The chart below shows how the Greenfield Exempted Village School District stacks up with other nearby school systems for property tax rates. The property tax rate is one of the lowest in southern Ohio, and at least four other school districts with higher property tax rates also have income taxes in place to supplement property taxes.

On Nov. 4, Citizens of the Greenfield Exempted Village School District are being asked to approve a 1.25% income tax to replace a similar income tax of 1.25% that will expire December 31, 2008. The School Board has decided that instead of trying to renew the old levy, it would be better for those on fixed incomes to replace the old tax with a 1.25% tax on earned income, which exempts some types of income from being taxed (see below).

“Earned income” is defined as wages, salaries, tips, other employee compensation and self-employment income from sole proprietorships and partnerships. Under this alternative tax base, each taxpayer of the earned income does not pay school district income tax on other types of income such as retirement income, lottery winnings, interest, dividends, capital gains, profit from rental activities, distributive shares of profit from S corporations, alimony received and all other types of income that is not earned income but which is part of Ohio adjusted gross income.

Social Security and all Retirement income is NOT considered earned income; that is, it will NOT be taxed if the Greenfield Schools replacement levy is approved on November 4.

When it comes to property taxes, school districts essentially have a fixed income. Each time property values are appraised, the tax millage is lowered to roll back the district’s income to keep it at the same amount. Many people feel that increasing property taxes in rural school districts such as ours imposes an unfair burden on property owners. The Board of Education is asking voters to approve a 1.25% income tax on earned income because this is considered to be more equitable for the citizens of the district and provides some relief to those on fixed incomes. As the general income level increases, the school district receives more funding, allowing the system to deal with increasing costs such as utility and fuel costs. Our district’s ability to provide current quality materials (for example, textbooks and technology) will be eliminated without the replacement levy.

Since school systems are not permitted by law to go into debt, a contingency plan to reduce programs and services will have to be implemented if the earned income tax is not approved in November. Greenfield’s contingency plan totals approximately $1.2 million in budget reductions and includes: reducing middle School Language Arts, Vocational Family Living/Consumer Science, Elementary Art, Music, and Physical Education positions, Intervention Aides and Classroom Aides, Secretarial staff, current part-time employees, professional development for staff, technology support, transportation to only those students who live more than two miles from school, and Kindergarten would be reduced to a half-day. This contingency plan also includes eliminating: textbook purchases, field trips, an administrative position, the Middle School Athletic Director and fifteen (15) assistant coaching positions, programs having unacceptably low levels of participation, Corrective Reading positions, a Social Worker position, Alternative School participation, and the TV Studio program, Before and After School Care program and school bus monitors. Major steps have already been taken to reduce operational costs. Having to make additional reductions of more than one million dollars if the earned income tax is not approved in November would be devastating.