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The Problem
In addition to facility capacities, we now have the unintended consequences of recent legislation and the impact on Southwest Licking's operating budget.
Ohio changed how school districts can rely on property tax growth. Recent state laws now cap growth, create uncertainty, and reduce predictability for districts like ours. Our neighbors are not impacted in the same way.
The old funding model no longer works the way it used to.
How Is Southwest Licking Impacted
The February 2026 forecast shows deficits beginning in 2027 and the general fund cash balance going negative by 2029 without action.
At the same time, enrollment and facility pressure continue to grow.
The Solution: One Plan. Two Parts.
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Earned Income Tax (Operations): Replaces the current 0.75% traditional income tax with an earned-income-only structure. Retirement income, Social Security, dividends, interest, and capital gains are not taxed. Purpose: create a more stable and fair operating revenue base.
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Bond Issue (Facilities): $80.71M bond issue over 35 years at 2.88 mills. Purpose: fund facility needs driven by growth. Property tax is the standard tool for buildings; operating solutions alone do not solve capacity.
What the Earned Income Tax Means
Fairness change: the tax burden shifts away from retirement and investment income and onto earned income.
What the Bond Issue Means
A growth and facilities response. District materials estimate about $302.40/year for a $300,000 home under the proposed 2.88-mill bond issue.
Why are we already outgrowing them our new schools?
The 2017 building plan was a state co-funded project through the Ohio Facilities Construction Commission. As a state project, enrollment projections were completed with a fixed OFCC formula. Despite multiple pleas from SWL officials to consider their enrollment projections, the buildings were designed using the state’s projections.
What's at risk if this plan fails?
Phase 1 - Capacity Adjustments (Effective Fall 2027)
Without a new building, we would be required to restructure how we use our existing facilities beginning in Fall 2027:
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Transition to half-day Kindergarten.
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Reconfigure grades: South Fork building serves K-4, with 4th grade students distributed between WIS and South Fork.
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8th grade relocated to the high school.
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Split session for grades 6-12 (specific building and grades to be determined).
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Bussing reduced to state minimum for grades K-8 (2-mile eligibility threshold).
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Elimination of high school bussing to ensure adequate bussing for split sessions.
Phase 2 - Budget Reductions (Effective Fall 2028)
Without the revenue from a new earned income tax, the district would need to implement significant financial reductions beginning in Fall 2028, totaling approximately $5.1 million. These would include reductions in staffing, programs, transportation, and operations impacts that would be felt across every building and every classroom.
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General Budget Reductions- 20% across the board
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Increase Pay to Play to $420.00
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Eliminate Field Trips
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Eliminate High School Bussing
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Eliminate Sunday Trips
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Eliminate Clubs
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Eliminate Summer School
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No Extended Days
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Elimination of 4 Administrators
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Elimination of 2 TOSAs (Teachers on Special Assignment)
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Elimination of Title I Staff
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Elimination of 4 Career Tech Positions (WMS/WMHS)
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Elimination of 3 Guidance Counselors
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Eliminate 8 FTE - CCP+ and High School Electives
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½ Day Kindergarten - 7 Teachers
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Eliminate 1 FTE Social Worker
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Eliminate 2 FTE Specials (K-5)
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No Additional Staffing for Growth (x 2 Years)
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Treasurer Change
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Drop and Go Trips Only (2-Hour Limit)
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Eliminate 2 Instructional Coaches