Community for Cavs

What is on the ballot?

Chillicothe City Schools has placed a 0.75% earned income tax levy on the November 3, 2026 ballot. This means that senior citizens’ social security and pension income will not be taxed. The tax will apply to wages, salaries, tips and self-employment income. It will appear on the ballot with the following language:

PROPOSED INCOME TAX
Chillicothe City School District
Shall an annual income tax of 0.75 per cent on the earned income of individuals residing in the school district be imposed by Chillicothe City School District, for 5 years, beginning January 1, 2027, for the purpose of current expenses?

This is NOT a property tax.

Unlike a traditional property tax, an earned income tax applies only to individuals who are currently working and earning a paycheck; it  does not apply to property, Social Security, pensions, or interest income. This ensures that the contribution is tied directly to current earnings.

What is at stake?

The forecast is clear, unless there is significant change in school funding or costs, CCSD will be insolvent in under 5 years. (Chart below from the treasurer's presentation to the board on August 24, 2026.)

Facing Chillicothe right now:

• Dangerously Low Cash Reserves: Even after cutting over $4 million since last year, as of August 2026, the district sits at just 28 days of cash (about one month). Best practices and board policy require at least 90 days (3 months) to remain stable and operational.

• Running Out of Money: Based on the current 5-year forecast, the district will return to deficit spending by the 2027–2028 school year and completely run out of funds by 2030.

• State Budget Uncertainty: A new state budget takes effect in July 2027. If it mirrors previous unfavorable funding cycles, major budget cuts will be forced next year unless this levy passes.

What is to gain if the levy passes?

This levy brings much-needed stability, protecting vital student programs and keeping our schools running strong for the long term. This levy brings Chillicothe...

• Financial Stability: The district can safely rebuild its cash reserves toward the minimum recommended safety net over the next 5 years.

• Protecting Staff & Programs: The funding prevents further major cuts to teachers and school staff, protecting the people who impact students daily.

• Expanding Student Opportunities: Passing the levy allows the district to prioritize:

  • Expanding transportation so every student who needs a ride gets to and from school.

  • Reducing or eliminating fees for athletics and extracurricular activities.

  • Growing reading intervention programs for our most at-risk students.

What would it cost?

A 0.75% earned income tax means 75 cents for every $100 earned (or $7.50 for every $1,000).

Examples:

• If you earn $40,000 per year, the cost would be about $25.00 per month.

• If you earn $60,000 per year, the cost would be about $37.50 per month.

This tax applies only to earned income (wages, salaries, self-employment income). It does not apply to Social Security benefits, pensions, or interest income. (source)

What steps has the district already taken to reduce expenditures?

The district has gone through extreme reductions since last school year totaling over $4.3 Million in reduced expenditures/added revenue for the 2026-2027 school year. 48 positions have been cut or not replaced since the 2025-2026 school year including 6 administrator positions. An additional 9 staff members who left the district were replaced with lower salaried replacements.

In addition to the large staff reductions, the district has:

• cut purchased service contracts

• cut supplementals

• implemented additional fees to generate additional revenue

• limited trips and 

• moved sports from school-sponsored to club teams.

These cuts have resulted in larger class sizes, reduced mental and physical health services, limited transportation, and added fees for extracurricular participation. 

We need to pass this levy for any chance for the district to begin planning on how to restore some of these desperately needed services, reduce class sizes to allow teachers to provide more personalized attention, and continue to provide the best possible experience for our young Cavaliers.

Why does the school need to pass a levy?

The district has an extremely low cash balance, only about 1/3 of its required minimum per Board policy and best practice. This coupled with uncertainty regarding the next state budget and a projected return to deficit spending by next school year highlight the urgency with which the funds are needed in order to avoid further reductions even after $4.3 Million in reductions have taken place since last school year.

The loss of Federal Pandemic Funds in 2024 coincided with a state budget that did not update the “Base Costs” to educate a child for the 2025-2026 and 2026-2027 school years. The base cost is what the state says it should cost to educate a “typical” student. The table below shows both the impact of these drivers of our current situation and also highlights why a cash balance of at least 90 True Days’ Cash is so important as it can deteriorate extremely quickly:

When was the last levy passed?

The last levy for operating expenses was passed in 2013 and expired in 2018. Shortly after the expiration of that levy, unprecedented funding was released for K12 education by the federal government to meet the needs of the pandemic. As such, the school district has not needed to return to the community for funding until now.

In 2015 the district passed a Building Bond Levy, which allowed them to build two new, state-of-the-art elementary schools, housing Kindergarten - 2nd Grade at Chillicothe Primary School, and 3rd - 6th Grade at Chillicothe Intermediate School. The 2015 building levy funds cannot be used for operating expenses.

What else should I consider?

The district has heard community feedback and is very aware of the burden that has been placed on local property taxpayers through large revaluations since COVID. The state passed House Bill 186 late in 2025 that took effect with second half tax bills this year, 2026.

House Bill 186 will ensure there will not be enormous jumps in property taxes that outpace inflation moving forward. The bill caps the amount of property tax collections at the rate of inflation over the 3 years since the last revaluation.

For example, taxpayers saw an average increase of around 30% on their property values in the district after the 2025 reappraisal. HB 186 caps the collections at 13.3%, the rate of inflation (GDP-Deflator) for the three previous years. This appears as a credit for taxpayers, beginning with the second half 2026 tax bills. This will ensure taxpayers don’t see their property taxes going up by more than the inflation rate moving forward in Ohio.

For Chillicothe City School District, this amounts to a loss of $1.45 Million in property tax revenue in Fiscal Year 2027 and a loss of $968,000 in projected revenue each year thereafter, contributing to the district’s projected future financially and contributing to the need for the income tax.