I'm really confused about the State Funding issue. Can you explain in more detail how if this levy fails we permanently lose $1.3 million from the State?

To understand the State reimbursement, we need a basic understanding of property taxes. So let's start there.

In Ohio, local entities generate revenue to pay for shared community services through tax levies. There are two groups that pay property taxes: individuals (households) and corporations (businesses). Each pays property taxes on the real value of their land and the structures erected on this land.

Levies can either be continuing or for a limited term. A continuing levy goes on indefinitely after approval with no renewal necessary. A limited term levy, lasting one to five years, must be either renewed or replaced at the end of the approved term or it simply expires and revenue is no longer collected.

In 1976, the Ohio General Assembly enacted legislation that fundamentally changed how property taxes are levied and collected statewide. Unlike other states, Ohio property taxes do not increase when the value of real property increases. Instead, the voted millage is "rolled back" to a lower rate, referred to as "effective millage", and collects the same amount as before. New homes and businesses constructed after a levy has been approved simply pay the current "effective millage" rate.

This can be compared to gasoline prices. We pay fuel tax each time we purchase gasoline. Consider a law requiring that fuel taxes be reduced by the same amount as any increase in the price of gasoline. Drivers would continue to pay the same amount at the pump, regardless of fluctuations in the price of oil.

In the past Ohio also provided for a second type of property tax to be collected from corporations. It was a tax on the inventory and equipment owned by the company, in addition to taxes on land and buildings. Alternately referred to as personal property, tangible personal property, or TPP, this tax applied to businesses only, not homeowners.

In 2005, Ohio tax law was changed to replace the TPP tax with a new Comercial Activity Tax (CAT). Collection of the TPP tax was scheduled to phase out over a 5 year period. During the phase out, the State agreed to reimburse communities for losses created by the elimination of the TPP tax at the 2005 values for a limited period of time.

Now let's examine the history of the renewal levy on the November 3 ballot ,and see how it has helped to fund the school district.

In 1989, voters in the Marysville School District first approved this 5-year 6.56 mil operating levy. It generated the following additional revenue for the district:

In 1994, voters renewed the levy for another 5 years. At that time it was collected at the following rates:

The levy was renewed again in 1999 for another 5 years. It was being collected at the time as follows:

By 2004, when this levy was again renewed for 5 years, it was collected as follows:

Last year, with the phase out of the TPP tax, revenue from this levy was collected as follows:

The reduction in funding revenue from the loss of the TPP taxes is evident.

The State of Ohio is currently reimbursing the district for this loss. The amount received.from the State in 2009 to replace what was lost, from just this one particular levy, is $1.3 million.

The State is currently reimbursing the district for losses on all levies in effect in 2004. Because this 6.56 renewal levy was in place at that time, the State is obligated to continue to replace the lost revenue.

If this renewal is not approved, the State will no longer replace the $1.3 million. Even if a new levy were subsequently approved in 2010, it would not be tied to State replacement funds and would be levied only upon real estate.

As a community, we have one shot at this on Nov 3rd.

The levy will either be renewed at no additional cost to taxpayers, or the State will keep the $1.3 million it is currently providing to the district.