“These funds help cover day-to-day operational costs such as salaries, classroom materials, utilities and student activities that are not fully supported by state funding,” he said. “Without this funding, the district’s five-year financial forecast projects a significant deficit beginning as early as the next fiscal year.”
The school board has not determined specific reductions if the repeal is approved. However, Fischer said potential cuts include eliminating busing for students living within the state’s two-mile limit, reducing staff positions, possibly eliminating the school resource officer, and other staffing adjustments that may lead to larger class sizes.
Carlisle Local Schools has a mix of revenue from the school district income tax and property tax. It is the only Warren County district with a diversified revenue stream, though Franklin City Schools is seeking approval of a 1% school district income tax on the November ballot.
“I don’t think it’s a fair tax. I don’t think the school system needs it, and I think that if they do need money in the future, there is a better way to get it,” Terri Haddix, a retiree who used Facebook to organize the Carlisle repeal effort, has said.
She said that before eliminating the SRO, reducing busing or making other cuts affecting students that the board needs to take a careful look at the budget.
“They have never, ever sat down and went through that budget to see where they can make improvements,” said Haddix, who added that she likely would support a property tax in the future if she felt the district needed it.
However, Haddix said instead of a traditional income tax, an earned income tax would not affect pensions or investments.
“That would eliminate the burden this income tax is placing on senior citizens,” Haddix said. “Once you retire the city does not tax your pension, but the school district does.”
Carlisle schools would need to pass a 12.7-mill property tax, based on today’s figures, to replace $3.6 million in lost income tax revenue, Warren County Auditor Matt Nolan said during a presentation to the school board. This would cost approximately $444.50 for each $100,000 of appraised property value.
Property tax revenue stays flat, even when property valuations go up, for the entire term of a levy.
“Income taxes, on the other hand, fluctuate with residents’ earnings but allow the district to share the cost of education more broadly and provide additional flexibility to fund programs and staffing without relying solely on property values,” Fischer said.
The traditional school district income tax uses the same income base as the state of Ohio’s income tax, according to the Ohio Department of Taxation’s guide to school district income tax.
Taxable income includes wages, salaries, tips, interest, dividends, unemployment compensation, self-employment, taxable scholarships and fellowships, pensions, annuities, IRA distributions, capital gains, state and local bond interest (except that paid by Ohio governments), federal bond interest subject to state tax, alimony and all other sources.
Income not taxed includes Social Security benefits, disability and survivor benefits, railroad retirement benefits, welfare benefits, child support, property received as a gift, bequest or inheritance and workers’ compensation benefits.
Carlisle schools does have nearly $10 million in unencumbered funds, which Haddix said seems excessive.
“After looking at the budget I think there is a lot of room for the school district to accommodate an income tax repeal without cutting all the necessary services,” she said.
However, Fischer said the funds are meant to support annual operations, which could include emergencies, one-time projects or unexpected costs. The district will begin using some of these funds as it faces rising costs and deficit spending in fiscal year 2027, he said.
“Carlisle has continued to be responsible stewards of taxpayers’ money, carefully managing resources to maintain strong educational programs and services for our students,” Fischer said. “Our focus is on keeping class sizes small and making sure every student receives the high-quality education our community expects. … Sustainable funding is essential to ensure we can continue providing these opportunities for all Carlisle families."
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