Athens City School District aims to make an income tax levy permanent

Voters in the Athens City School District in Ohio will decide this fall whether to turn a 1% earned-income tax into a permanent levy instead of one that must be renewed periodically. The current levy runs through the end of 2028. Voters first approved it in 2006 and have renewed it three times, most recently for a ten-year term starting in January 2019, with nearly two-thirds in favor. The district's treasurer says the levy now makes up 13.8% of the operating budget and brings in more than $5 million.

District officials describe a tight financial picture. The superintendent says enrollment is falling and a budget shortfall is projected. The district has reduced staff through attrition, including one teacher at each grade from first through sixth over two years. Officials say a December 2025 state bill limiting revenue growth for districts on Ohio's 20-mill floor, plus a separate state bill on fixed-sum levies, will move the district above the floor and cost it millage. In March, the district projected a $600,000 loss in millage growth next year and said cash reserves could run out by 2030.

The superintendent says renewal would keep the district more stable for one to two years but would not end its difficulties, and without it the cash would run out two years sooner. The treasurer says that if the levy expires without renewal, the district projects more than $6 million in cuts within three to five years. The state says it provided record education funding in fiscal year 2025, while the superintendent says that increase has not kept up with inflation and rising costs.