Factual information about district finances, operations, and Board action
The Orrville City Schools Board of Education has placed a 1% earned income tax issue on the November 2026 ballot for community consideration.
If approved by voters, the issue would be in place for 5 years and would support the district’s day-to-day operating expenses. This is not a building project.
The purpose of this article is to provide factual information about why the issue is on the ballot, what financial pressures the district is facing, what the district has already done to reduce costs, and how an earned income tax works.
What will be on the ballot?
The November 2026 ballot issue is a 1% earned income tax for Orrville City Schools.
If approved, the revenue would be used for general operating expenses, including classroom instruction, transportation, utilities, technology, safety, student services, building operations, and other day-to-day costs needed to operate the school district.
The issue would be for 5 years.
Why is the issue on the ballot?
Orrville City Schools is facing several financial pressures at the same time.
The district’s state funding is currently estimated at approximately $6.6 million, which is about $1.2 million less than FY2024 funding levels. A major factor in this reduction is that the current state funding formula is still using 2022 cost inputs, even though today’s costs are higher.
Ohio’s school funding formula considers several factors, including student needs, local property values, income, and local capacity, when determining state support for school districts. (Ohio Department of Education)
For Orrville City Schools, the local impact is significant:
Financial Information | Amount |
|---|---|
Current State Funding Estimate | Approximately $6.6 million |
Reduction Compared to FY2024 | Approximately $1.2 million less |
Ballot Issue | 1% Earned Income Tax |
Duration | 5 Years |
Purpose | General Operating Expenses |
What is creating financial pressure?
Several factors are affecting the district’s long-term financial outlook:
Reduced state funding: The district is receiving approximately $1.2 million less than FY2024 levels.
2022 state cost inputs: The state funding formula is still using older cost figures, even though current operating costs have increased.
Off the 20-mil floor: Orrville City Schools was previously on Ohio’s 20-mil floor and has now been removed from it. The 20-mill floor is part of Ohio’s school property tax system and is intended to ensure a minimum level of local operating support for school districts. Being off the floor affects future calculations of local property tax revenue and means future growth in local property tax revenue is expected to be limited. (Ohio Legislative Service Commission)
Rising expenses: Costs continue to increase for salaries, benefits, transportation, utilities, insurance, instructional materials, technology, special education, safety, and student support.
Possible piggyback impact: If adopted locally, this measure could further affect future district revenue and is another factor the district must consider in long-term planning.
Together, these factors create a tighter budget and reduce the district’s flexibility when planning staffing, programs, services, and student opportunities.
Educational Choice Programs
Ohio has also expanded educational choice programs, including the Traditional EdChoice Scholarship Program and the EdChoice Expansion Scholarship Program. These programs are part of the broader state funding environment that public school districts must consider when planning future budgets.
According to the Ohio Department of Education and Workforce’s 2025 Scholarship Annual Report, the Traditional EdChoice Scholarship Program served 42,607 students and awarded more than $283 million during the 2024–2025 school year. The EdChoice Expansion Scholarship Program served 100,939 students and distributed nearly $493 million during the same year. Combined, those two programs totaled approximately $776 million statewide. (Ohio Department of Education)
For the 2025–2026 school year, the state lists EdChoice scholarship amounts at $6,166 for grades K–8 and $8,408 for grades 9–12. (Ohio Department of Education)
What has the district already done?
The Board of Education and district administration have taken steps to reduce expenses and manage district resources carefully.
Recent cost-saving measures include:
Eliminating permanent substitute teacher positions in buildings.
Freezing administrator pay.
Some positions were left unfilled due to retirements and attrition.
Creating efficiencies in the nutrition service program.
Reorganizing staff assignments where possible.
Reviewing department budgets for potential savings.
Delaying purchases when practical.
Reducing discretionary spending.
Seeking grants and additional funding opportunities.
The district will continue to review expenditures and look for efficiencies while working to preserve services for students.
How does an earned income tax work?
A school district earned income tax applies to earned income, such as
Wages
Salaries
Tips
Commissions
Self-employment income
The earned income tax does not apply to:
Social Security benefits
Pension or retirement income
Retirement account distributions
Investment income
Workers’ compensation
Certain disability income
The Ohio Department of Taxation explains that Ohio school districts may use either a traditional income tax base or an earned income tax base, and Social Security income is not included in either school district income tax base. (Ohio Department of Taxation)
As a result, residents whose income comes only from retirement, Social Security, or investment income would generally not pay the earned income tax.
Possible budget considerations
Without additional operating revenue, the Board may need to consider further reductions to staffing, programs, services, student activities, and other operating expenses.
The district will continue to plan carefully, review budget options, and communicate factual information with the community.
Learn more
Orrville City Schools will continue to provide factual information about the November 2026 operating issue through the district website, newsletters, community presentations, and frequently asked questions.
Community members are encouraged to review the available information and make an informed decision when voting in November.
Public Information Notice
This information is provided solely to explain district finances, operations, and Board action. Orrville City Schools does not use district resources to advocate for or against the passage of a ballot issue.