Copyright cleveland.com
AMHERST, Ohio — Amherst Exempted Village School District failed to secure critical operating revenue Tuesday when voters rejected a five-year, 1.5% earned income tax levy, extending a 13-year stretch without new funding. Issue 16 failed as 62.33% of voters rejected the levy, with 2,618 votes in favor and 4,331 votes against, according to unofficial results from the Lorain County Board of Elections. The levy would have generated about $10 million annually for daily operations. The rejection marks a major financial challenge for the district that has stretched its resources for more than a decade. Amherst’s cash reserves have fallen from $21.7 million in fiscal year 2022 to $13.9 million today, and district forecasts show annual deficits could reach $7 million to $8 million by 2027. With the failure of Issue 16, the district may be forced to cut 20 to 35 staff positions and reduce $1 million to $2 million in classroom supplies, curriculum and technology. Revenue from the levy would have supported staff salaries and benefits, classroom supplies, curriculum, textbooks, academic programs, utilities, transportation and wraparound student services. Amherst broke from tradition by choosing an earned income tax instead of the conventional property tax levy, a shift district officials say would have offered more fairness and sustainability. The new tax would have applied only to wages and self-employment income, meaning contributions would have fluctuated with individual earnings. It excluded Social Security, pensions and investment income, protecting seniors on fixed incomes while ensuring that renters and homeowners with tax abatements share in supporting local schools. District leaders said the new levy was necessary to counteract declining state support, which accounts for 39% of the district’s revenue. While the district received $15.2 million in state aid in 2010, it now just $14.6 million — a decrease despite 15 years of inflation and rising costs. Another $600,000 drop is expected next year. Compounding the financial strain, Lorain County Commissioners recently approved expanded property tax exemptions that district leaders say will cut Amherst’s revenue by more than $840,000. That funding loss and the decline in state funding effectively wipe out gains from the 2023 property reappraisal and leaves the district facing a shortfall of several hundred thousand dollars.
