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The Cincinnati Board of Education voted to place a five-year, 7-mill property tax levy on the November ballot after rescinding a previously approved 0.75 percent earned-income tax levy. District leaders said the funding request is part of efforts to address ongoing budget pressures and avoid deeper spending reductions.
The change followed public criticism of the earned-income tax proposal from political leaders, community members and some board members. Voters will decide the fate of the Cincinnati property tax levy during the Nov. 3 general election.
Cincinnati Public Schools (CPS) will ask voters to approve a Cincinnati property tax levy in the November general election.
This is after the Cincinnati Board of Education voted to reverse an earlier decision supporting an earned-income tax.
The move came during a special meeting on Aug. 3, when board members rescinded a five-year, 0.75 percent earned-income tax levy that had been approved just one week earlier.
According to Spectrum News 1, the board instead approved a five-year, 7-mill property tax levy for the November ballot.
The decision marks a significant shift in the district’s strategy to address ongoing financial challenges. CPS leaders have warned for months that the district faces budget pressures that could require additional cuts without new revenue. The levy proposal comes after the district approved spending reductions and workforce cuts earlier this year. According to FOX19, CPS approved more than $58 million in budget reductions and eliminated more than 100 positions as officials worked to close a budget deficit.
The board’s latest action follows growing public and political opposition to the earned-income tax proposal. Axios Cincinnati reported that both Republican and Democratic leaders criticized the income tax measure, while some board members also questioned the approach. The criticism increased pressure on the board to reconsider the proposal before the deadline for placing issues on the November ballot.
Also read: CPS Levy Reversal Could Reshape the November Ballot
Why the Cincinnati property tax levy replaced the income tax proposal
The board initially approved an earned-income tax levy on July 27. District officials said the measure would have generated approximately $74 million annually if approved by voters. According to Cincinnati Public Schools, the tax would have applied to earned income such as wages, salaries, tips and self-employment income while excluding Social Security benefits, pensions and retirement income.
The earned-income tax represented a departure from the district’s traditional funding requests. It would have been the first earned-income tax levy ever proposed by CPS. However, the measure quickly became controversial.
Axios reported that opposition emerged from both local political parties and several public officials. Board member Eve Bolton publicly criticized the decision and said she expected the board to reconsider the proposal. The issue became a focal point of debate about how schools should raise revenue and who should bear the cost of additional funding.
Supporters of the earned-income tax argued that it would place more of the financial burden on wage earners while protecting retirees living on fixed incomes. Critics argued that the proposal created uncertainty and differed from the funding model voters typically encounter for school levies.
With the reversal, the board returned to a more traditional property tax approach.
Cincinnati property tax levy aims to address budget challenges
District leaders have repeatedly warned that CPS faces significant financial pressures. Earlier this year, officials announced plans to reduce spending by approximately $58 million. The district also approved cuts affecting administrative positions, support staff and other operations.
According to FOX19, district Treasurer and Chief Financial Officer Michael Gustin said school districts across Ohio continue to face financial challenges despite state education funding. District officials have pointed to rising operating costs and ongoing fiscal pressures as key reasons for seeking additional revenue.
The levy discussion has been underway for months. In July, the Board of Education delayed a final vote while considering multiple options, including different property tax proposals and the earned-income tax alternative. The board ultimately selected the income tax model before reversing course one week later.
Key developments leading to the levy decision include:
- CPS approved more than $58 million in budget reductions.
- The district eliminated more than 100 positions.
- The board initially approved a 0.75 percent earned-income tax levy.
- Public criticism followed from political leaders and community members.
- The board rescinded the income tax proposal and approved a 7-mill property tax levy.
The November election will determine whether voters support the district’s request for additional funding.
What voters should know about the Cincinnati property tax levy
Property tax levies remain one of the primary ways Ohio school districts raise local revenue. Unlike an earned-income tax, a property tax levy applies to real estate owners within the district. Revenue generated through property taxes helps fund school operations, staff, academic programs, transportation and facility needs.
According to reporting from multiple Cincinnati-area media outlets, the CPS board considered both 7-mill and 8-mill property tax options before selecting the 7-mill proposal. The levy will appear on the Nov. 3 ballot unless legal or administrative changes occur before the election.
The funding request comes at a time when school finance remains a major issue across Ohio. Several districts have discussed levies or budget reductions as they respond to changing enrollment patterns, rising costs and state funding debates. CPS leaders have argued that additional local revenue is necessary to maintain services and avoid deeper reductions in future budgets.
For Cincinnati voters, the upcoming election will provide an opportunity to decide whether the district should receive additional local funding through property taxes. The outcome could shape future budget decisions and determine whether CPS must pursue further cost-cutting measures in the years ahead.
Residents can review election information through the Hamilton County Board of Elections. Additional information about district finances and levy proposals is available from Cincinnati Public Schools.
FAQs
Why did Cincinnati Public Schools switch from an income tax levy to a property tax levy?
The Board of Education initially approved a 0.75 percent earned-income tax levy in late July. The board later reversed that decision and approved a five-year, 7-mill property tax levy following public and political opposition to the income tax proposal.
What is the Cincinnati property tax levy?
The Cincinnati property tax levy is a proposed five-year, 7-mill tax on real property within the school district. If approved by voters, the levy would provide additional local revenue to support district operations and educational services.
When will voters decide on the levy?
The levy is scheduled to appear on the Nov. 3 general election ballot. Registered voters within the Cincinnati Public Schools district will have the opportunity to approve or reject the measure.
Why is Cincinnati Public Schools seeking additional funding?
District officials have cited ongoing financial challenges, rising operating costs and budget shortfalls. CPS previously approved more than $58 million in spending reductions and eliminated more than 100 positions as part of efforts to balance its budget.
