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Superintendent

From the Superintendent’s Desk                       

January 20, 2017

I write you today to begin a conversation about a complex issue that could have a significant impact on our school district. As you may know, school funding has traditionally been a less than stable function of our state government. We are on the cusp of an issue that will undoubtedly have a lasting effect, and I urgently need your attention and understanding as we move forward. Here is my sincerest effort to explain the issue in brief using the information I have been given to date:

In 2005, the state legislature passed a law to reduce the amount of taxes (known as tangible personal property, or TPP, tax) that local business and industry must pay.

The effect of the law would have, in some cases, reduced our school district’s income and, in other cases, increased taxes to property owners. Therefore, the state legislature replaced (reimbursed schools) the money no longer collected from industry with money from commercial activity, income, and sales taxes (often referred to as “state” money).

Between 2014 and 2022, the state is eliminating this reimbursement to school districts.  As a result, our district has been or will be impacted in two ways:

  • Our district has lost about $1.6 million in annual revenue since 2009, which we have not asked taxpayers to replace from our fixed rate levies (the state is keeping this money to use for other purposes)
  • Our district property owners will share an additional $1 million in tax burden due to TPP reimbursement being eliminated from our $3.7 million emergency (fixed sum) levy that has been in place since 1999.  In other words, the state is going to keep the money they were using to reimburse the district which causes the burden to fall on all taxpayers in the district. A more detailed explanation of this issue can be found on the district website at: www.bathwildcats.org

Below is a table from the Allen County Auditor’s Office received in November 2016 illustrating the estimated increase that property owners will see depending upon the value of our property:

Collection Year

 

Market Value

2019 Annual/Monthly Increase

2020 Annual/Monthly Increase

2021 Annual/Monthly Increase

2022 Annual/Monthly Increase

2023 Annual/Monthly Increase

$100,000.00

$25.00/$2.08

$25.00/$2.08

$25.00/$2.08

$25.00/$2.08

$25.00/$2.08

$125,000.00

$32.00/$2.67

$31.00/$2.58

$34.00/$2.83

$32.00/$2.67

$31.00/$2.58

$150,000.00

$38.00/$3.17

$41.00/$3.42

$38.00/$3.17

$38.00/$3.17

$37.00/$3.08

 

School boards around the state who have similar circumstances have been working to find a legislative solution to this issue without success.   I will continue to work with others around the state to find a solution.  However, if none is found, the $1 million reimbursement being phased out will be passed on to you and me, district property owners.  The Bath board and administration feel it is important for you to have substantial notice of this issue. 

I’m sure you understand that it would be devastating for the district to lose $1 million annually after the losses we have already suffered. Furthermore, this emergency levy must be renewed before the end of 2019. If this levy does not renew before the end of 2019, we will lose the entire $3.7 million in revenue, not just the $1 million in reimbursement revenue.   I am here to answer any questions you may have about the loss of TPP.   Please do not hesitate to call my office. 

Sincerely,

Dale E. Lewellen, Superintendent

Bath Local Schools

 

Mr. Dale E. Lewellen, Superintendent

Bath Local Schools
Administration Building
2650 Bible Road
Lima, Ohio 45804
lewellend@bathwildcats.org
419.221.0807 Option 21
Fax: 419.221.0983

Missy Vandemark, 
Executive Administrative Assistant
vandemarkm@bathwildcats.org
419.221.0807 ext. 6147


Diane Armentrout, EMIS
armentroutd@bathwildcats.org
419.221.0807 ext. 6152
Fax 419.221.0983