By Nick Frazier

Staff Writer

The Tecumseh School Board will address its financial situation with an earned income tax proposal on November’s election ballot.  If passed, the tax will raise approximately $3.75 million per year over its five year duration.  The 1.5 percent rate would be assessed on all earned income for residents of the district, and would exempt retirement and pension accounts.  The tax would begin on Jan. 1, 2011 and continue for five years.  This levy is for operating expenses and would be the first new money the district has brought in since 1995.  Passing the levy would avoid a $1.9 million shortfall for FY2012.  Ohio school districts are required by law to balance their books.

In the coming weeks the board will be preparing a list of cost containment items that would be executed if the levy is rejected. Superintendent Dr. Jim Gay said that the district has trimmed its expenses by $4.3 million in the seven years since voters rejected the first of four ballot requests in 2003.  Gay added that staff reductions would be included in a new round of belt-tightening, and that the district has waited as long as it could before approaching the taxpayers again.

Further clouding the financial picture is the status of state basic aid, which will not be known until after the election.  Gay said that the amount could be the same as last year or as much as 10% less.  Another factor is the as yet unsettled agreement with the teachers’ union.  The contract will be voted on in mid-August. There is also the possibility that Ohio could receive funds from the federal Race to the Top program. 

The next board meeting will be Tuesday, Aug.t 10 at 7 p.m.