July 30 Press Release: Earned Income Tax on November ballot

IMMEDIATE RELEASE

July 30, 2026

The Franklin City Schools Board of Education voted unanimously to place a 1.25% earned income tax on the November 3 ballot. If the levy passes, the district will also roll back one mill of property taxes, which will provide savings to homeowners. 

• This issue is for new operating money and is for a 5-year term. It is NOT a property tax.
• It is an earned income tax and will primarily be collected by employers (regardless of their location) from people who live in the Franklin City School district. Self-employed individuals pay the tax via quarterly estimates.
• Earned income includes wages, salaries, tips, and from self-employment (like sole proprietorships and partnerships). 
• Excluded income includes unearned income such as retirement pensions, 401Ks, Social Security, interest, dividends, capital gains, and unemployment benefits. 
• Taxes would first be collected in 2027 and will raise approximately $7,375,591 annually. 
• Property tax relief will NOT be on the ballot; the board sent a resolution to the Warren County Auditor’s office to roll back property taxes if the levy passes.

Dr. Michael Sander, superintendent of schools, said “We understand that our community’s senior citizens are facing higher property taxes without a corresponding rise in their incomes. This tax issue should help seniors in two ways—by not taxing retirement income AND actually reducing property taxes—while at the same time raising funds that the district needs desperately.

Sander also noted, “The district managed our finances to make the new money from the 2014 levy last for 12 years, but we’re looking at a negative cash balance for fiscal year 2029.” Since the ’22-’23 school year, FCS has cut a cumulative $11,726,500. With the failure of recent levies, the district reduced expenses by an additional $3.15 million for 2026-2027. Reductions and impacts to services and programs for our students have included reducing busing to state minimums, increasing classroom sizes and extracurricular participation fees, and eliminating all-day kindergarten. 2026-2027 cuts included a reduction in employees and contracted personnel and delaying curriculum updates. Sander said, “It’s not an easy decision to ask our residents for additional monies, but unfortunately, Ohio’s school funding system relies heavily on local taxpayers. An added blow is that the amount of money the district received this past year from the State of Ohio was $2.2 million less than the previous year and is expected to be about $1.5 million less next year." 

Sander added, “Instead of proposing a property tax, the board decided to put an income tax on the ballot that includes some property tax relief because options for property tax levies have been constrained by the Ohio legislature. A growing number of districts (210) across Ohio are choosing the income tax approach.”

If you have questions, feel free to contact the superintendent’s office at (937) 746-1699 or attend a Franklin Board of Education meeting. Public comments are welcome. Board of Education meeting dates are posted on the district website (www.franklincityschools.com) and social media.