What to know about the earned income tax vote for Fairfield Schools

Ohio voting registration for the May 5 election ends on April 6 with early, in-person and absentee voting by mail beginning on April 7.

Most of last year into 2026 saw officials with the 10,000-student Fairfield Schools, which is the second largest district in Butler County, conducting a series of public announcements on what they described as the worsening nature of the district’s finances and the role declining state funding has played along with the rising costs of operating.

New, local tax revenue is needed, they maintain, to offset the school system’s current fiscal year’s deficit of $9.4 million.

Fairfield Schools would see deficits growing each fiscal year, which ends July 1, under officials’ five-year forecast, reaching $28.4 million by fiscal year 2030 and totaling roughly $99.2 million cumulatively without an increase in local school tax revenue, they said.

If the 1.25% earned income tax ballot issue – Issue 1 - is defeated May 5, district officials have detailed $4.5 million in budget cuts by the start in August of the 2026-2027 school year.

The stakes are high for residents in Fairfield and adjacent Fairfield Twp. from which the district enrolls its students, said the pro tax campaign manager.

“The district has not passed a new operating levy since 2011 and has taken significant steps to remain fiscally responsible, including staffing reductions, delayed purchases and operational efficiencies,” said Laura Metzler, who is head of the private pro-school tax campaign.

“Without voter approval of Issue 1, the district’s cash balance is projected to become negative during the 2027–2028 school year, forcing substantial reductions to staff, programs, and daily operations that would significantly impact students and the community.,” said Metzler.

One of the key points of the current school tax campaign is that should it be approved on May 5, not all residents would be impacted.

“Because this is an earned income tax, it does not affect residents on fixed incomes, including many seniors. Social Security income, pensions, and retirement income are not subject to this tax,” she said, adding “this measure is designed to be fair, ensuring that those actively earning wages contribute, while protecting neighbors who are no longer in the workforce.”

Under Ohio school law, voter-approved earned income taxes applies deriving income from working, such as wages, salaries, overtime, bonuses, commissions, tips, and net income from self-employment or contract work.

Income not earned through work, such as Social Security, most pensions, disability or unemployment benefits, interest, dividends, capital gains, and other investment or retirement income, is not considered earned income. Only individuals with wages or self-employment income would pay an earned income tax.

Metzler described the pro earned income tax campaign as “going incredibly well.”

“It’s inspiring to see so many people putting children first and recognizing the positive impact this will have on our entire community. Hearing the many stories about how Fairfield Schools have made a difference in families’ lives has been truly uplifting and continues to energize and motivate our committee as we work toward success on May 5.”

“I don’t take any tax increase lightly. Like many families, we are balancing our own budgets,” she said.” But investing in our schools is investing in our shared future. The cost of inaction, of allowing our schools to slowly erode due to underfunding, is far greater.”

So far there appears to be no wide-spread, publicly visible organized opposition to the proposed school tax increase campaign but rather some residents voicing their resistance to the proposed hike on social media, with many citing the rising cost-of-living.

Billy Smith, superintendent of Fairfield Schools, said “we have shared the specific reductions that will take place if the ballot issue does not pass, totaling approximately $4.5 million.”

“While we have worked very hard to minimize the impact on teaching, learning, and student opportunities, it is important to be clear that reductions of that size will have an impact. It is simply not possible to reduce expenditures at that level without affecting programs, services, and the overall student experience,” said Smith.

And, he added, “it is important to understand that these initial reductions would likely pale in comparison to the additional, more significant reductions that would be required in the future if the district is unable to increase its revenues over time.”

More information on the proposed 1.25% earned income tax and Fairfield Schools’ financial state and budget projections is available at the district’s website, fairfieldcityschools.com.