FAIRFIELD, Ohio — Fairfield City Schools Superintendent Billy Smith says difficult decisions lie ahead after voters narrowly rejected the district's proposed earned income tax for the second time this year. Unofficial results from Tuesday's election show approximately 52 percent of voters opposed the levy, while 48 percent supported it. The district sought a 1.25 percent earned income tax for five years. A similar proposal rejected in May had no sunset provision. In a statement following Tuesday's election, Smith acknowledged the disappointment felt throughout the district. “I know this morning brings disappointment, worry, and broken hearts among staff, students, and community members across our District,” Smith wrote to employees. Smith said the district's financial challenges remain unchanged despite the election outcome. Fairfield Schools has already implemented approximately $5.7 million in reductions for the current school year. Without additional revenue by the end of this school year, the district faces approximately $11 million in further reductions beginning with the 2027–2028 school year. Those potential cuts would affect staffing, student services, academic programs and other opportunities.
In a message to families, Smith acknowledged the uncertainty facing students, parents and employees. “We will continue to communicate openly about our financial circumstances and the decisions ahead,” he said. The superintendent and district Treasurer Jay Phillips plan to discuss the next steps during the November 12 Board of Education meeting. Options under consideration include the possibility of another ballot issue in May.
The defeated proposal would have taxed earned income, including wages, salaries and self-employment income, but not Social Security benefits, most retirement income or investment earnings. District officials had argued that the five-year expiration date would give voters an opportunity to reconsider the tax rather than approve a permanent levy. The district has not secured voter approval for a new operating levy since 2011. Tuesday's results remain unofficial pending certification by the Butler County Board of Elections.
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