MADISON TOWNSHIP — Romana Applegate barely paused for breath when asked why she plans to vote ‘yes’ on a Madison School Board levy next month.
There’s a laundry list of reasons, but in the end, it boils down to community pride and maintaining a wide range of opportunities for local students.
“I really believe this is a good place to be,” said Applegate, a retired teacher and levy committee member who taught music at Madison for 40 years.
“Madison is pretty much the schools. You need to support that because that’s the basis of the community.”
Five-year levy would fund day-to-day expenses
Voters in the Madison Local School District will decide the fate of a 1.5 percent earned income tax levy at the ballot next month. If approved, collection would begin in 2027.
The new five-year income tax levy would generate about $6.6 million each year. However, the school board voted on a resolution in November to stop collecting a 7.5 mill property tax if it passes.
That property tax was first approved by voters in November 2023 and generates about $2.94 million annually.
So, if voters approve the earned income tax, Madison Local Schools will see a net increase of around $3.65 million annually in operating funds.
More than 55 percent of voters rejected a similar ballot initiative in November.
Operating dollars are used for day-to-day expenses like payroll and benefits, academic programming, student transportation, utilities and building operations, technology and instructional materials and required student services like special education.
Superintendent Rob Peterson said the funds would have a substantial impact on the district’s finances long term.
“While we will still have to watch our expenditures closely, we are hopeful that we can maintain our current programming and educational opportunities for our students and begin to develop long-range plans for buildings and grounds maintenance and for replacing aging buses and technology resources,” Peterson said.
What would this levy cost me?
An income tax levy would cost $15 for every $1,000 of earned income. (Residents can multiply their earned income by .015 for a more precise calculation of how much they would pay).
Residents would pay taxes on earned income like wages, salaries, and any self-employment income included in Ohio’s modified adjusted gross income.
The tax would not apply to Social Security, retirement pensions, alimony, child support, unemployment and workers’ compensation, welfare benefits and disability benefits.
Capital gains, interests, dividends, trust distributions and profit from rental activities would also be excluded from the tax.
If the income tax is approved and the 7.5 mill property tax is discontinued, property owners would save about $196 a year for every $100,000 of their property’s value as appraised by the county auditor.
“For those residents who are retired and own a home or property in the Madison District, you will have your overall taxes reduced if the Earned Income Tax levy passes,” Peterson said.
“Retirees who own a home or property in the district won’t pay any of the earned income tax, and they will have their Madison School property taxes cut by 18.8 percent as the district will stop collecting on the 7.5 mill property tax levy that was passed in 2023.”
Residents of the school district would have to pay, regardless of where they work. Non-residents would not have to pay the tax, even if their employer is located in the district.
What cuts has Madison already made?
Madison Local Schools has gone through several staff cuts since the pandemic.
The board also voted in March to eliminate 37.5 full time jobs at the end of the school year, including an elementary principal position. According to Peterson, that brings the total number of positions cut over the last five years to 79.
The school board also voted in November to close Mifflin Elementary after the 2025-2026 school year.
The district has worked to reduce its health insurance costs by moving its coverage to a consortium and implementing a prescription coverage management plan.
Peterson anticipates additional cuts to staff, programming and student opportunities if the levy fails.
“With each round of reductions, the cuts get deeper and are more significant in how they negatively impact the education of our students,” he said. “In addition to staffing and programming, we will have to review all of our expenditures and continue making reductions in all areas.”
What is the current state of Madison’s finances?
Madison Local Schools has operated in deficit spending during the past three school years and is projected to end this and next school year in the black, according to a five-year forecast approved by the board in February.
However, if the district is unsuccessful in its levy attempt this May, Treasurer Bradd Stevens predicted the district’s operating reserves would run out before the end of the 2028-2029 school year.
“The district’s goal, which is conservative and in line with fiscal expert recommendations, is to maintain a 60-day cash balance at the end of each school year,” Peterson said.
“If the levy passes, we forecast end of year cash balances of 20 to 40 days over the next four years. On the other hand, if the levy fails, we forecast balances of 3 to 6 days over the next two years, and a negative cash balance by the end of year three.”
School officials say flat funding from the state and increasing costs are all straining Madison’s operating budget.
Madison has been hit with unexpectedly high employee health insurance costs. The district also saw its bill for 2026 increase by nearly 18 percent.
A recent report by the Ohio Auditor of State’s Office recommended the district negotiate a less expensive plan with its employee unions when contracts expire.
Richland County Commissioners voted in October to double the current state-funded 2.5 percent owner-occupancy credits for homeowners starting next year. The property tax relief measure that will reduce its annual revenue by more than $168,000 — which Stevens said is enough to employ about 1.5 teachers.
