community loud and clear, that they want cuts, instead of increased revenue to the District. The Board has made substantial cuts, but those cuts alone cannot get the District out of the red.

The $350,000 in cuts that are happening no matter what in 2025/2026 are as follows:

• Consolidation of positions

  • Board Office Classified Positions - $62,798 savings

• Decreasing administrative staffing levels

  • Suspending elementary assistant principal contract - $123,505 savings

• Retirement, attrition, and reduction in force

  • Discontinue Literacy Coach services through MCESC - $65,000 savings

  • Leave Part-time Clinic Aide position vacant - $14,469.05 savings

  • Retirement and attrition - $56,000 in savings

  • Eliminate the Strength and Conditioning position - $27,500.19 in savings

• Decreases in curriculum resources

What comes back in 2025/2026 and Beyond if the Earned Income Tax Passes?

The Board discussed during the meeting their goal to do three things if the levy passes in May. Those items are detailed below, with additional context that was provided at the meeting:

• Increase bus services in the 2025-2026 school year. This could include a reduction of the 2 mile radius, high school busing, or a combination of both. The District intends to bring back as much as they are able based on the estimated revenue, but they will also have to determine the ability to do so with bus drivers, buses, and routes.

• Hire an additional school counselor at MU High School. They noted that they would like to see other positions returned, but this position was one of the most requested and necessary.

• Undertake the controlled return of staffing levels and services following receipt of new monies. The Board stated that they would begin to bring back positions as the funding settles and the 5 year plan is implemented. They noted they wanted to be clear that they cannot bring back all services or positions, as the funding is not there, but they would work to bring back as many as they were financially able to.

What is cut in 2025/2026 if the Earned Income Tax Fails?

The Board also discussed the cuts that will have to be made if the request fails. They noted that the cuts that are now occurring are not saving a lot of money, and that the District is already very lean. They noted the previous cuts and the limited options they have to them to save money through cuts. These cuts are not a scare tactic, nor are they a good thing for the District, as some people have stated.

These cuts impact almost every kid in the District, and should be avoided at any cost. With the 5 year plan, the clear vision for the next 5 years, and the goals provided, hopefully these cuts will not need to be made.

Academics

• Reductions in the number of AP, CCP, and upper-level coursework taught by MU teachers. This doesn't mean that children cannot go to Edison or other providers and still do some classes, but it does mean that kids won't be taught in MU or by MU teachers.

• Reduce instructional supply and material costs and reassess curriculum purchases. This generally means that the District will not get new books, new curriculum, or new materials for kids.

Increased Fees

• Impose fees for outside or community use of Milton-Union facilities and fields. The Board stated that this begun somewhat in the 2024/2025 school year, but all groups would be required to pay in 2025/2026.

• Double participation fees (with no family cap). Currently students pay $100 / sport or activity in the HS and $90 / sport or activity in the MS. That would double to $200 per sport/activity for HS and $180 per sport / activity for MS. This also removes the family cap, so if a family has two HS kids in two sports per year, they would pay $800 to play those sports instead of the previous cap.

Reduction of Positions

• Eliminate the School Resource Office Position.  The Board noted that they also utilize a company called G2G who provides services. They noted that the Miami County Sheriff Office has a new contract in place, which substantially increased the cost of the SRO position, and that they were unable to find a way to keep three officers in the school without additional funding.

Athletic / Extra-curricular / Co-curricular Changes

• Eliminate district-provided transportation to OHSAA-sponsored athletic events as well as all extracurricular and co-curricular activities. This means that all students would need to provide their own transportation to all games or events. The District may have a model that allows for fundraising or other option to pay the cost of the bus driver, but they have not made that clear yet. If more information comes out about this, we will share it.

• Reduce the number of paid supplemental athletic, co-curricular, and extracurricular positions by 38. This means that there will be a reduction in coaches, mentors, and teachers, who help guide our kids in their games or in their club. As noted below, this is why clubs and activities are noted as being eliminated.

• Eliminate 9th grade athletic teams. This includes only those sports with a 9th grade team, which looks only to impact the boys basketball freshman team.

• Eliminate student clubs and activities, including, but not limited to, those below. The reduction in staffing necessary to manage these clubs is why these clubs will be eliminated. All clubs and activities in MU require a teacher to lead the group. With the reduction in 38 paid positions for athletic, co-curricular, and extra-curricular activities, the reduction in these clubs are due to those cost savings.

  • Science Olympiad

  • Quiz Bowl

  • Power of the Pen

  • Envirothon

  • National Honor Society

  • National Junior Honor Society

  • Geography Club

  • Art Club

  • MS & HS Drama Club

  • MS Student Council

  • Bulldog Pride

  • Yearbook

  • Varsity M