A-C Levy Information – Issue 1
*Issue 1 Ballot Language: Shall an income tax of one percent (1%) on the earned income of individuals
residing in the school district be imposed by the Amanda-Clearcreek Local School District for a period of five
(5) years, beginning January 1, 2011, for the purpose of current operating expenses?
1. Why do we need an earned income tax levy?
 State funding has leveled off and several state grants and subsidies have been eliminated. Ohio
schools have been told since June, 2010 to expect another 8-10% cut in state funding for 2011
and 2012 school years. That amount would reduce Amanda-Clearcreek’s funds another
$750,000 to $930,000 the first year.
 Enrollment growth in recent years has slowed and even decreased at times. State funding is
based in large part on enrollment.
 New housing/construction- that generate additional property tax dollars- have stagnated.
 The rate of revenue increases is not keeping pace with the rate of increase in expenses since our
last operating levy in 1989. Many of these expenses are set by factors out of the Board’s
control (federal education legislation, special education costs, rising health care costs, rising
electric and heating rates, etc.).
2. Will this earned income tax levy affect Retirement/Fixed/Pension income?
3. Explain the earned income tax?
No
Earned income tax –(our Issue 1) Collected on all earned income including self-employment
income, wages, salaries, tips and other employee compensation, but does not include retirement
income, social security, real estate rental profits, lottery winnings, interest, dividends, capital
gains, child support or state unemployment benefits.
Traditional income tax – Collected on all individual income with the exception of social
security benefits, disability and survivor benefits, property received as a gift or inheritance, and
workers comp benefits. Estate income that is taxed is paid by the estate after the time of death.
4. Will this earned income tax levy affect the property tax? No, property tax is based on
“assessed value” (35% of the true/sale value of a residential property). Our district is at the
residential property tax floor (20 mills or 2% of the assessed value required to be paid by state
law) and can go no lower. Supporting the earned income tax will keep the school strong and
property values higher. When local property taxes go down because the school district has cut
staff, programs and services, homeowners will see an increase in their property tax bill to
ensure the school’s local support does not go below the minimum 20 mill floor.
5. Does the state provide more funding for dual routing? If yes, what is the difference?
Yes. The State provides for transportation funding for exceeding efficiency targets they set. These
targets are based on daily ridership per bus and pupil density of the District. The District has more
riders per bus using dual routing due to the same bus being used for two routes. The district exceeded
this target in 2008-2009 and is eligible to receive up to a 10% increase in transportation funding. The
total transportation fund exceeds $600,000 each year.
6. Why is the levy for 1% and how long will it last?
The levy is for 1% because we know it is a reasonable rate to try to meet the needs of our District.
Knowing that we can expect an 8-10% reduction in state funds, this levy is even more critical now and
will just cover that loss of state funding. We have already made over $900,000 in spending reductions
Paid for by the A-C Levy Committee, Christi Stalter, Treasurer, P.O. Box 211, Amanda, OH 43102
between 2008 and 2010. Due to the uncertainty of the federal, state, and local economy, we will
reevaluate our needs in 5 years. The District will then have the option to go to the ballot for a renewal
of the same rate, a different rate, or to let the tax expire.
7.
Explain that the teaching staff did not get an 8% increase over the last 4 years.
The current 2010-2011 staff salaries- including teachers, cooks, secretaries, custodians and
administrators- were frozen, 0% raise with no experience incentive. The 2009-2010 staff contract
included a 0% raise on the base salary with an incentive step ranging from $49 to $1,615 depending on
years of service for teachers and bus drivers, only. 2008-2009 included a 1.5% increase on the base
salary, and the 2007-2008 staff received a 2.5% increase on the base salary.
What will Amanda-Clearcreek do with the proceeds from a 1% earned income tax?
Looking forward for the next 5 years, schools have been told to expect at least an 8% reduction in state
funding, equal to $750,000 at Amanda-Clearcreek for the 2011-2012 school year. The 1% earned income tax is
projected to generate $1.125 million per year, starting on January 1, 2011. With the cut from the state, the
operating levy’s value will be reduced to $375,000 the first year.
The district has already cut and reduced spending more than $900,000 since 2008. The Board of
Education will not ask voters for more financial support before the 5 year term of Issue 1 expires. Planning for
district expenses to increase by 3% each year and revenue to stay the same, no additional cuts will need to be
made when the levy passes on November 2nd. Very few of the cuts already made can be undone, either.
 The Board will be able to support extra-curricular activities (clubs and athletics), but student
participation fees will be higher than they were before the 2010 school year.
 Explore high quality learning opportunities for students through online and distance learning programs.
 Share personnel and combine positions with neighboring districts as vacancies permit.
 Reinstate art, gym and computer classes to fulltime positions, K-12.
 Retain staff through sensible wages supported by financial climate and budget.
What will Amanda-Clearcreek do if the income tax levy fails?
The promised 8% reduction in state funding for the 2011-2012 school year will cause the district to cut
another $750,000 from the budget without additional local support. There will be few areas of the budget
unaffected by a cut of this size and will be done by May, 2011.
 Eliminate all extra-curricular activities, programs and classes not required for graduation.
 Reduce utility costs by shortening the school day and closing facilities evenings and weekends.
 Reduce staff costs equivalent to 9 teaching positions, 2 administrative/supervisory positions and 3
custodial/clerical positions.
 Eliminate 2 more bus routes; decrease bus stops at individual homes and use collection point stops.
*All answers above were compiled by Jennifer Smith, District Treasurer, and Mike Johnsen, District
Superintendent. Any questions can be directed to them: [email protected] or at 740-969-7262;
[email protected] or at 740-969-7250.
*Further information can also be found at the following:
www.ode.state.us
www.amanda.k12.oh.us
www.fairfieldelections.com
Paid for by the A-C Levy Committee, Christi Stalter, Treasurer, P.O. Box 211, Amanda, OH 43102