LEXINGTON — Residents of Lexington Local School District will likely see an income tax levy on their ballots in May.
The Lexington school board voted Wednesday to begin the process of putting an income tax before voters. District officials said the plan is to propose a 1.5-percent traditional income tax.
The levy would generate $9.15 million in annual revenue, according to a resolution passed by the board.
What is a traditional income tax for schools?
Traditional income taxes are based on modified adjusted gross income and include some forms of retirement income like pensions and IRA distributions. Social Security benefits, as well as disability and survivor benefits, are not subject to traditional school income taxes.
In exchange, Treasurer Jason Whitesel said the district will not ask voters to reapprove an existing property tax levy due for renewal in May, which generates around $2.7 million each year.
He also said district leaders intend to stop collection of a different $2.7 million property tax levy at some point, though it doesn’t expire until in 2034.
Whitesel said shifting the district’s revenue streams to rely less on property taxes and more on income taxes is in line with Lexington’s new taxation policy, which board members also approved Wednesday night.
The policy was developed over the course of six months with financial consultant David Conley during public board meetings. It aims to diversify the district’s revenues and shift some of the burden off Lexington’s retirees.
Whitesel said more than 30 percent of Lexington school district residents are senior citizens living on Social Security or another form of fixed income. Many have seen sharp tax increases on properties they’ve owned for years, if not decades.
“If somebody were to lose their job, somebody takes a pay cut, somebody’s on a fixed income, a 1.5-percent (income tax) is a much fairer representation than a property tax that’s tied to their home that is now ballooned in value,” Whitesel said.
Superintendent Jeremy Secrist said the levy is necessary due to changes in state funding.
School officials across the state have said the most recent state budget, approved by lawmakers earlier this year, did not take into account the rising costs of educating students.
According to an analysis by Policy Matters Ohio, Lexington’s share of state funding will decrease by around $911,021 over the next two fiscal years.
“We appreciate our teachers’ efforts each and every day, and look forward to working with them, and all of our great staff, to help explain to our public the need for our upcoming levy,” Secrist said.
“In spite of the state’s relentless attacks on public education, and the catastrophic effects it’s had on our district funding, we will continue to work on behalf of our students and community to keep our district healthy and strong,” he said.
“We will not let the state legislature take that passion from us, and we’ll work together to ensure our school community understands the importance of continuing to support our staff and students.”
Board approves cost cutting “blueprint” to submit to the state
Board members also voted on a deficit-reduction plan to submit to the Ohio Department of Education and Workforce.
Lexington was required to submit the plan based on its most recent financial forecast, which predicted the district would run out of operating funds before the end of the 2026-2027 school year.
Lexington Local Schools has operated in deficit spending for the last several years, according to recent financial forecasts. District officials have cited rising costs and cuts in state revenue as “serious financial challenges.”
Lexington isn’t alone. Madison Local and Mansfield City Schools have both had to submit deficit reduction plans this year.
Lexington’s plan includes staff cuts and revenue boosting measures the district could take this spring and during the 2026-2027 school year.
Whitesel said the district trimmed costs during the spring semester by leaving an assistant transportation director position unfilled. The district’s transportation director resigned last month; the assistant director will be lead the department for the remainder of the school year.
The district will also adjust its contract with the Village of Lexington to have one school resource officer instead of two, starting Jan. 1.
The rest of the proposed changes wouldn’t take effect until the 2026-2027 school year. They include:
- Eliminating two administrative positions
- Eliminating 13.5 teaching positions
- Eliminating six support staff positions
- Discontinuing the 2026 summer STEAM camp
- Obtaining board certified behavior analyst services through the Mid Ohio Educational Service Center
- Charging an additional annual technology fee of $50 for students in grades K-12
- Increasing preschool tuition from $125 to $150 per month
- Charging a $100 pay-to-participate fee per sport for students in grades 7-12
- Increasing school fees for elementary students from $30 to $50 annually
- Adding a preschool snack fee of $100 per student annually
If enacted in full, Whitesel projected the plan would reduce district expenditures by $1.96 million over the course of the 2026-2027 school year.
Nevertheless, the treasurer called the plan a “blueprint” and said it’s subject to change.
“A lot of it’s going to depend on attrition and retirement. Certainly there’s going to be some RIFs there,” he said. “Nothing’s set in stone yet.”
Whitesel said Lexington is in a “precautionary” financial state, but is not under state fiscal oversight.
“We’re doing everything we can to stay out of (fiscal oversight),” he said. “That’s why we’ve had these meetings with the community. We’ve talked about options that we have. We’re doing everything we can to address everything that’s happened at the state.”
Whitesel’s deficit reduction plan shows that even with the proposed cuts, Lexington would continue to operate in deficit spending, with expenditures outweighing revenues by $1.62 million during the 2026-2027 school year.
