The proposed 1.25% continuing earned income tax is needed, said Fairfield Schools’ top financial officer, to help cover declining state school funding of recent years and rising operational costs.
“If approved by voters, the tax would be used for current operating expenses, would take effect on January 1, 2027, and would be continuing in nature,” stated Jay Phillips, Fairfield Schools treasurer in an announcement after the Fairfield Board of Education vote.
Earlier this month the school board approved the first of two, state-mandated votes required to place school tax issues on a local ballot.
The earned income tax option to help fund public schools in Ohio is relatively rare as most school systems use voter-approved property tax revenue to supplement operational costs not covered by state funding.
Officials with the 10,000-student school system said between 2009 and 2012, the district eliminated 140.5 positions, and since 2023, an additional 1.5 administrative positions and 12 teaching positions have been eliminated through attrition, along with 12 positions through a reduction in force.
“The district has also delayed capital improvements, postponed technology upgrades, and extended its bus replacement cycle beyond the planned timeline. The last levy approved by Fairfield voters was in 2011 and was expected to sustain the district for five years,” officials previously stated.
And, they said, “despite these efforts, district expenditures are currently outpacing revenue by approximately $9 million.”
The school district’s income tax is only based on earned income, such as wages and self-employment income.
Individuals whose income consists solely of non-earned sources, such as Social Security and most pensions, would not be subject to the tax.
With its approval, the board has directed Phillips to submit the resolution to the Butler County Board of Elections by Feb. 4, officially placing the issue on the May ballot.
School officials said they will continue to provide information to the community in the coming months to help residents understand the proposal.
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