Clinton-Massie Community,

As we continue to navigate the challenges of maintaining a high-quality educational experience for all of our students, I wanted to take a moment to address an important matter regarding the financial health of our school district.

After careful review and consideration, it has become necessary for us to implement some difficult but essential budgetary adjustments to ensure the long-term stability of our district. These proposed cuts are designed to minimize the impact on student learning while addressing the financial constraints we face.

[In the attached letter](https://drive.google.com/file/d/1phJpoy0xHMCHA1tqhROMMRqzNK_p0pyf/view?usp=sharing), I have outlined steps, that while challenging, are critical to ensuring our district's long-term financial sustainability. Please know that these decisions are not made lightly, and we remain committed to finding ways to support our students and staff during this challenging time. These proposed cuts were discussed in our Board of Education meeting this past Monday, and will be discussed again at the January 13th meeting. The December Board meeting was recorded and that recording is available on our website.

Thank you for your understanding and continued support. We value the trust you place in our schools, and we are dedicated to keeping you informed as we work together to ensure the best possible outcomes for our children.


Next Steps

UPDATE 1/25/25 The presentation (The Cost of Education) given at the January 13 board meeting that explained the district's expenses can be found at [https://bit.ly/FalconsCost](https://bit.ly/FalconsCost)

The 1% earned income tax levy failed 55% to 45% on November 5, 2024.  The Clinton-Massie Board of Education has voted to approve a resolution to proceed with placing a 1% earned income tax levy on the May 6, 2025 ballot. The additional funds generated by this levy would be used to maintain current educational programs, continue the implementation of the district’s strategic plan, provide permanent improvement funds, and keep up with rising costs related to the district’s day-to-day expenses.

Superintendent David Moss and Treasurer Carrie Bir recorded a video explaining the district finances. You can submit questions to [http://bit.ly/cmlevy](http://bit.ly/cmlevy) and we will post the answers in the Frequently Asked Questions listed below.

Information

The Board of Education has expressed its support for reducing the credit requirements for graduation. However, no specific number has been decided yet. This issue will be revisited after the upcoming levy vote. If the levy passes, the district will be able to maintain current course offerings while considering additional options.


How will the District increase elective choices while degrading the graduation credit requirements to state minimums as supported by the Board of Education in open meetings? Does this mean the levy passage will ensure no reduction in current course offerings and staff while also expanding current offerings?

No, it is not. An emergency levy is a property tax that is a limited operating levy (maximum of 10 years) proposed for a specific dollar amount. Because the dollar amount of taxes charged by the levy must stay constant, the millage rate increases or decreases as property values change. Emergency levies may be renewed for the dollar amount originally requested or with an increase or decrease.


Is this an emergency levy?

We would say no:

### Types of earned income:

### Wages, salary or tips where federal income taxes are withheld on Form W-2, box 1

*   ### Income from a job where your employer didn’t withhold tax (such as gig economy work) including

*   ### Driving a car for booked rides or deliveries

*   ### Running errands or doing tasks

*   ### Selling goods online

*   ### Providing creative or professional services

*   ### Providing other temporary, on-demand or freelance work



*   Money made from self-employment, including if you:

    *   Own or operate a business or farm
    *   Are a [minister or member of a religious order](https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/military-and-clergy-rules-for-the-earned-income-tax-credit)
    *   Are a [statutory employee](https://www.irs.gov/businesses/small-businesses-self-employed/staying-up-to-date) and have income

*   Benefits from a union strike

*   Certain disability benefits you got before you were the minimum retirement age

*   Nontaxable Combat Pay (Form W-2, box 12 with code Q)

    *   If you claim nontaxable combat pay as earned income, it may increase or decrease the amount of your EITC. For more information, see [Publication 3, Armed Forces' Tax Guide](https://www.irs.gov/forms-pubs/about-publication-3).

Earned income does not include:

*   Pay you got for work when you were an inmate in a penal institution
*   Interest and dividends
*   Pensions or annuities
*   Social Security
*   Unemployment benefits
*   Alimony
*   Child support

[https://www.irs.gov/credits-​deductions/individuals/earned-​income-tax-credit/earned-​income-and-earned-income-tax-​credit-eitc-tables](https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income-and-earned-income-tax-credit-eitc-tables)

You mentioned the proposed levy does not tax pensions or social security wages for retired individuals. Is there a tax on 401k income or investment liquidation tagged as income for retired individuals?

The Board of Education and district leadership team continue to discuss school finances at Board meetings after the renewal was rejected by voters. In July, the Board voted to approve a resolution to proceed with placing a 1% earned income tax levy on the Nov. 5, 2024 ballot. The additional funds generated by this levy would be used to maintain current educational programs, continue the implementation of the district’s strategic plan, provide permanent improvement funds and keep up with rising costs related to the district’s day-to-day expenses.


What is the district asking for? 

The proposed levy was on the Nov. 5, 2024 ballot and failed.  We are working through the process to ask again on the May 6, 2025 ballot.  Please see the following links for voter registration ([Clinton County](https://www.boe.ohio.gov/clinton/) / [Warren County](https://vote.warrencountyohio.gov/)) and early voting ([Clinton County](https://www.boe.ohio.gov/clinton/absentee-information/) / [Warren County](https://vote.warrencountyohio.gov/Early_Voting\_&\_Election_Day_Frequently_Asked_Voting_Questions.pdf)).


When is the election?

Additional funds are necessary to maintain current educational programs, continue the implementation of the district’s strategic plan, and keep up with rising costs related to the district’s day-to-day expenses.


Why does the school need additional funding? 

Even though school districts in Ohio receive a combination of federal, state, and local funds, about half of Clinton-Massie Local Schools’ funding comes from the state and federal government. On average, schools in Ohio get $6,860.50 per student from the state and $2,153.59 per student from the federal government. Clinton-Massie Local Schools receives   $6,684.04 per student from the state and $768.26 from the federal government.![](https://lh7-rt.googleusercontent.com/docsz/AD\_4nXfNEypLWL4SwiXu-Dx7QuyCsjj-7CapVYgsRJ8JRAMSySMJCsOyMPglwRt141pJH-IpJgMUpJk5vpNgr-RbTcqYvSd_EnyBA73RqjtiQnxEF4h-X2kSWausH43u2TIQPOj2juvvXDhIFZ8iPy1J3gK9hv14?key=bdqcs7Dwk37JWFuRry9\_aA)


How are schools currently funded?

Yes and no. Because of state law, if property values go up, voted levy rates go down, so the amount of money the district collects stays the same.  Voted levy rates cannot go below 20 mills, which is where ours have been for at least a decade, so yes, we do see an increase in revenue.  This amount is already included in our financial plans.

Want to learn more about the Clinton County Auditor’s 2023 property tax revaluation or the Warren County Auditor's 2024 property tax revaluation? See their websites ar <http://clintoncountyaditor.org> and <http://wcauditor.org>


When property values increase do school districts get more revenue  from voted levies?

The district leadership team and building administrators are currently looking for ways to save money and make more cuts if needed. They are looking at all areas of the operations – teachers and support staff, program offerings, busing, and raising fees. We will be eliminating deficit spending (\~$900k). That will entail losing \~10 teaching positions for the 25-26 school year (in addition to the 11 we reduced from last year), 4 support positions, and increasing pay-to-participate fees. We will evaluate outsourcing all support services and preschool. We will be back on the ballot May 6, 2025.


What will happen now that the levy did not pass in November?

Levy campaigns are managed by a political action committee, and private donations from individuals and businesses fund the campaign. District funds are not used to advocate for or against a levy or bond issue.


How are school levy campaigns funded?

Ohio’s Public Employees’ Collective Bargaining Act requires that the district collectively bargain wages with its represented staff, which constitutes a significant majority of the district’s workforce.In May, the Board approved a new one-year contract with the Clinton-Massie Education Association (CMEA). This contract stipulates a 1% increase to the base salary for all district employees for the next year.


Rather than cutting positions could the district implement a  pay freeze or make adjustments to benefits for all employees  during periods of deficit spending?

Yes. District employees can provide neutral, accurate, and factual information about a levy or bond issue at any time. They also can engage in campaign activity on their own time and on their own dime.

District employees cannot use district resources to advocate for or against a levy or bond issue, and they cannot advocate for or against a levy or bond issue while being compensated by the district.


Can school personnel provide information about levies?

Providing safe learning environments is a priority for our district. The district uses permanent improvement fund to pay for building repairs, renovations and other long-term improvements. Our school facilities include 384,774 square feet of space in 2 buildings, with the middle school built in 1963 and modified in 2008, high school 2004 and elementary 2005.


What are permanent improvement funds and how are they used?

When we don’t include the permanent improvement fund and only look at the district’s operating costs, about 78.3% of the budget goes to paying salaries and benefits for teachers and support staff. The rest of the money goes toward other expenses like buying classroom supplies, fueling buses, and paying for utilities.

In the chart below, “Purchased Services” includes contracted expenses, such as utilities, trash collection, copier machines, electronic systems for student data, and communication with families. “Supplies and Materials” includes curriculum resources, bus fuel, paper, printer supplies, and items like paper towels and toilet paper. Finally, “Other Expenses” cover bank and auditor fees.![](https://lh7-rt.googleusercontent.com/docsz/AD\_4nXefdPLv38-W_nV0M6iYMFX_tSCgCstDDrm0AB9IefimTpCW6khMu5BS91bybg2QWPl32XPg4RVknWQo70PletFjC6I5l4zrRfI2to2hkj1cS9FxEU-69gge_c0iv90nX14tcuY9xS0wjuS5bnTCwSiiAiGu?key=bdqcs7Dwk37JWFuRry9\_aA)


What are the district's current expenses?

There is a 0.5% earned income tax in place through December 31, 2024. The proposed levy is for a 1.0% earned income tax beginning January 1, 2026 so it would be roughly double the 2024 amount.


How much will the proposed levy cost residents?

When would the tax go into effect if the levy is approved in May 2025?

May 7, 2019 and prior to that November 8, 1988 (for operating purposes; there were construction bonds in 2001 approved)


When was the last time voters approved additional funding for the school?

Property taxes have been the main source of funding for Ohio’s schools since the 1800s. Approximately two-thirds of all property taxes levied in Ohio go to fund schools. The remainder of property tax money is divided among local governments.  In Clinton County, we receive about 56% of your taxes and in Warren County we receive about 58% of your taxes.


Why does so much of my property tax go to school?

The district’s operating fund (also known as the general fund) supports the daily expenses of our schools – things like paying teachers and support staff, buying classroom supplies, fueling buses, and paying for utilities. The most recent levy for additional operating funds was approved in 2019.


What are the operating funds and how are they used?

Yes. Besides the money from past permanent improvement levies, the district can also use its general fund for daily operating costs, as well as facility maintenance projects.


The levy request does not set aside a specific amount for the Permanent Improvement fund. Will the district still be able to fund maintenance projects?

School districts need money to maintain operations, and voted levies are the main source of funding for most districts in Ohio. However, state law freezes the amount of money school districts receive from those levies – providing the same dollar amount year after year. As home values increase, the county auditor lowers the tax rate, which is called the “effective” millage. This makes it hard for school districts to keep up with rising costs, and it’s why they need to ask voters for more money every few years.



This chart shows how the effective millage has decreased for three of Clinton-Massie’s’ tax levies.The levies prior to 1976 were passed for 17.3 mills.  The 1979 levy passed for 3 mills and the 1988 levy passed for another 3 mills. The current residential effective rate on these levies is 20 mills, and the district collected about $6.7 million from these levies last year. If the district were to pass a 3-mill levy today, it would raise $1.29 million per year.

![](https://lh7-rt.googleusercontent.com/docsz/AD\_4nXcxsnSNIKAOk8wWWC2AmibCGDEi2l4LCb_ea41sWxa6NUIWhAZIV0souuyhR9VKCCloX8M4lG-qtyngxG22Ok15sGZazB5Y_jJKLHVTd7ZLd9-B34GKP6nsEVYiisQHDRxGhVBv26JhNqPfqHPx47Ll04ub?key=bdqcs7Dwk37JWFuRry9\_aA)


Why do school districts continue to put levies on the ballot?

Clinton-Massie Local Schools’ local tax effort on all levies (including income tax) for residential properties falls second-to-last among neighboring school districts, ranking 8th out of 9 districts per the ODEW District Profile Report for FY2023.  The ODEW Fair School Funding Formula assumes all districts have a local tax effort index of at least 1.000.  ![](https://lh7-rt.googleusercontent.com/docsz/AD\_4nXfp4n5YqgSJIXtqXfENXxv3BvBFFL644xfykNHAIvmH0PDGqykJeKB9XxVzxKS77yXzJce2WmNtNz80OnVyfOjY3MzZ73Ab8FlGgp-NGv80Pyr5sXwmKYHJnzt3rU8jF4j8jrzZBgvz6TvXIBZAopCgRMhZ?key=bdqcs7Dwk37JWFuRry9\_aA)


How does the school's tax rate compared to other school districts in  the county?

The district’s treasurer publishes a five-year financial forecast twice a year. This report gives an overview of our current financial situation and predicts what will happen financially over the next five years. According to the May 2024 Financial Forecast, the district is currently spending more money than it’s bringing in, and without additional funding, we’ll be very close to running out of cash by 2027. You can always find the most recent financial forecast on the [Treasurer page](https://www.cmfalcons.org/en-US/business-office-cf9884db) of the district website.This chart shows that, compared to other schools in the area Clinton-Massie maintains a much lower cash reserve (green bars) than other districts and therefore our cash balance to expenses ratio (orange line) is much lower.![](https://lh7-rt.googleusercontent.com/docsz/AD\_4nXfga4W070Ntz6Edszsz_FN204sCJ_I2jx5U96kh3oPYPkGCBhrR3WFvCw8YqB-bd9AoYUdMwX6gSlNUxlHmLkhQyGweOSuwkytGr78nVHhfC-p0s21Eertg9Pnx1j-SEiuOa7UW2f8zpzOmvSFYXZ57kr32?key=bdqcs7Dwk37JWFuRry9\_aA)


When will the district run out of cash?

Yes. Grant funding was provided to school districts in fiscal years 2021, 2022, and 2023 to help with the COVID-19 pandemic. You can[ view a summary](https://www.cmfalcons.org/en-US/business-office-cf9884db) of the funding that Clinton-Massie Local Schools received and how it’s been used. All funds were spent by the completion of the 2022-2023 school year.


Did the district receive COVID relief grant funding? If so has all the  funding been spent?

When a school levy does not pass, it does not mean the district will receive more money from the state. Ohio’s school funding formula is based on how much a local community can afford to support its schools. Passing or not passing a levy won’t change the level of funding provided to Clinton-Massie Local Schools through the state’s funding formula.


If a levy is not passed, will the state provided additional funding to the school?

When the March 2024 levy failed, the Board of Education and district leaders decided not to replace 12 employees as well as increasing fees which will save about $1.3 million from the district’s operating fund.In May, the board approved a new one-year contract with the Clinton-Massie Education Association (CMEA). This contract stipulates a 1% increase to the base salary for all district employees for the next year.Besides these cuts, the district uses several ongoing measures to save money. Here are a few examples:*   Procuring cost-saving contracts: Working with the Southwest Ohio Educational Purchasing Council, a group with 250 other school districts, to get better deals on energy, buses, equipment, and supplies
*   Comparing prices: Always checking prices from different vendors to get the best deals without lowering quality
*   Seeking grants: Looking for grant opportunities as often as possible to add to our financial resources
*   Selling unused assets: Using GovDeals to sell unused items, which has earned the district $9,155 just since this summer
*   Managing payroll costs: Keeping base salary increases at an average of 2.14% for teachers, administrators, and all other staff over the last 10 years*   Doubling the deductibles for those employees who have our insurance


How has the district reduced expenses?

1,786 students in grades PreK-12 enrolled in Clinton-Massie Local Schools during the 2023-24 school year, a 3% decrease from the previous year. Our average enrollment over the past 10 years is about 1,848 students.  We know that enrollment will continue to decrease as we discontinued our K-5 open enrollment and the 6-12 open enrolled students will matriculate out.


What is the district's current enrollment?

We decided to end open enrollment in the elementary school (and moving forward) because personnel is our largest cost.  We had several teachers retiring (in the elementary specifically), so by not filling those positions, we could still be within our class-size targets with resident students, but no longer with our open enrolled students included. 

Prior to the Fair School Funding Plan, we were receiving additional money for those students who chose to open enroll here (and losing money for those students choosing to leave).  Now, our enrollment, whether residential or open enrolled, is part of the base calculations.  We do not get enough money from those base calculations, so that's why we're on the guarantee that we explained.  So it's also no longer a financial incentive to offer open enrollment.


Why did the district decide to end open-enrollment?  How does that impact the finances?

When we passed the 0.5% in 2019, we knew that money would not last the length of the levy.  We did receive almost $3 million from COVID money that we used to cover some typical general fund expenses, so we were able to stay off the ballot until the levy expired.  We have only been budgeting expenses based on our revenue, and now that our buildings are all 20+ years old, we do not have the money available to maintain them.  By asking for 1%, a portion (if not all) of the additional 0.5% will go toward maintaining our buildings and the systems associated with them (HVAC, plumbing, etc.).  


Why is a 1% income tax being asked for now when the ballot measure that failed earlier this year only asked for 0.5%?

We are pursuing an earned income tax for two reasons - the first is that by being an earned income tax, we are only taxing those wages reported on a W-2, Schedule C or Schedule F and nothing else. By choosing an earned income tax instead of a property tax, those on fixed incomes will not be affected.  The second reason is because a property tax continues to collect the original amount it was passed for.  So for instance, if we passed a property tax that would raise $3.2 million, we could only collect $3.2 million for the life of the levy.  By asking for an income tax, as income increases, so does our revenue.  (Same with the flip side though - if income decreases, so does our revenue.)


Why are you pursuing an income tax instead of a property tax?

The 11 positions reduced after the 2023-24 school year were retirements of an intervention specialist, 3 elementary teachers, and a school nurse; resignations by 3 middle school teachers; a leave of absence; and non-renewing 2 rehired-retired teachers (intervention specialist & high school).


Clinton-Massie Local School District

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