From the Cardinal Local School District Treasurer's Office 

Levy Renewal Frequently Asked Questions

How are school districts funded?
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School districts are funded through a combination of federal, state and local funds. The Ohio
Department of Education (ODE) supports districts in Ohio and regulates federal funding. At the
local level, school districts receive funding from locally levied property taxes and some districts
also receive funds from income taxes approved by voters. Each school district that levies a tax
does so based on either a traditional tax base or an earned income tax base.

What is a property tax levy?

A property tax levy is the collection of taxes charged on the value of property. Each district must
follow a process described in Ohio law in order for taxes to be levied on property within the
district.
Boards of education propose additional local tax revenues by board resolution. School districts
can place a levy on the ballot up to three times a year on specified election dates. If a majority of
voters in an election approve the tax, county officials charge and collect the tax under the terms
specified in the tax levy proposal. The collected funds are then disbursed to the district. When a
levy is placed on the ballot, it must identify as its objective a legally defined school district
purpose.

What types of property can be taxed?

Real property subject to taxation includes the buildings and land held by individuals or
businesses. Real property is divided into two classes: Class I (residential and agricultural) and
Class II (commercial, industrial and all other real property).

What is the difference between a traditional and an earned tax base?

 Traditional: The traditional tax base is the taxpayer’s Ohio income tax base plus any
business income deduction. The following income is not taxed: social security, disability,
welfare, child support, inheritance, and workers compensation.
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 Earned Income: The earned income tax base includes only employee compensation and
net earnings from self-employment to the extent included in modified gross income.

How are Cardinal Local Schools funded?

Cardinal Schools are funded by the State of Ohio through the Ohio Department of Education,
local property taxes, and a local income tax established by a traditional tax base.

Is this a new tax?

No. This is NOT a new tax. District residents will not pay any additional taxes to Cardinal
Schools. This tax will not generate any new money for Cardinal Schools but will continue to
provide for planned expenses. This renewal levy will not cost taxpayers any additional money.
The Original levy was passed in 1992 and approved as a renewal levy every 5 years since then.

Why does the school district need to renew this operating levy?

Renewal of this levy is imperative for the district to maintain its current levels of service and
programming for the students. Based on the current funding model, District revenue is
essentially a fixed income. The current state of the economy has inflation rates at the highest
levels in many years with district operating expenses continuing to increase.

What is driving up costs for the district?

All Ohio public schools operate on the amount of millage approved by the district’s voters.
Millage is a set amount of money that does not increase with inflation, like a fixed income. As
costs increase, a school district must ask for an increase in millage to offset those increasing
costs and that is traditionally why schools must go to the voters for additional levies.

What has the district done to save on costs in the past?

 Spending across all levels is currently being monitored in order to ensure that only
necessary spending occurs which helps to provide a high-quality education to the students
within our district and ensure that the needs of our students are being met.

 We have evaluated purchase services and lease agreements, such as food service (reduced
costs by over $100,000).

 We researched and found alternative vendors and/or negotiated with current vendors to
purse reduced rates for required services such as property, liability, & fleet insurance,
legal services, Medicaid billing, etc.

 We joined an insurance consortium to dramatically reduce employee insurance costs.
 We implemented a supply warehouse for classroom and office supplies to streamline
costs through bulk ordering.

 Increased negotiations with vendors for maintenance and custodial supplies and services
for reduced costs.

 Utilized consortium type vendors like the ESC of WR, Ohio Schools Council, HPS (food
service) who offer reduced pricing for educational institutions.

How much money does the 9.7 mill levy raise?
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Last year, this levy was responsible for approximately $3,100,000.00 (Geauga County Auditor
Schedule B – Tax Year 2021 value for 2022 collection) of the district’s General Fund.

What are these funds used for?

The General Fund pays for Cardinal’s day-to-day operating expenses, including teachers and
staff, special education services, curriculum resources/textbooks, student programs, building
utilities, transportation, and supplies. It also ensures that the district has cash on hand to meet all
its financial obligations and will help to upgrade Cardinal’s position with bond holders by
providing a more stable financial position.

What expenses does the General Fund not provide for?

The General Fund does not pay for food services, athletics, debt services, permanent
improvement projects, or student scholarships; these areas have separate funds and separate
sources of revenue that cannot be combined.

What are the greatest expenses for the district?

School districts cannot operate without qualified staff. In order to educate the community’s
children, Cardinal’s largest expenditure is personnel costs followed by operating expenses.

What cuts will the district have to make if the levy renewal fails?

Additional reductions will need to be made in order for the district to balance its budget. This
levy is responsible for a large portion of the district’s general fund and cutting $3,000,000.00,
will be extremely difficult without eliminating staff and faculty positions. If this renewal levy
fails, the administration will have to make significant reductions.
If the levy renewal fails, it will have a severe negative impact on Cardinal’s ability to have a
positive cash balance on hand and pay operating costs and impact the potential to remain
financially solvent in the near future, which could potentially lead to fiscal watch or fiscal
emergency declared by the state.

What happens to the State Rollback Credit if the levy renewal fails?

The state rollback credits, rescinded on all new and replacement levies in 2013, have been left in
place for renewal levies. If this renewal levy fails, taxpayers will lose the rollback credit that has
been in place with this renewal. That is a loss of up to 12.5% savings for taxpayers.

When will this renewal levy be on the ballot for voter approval?

November 8, 2022.