Treasurer/Finance Home

Franklin City Schools has placed a 1.25% Earned Income Tax on the ballot.

If approved, the proposal would result in a one-mill reduction of the District's existing property tax levy, according to the District's current financial projections.

The district last received new operating money with the passage of the levy in 2014. At that time, the board committed to make that money last for 8 to 10 years.

If approved, the proposal would result in a one-mill reduction of the District's existing property tax levy, according to the District's current financial projections.

The board chose an earned income tax for several reasons:

1. Income tax revenue rises as our community grows. That’s because the district would benefit from income generated by the wages, salaries, etc. of residents who move into new houses. In contrast, a property tax (with a few exceptions) levy is for a fixed sum; even when new houses are built, that fixed amount is spread out among more taxpayers but doesn’t bring in more revenue.
2. The state of Ohio has passed a number of property tax reform bills that cap our property tax levies. The district is working to make our income less dependent on property taxes.
3. Like all of you, the District is concerned with rising property taxes, especially for our senior residents and others on fixed incomes.

While a property tax reduction is not on the ballot, the board has already sent a resolution to the Warren County Auditor’s office to roll back property taxes if the levy passes. 

This issue is expected to raise $7,375,591 annually for operating expenses.

Based on the District’s financial planning, revenue generated by the proposal would be used

• to restore all-day kindergarten beginning with the ‘27-’28 school year.
• to expand transportation services beyond the current state minimum busing requirements.
• to reduce current pay-to-participate fees.

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.

An income tax is ideal when new homes are being built because income tax revenue rises as a community grows. New residents will pay income tax on their earned income. In contrast, a property tax (with a few exceptions) levy is for a fixed sum; even when new houses are built, that fixed amount is spread out among more taxpayers and generally doesn’t bring in more revenue. The rising revenue is welcome as families with children move to the district and our enrollment grows. 

It depends on your income sources. Only earned income will be taxed: wages, salaries, and self-employment income, which will be taxed at $1.25 for every $100 of earned income.

Income from social security, pensions, retirement-account withdrawals, disability, investments, or similar sources is not taxed. If those are your sole source of income, your cost will be $0.

With the Board’s commitment to reduce property taxes if the earned income tax levy passes, some residents may see a net reduction in their overall taxes.

The school district may only provide factual information about ballot issues. Information will be shared via district social media, this FAQ section, ParentSquare, newspaper articles, Town Hall meetings on October 8 and 20, and informal chats with district administrators.