Frequently Asked Questions

Ohio public school districts receive almost all of their funding from three primary sources: state funding, local taxes, and federal funding. In Fiscal Year 2025, PCLS received 70% of its revenue from the state, 16% from local taxes, and 10% from federal funding. At 70% of all revenue, PCLS has been heavily reliant upon state funding to support operational costs. This is in comparison to the statewide district average for the percentage of revenue received from the state in 2025 of 42%, and the average among the rest of the districts in Lake County of 33%. PCLS’s reliance on the state for funding was higher than 98% of all Ohio districts in 2025. At 16% of all revenue, PCLS has historically received a very small proportion of its funding from local taxes. This is in comparison to the statewide district average for the percentage of revenue received from local taxes in 2025 of 43%, and a 56% average among the rest of the districts in Lake County. Compared to PCLS, 95% of all Ohio districts received a greater share of their funding from local taxes.

Because the district has been so heavily reliant upon state funding, when the Ohio legislature reduces school funding, the district is significantly impacted. The most recent state budget bill represents an unprecedented reduction in funding from the state. Driven by these deep state funding cuts, PCLS will receive $1.7M less revenue in 2026 compared to 2025. In 2027, the district will receive $1M less revenue than it received in 2025. Historically, funding has either increased slightly over time or at least held reasonably steady from year to year, as operational costs increase over time even with excellent fiscal management. However, with this state budget, our district actually sees a substantial reduction.

Despite careful, responsible, and strategic fiscal management, our district – just like all others – have experienced increases in operational costs. This increase in costs, coupled with deep cuts in state funding, have created a deficit which cannot be closed without additional revenue. Additional federal funding will not be provided to help with this deficit; in fact, there is a great deal of uncertainty about whether or not the current levels of federal funding to the district (10% of its revenue) will be maintained moving forward. This leaves local tax funding as the district’s only option for accessing necessary revenue. This means that we are forced to turn to local taxpayers to close the deficit created just to maintain the same level of education for our kids.

In response to the significant cuts to state funding, the district has made deep cuts. Between this school year and next, the district will have cut: 37 positions, including teaching, non-teaching, and administrative Freeze to administrative salaries Reduction of work calendars of about 170 employees Elimination of 27 student activities/clubs These cuts approach $4M in reduced spending. Even after these very deep cuts, given the magnitude of the cuts in state funding, an operating deficit exceeding $4M still remains.

PCLS has not turned to voters for new funding since 2012. In the 14 years since, there have been 17 levies for new money in Lake County from 7 different school districts (6 districts have been on the ballot more than once for new funding).

A school district income tax is separate from federal, state, and city income taxes. SDIT revenue only goes to the schools and is only assessed to those who live within the school district boundaries.

Through an analysis of the district’s demographics and being considerate of the community’s concern over rising property taxes, the Board determined an earned income tax would be the most fair and balanced tax for the community as a whole.

For the earned SDIT, only wages, salaries, and other compensation and net earnings from self-employment (including income from partnerships) will be taxed. The other compensation and net earnings from self-employment are taxed only to the extent the income is included in one’s modified adjusted gross income (adjusted gross income in Ohio is “modified” if a business income deduction is taken).

Social Security benefits, interest, dividends, retirement/pensions, capital gains, unemployment, workers' compensation, lottery winnings, profit from rental activities, alimony, disability, child support, welfare benefits, trust distributions, and all other income that is not earned income.

These funds are necessary to support the basic operations of the district. This includes instructional and support personnel, facilities maintenance and operation, instructional materials and supplies, and student transportation. The levy is not about adding any “extras”. It is necessary to protect the programs and services we already have to ensure that our students and community do not lose the great progress they’ve achieved.

If the levy passes in 2026, it would go into effect in January of 2027. Due to the nature of income tax collections, the district would not fully collect on the tax until 2028.

Even with deep cuts within the district, and even with passage of the levy – due to the delay in collection of the funds – the district faces a deficit spend of $4.5M in 2026, and will continue to deficit spend in the years that follow. The magnitude of the annual deficit spend will eliminate all carryover and reserve funds. Without new funding, all or some combination of the following will need to be instituted no later than the start of the 2027-28 school year: Closure of an elementary school, consolidation into two elementaries Continued reductions in staffing, resulting in: Reduction of course options at the middle and high school level Much larger class sizes Exhaustion of funds available for building maintenance and repair (roofs, heating/cooling systems, parking lots, etc.)

Each individual’s tax is determined by multiplying the taxpayer’s earned income multiplied by .0125. Every $1,000 of earned income will cost the taxpayer $12.50 in Earned School District Income Tax. At the 2025 median Painesville City income of $35,175, the monthly cost of the levy would be about $37 per month.