Questions / Comments
If the school has enough money to sod the football field / buy land / etc. why do they need this money?
The previous income tax will pay off the school debt soon, so why not just use that money?
Why are there different kinds of levies?
Data / Links
Understanding School Levies - https://www.ohioschoolboards.org/sites/default/files/OSBAUnderstandingLeviesFactSheet.pdf
ANSWER:
Quick Answer - State law authorizes four main types of levies - Operating, Emergency, Permanent Improvement (PI) and Bond. The District requests approval from the voters of the district for a specific type of levy, which then limits the types of things that can be funded by the money. By law, money to pay for building improvements, land purchases, and property improvements CANNOT be used for operation expenditures. The school PI fund is doing well, which is why the District is recommending the existing Earned Income Tax Levy for PI be reduced from 1.25% to 0.75% in association with this new 1.0% Earned Income Tax Levy for Operations. Â
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Long Answer -Â
Operating Levy - Can be used for day-today operating expenses.
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Permanent Improvement (PI) Levy - Cannot be used for daily operations, must be used on improvements with an expected life of 5 years or more.
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The District has made a number of strategic decisions over the last couple years understanding their financial situation. When looking at the revenue that was brought in annually, they understood that the PI money was enough to allow for them to make strategic purchases to protect the District from future large expenditures, but that operations levies were no longer enough to fund their daily needs.
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Currently the PI fund covers the debt payments on the school buildings, and the additional money is able to fund other strategic (long term) purchases - like land and capital improvements.