Levy Statement of Facts

Earned Income Tax – Statement of Facts

• The measure which has been placed on the ballot for the public’s consideration is for a 0.75% earned income tax, which if approved, would generate an estimated $14,029,656
   
• If the measure is approved, the District intends to allocate $9,582,587 to district operations and $4,447,069 to our Capital Plan (permanent improvement funds)
  • Operating funds are used for day-to-day necessities, such as staff salaries, educational programming, transportation and building utilities.
  • Permanent improvement funds are used to maintain the district's facilities, purchase technology items, security, and new vehicles, including buses.
• If approved, the earned income tax would be for a continuous period of time.
   
• What is an earned income tax levy and who pays it?
  • Approved earned income tax levies apply only to those living within the school district boundaries and who have active income/wages.
  • Approved earned income tax levies do not apply to pensions, capital gains or investment income as these are considered passive income.
  • Instead, an earned income tax is more closely tied to someone’s ability to pay, and is impacted by economic downturns and job loss, as the flat rate is applied to an individual’s taxable earned income. Therefore, the amount collected would vary if an individual were to make less or nothing at all.
  • By way of example, if the proposed measure were approved, a taxpayer with a $50k salary could expect to pay 0.75% of that salary or $375
• What happens if the earned income tax levy fails? Beginning in the 27-28 school year, the Board would need to implement the following cost-savings measures:
  • Reduction in district staffing to match new footprint
  • Consolidation of North and South to one high school
  • South and Willoughby Middle become the high school campus
  • North becomes the middle school campus
  • Willowick Middle is repurposed, manner to be determined
  • Closure of Eastlake Middle and Thomas Jefferson Elementary
• The Board has placed this measure on the ballot for the public’s consideration, because recently passed legislation has expedited the need for the district to seek additional funding for operations
   
• The Shared Vision continues to drive the decision making of the school district