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Crowds gather at the Mercer County Courthouse to wait and review results of the March primary.
CELINA - Voters on Election Day resoundingly struck down Coldwater schools' proposed 1.75% earned income tax levy, according to unofficial Mercer County election results.
The levy was defeated with 71% or 1,972 votes cast against it.
The proposed levy would've replaced the existing 0.5% traditional income tax with a 1.75% earned income tax.
The current 0.5% traditional income tax levy first passed by voters in 1999 generates about $1 million annually, according to district treasurer Jenn McCoy.
Additional revenue from the replacement earned income tax levy would've gone toward general operating expenses.
Superintendent Doug Mader in a statement said the levy results are disheartening.
"The failure of this levy creates significant financial challenges for our district," he said. "As you may know, the consulting companies we contracted with in 2007 strongly recommended setting aside $385,494.56 annually (based on 2007 dollars) to repair and replace major infrastructure items."
Utilizing the Consumer Price Index for inflation each year, the total accumulated amount needed today "is a staggering $9,280,862.17," he continued.
"This is in addition to the technological and capital needs addressed throughout the campaign. Failing to fund these recommendations proactively will inevitably lead to catastrophic infrastructure failures in the near future," Mader said.
School board member Jack Waite at last week's board meeting said should the levy fail, the board would have to strategically examine its essential equipment and infrastructure needs while balancing personnel needs.
"We will likely not fill open positions or fill those of retiring employees," he said. "We will also revisit board policy and revise it appropriately."
Mader said that setting aside funds will be challenging.
"We will soon need to make difficult decisions regarding class sizes, program offerings and services," he said. "A few of those difficult decisions will affect next year. Due to retirements, we will not replace the two teaching positions, one educational aide position and one custodial position that are currently open. This will force us to move some teachers to different grade levels and combine classrooms, causing class sizes to increase."
Board members will also look at other areas to reduce costs, such as possibly eliminating some extracurricular supervisory roles and reducing building hours to reduce energy costs.
"This will impact outside groups that use the building or gymnasiums in the evening," Mader continued. "We will also look at transportation costs and eliminate some groups that we now transport but did not in the past."
Mader added that the board remains committed to being fiscally responsible and proactive in addressing the district's long-term needs.
"Our top priority will always be providing our students with the best possible educational experiences despite the challenges we face," he said. "It is now time for me to go back and be the educational leader for the district 100% of the time."
