Why is Cincinnati Public Schools seeking more local dollars in the form of a property tax this election?
The region's largest district, whichhosts over 33,000 students across 67 schools, has an ask for some Hamilton County voters this election season, on the ballot as Hamilton County Issue 4.
It's proposing a property tax to provide over $66 million for CPS annually. But why does CPS need the money?
Get the lowdown on the new-money levy before heading to the polls.
What is Issue 4?
Issue 4 is a 7-mill property tax spanning five years that Cincinnati Public Schools is proposing to help fund day-to-day operations. It would provide over $66 million for the district annually.
The last time CPS passed a new-money levy was in 2016, with the 7.93-mill, five-year property
tax that raised about $48 million for the district's preschool program. New funds for general operating costs were last secured in a 2008, from a 7.89-mill levy that lasted five years.
What will Issue 4 cost homeowners in Hamilton County?
The new property tax would amount to $245 per $100,000 of a home's assessed value annually. For the average home value of those living within CPS of $285,000, the district said, the tax would amount to $698 annually.
What happens if it passes?
More property tax revenue would allow the district to continue operating at current staff levels and secure long-term fiscal health, CPS previously told The Enquirer.
A new tax would also make up for the shrinking amount of state aid the district has seen in recent years, the district's treasurer Mike Gustin said.
Last year, Gov. Mike DeWine signed a series of bills Dec. 19 that slash property taxes by roughly $3 billion to help homeowners cope with rising property values. But in turn, tax revenue growth was limited for schools, meaning, as property values in the district climb, CPS' tax revenue has not climbed with it.
The "really nasty part" about the set of new policies, Gustin previously told The Enquirer, is that the way the state calculates school funding has not changed to reflect the property tax reforms. So, districts like CPS will appear to have more local revenue than they really have and, thus, will continue to lose state aid.
Ohio's school funding has prompted significant criticism from public education advocates in recent years, after the Republican-led legislature strayed from the Fair School Funding Formula in its two-year budget passed last year.
What happens if it fails?
If this levy fails, Gustin previously told The Enquirer, CPS will arrive at a negative cash balance and possible state takeover in as few as three years.
The board balanced its budget this summer, meaning it ensured its expenses did not exceed its revenue through a sweeping round ofcuts: 81 central office positions, 12 social workers, 10 assistant principals and eight counselors.
But in budget forecasts made under the assumption that the 7-mill property tax does not pass, the region's largest district could see a negative cash balance of $30.6 million in 2029. That could dive a $156 million deficit by 2031, per a forecast presentation that Gustin shared at the board's Aug. 17 meeting.
The greater CPS's cash deficit becomes, the greater the likelihood that the district could be placed under fiscal watch or fiscal emergency by the state, Gustin said. Those levels of oversight could involve a state team assuming control of the district's financial planning.
As of Sept. 1, there are four districts statewide under that umbrella, including Mount Healthy City Schools, which declared fiscal emergency in 2024.
Without new local revenue, CPS will also have to look at significant cuts to its transportation services, arts and extracurricular activities, consolidating schools and expanding class sizes, Gustin said.
Changes to transportation, Gustin said, would likely start with increasing the 1-mile minimum distance students are expected to walk to school to 2 miles before they're guaranteed transportation, which is the state standard.
This article originally appeared on Cincinnati Enquirer: What is Issue 4? What to know about Cincinnati schools' property tax
