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2023 Levy

Post Election Update

On November 7, 2023, the Emergency Operating Levy that was on the ballot failed to pass. The Board of Education will discuss next steps at its regularly scheduled meeting on November 9, 2023 at 6:00.

Click here to download the Levy Infographic.

Milford Schools Board of Education Votes to Place 5.99 Mill Emergency Operating Levy on the Ballot

At the April board meeting, the Board of Education voted to place a 5.99 mill ($7,158,050) Emergency Operating Levy on the November 2023 ballot. The District passed a bond in 2021 to build a new Middle School, which is expected to open for the 2025-2026 school year, but hasn’t placed an Operating Levy on the ballot in ten years. As a result of how schools are funded in Ohio, most districts ask their communities for operating levies every two to three years. 

Passage of an Operating Levy would keep the district out of fiscal distress. Currently, the District is projected to enter Fiscal Caution in 2024 and Fiscal Emergency in 2025. School Districts in Fiscal Emergency are often subject to reductions of student programs and support, as well as associated staff, by the Ohio Auditor of State, although local control is still held. An Emergency Operating Levy is temporary and, if passed, would last five years.

During the board meeting, Superintendent John Spieser and Treasurer John Espy reviewed financials, answered questions asked by Board Members at the March 2023 Board Work Session, and presented the board with four options to consider. These options included:

  • 1.25 Earned Income Tax
  • 5.99 Mill Operating Levy
  • 5.99 Mill Equivalent Emergency Levy
  • 4.95 Mill Equivalent Emergency Levy 

The presentation can be found here. The April Board Meeting discussion can be viewed here.

Since January, the Administration has worked to reduce the needed millage by 30% through debt restructuring and additional operating efficiencies, including reductions in contracted services and staff. Student programs and supports were not impacted by the changes made to reduce millage. 

If passed, property owners in the district would pay an additional $17.47 per month per $100,000 of appraised property value for five years. 

For previous discussions about Milford finances and levy options, please see these resources:

November 2023 Levy FAQs

Do Milford Schools Receive Additional Funds as Property Values Increase?

89% of Milford Schools funding from the community is Outside Millage and does not increase as property values increase. Outside Millage is subject to HB 920, which was passed in 1976 and prevents increases as property taxes increase. Please see this presentation on Inside and Outside Millage and the impact to Milford Schools to learn more. 

Why did Milford Schools decide to place a levy on the ballot?

  • Schools in Ohio are funded primarily by their communities. In Milford, the state contributes 34% of the funding and taxpayers contribute the other 66%. (updated for FY24)
  • Many school districts in Ohio run a levy for operating funds every 3-5 years and Milford has not asked the community for a new Operating Levy in a decade. Due to multiple factors, including operating in a fiscally responsible manner, Milford has been able to stretch the dollars from the 2013 Operating levy over a longer horizon than the typical levy cycle. 
  • At the April 2023 Board Meeting, the Board voted to place an Emergency Operating Levy on the November 2023 ballot. 

What options did the Board consider?

During the April Finance Committee Meeting and Board Meeting, the Board was presented with four options to consider. These options, in order of preference and in order of how resolutions were presented for a vote, included:

  • 1.25% Earned Income Tax (offers long term financial stability at current rate of spend and would significantly limit the need for future property levies)

  • 5.99 Mill Operating Levy (continuous operating levy, normally run every 3-5 years, last one placed on the ballot and approved in 2013)

  • 5.99 Mill Equivalent Emergency Levy (short term operating levy, would expire in 5 years and would need additional funding from the community within 3 years, allows time to further explore community interest in shifting to an earned income tax funding model)

  • 4.95 Mill Equivalent Emergency Levy (short term operating levy, would expire in 3 years and would need additional funding from the community within 2 years, allows time to further explore community interest in shifting to an earned income tax funding model) [Note: no resolution for this option was offered because the 5.99 Mill Equivalent Emergency Levy was passed by the board]

The April Board Presentation can be found here. 

The April Board Meeting discussion can be viewed here.

What is an Emergency Levy? 

  • An emergency levy is for a specific amount of money, with the millage rate set annually to collect this amount.  By Ohio law, an emergency levy cannot last longer than five years and must be renewed or it will expire. The amount of money collected with this levy does not grow, even with new construction.  Renewing an emergency levy does not increase property owners’ taxes.  Prior to the end of its expiration, the community would need to vote for Milford schools to be funded through a different mechanism (such as an Earned Income Tax), convert the Emergency levy to a Substitute levy, or place an Operating Levy on the ballot. 

  • 266 Ohio school districts have utilized this funding source in the last 3 years. That means 43.5% of all Ohio school districts utilized this approach.  

Why does Milford need a levy this year?

  • Inflation has meant that, even though our spending and headcount have remained flat, the costs to operate our schools are rising.  MEVSD is capped from the state with the Fair School Funding plan utilizing costs from the 2017-18 school year. This includes employee costs, but also everything from materials used in our classrooms, to technology, to energy costs. 

  • Milford is not alone in this experience, all school districts are facing rising operating costs.

  • Because of how schools are currently funded, this increase in costs means we are not keeping pace with funding we receive and are in deficit spending.

  • Passage of an Operating Levy would keep the district out of fiscal distress. Currently, the District is projected to enter Fiscal Caution in 2024 and Fiscal Emergency in 2025. 

  • School Districts in Fiscal Emergency are often subject to reductions of student programs and support, as well as associated staff, by the Ohio Auditor of State, although local control is still held.

  • In addition, we are in the process of refinancing our debt and our rating is important. Our bond counsel, underwriters, and advisors all strongly recommended that we have a levy on the ballot prior to their making a rating determination the week of April 24th.

  • Since January, the Administration has worked to reduce the needed millage by 30% through debt restructuring and additional operating efficiencies, including reductions in contracted services, as well as eliminating two teaching positions and two administrator positions.  

  • Student programs and supports were not negatively impacted by the changes made to reduce millage. 

Would cuts to student programs and supports occur if the levy does not pass in November?

  • We are in deficit spending and, absent additional funding, are projected to enter Fiscal Caution in 2024 and Fiscal Emergency in 2025. 

  • If the levy does not pass in November, the district will need to consider permanent reductions in order to keep a future levy millage request from increasing above 5.99. 

  • These cuts would be permanent, and examples could include a combination of: reduced transportation, reduced course offerings at the High School such as AP and honors, reduction in elementary gifted services, increased classroom ratios, teacher and staff reductions, and changes to how extracurriculars are funded, with the possibility of shifting to a “pay to play” model.

Has the district cut costs to manage spending?

  • Yes. We have taken a hard look at costs in order to reduce the millage ask to the community as much as possible without impacting student service and supports.
  • Since January, the Administration has reduced the needed millage by 30% through debt restructuring and additional operating efficiencies, including reductions in contracted services, as well as eliminating two teaching positions and two administrator positions. 
  • Milford Schools is diligent in managing our costs. 
  • Our per pupil spend is in the middle relative to other districts in Clermont County (Milford: $11,743; Clermont County Average: $11,795) 
  • It is lower than many other nearby districts in Hamilton County (Sycamore: $15,658; Loveland: $12,813; Indian Hill: $17,200)
  • At this level of spend, our academics continue to be strong – with an estimated 4.5 stars on our State Report Card. 
  • We are funding the right things to focus on students and their education and to remain a destination school district.

What about all of the construction projects? Why are we spending so much on capital projects now if the District is deficit spending?

  • The vast majority of the cost of our new Middle School is covered by the recent bond issue.
  • However, per the OFCC, construction costs are up 18%.
  • We’ve been able to cut costs where we can, but because of the Ohio building requirements, are limited in some reductions we are able to make. We are currently about 10%-12% above the initial budget.
  • In addition, we have known that based on the footprint of the new Middle School, and that due to water retention requirements, we would need to demolish the adjacent athletic buildings.
  • We had a third party come in and look at our Auditorium and, because of its age and needed repairs, it would be both safer and less expensive to make the updates at once rather than over the course of several years.
  • As a result, we do have some funds for capital projects that will need to come out of the general fund. 
  • In addition, Milford has not historically run Permanent Improvement levies, which means that all capital costs are funded out of the General Fund.

The community just passed a Bond issue in 2021. Why are we asking for additional funds through an Operating Levy?

  • A bond can only fund building projects and the entirety of the 2021 funding is earmarked for the new Milford Middle School. We broke ground in April 2023 and the new school will open for the 2025-2026 school year.
  • We’ve known that we were approaching deficit spending and would be due for an Operating Levy, which funds the running of schools, for several years.  

Why an Operating Levy now?

  • We haven’t asked the community for Operating dollars for a decade, and most levy cycles are 3-5 years.
  • Two years ago, the State of Ohio changed how it funds schools, resulting in lower revenues for Milford Schools. Our funding is capped, meaning regardless of a slight increase in enrollment, we do not receive additional funding.
  • Milford is also considered a “wealthy” district, which means that our community bears the burden of funding our schools, with a 66% share. (updated for FY24)
  • Like all school districts, Milford Schools is facing the very real impact of inflation. That means that despite relatively flat spending on staff and operations, costs have increased significantly in the last few years.
  • We have taken a hard look at costs in order to reduce the millage ask to the community as much as possible without impacting student service and supports. 
  • Since January, the Administration has reduced the needed millage by 30% through debt restructuring and additional operating efficiencies, including reductions in contracted services, as well as eliminating two teaching positions and two administrator positions. 

What are additional resources to learn about School Funding in Ohio?

Where can I find the board discussions and presentations that led to the current Emergency Levy being placed on the November ballot by the Board of Education?

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