Why Is there a need for this Earned income
tax levy?

Simply, the cost of general operating expenses has not decreased. Inflation, school safety needs, state-mandated programs, special education, preschool, College Credit Plus, social and emotional wellness, other unfunded mandates, and changes in how schools are funded/school funding formulas have continued to tighten our budget and have led to the forecasted deficit spending pattern. Additionally, our local revenue sources have essentially flatlined due to little economic growth. 

The community kindly renewed an emergency levy in 2018 but it was not enough to completely offset the forecasted budget deficit, which is why we are asking for a new levy. Sidney City Schools has not received new money since 2009 (11 years). Additional funding is needed to ensure we can maintain the quality education our students need to succeed and that will help ensure our community remains strong. 

Will the Earned Income Tax allow Sidney City Schools to grow any programs? 

No, the 0.75% Earned Income Tax will allow us to continue operating at current levels. All staffing that has been cut to this point will not be brought back if this levy does pass. 

Will there be more cuts if the Earned Income
Tax Levy fails? 

Yes. To this point, we have been able to make cuts that minimally impact student programs and offerings while still being able to lean our budget. Should the levy fail in May, further cuts would dramatically change our programming and success.

What cost-saving measures has the district implemented prior to asking for additional funding?

It has been 11 years since Sidney City Schools received new local monies. In that time, we have worked diligently to balance costs while maintaining the quality of education our community expects and our students deserve. We have stretched those dollars as far as possible without making cuts that would erode educational quality through a number of efforts, including:

• 2010-2015: districtwide staff pay cut and freeze of 2.75% plus employee cost of benefits increased by 11%

• Staff reductions totaling $1,260,000 a year (for school year 2019-2020)

• Additional cuts made for the school year 2020-2021 estimated to be over $2,000,000. 

• Procuring cost-saving contracts for energy, buses, equipment, and supplies through the Southwest Ohio Educational Purchasing Council, a purchasing co-op with other school districts

• Comparing prices from vendors to ensure we are taking advantage of the best prices

• Completing as many maintenance projects as possible which improve energy efficiency for long-term operating savings; by replacing maintenance staff with skilled professionals in HVAC, plumbing, and electrical trades, the district has contracted less with outside service providers. 

Can you break down the district’s expenses?

Benefits
In 2011, all district employees saw an 11% benefits cost increase. In recent years, the district has taken steps to transition to a high deductible health plan only by calendar year 2022, saving the district an average of $300,000 per year.

Purchased Services
Purchased services are contracted services such as preschool services, special education services, related services, College Credit Plus, etc. included in Purchased Services and a large piece of these expenses is Open Enrollment Out of District. 

Supplies
Supplies include textbooks, workbooks, instructional/classroom materials, fuel for buses, building/maintenance/janitorial supplies, etc. 

Capital Outlay
Capital Outlay includes items that have a 5-year life expectancy, such as buses, computers and technology, furnishings, improvements to buildings and grounds, equipment, lawnmowers/snow removal equipment, etc. 

What significant increases has the district had to the budget since 2009?

• Buses used to be partially funded by the State. Now the purchase of buses falls wholly on the local school district. The cost of a single bus is approximately $90,000.

• College Credit Plus was not state-mandated, and previously, guardians were responsible for the cost of the courses. While we love being able to offer more than 15 College Credit courses on our own high school campus, CCP The cost of CCP for SCS for the 2020-2021 school year is $144,000. 

• Special education costs continue to rise.  

• Open Enrollment out of the district continues to be a great expense to the district. When students open enroll out of the district, they take both the state and local share of revenues.

Why do school districts continue to ask for additional funding? 

Levies, or voted mills, are the major source of revenue for most school districts in Ohio, but HB920 (a law enacted in 1976) basically freezes a district’s collection rate on voted millage. so when home values increase, a school district’s voted millage is reduced and the collection rate, also known as the effective rate, remains the same. Except for a one-time increase for new construction, school districts do not see increases in collections on their voted millage due to HB920. For school districts, simply keeping up with inflationary cost increases is challenging under HB920 and also the main reason most districts return to the taxpayers for additional revenue every few years. 

What are the major reasons for lack of future growth in revenue?

• Lack of growth in state aid 

• Lagging economic development

• Tax-abated commercial and industrial growth in the community - we see minimal tax revenues for ten or more years on many of the commercial/industrial growth projects in the community due to tax abatements. Tax abatements in our district can be 75-100% of the taxable value, ranging from 10-15 years.

How will the Earned Income Tax levy money be used?

The Earned Income Tax money will continue to support the operations of the district and help offset the projected deficit we show in our five-year forecast. The money will be used for general operating expenses such as supplies, materials, repairs, staffing needs, and capital improvements. It will help us maintain the excellent programs we currently have. The dollars will help us keep the effort on academic excellence moving forward.

What factors affect the budget? 

There are factors that may positively or negatively affect the revenue and expenditures in our district. Depending on how each of these factors changes, the overall financial picture of the district could be significantly impacted. Projections are based on past experience and factual available information.

Factors affecting budget projections.

• Residential growth in the district or lack thereof

• Tax-abated commercial and industrial growth in the community

• Health insurance rates

• State and federal budget changes

• Economic changes 

• Student enrollment and open enrollment

• Collective bargaining

• Unfunded state-mandated programs (CCP, John Peterson Scholarship Autism Scholarship, whole-child education, etc)

• Technology needs

• Student services and special education needs

• Capital improvement needs

What does passing the levy mean to Sidney?

Sidney City Schools does not have any major plans for expansion of its operation. The district has maintained a lean budget while still allowing the school to offer an excellent curricular and extracurricular program for the youth of our community. The funds will keep the excellent academic programs in place and allow us to stay competitive with other schools in the area. 

The Board of Education is always reviewing its programs to make sure it is offering the best program possible with the available resources.

What happens if the levy fails?

A levy failure will have a substantial impact on our educational programming. The district continues to assess the necessity of positions where able, especially as staff retire/resign; however, should this levy NOT pass, our district will have to reevaluate the current staff and programs to justify their necessity and make adjustments beyond those cuts we have already made for the 2021-2022 school year. The cuts made to date have had minimal impact on student programs and services but the next round of cuts WILL affect students. 

How has student enrollment changed in recent years?

We have seen a decline in student enrollment. This trend is what made us look at reconfiguring our schools and consolidating four K-5 elementary schools into two K-2 primaries, and one 3-4 intermediate school. The overall trend over the last 10 years is that we have seen a decrease in total enrollment per year. Here’s a look at enrollment since 2011.