SCHOOLS Official: Income from levy would cover shortfall

Some residents will pay less tax; others may pay more, the district treasurer said.
By NANCY TULLIS
VINDICATOR SALEM BUREAU
COLUMBIANA -- Columbiana school officials hope district residents will give a school income tax a chance when they go to the polls Nov. 5.
Treasurer Lori Posey said a 1 percent school district income tax would generate about $1.2 million annually for Columbiana schools.
She said the revenue would cover the shortfall that will occur because of the loss of a 1.6-mill permanent improvement levy, which brought in about $123,000 annually.
Income tax revenue also would cover the revenue generated by an emergency operating levy -- about $870,000 -- that expires in December.
Voters defeated the 1.6-mill permanent improvement levy three times this year.
School officials have said a $1 million deficit or more would force cuts in programs and services, and the state could take control of the district's finances.
Posey explained that for several years, expenses have been rising faster than revenues. Some examples are increasing insurance costs, costly repairs on old buses, major roof repairs, and keeping up with continuing changes in technology.
Reducing services
Superintendent Patricia Hura said reducing expenses on a large scale means reducing staff, since a large percentage of the district's expenses are for salaries and benefits.
Reducing staff means reducing programs and services offered to students, she added.
At some school board meetings this fall, high school students have said a loss of extracurricular activities such as music or athletics, and the loss of honors and advanced placement courses would make it difficult to remain competitive for college placement.
Posey explained that with the operating levy and permanent improvement levy expiring, the owner of a $100,000 home in the district will see a decrease of about $235 in property taxes, then pay 1 percent of their adjusted gross income.
She said the amount of tax paid through the income tax compared to a property tax will vary with each person's situation. Some will pay less tax; others may pay more.
How tax works
Posey said the tax is collected from any individual Ohio resident who lives all or part of a tax year in a school district that levies the tax.
She said income that is taxed includes wages, salaries, tips interest dividends, unemployment compensation, taxable scholarships and fellowships, pensions, annuities, IRA distributions, capital gains, state and local bond interest (except Ohio governments), federal bond interest that is exempt from federal tax but subject to state tax, and alimony received.
She said income that is not taxed includes Social security benefits, disability and survivors benefits, railroad retirement benefits, welfare benefits, child support, property received as a gift, bequest or inheritance, or workers' compensation.
John Payne, Columbiana County elections board director, said Crestview and United school districts have income tax issues in effect.