BOARD OF EDUCATION APPROVES EARNED INCOME TAX FOR THE

NOVEMBER BALLOT

On August 19, 2008, the Anthony Wayne Local Schools Board of Education

unanimously voted to place a one-half percent earned income tax levy on the November

4th ballot. The earned income tax levy was proposed due to the failures of three new

property tax levy issues on the May 2007, March 2008, and August 2008 ballots. Senior

citizens and retirees currently living on a fixed/retirement income also expressed their

concerns about being able to afford additional property taxes. Following the failed levy

this past August, after perhaps one of the most comprehensive levy campaigns ever seen in the Anthony Wayne School District, the Board of Education decided to seek an

alternative avenue to help secure the additional funds needed to maintain the educational opportunities for students within the school district.

During the various levy campaigns, senior citizens and retired individuals raised

concerns about the affordability of new property taxes for those on a fixed income. The

earned income tax is a way to increase the school district’s revenue without increasing

the amount paid by community members not presently earning an income. Retirement

income from pensions and annuities, interest, ordinary dividends, alimony, capital and

other gains, IRA distributions, and rental real estate income (if not income from self-employment) are not taxed under this type of system. Thus, the earned income tax levy

will not affect senior citizens and retired persons living on a “fixed” retirement income.

According to 2008 data from the Ohio Department of Taxation, 170 public school

districts in the State of Ohio use either a traditional or earned income tax to help fund

their districts. Perrysburg, Bowling Green, Otsego, Elmwood, Swanton, Liberty Center,

Patrick Henry, and Defiance schools use a traditional income tax, while Eastwood

Schools uses an earned income tax. A major benefit to both the traditional and earned

income tax is that the revenue for the school district grows over time. One of the reasons

public schools must continue to ask the voters for additional funds is that revenues from

property tax levies remain stagnant, while costs continue to increase. Over the last two

years, the Anthony Wayne Local School District has cut three million dollars of

spending. By taking advantage of the attrition of personnel, especially teachers, the

district has been able to maintain a small carryover balance over the last two years.

Approximately 52 employees (33 teachers) who have either retired or left the district over

that time period have not been replaced.

However, deep cuts and fiscal responsibility alone will not solve Anthony

Wayne’s financial shortfall. Costs continue to rise and additional students continue

enroll in the school district. Despite the fact that Anthony Wayne spends approximately

$ 1,300 less per pupil than the State average, additional revenue is needed to maintain the

quality of the educational programs offered by the district. All community members are

encouraged to carefully consider the earned income tax levy issue on the November 4

ballot. The earned income tax does not affect all individuals the same. This issue has

been proposed through careful consideration of all of the information learned by the

Board of Education over the last two years and three levy campaigns. If you would like

more information about the earned income tax, please call Kerri Johnson, treasurer, Anthony Wayne Local Schools.