MADISON TOWNSHIP — Madison Local Schools district residents will again see a levy on their ballots in November.
But this time, they won’t be asked for increased taxpayer dollars.
The school board voted Wednesday night to pass a resolution of necessity, a procedural requirement that’s the first step in putting a levy renewal on the ballot.
The board will seek to combine two five-year levies, one originally approved for 6.9 mills and the other for 7.5 mills.
The 6.9 mill levy was first approved by voters in 1992 and was most recently renewed in 2022. The 7.5 mill levy was first approved by voters in 2023.
The two levies are “dollar levies,” meaning they collect a set dollar amount each year, with collection rates adjusted accordingly.
Treasurer Bradd Stevens said the actual millage rate collected for the two levies is about eight mills.
Combined, the two levies collect approximately $4.8 million a year, according to Supt. Rob Peterson.
“We’ve been on the ballot the last two elections for additional funds and clearly heard our residents and our taxpayers say no,” Peterson said.
“We felt it’s important at this point, rather than going back on the ballot for additional funds, to go on the ballot just to secure the funding that we already have over the next five years.”
The current levies are set to expire in 2027 and 2028, respectively.
Peterson said the board will need to make additional cuts in the spring to prevent an operating deficit. But if the renewal passes, those cuts will be less extreme.
He estimated if the combined renewal levy passes, the district will only need to shave around $500,000 off its operating budget. If not, cuts could reach the $1.5 million mark.
Even then, Stevens said he believes new money will be needed eventually to keep the district afloat.
He estimated the Madison Local Schools will have between three and four days’ worth of operating funds on hand on June 30, the end of the fiscal year.
“We’re going to continue to try to seek new money, whether that’s through an earned income tax levy or a traditional income tax levy or a property tax levy, that is something the board has to come to the conclusion on,” he said.
“We have to seek new money to be able to keep up with the rising cost of everything else doing business.”
Madison isn’t the only area district struggling financially amid declining enrollment, soaring health insurance premiums and inflation. Mansfield City Schools and Lexington Local Schools have both had to make staffing cuts in recent years.
“It’s statewide, and it’s getting worse. As long as the state legislature continues to cut public funding, it’s going to continue to trickle down to teachers’ jobs,” Stevens said. “The state has to start funding us at the level it costs to educate.”
Board approves community taxation policy
The board also approved a community taxation policy.
The policy states its purpose is to set clear targets and guidelines for generating tax revenue and create a long-term plan that minimizes the district’s need to request additional revenue from taxpayers.
The board-approved language states policy aims to reduce costs, adjust tax structures to promote fairness among Madison residents and “establish clear and transparent indicators for determining when new tax requests are necessary.”
The policy also requires the treasurer to submit a “Benchmark Report” once a year. The board can vote to approve the report if there are no concerns.
If the board determines there are concerns with the report, the superintendent and treasurer will issue a review and recommendations to address those concerns within 90 days.
That report will contain information on:
- Enrollment trends
- General fund sensitivity analysis.
- Monthly operating cash flow report.
- The five-year forecast.
- Taxpayer affordability analysis comparison.
- General fund balance as % of expenditure (or Days of Cash) comparison.
- Operating levy cycle comparison.
- Current property tax rates.
- Outstanding debt balances and associated interest rates.
- The allocation of all revenue to the general fund by individual source.
- Key historical and current demographics of the District including, but not limited to:
- Total population
- Population under 18
- Population 65 and over
- Population at or below the poverty level
- Population receiving social security and/or retirement income
- Median home value
- Median family income
- Renter occupied housing
- Average employment rate of people between 20 and 64
- Assessed valuation history by specific category.
The policy sets targets and benchmarks to guide the district’s financial decisions, including requests for new property or income taxes or tax reductions.
One target is to maintain a general fund operating balance of between 60 and 120 days’ worth of operating expenses.
Other goals include waiting at least 10 years between new levy requests and keeping property taxes at the 20 mill floor.
The new taxation policy was developed with assistance from David Conley, a financial consultant whose focus includes school districts and other public entities, to develop a long-term taxation policy.
Conley met with the board to develop the policy during public sessions over the course of several months last year.
The full taxation policy is attached below.
