By Nick Frazier

Staff Writer

The Tecumseh school board unanimously passed a resolution that will place a new operating levy on the November ballot. The measure will ask voters to approve an 1.5 percent earned income tax that will generate an estimated $3.73 million annually during its term , closing the estimated $2.5 million shortfall for FY 2013 An earned income levy would not apply to pensions, interest, dividends or capital gains. The board has not yet decided on the length of time the tax would be assessed. That decision will come in a second resolution after the state certifies the amount that would be generated.

 

An earned income tax levy with a corresponding rollback in property taxes was rejected by voters in 2007. Board members cited the current financial situation in deciding not to offer a rollback this time around. There are several variables affecting the district’s fiscal health. First, the amount of state basic aid to the schools cannot be counted on to increase. Second, the district has received nearly $1 million in federal stimulus funding each of the last two years. The new budget projections do not include this money going forward. Finally, the contract with the teachers’ union expires on June 30 with no agreement yet in place. The board held an executive session on Monday, June 28 during which negotiations continued.

The next meeting will be held on July 21 by prior agreement. At that time the board will decide the term of the levy and finalize the ballot request. In other items the board welcomed Bradley Martin as assistant superintendant. In the June 28 meeting new principals were expected to be named at New Carlisle Elementary and at Tecumseh Middle School, the spot Martin vacated.