The Cleveland Metropolitan School District will ask voters this November to increase property taxes to help close a budget hole caused by expiring federal aid.
The 10-year, 8.6-mill school levy will give CMSD an influx of new revenue as the district’s new leader, CEO Warren Morgan, tries to balance the public schools’ finances.
If passed, the levy would increase taxes $301 annually for each $100,000 of appraised property value, Morgan said at a board meeting Tuesday night. To put those numbers differently, the levy would cost the median property owner $4.62 per week, the district said.
CMSD will also ask voters to approve the issuance of $295 million in bonds to maintain school buildings. Both questions would appear on the Nov. 5 ballot as a single issue, a district news release said.
“Our scholars deserve every opportunity to succeed in today’s rapidly evolving world,” Morgan said in the release. “This levy will enable us to maintain and enhance essential programs that our scholars rely on, including advancements in STEM, arts, and college and career readiness, as well as crucial mental health and safety initiatives.”
A resolution beginning the levy process was passed unanimously by the eight board members in attendance on Tuesday. The board must pass a second resolution in June to put the levy and bond issuance on the ballot.
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Laying the groundwork
The district has been laying the groundwork for a levy campaign even before Tuesday’s board meeting. Earlier this year, CMSD’s political action committee hired consultants who will help the district raise money and run the campaign. Prior levy efforts have cost between $1 million and $2 million – comparable to a mayoral campaign.
This would be the district’s first tax levy under Mayor Justin Bibb. His predecessor, Frank Jackson, served as the face of CMSD’s levy campaigns. The mayor’s office has not yet said what role Bibb will play in this latest effort.
Facing the end of pandemic federal aid programs, Morgan has had to make cuts at the district he has led for less than a year. Cleveland schools have pulled back funding for out-of-school programs and cut more than 12.6% of positions in the central office.
Those moves bought CMSD time. It is now projected to remain in the black until 2027, when it will face a negative cash balance of $110 million.
On Tuesday night, Morgan signaled that the district will have to make more changes. CMSD must ask itself, “How can we operate differently?” he said. That means reevaluating the district’s programming and use of buildings, he said.
Morgan said he was also focused on his goals for the district, which include boosting academic achievement after the pandemic slump and ensuring that students are ready for college or careers.
In the district’s news release, Board Chair Sara Elaqad described the district as standing “at a crossroads.”
“Your support for this levy means a direct investment in not just their future, but the future of Cleveland,” she said. “We’ve strategically contained costs to minimize the impact on our residents, making this a responsible and crucial step forward for CMSD.”
