Firelands voters reject income tax for school district

Voters in the Firelands school district rejected an earned income tax issue to fund the schools' budget shortfall on Tuesday. Issue 20, a 1 percent earned income tax to fund current expenses for the district, failed by an overwhelming majority — 62.28 percent of voters, or 3,359 votes against compared to 37.72 percent of voters, or 2,034 votes for the issue, according to unofficial and incomplete election results Tuesday evening. Superintendent Mike Von Gunten said the tax was a necessity for the district in an effort to address its growing budgetary gap. "It really was going to maintain our current day-to-day operations," he said. "With tonight's outcome, the Board of Education and administrative team will (work to find) the right path for our district." The income tax would have generated about $3.3 million annually if passed by taxing residents' wages and salaries. Income from Social Security, pensions, disability benefits, capital gains and inheritances would not have been taxed. Firelands' revenue of about $21.5 million per year has remained relatively steady since 2021, but its costs have risen due to inflation — prompting it to spend against its cash balance until a projected shortfall by the end of the 2028-29 school year. Von Gunten said the board will meet to discuss its next steps, but in the interim, he thanked the district's supporters and its levy committee for their dedication. "Our focus has been on passing this levy," he said. "I don't want to speculate on what will happen next. … We'll work hard to keep our community informed as we determine next steps and welcome their feedback." Contact Carissa Woytach at (440) 329-7245 or cwoytach@chroniclet.com.