Protecting Our Community's Excellence

Sylvania Schools has long been defined by a tradition of excellence, powered by a community that deeply values quality education and the potential of every student. For a decade, the district has stretched every dollar, carefully managing resources, maximizing operational efficiencies, and extending existing funding without compromising the exceptional academic programs, robust extracurricular opportunities, and dedicated support services that make our schools thrive.

As we look ahead, this issue is more than just a financial proposal; it is a vital investment in maintaining the high standards our families expect, protecting our property values, and ensuring our students remain prepared to lead in an ever-changing world.

What is on the November 3, 2026 Ballot?

On November 3, 2026, Sylvania voters will consider a 1% Earned Income Tax paired with a 1.7 Mill Property Tax Reduction.

This structure directly addresses voter feedback by providing relief to property owners while securing the operational funding our classrooms rely on:

• Sustainable Operational Support: The 1% Earned Income Tax creates a stable revenue stream for day-to-day district operations.
• Property Tax Relief: The 1.7 Mill Property Tax Reduction decreases property taxes by $35 annually for every $100,000 of assessed home value.

Reassuring Our Neighbors: Who Pays the Earned Income Tax?

The proposed 1% Earned Income Tax responds to the concern that voters, including our senior population, voiced as a result of the May election. This protects seniors and retirees on fixed incomes. The tax applies strictly to earned income—it does NOT apply to retirement income.

Taxable Earned Income Includes:

• W-2 wages, salaries, tips, and employee compensation (calculated after pre-tax deductions such as traditional 401(k)/403(b), health, dental, vision insurance premiums, FSA, and HSA contributions).
• Net self-employment profit from sole proprietorships, independent contracting, or partnerships.

Earned Income Tax Does NOT Apply To:

• Social Security and Pension income
• IRA, 401(k), 403(b), 457, and Roth distributions
• Investment income (interest, dividends, and capital gains)
• Estate, trust, inheritance, gifts, life insurance, disability, Workers' Comp, and alimony distributions
• All other retirement benefits and distributions

Note: Only residents of Sylvania Schools pay the earned income tax. Non-residents working within district boundaries do not pay.

Clear Financial Breakdown & Property Tax Relief

The combination of an earned income tax and a property tax reduction ensures a balanced approach across our community.

Estimated Annual Cost: 1% Earned Income Tax:

Annual Earned Income        Estimated Annual Cost        Estimated Monthly Cost

       $50,000                                     $500                                       ~$41.67

       $100,000                                   $1,000                                     ~$83.33

       $150,000                                   $1,500                                     ~$125.00

       $200,000                                  $2,000                                     ~$166.67

       $250,000                                  $2,500                                     ~$208.33

Estimated Annual Savings: 1.7 Mill Property Tax Reduction:

Assessed Home Value              Annual Property Tax Reduction

          $100,000                                     $35 reduction

          $200,000                                     $70 reduction

          $300,000                                     $105 reduction

          $400,000                                     $140 reduction

          $500,000                                     $175 reduction

Reframing the Operating Levy: An Essential Investment in Excellence

An operating levy is the cornerstone of daily learning. It provides the essential, flexible resources required to power our classrooms, support our educators, and maintain the high educational standards our community relies on every single day.

Operating levy funds directly sustain:

• Top-Tier Staff: Recruiting and retaining high-quality teachers, counselors, and support staff.
• Modern Classroom Tools: Updating instructional technology, materials, and learning software.
• Targeted Academic Support: Strengthening math and reading intervention programs for students who need extra help.
• Essential Services: Sustaining student support, nursing, mental health, and safety services.
• Operations & Safety: Ensuring reliable student transportation and safe, well-maintained facilities.
• Extracurricular Programs: Preserving vibrant athletics, arts, music, drama, and club offerings that enrich student growth.

Why Now? Fiscal Responsibility Meets Financial Reality

A 10-Year Track Record of Fiscal Discipline

Sylvania Schools has demonstrated exceptional stewardship of taxpayer dollars. The last time Sylvania taxpayers approved additional operating funds was in 2016.

For 10 years—double the state average—the district has stretched those dollars while maintaining top-ranked academic outcomes:

• $2 Million+ in Recent Reductions: Over the past two years, the district proactively cut more than $2 million by reducing budgets, trimming teaching, counseling, and media specialist positions, and reducing administrative salaries.
• Streamlined Leadership: This past summer alone, the district absorbed three administrative positions, saving $380,000 heading into Fiscal Year 2027.
• Low Overhead: Administrative costs per pupil remain among the lowest in Lucas County, ensuring resources go directly into classrooms.
• Controlled Expense Growth: Since 2019, general fund expenses have grown at an average annual rate of just 2.93%—significantly below broader economic inflation.

External Financial Pressures

Despite rigorous internal cost controls, external forces outside local control continue to strain the operating budget:

• Inflation & Utility Costs: Higher costs for transportation fuel, building utilities, maintenance, and essential classroom materials.
• Complex Student Needs: Rapidly growing costs for specialized special education and student support services.
• State Funding Reality: Under Ohio’s Fair School Funding Plan, state aid is calculated based on local community wealth. Because Sylvania has higher property values, the state assumes local taxpayers will fund a larger share, resulting in declining state aid (projected to cover only ~10% of per-pupil revenue by 2027).
• HB 920 Limits: Ohio’s House Bill 920 prevents existing property levies from generating increased revenue when home values rise. A 28.8% property value increase in 2024 resulted in only a 2% revenue increase for the schools.

The Five-Year Forecast & Urgency

Because expenditure growth outpaces flat revenue, the district’s cash balance is projected to decline from ~$28.8 million at the end of FY 2026 to ~$12.3 million by FY 2028. Without new revenue, the balance drops to (-$1.4 million) in FY 2029 and (-$18.7 million) by FY 2030.

Because Ohio law prohibits school districts from ending a fiscal year in a deficit, action must be taken now.

Protecting Property Values & Protecting Our Future

The quality of a community's public schools is directly linked to the strength of its local economy and property values.

The Stakes of Failure

If the levy does not pass on November 3, 2026, the district will be forced to execute $11.6 million in immediate expenditure cuts for the 2027–2028 school year to balance the budget. This would result in:

• Significant reductions in teaching, administrative, and support staff.
• Deep cuts to athletics, music, arts, drama, and gifted services.
• Elimination of high school transportation and reduction of elementary/junior high bussing to the state minimum (only students living over 2 miles away).
• Reduced student mental health supports, field trips, and course electives.

The Power of Passing Issue 4

• Strong Schools, Strong Home Values: Research consistently demonstrates that strong, top-rated school districts attract homebuyers, increase neighborhood demand, and help homes sell at higher values with stronger appreciation.
• A Vibrant Local Economy: Well-funded public schools attract businesses, create local jobs, and ensure Sylvania remains one of the premier communities in Northwest Ohio.
• An Investment in Kids: Most importantly, passing this levy ensures that current and future Sylvania students continue to receive the top-notch education, care, and preparation they deserve.

Together, we can protect our schools, support our students, and preserve the strength of Sylvania.