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Tax Increment Financing (TIF)
Residential TIF’s
The historic residential Tax Increment Financing (TIF) agreements, noted on the attached schedule, were agreed to by all parties — including the MEVSD — in the early 2000’s. While the financial situation for both the City and MEVSD were different at that time, the residential TIFs were necessary to build the new water reclamation facility. Without those TIFs, the residents at that time would have assumed the cost for the new facility instead of new residents paying a significant portion of the total cost or there would have been no residential or commercial growth as a smaller facility would have been built. Marysville City’s portion of the TIF receipts continue to fund the debt service requirements on that facility and will continue to do so through the end of the TIF agreements as the debt service payments extend past the TIF agreement end dates. Moving forward, at MEVSD’s request, the City passed a resolution agreeing to not enter into any new residential TIFs. MEVSD currently receives a little over 33% of the total residential TIF receipts, totaling $15,783,916 since TIF collections began.
Commercial TIF’s
The Commercial TIF’s are set aside for infrastructure improvements (road construction, intersection improvements, etc.) in and around the related commercial developments. Any new commercial TIFs would be negotiated individually, with MEVSD included in negotiations. The most recent example being the TIF for the new uptown development at the Silo and old Water Treatment Plant sites. MEVSD currently receives around 45% of the total Commercial TIF receipts, totaling $14,187,079 since TIF collections began.
School Tax Burden & Performance
- Tax Burden Ranking:
- Out of the 25 public school districts in Central Ohio, the Marysville Exempted Village School District (MEVSD) has the second lowest school tax burden. If the 5.5 mill levy passes, MEVSD will have the third lowest school tax burden of those same 25 districts.
- Out of the eight public school districts in Central Ohio with the lowest school tax burden, only one district had a higher FY23 student performance index than MEVSD.
- Of the 25 public school districts in Central Ohio, every district that had a higher FY23 student performance index than MEVSD also had a higher school tax burden than MEVSD.
- Of the ODE similar districts MEVSD has the lowest school tax burden.
- The local tax effort index for MEVSD is 0.5269, which is 50% of the state average of 1.0608.
- Based on individual school district criteria, ODE sets an expected index of 1.000 for each district. A tax effort index below 1.000 means a district is collecting fewer local revenues than the State expects it should. (Move to Tax Burden Ranking).
- Spending and Revenue:
- In 2023, MEVSD spent $12,990 per student, which was $2,438 below the State average of $15,427 per student for public school districts.
- Of over 600 public school districts in Ohio, about 81% of the districts spend more per student than MEVSD spends.
- Of over 600 public school districts in Ohio, MEVSD has the 14th lowest total revenue per student ($12,170), which is $4,944 less than the State average ($17,114) for public school districts.
Loss of Tangible Personal Property Taxes (TPPT)
Local governments and schools used to benefit from a locally collected Tangible Personal Property Tax that was levied on business inventories. In 2005 the Ohio Legislature replaced the TPPT with a more “business friendly” Commercial Activity Tax (CAT), which is deposited in the State General Revenue Fund (GRF). The State made a “hold harmless” promise to school districts that they would receive GRF reimbursements similar in magnitude to former TPPT receipts. From FY2004-FY2011, MEVSD received about $9 million per year from TPPT or State GRF payments. Beginning in FY2012, the “hold harmless” promise was broken when the State implemented a gradual phaseout of the reimbursements with payments limited only to school districts most significantly impacted by the loss of revenue.
In FY2014, the MEVSD was reimbursed about $5.6M from the GRF, and in each year since the district has been receiving incrementally smaller reimbursements. The last reimbursement will happen in FY2025.
MEVSD has faced the loss of substantial annual funding as a result of the passage by the Ohio Legislature of House Bill 66 in 2005, and subsequent legislation that reduced, and then eliminated, the “hold harmless” reimbursement promise to the district.
Ohio Lottery Funding
The Ohio Lottery was created by an amendment to the Ohio Constitution in the 1970s. Ohio Lottery profits are deposited into the Ohio General Revenue Fund. Of the State’s total allocation for primary and secondary education about 10-12% comes from Ohio Lottery profits.
Casino Revenue
In accordance with an amendment to the Ohio Constitution, a portion of profits from casinos are earmarked for schools. MEVSD receives $350-370K each year in casino revenues.
Financial Management
- Funding Sources and Allocation:
- The Marysville Exempted Village School District (MEVSD) tax revenues go into three separate funds: General Operating Fund, Permanent Improvement Fund, and Bond Fund.
- General Operating Fund: Local revenues come from voted Operating Levies (property taxes) and unvoted inside millage. Expenditures pay for operations such as wages, salaries, benefits, utilities, insurance, supplies, materials, legal fees, etc.
- Permanent Improvement Fund: Revenues come from voted Permanent Improvement Levies (property taxes). Expenditures include capital expenditures such as computers, equipment, bus purchases, sidewalks, roofs, and parking lot resurfacing. Funds cannot be used for daily operating expenses.
- Bond Fund: Revenues come from voted Bond Levies (property taxes) issued for new or expanded school buildings. Funds cannot be used for operating expenses.
- Funds in the Permanent Improvement Fund and Bond Fund cannot be transferred to the General Operating Fund.
- Use of Federal American Rescue Plan (ESSER) dollars: MEVSD received nearly $5 million (one time revenue), used to cover existing staffing costs, including academic coaches for ongoing professional development, saving General Operating Fund expenses and delaying the need for a new Operating Levy.
- The Marysville Exempted Village School District (MEVSD) tax revenues go into three separate funds: General Operating Fund, Permanent Improvement Fund, and Bond Fund.
- Expenditures:
- The instructional expenditure per student in MEVSD is $7,570, which is 86% of the State average of $8,803.
- The administration expenditure per student in MEVSD is $1,529, which is 73% of the State average of $2,083.
- According to the Educational Service Center of Central Ohio, Superintendent Diane Allen’s salary ranks 12th out of 31 Central Ohio public school districts.
- The local tax revenue in MEVSD is $5,071 per student, which is 73% of the state average of $6,903.
- The student to administrator ratio in MEVSD is approximately 161 students for every administrator, compared to the State average of approximately 120 students per administrator.
Financial Challenges & Comparisons
- Historical and Legislative Financial Context:
- Loss of Tangible Personal Property Taxes: See separate discussion above.
- Ohio Lottery Funding: See separate discussion above.
- Ohio Legislative Service Commission Financial Analysis: Includes a 5-year forecast, a summary of revenue sources and expenditures.
- MEVSD will run out of cash reserves by 2028 without further cuts and/or passage of a new operating levy.
- The analysis indicates that the district will grow by 1.2% to 1.4% per year through the end of the 5 year forecast.
- It also shows projected MEVSD enrollment through FY2028 and property valuation per student.
- When compared by OLSC to five similar districts they selected, MEVSD’s revenue is comprised of the highest percentage of state funding, and the lowest percentage of local tax funding.
- Teacher Salaries and Comparisons:
- This data shows the lowest and highest salaries in each category in 7 districts compared to Marysville. To see complete information from all 7 districts click the link below.
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Starting pay with a bachelor’s degree:
- Buckeye Valley: $43,600 (Lowest)
- Marysville: $43,799 (Actual)
- Dublin: $53,190 (Highest)
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Year 5 with a bachelor’s degree:
- Delaware: $52,902 (Lowest)
- Marysville: $55,222 (Actual)
- Worthington: $63,797 (Highest)
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Year 10 with a bachelor’s degree:
- Delaware: $62,137 (Lowest)
- Marysville: $63,376 (Actual)
- Worthington: $76,859 (Highest)
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Year 10 with a master’s degree:
- Fairbanks: $70,379 (Lowest)
- Marysville: $71,151 (Actual)
- Worthington: $85,859 (Highest)
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Year 20 with a master’s degree:
- Fairbanks: $85,357 (Lowest)
- Marysville: $90,270 (Actual)
- Dublin: $108,201 (Highest)
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- This data shows the lowest and highest salaries in each category in 7 districts compared to Marysville. To see complete information from all 7 districts click the link below.