MOUNT VERNON — Mount Vernon City Schools’ proposed 1-percent earned income tax levy has spent months in the spotlight.

Now, after a narrow defeat in May and a revised proposal, voters will decide its fate in the November election.

The levy explained

The levy previously failed in the May primary by 115 votes, a margin of 50.94 percent to 49.06 percent.

If approved, the district would collect the 1-percent earned income tax for 30 years. For example, if your annual earned income is $30,000, the levy would cost you $300 per year.

While the cost to residents has not changed since May, the intention for the proposed funding has. Previously, the levy was meant to fund only the Facilities Master Plan, but the proposal shifted in September to include support for district operations.

The revised plan would allocate approximately $4 million annually toward debt payments.

Read more about why the shift occurred here:

Now, the district intends to use funding for the construction of three new elementary buildings and a smaller renovation for the high school, including a new auditorium, expanded music spaces and an expanded cafeteria.

The new elementary buildings would also have improved safety infrastructure and be fully accessible. Buildings would include art and music classrooms, dedicated cafeterias and specialized spaces for special services, OT/PT and gifted and STEM. There would also be an increase in playgrounds and green space, allowing for outdoor learning opportunities.

If the levy passes, the Ohio Facilities Construction Commission has offered the district $40 million in state support to construct the new elementary schools — this accounts for approximately 36% of proposed project costs.

Who WILL pay this tax:Who WON’T pay this tax:
You are currently working and earning income from an employer or organizationYour income comes from a pension or retirement system
You earn income from your own businessYour income comes from social security
The amount would typically be deducted from your paycheckYour income comes from investments
Information provided by the Mount Vernon City School District.

A chance for public discussion

Mount Vernon Supt. Bill Seder and Treasurer Courtney Roberts welcomed the community last Thursday to discuss the intricacies of the proposed 1-percent earned income tax levy.

The discussion began with a presentation discussing the shift in potential funding use and ended with a Q&A and feedback session.

Will the passage of this levy eliminate the district’s financial challenge?

“Unfortunately, it will not be dissolved. However, the good news is that it will slow that rate of deficit down. It would allow us to buy some time and look at how can we naturally reduce some of this spending through retirement, looking at our buildings and looking at how we are using the resources we currently have,” Roberts said.

What happens if the levy doesn’t pass?

“I can guarantee you that two things would happen. Number one we won’t have addressed our facility challenge, and number two, we won’t have addressed our operational challenge. … If we don’t pass this levy, we’ve not impacted those things whatsoever,” Seder said.

“It would be misguided to say that if it doesn’t pass we keep all six elementaries. We’ve got to right-size ourselves so that we can right-size our personnel, which is 80% of our operations to make sure that we’re in better shape,” Seder said.

“Those would be really, really hard decisions for the board to make, but we’re not focused on that right now. We’re focused on November,” Seder said.

Why are you letting some people benefit without paying?

“When we decided to do an earned income tax, it was for the sole purpose of changing financial revenue that the district brought in,” Seder said.

Previously, property tax funded 100% of Mount Vernon City Schools. However, the recent concerns regarding rising property taxes led to the district’s change.

As for why the levy is specifically on earned income, it comes down to one demographic.

“We wanted to do an earned income tax versus a regular income tax because we really believe that some of our senior voters … they have given to the district for years and years. We wanted them to have that ability to continue to support the district, but not negatively impact them financially,” Seder said.

The next public forums will take place on Oct. 20 from 5 to 6:30 p.m. and Oct. 29 from 6 to 7:30 p.m. All community meetings will take place in the Mount Vernon High School auditorium.

What a vote ‘No’ vote means

If the vote fails, the levy will likely return to the ballot — for the final time — in May 2027. This is due to a timeline set by the OFCC that limits when the district can receive the $40 million in state support.

Downsizing of the elementary schools would still occur, but without the proposed new revenue.

Budget cuts will occur and the district’s cash balance would continue to decline as expenses outpace revenue.

What a vote ‘Yes’ vote means

The district will go forward with it’s Facilities Master Plan and begin construction of three new elementary schools and high school renovations.

Roughly $6 million would be generated annually, with $115 million total at the end of 30 years, as limited by Ohio law.

Budget cuts will still occur, but the rate at which the district’s cash balance is declining would slow.

Read more about the levy below:

General assignment reporter at Knox Pages writing about education. Ohio University alumna, avid reader and nature lover. Got a tip? Email me at alexandra@knoxpages.com