Cash could run out by 2028

VERMILION — Vermilion schools could face major reductions to staffing, sports, clubs and transportation if voters reject a five-year operating levy renewal in November, with officials warning current spending could drain the district’s cash by the end of 2028.

Superintendent Wes Weaver said administrators have prepared a list of cuts they would recommend to the Board of Education if the levy fails.

Among the proposed reductions are 39 positions, representing about 18% of the district’s workforce. Those would be in addition to 16 positions already eliminated or left unfilled during the past two years.

All extracurricular programs, including sports, clubs and activities, also would be proposed for elimination beginning next school year.

Transportation would be reduced to the minimum required by the state. Plans call for eliminating six bus routes and drivers, ending busing for students in grades 9 through 12 and increasing the distance students must live from school to receive transportation from 1 mile to 2 miles.

The levy generates $4.25 million annually, accounting for nearly 16% of the money Vermilion schools use to operate each year.

Treasurer and chief financial officer Justin Klingshirn said failure would cost the district about $2.1 million during the first year because only half of that year’s property tax collections would be affected.

Beginning the following year, the loss would grow to about $4.25 million annually.

Klingshirn told the Board of Education during its Aug. 10 meeting that significant reductions would be needed to match expenses with the amount of money coming in if voters reject the renewal.

By 2028, officials expect the district to collect about $22.8 million without the levy, about the same amount it brought in during 2012.

That projection assumes no major additional reductions are made. If staffing, programs and services remained at current levels, officials say the district could run out of cash by the end of 2028.

Renewal would continue existing tax

The ballot measure would continue an existing operating tax rather than add a new one.

Its history dates back to two separate five-year emergency levies approved by voters in 2006 and 2008. Vermilion schools combined them into a single levy in 2011, and voters have renewed it every five years since.

It currently collects about 6 mills. One mill equals $1 in tax for every $1,000 of a property’s taxable value. Ohio generally taxes homes on 35% of market value, meaning one mill costs about $35 a year on a $100,000 home.

Klingshirn said a homeowner with a house valued at $100,000 currently pays about $210 a year toward the levy.

Even with the renewal, officials say homeowners are expected to pay less in overall school property taxes because of changes in state law.

District calculations estimate savings of about $119 a year for every $100,000 of home value if voters approve the levy. With the average home in the district valued at about $274,000, officials estimate annual savings of about $326.

House Bill 129 changed how the levy is counted toward Ohio’s 20-mill floor, a state rule requiring certain school property taxes to collect at least 20 mills.

Previously, Vermilion’s renewal levy was added after the district’s other qualifying taxes were brought up to the 20-mill minimum. The new law allows the renewal levy to count toward that minimum instead.

As a result, officials expect the school tax rate for homeowners to fall from about 26 mills to about 23 mills if the levy is renewed.

Previous cuts total $1.6M

Vermilion schools already reduced spending by about $1.6 million while preparing for lower property tax revenue resulting from recent state changes.

Weaver said those changes are expected to leave the district receiving about $1.6 million less in local property tax money than it collected in 2025.

Previous reductions included nine teaching positions, one counselor, four administrative positions, one mechanic and one custodian.

Officials also cut paid supplemental positions in academics, athletics and music, along with spending on outside services, supplies and professional development. Lunch prices, school fees and pay-to-participate fees also were increased.

Klingshirn said officials tried to make those reductions without affecting programs where possible.

The additional 39 positions, transportation changes and elimination of extracurricular programs would be proposed only if voters reject the renewal.

Even with passage, officials expect finances to remain tight. The district’s forecast shows a much smaller difference between revenue and spending if the levy continues, allowing administrators to make smaller adjustments over time rather than the larger reductions expected after a failure.

Klingshirn also cautioned that forecasts are estimates based on current trends and can change.

“This isn’t a crystal ball,” Klingshirn told the board. “This is simply taking a look at what our trends are now and implementing them over the next four years.”

Charles Berry Bridge inspections scheduled