ISSUE 20: Firelands Schools seeking 1 percent income tax in November

SOUTH AMHERST — While school districts generally ask for property tax levies, voters in Lorain and Erie counties will vote on a 1 percent earned income tax for Firelands school district this November. The $3.3 million generated annually from the income tax would be used for ongoing expenses, including classroom materials and technology, extracurricular activities, transportation and the retention of teachers and support staff. "This levy only taxes wages," Superintendent Mike Von Gunten said. "It was a strategic decision based on the fact of wanting to continue to provide a quality education for our students, while taking into account that our residents have lived in their homes for a long time and many are on a fixed income. We thought this might be a smart choice." While the community approved a bond issue for construction of the new high school in 2018, the last time the district approved an operating levy was in May 2011. Now, a new one is needed. "The five-year forecast shows that the district has been affected by inflation," Von Gunten said. "Our annual revenue has remained flat at $21.5 million since 2021 and is projected to remain flat through 2027. Inflation has driven the value of those dollars down causing the district to lose spending power." Without the levy, Firelands will have a $3.4 million deficit by 2027, meaning by the end of the 2028-2029 school year, the district would be out of cash unless cuts are made. If the levy does not pass, the Board of Education will make the decision about whether to go back to voters and what that would look like, Von Gunten said. "We believe we offer students a quality education," he said. "We are fiscally responsible. We've demonstrated that and haven't asked for new money since 2011. Things are very different now. Looking at the options, we felt the 1 percent earned income tax was the most appropriate way going forward. It will also provide an opportunity for a small amount of growth going forward." If approved, the levy means not having to go back to voters for a long time, he added. "This levy would generate $3.3 million per year," Von Gunten said. "Its growth is dependent on cost of living increases, which trend upward." A taxpayer who earns $50,000 a year will pay $500 annually, which is taken out by the employer throughout the year, Treasurer Keri Angney said. — Christina Jolliffe Issue No. 20What it is: A 1 percent earned income taxDuration: ContinuingHow much would it raise: $3.3 millionPurpose: To raise money for current expensesCost to taxpayer: A taxpayer who earns $50,000 will pay $500 annually