Cincinnati Public Schools Board Approves Property Tax Levy for November 2026 Ballot

On August 4, 2026, the Cincinnati Public Schools (CPS) Board of Education approved a five-year, 7-mill property tax levy to be placed on the November 3, 2026 ballot, following a decision to rescind an earlier proposal for an earned-income tax. The move comes as the district seeks recurring revenue to address rising operational costs and avoid further significant budget reductions, marking the first time in a decade CPS has sought a new-money levy for its general operating fund.

The initial proposal, a 0.75% earned-income tax levy, had been approved by the board but faced substantial public backlash. Residents, employees, families, and community leaders voiced concerns over its potential impact on working households. For instance, a resident earning $50,000 annually would have faced an additional $375 per year. Responding to this feedback, the board voted 6-1 to rescind the earned-income tax levy before approving the property tax alternative in a 5-1 vote, with one abstention. Superintendent Shauna Murphy emphasized the district's efforts to protect educational quality, stating that further reductions would negatively alter the student and family experience in schools.

Cincinnati Public Schools has operated for 10 years without requesting new operating funding from voters. The last time the district placed a new levy on the ballot was in November 2016, which was specifically approved to support the Preschool Promise initiative, a public-private partnership aimed at expanding access to high-quality preschool seats. Since then, the cost of nearly every aspect of school operations has escalated due to inflation, impacting areas such as transportation, utilities, insurance, technology, instructional materials, and specialized student services. Despite careful budgeting and cost-saving measures, recurring revenue growth has not kept pace with these rising expenses.

Before proposing the new levy, CPS undertook significant steps to balance its FY2027 budget, which faced a projected gap of nearly $58 million. These measures included reducing 111 positions, with 81 central office workers, 12 social workers, 10 assistant principals, and eight counselors among those affected. The district also implemented five mandatory unpaid furlough days for various positions, limited hiring, strengthened spending controls, reorganized services, secured outside funding, and utilized limited one-time resources. While these actions balanced the budget for one year, they did not create the sustainable, recurring revenue needed to address the ongoing structural deficit. CPS projects a cash deficit of $89 million by FY2030 to maintain existing operations if additional recurring revenue is not secured.

If approved by voters, the proposed 7-mill, five-year fixed operating levy is estimated to generate approximately $66.3 million annually, totaling about $331.7 million over its five-year duration. Collections would commence in January 2027. The funds are earmarked to protect strong teaching and learning by supporting classroom educators, instructional resources, and rigorous academic experiences. They would also sustain student support for academic, social, emotional, and specialized learning needs; preserve college and career pathways; maintain arts, athletics, enrichment, and extracurricular activities; and support safe, welcoming, and reliable schools through investments in transportation, security, technology, maintenance, and priority facility needs. For homeowners, the levy would result in an estimated annual cost of $245 for every $100,000 of a home’s market value. For example, a home with a market value of $225,000 would incur an estimated annual cost of $551.

In our experience at C&S Finance Group LLC, local tax levies like this, while intended to support vital public services, can significantly impact the financial planning of both residents and small to mid-sized businesses, particularly those owning commercial property or operating within the affected tax district. Property tax increases, even if directly levied on residential properties, can create ripple effects across the local economy, influencing everything from consumer spending patterns to the cost of living and, indirectly, the labor market for businesses. Our view is that understanding the long-term implications of such levies is crucial for strategic financial management, and we often advise clients on navigating these changes to ensure compliance and optimize their tax position. This is precisely the kind of complex local tax change that C&S Finance Group LLC helps clients navigate through our tax preparation and compliance services. Businesses and individuals seeking guidance on managing their tax obligations in light of such developments can contact us at csfinancegroup.com.

Without the additional recurring revenue from the levy, CPS anticipates that future budget processes would necessitate further reductions. These potential impacts could include closing or consolidating schools, increasing class sizes, reducing teaching positions, limiting transportation eligibility, cutting school security, eliminating extracurricular and after-school programs, charging participation fees for athletics, and delaying needed building maintenance or improvements. The Board of Education would determine any such reductions through public budget processes. CPS maintains its commitment to accountability, publishing annual budgets and financial reports, undergoing regular independent financial audits, reporting publicly to the elected Board of Education, and holding strong ratings from major credit-rating agencies. It is important to note that due to Ohio’s HB 920 reduction factors, the revenue from this fixed 7-mill levy would not automatically increase at the same rate as property values rise.

As the November 3, 2026 election approaches, Cincinnati residents will weigh the need for increased school funding against the impact of higher property taxes. The outcome will significantly shape the financial landscape for Cincinnati Public Schools and the broader community for the next five years, influencing educational quality and the operational stability of the district.