The Cleveland Metropolitan School District is asking voters in November to back a new property tax, known as a levy. This is the second tax increase requested by the school district in four years. 

If passed, the new tax would last 10 years and would cost the owner of a home valued at $100,000 about $300 per year. That’s in addition to the taxes homeowners are already paying from the 2020 levy. 

Why are the schools seeking another voter-approved tax increase? 

The district has said it’s running out of money, due in part to the loss of one-time federal money and in part to rising costs. The projected deficit has already pushed CEO Warren Morgan to pull funding for some out-of-school programs and cut more than 12% of positions in the central office. For now, the district has been able to balance its finances but still faces a $110 million shortfall in 2027.

“For the past several years, the voters of Cleveland have stood with our students and passed the levies that the board has put forward,” Board Chair Sara Elaqad said at the June 11 meeting. “We’re still in need of additional revenue in order to provide Cleveland’s children with the education that they need and deserve.”

How much will the new tax levy raise? 

It will raise $52 million annually.

What does the school district plan to do with the money?

The district would use the money raised by the tax increase to maintain and increase educational quality for students, according to the campaign that was created to win support for the new levy. This tax increase is an operating levy, which means the money raised by the new tax can only be used for running the schools. Operating costs include paying teachers, buying books and other resources.

The amount of the tax levy is often described as “millage” or a “mill” increase. What does the term “mill” mean to a property owner? 

A mill is a unit of value that represents the rate of property tax. One mill is equal to $1 of tax per $1,000 of assessed property value. The school district is asking voters to approve an 8.6 mill levy. 

Assessed value is different from appraised value, which is what your local county auditor says a home is worth. Assessed value is 35% of the appraised value. That means the owner of a $100,000 home would pay taxes on $35,000 of that home’s value.

So, for the hypothetical $100,000 home, a 1 mill tax on it would cost $35 per year. 

How do Cuyahoga County’s new property values affect existing and future tax levies?

There’s a state law known as House Bill 920 that keeps voter-approved tax levy bills from fluctuating when property values change. In other words, it keeps school districts from collecting more property tax revenue than a levy’s approved annual dollar amount. 

So if the Cleveland school levy passes in November, the district cannot collect more than $52 million annually for its 10-year duration, regardless of future property tax increases. 

Will some portion of your current tax bills go up with the new property values? 

Yes. A limited portion of your property tax bill goes up and down in relation to property values. This portion of property tax is called unvoted millage, which is exempt from House Bill 920. That’s why homeowners see increased property tax bills when property values increase. This means that school districts and other governments can see increased revenue from the unvoted millage on their bill. 

Again, voter-approved levies, such as the November Cleveland schools levy, are considered voted millage and therefore the cost to homeowners does not change with property values. 

Where else do schools get their money? 

Most of the funding for Ohio schools comes from the Ohio Department of Education, the Ohio Lottery and local taxes. Voter-approved taxes for schools help school districts bridge the gap between the funding they receive from the state and the actual cost of running a district. 

The Ohio Department of Education gives school districts funding based on enrollment and the property wealth and income of their communities. Districts with lower property wealth and income generally receive more state funding.

What’s the deal with the bond extension that is also on the November ballot? 

As part of the same ballot measure as the tax increase, CMSD is also asking voters for a 35-year extension on an existing bond issue. Residents already pay for this tax, so extending it would not create a new cost to homeowners. The district will use funds raised by the bond extension to “renovate, equip and right-size schools,” according to the campaign website.

🗳️For more on this year’s November election, visit our Election Signals 2024 page.