New Lebanon is attempting to pass a renewal levy that failed last November in a rare rejection. The five-year, 0.75% renewal income tax levy was rejected by a fairly wide margin (42% for and 58% against), according to official results from the Montgomery County Board of Elections.
But the levy does not expire until the end of 2025 and the money will continue to be collected until then, so the district chose to try again.
Jefferson Twp.
According to Jefferson Twp.’s five-year forecast, which is a school-district generated document laying out where the district expects to be in five years financially, Jefferson Twp. would have spent its funds by the end of the 2026-2027 school year without new revenue.
Under Ohio law, school districts have to operate with a positive cash balance, said school treasurer Craig Jones. The district received a notice from the state in December saying they would need to make changes to avoid spending into the red.
The district has planned cuts whether or not the levy passes. According to documents on the district’s website, those cuts include cuts of 4 certified staff next school year: one substitute teacher, going to a daily rate; one credit recovery teacher, one foreign language teacher and one third grade teacher. Two paraprofessionals and one cook are expected to be cut.
Cost-of-living-adjustment increases have been dropped from 1% increase to 0% increase for years 2026to 2029.
Some additional cuts have been discussed but have not been finalized.
District superintendent Rusty Clifford said the school board has not had discussions about what will happen if the levy does not pass.
New Lebanon
The levy that was rejected last November and that is back on the ballot in May is one of two income taxes in the New Lebanon school district. The other is a permanent 0.50% levy.
New Lebanon’s five-year financial forecast says the school district takes in a total of about $2.2 million per year in income tax revenue, as part of its roughly $15 million annual budget.
“The loss of funding would mean significant adjustments to our budget and programs,” said New Lebanon superintendent Greg Williams. “A number of changes are under consideration. We will decide on what changes will be made if the renewal does not pass in May.”
Renewal levies keep tax rates at the same level (0.75% in this case), but extend them into future years. Voter rejection of renewal levies is relatively rare.
According to a recent Dayton Daily News analysis of school finances, New Lebanon has kept more than a full year worth of expenses in reserve, more than almost any other district in the region.
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