What is Issue 7?

Issue 7 is a 1% Earned Income Tax levy that will appear on the November 3, 2026 ballot. If approved by voters, this levy would generate approximately $13.7 million annually.

The funds from this levy would address the District’s two most significant and timely needs: Infrastructure and Operations.

One portion of the funding would address major renovations to Riverside High School, including construction of a new academic addition on Campus to house students primarily in grades 7 and 8, and then demolish the current John R. Williams building. John R. Williams building would eventually be demolished.

The second portion of funding would address operations.

What is an Earned Income Tax Levy?
An Earned Income Tax generally includes wages, salaries, tips and self-employment income. It does not apply to Social Security, pensions, retirement income, unemployment benefits or interest or dividends.

Only actively employed individuals would be impacted.

Why an Earned Income Tax Levy? 

An Earned Income Tax Levy eases the burden on senior citizens and those who are retired and on fixed incomes.

An Earned Income Tax Levy also captures non-property owners who can contribute to school funding. An Earned Income Tax Levy is only assessed on an individual during times when they are actively employed.

Any break in employment (Retirement, Resignation, etc.) results in a break in the earned income tax.

How much will this levy cost me? 

One percent of your overall earned income. The median earned income of individuals living within the Riverside Local School District is $53,792, according to the 2025 CUPP Report. This would mean an individual making $53,792 would pay $537.92 per year (or $44.82 per month).

Is this a continuous levy?
While the Earned Income Tax levy is continuous, it is only applicable to individuals during their years of employment, unlike a property tax levy.

I live in the District but am employed outside of the district? Would I still pay the Earned Income Tax?
Yes, the Earned Income Tax is applied to any resident who lives in the District and is actively employed - regardless of their employer’s location.

Why does the District need operating funds?

The District is currently in deficit spending despite being fiscally responsible and committing to approximately $2 million in savings in Fiscal Years 2026 and 2027.

Over the years, Riverside has worked hard to consolidate services, share resources and reduce costs. The District was also recently hit with an unexpected $1.2 million loss from its budget when Lake County adopted changes to the Local Optional Homestead Tax Exemption and Local Optional Owner-Occupied Tax Exemption for the 2026 tax year.

While the District is in support of the County’s commitment to alleviate tax relief to residents who fall under the Homestead Act, the recent legislation results in an unplanned loss of approximately $650,000 moving forward to the general fund.

As currently forecasted, the District will be deficit spending by more than $4 million in Fiscal Year 2027 and $7.8 million by Fiscal Year 2028. By Fiscal Year 2029, the District will be in Fiscal Emergency. Deficit spending is not a result of fiscal mismanagement or spending beyond the District’s means. The District runs very lean and has also earned the Ohio Auditor of State Award for 10 straight years.

The reality is revenue has not kept pace with the rate of inflation, and school districts are not eligible to collect more revenue from property taxes than what was originally passed by voters, even when property values increase, due to Ohio Law (House Bill 920).

In other words, revenue has remained flat while inflation and the cost(s) to maintain operations has increased significantly over the years. The last time the district passed new operating funds was in May of 2017.

My Property Taxes increased over the past few years. Didn’t that result in an increase of funds to Riverside Local Schools?

Many people assume that when property values go up, schools automatically receive more property tax revenue. In Ohio, that's generally not how it works.

A state law called House Bill 920 prevents school districts from receiving a windfall when property values increase because of reappraisals. Instead, when property values rise, the tax rate is automatically adjusted downward so the school district collects about the same amount of money from existing voter-approved levies as it did before.

In other words, the district only receives the amount voters originally approved—not extra money because homes are worth more. 

The same is generally true when new homes are built. Unless special agreements such as a Tax Increment Financing (TIF) or Road Improvement District (RID) agreement are in place, the school district receives only a small portion of the taxes from those new properties through what is known as inside millage.

The additional voter-approved levies do not automatically generate new revenue from increased property values in the way many people expect.

Also, keep in mind, property taxes are calculated across the entire school district, not just based on one property's value. 

Although the most recent reappraisal showed an average increase in home values of about 29%, not every home increased by the same amount. Some homes may have increased by 40%, while others increased by only 18%.

Because taxes are based on how your property's value changed compared to everyone else's, homeowners can have different outcomes:

So, while property values increased across the district, that does not mean everyone pays the same increase in taxes, and it does not mean the school district receives significantly more revenue from existing voted levies.

The bottom line

This is why it's possible for a homeowner to see a higher tax bill while the school district's revenue from its existing voted levies remains relatively flat.

Why can’t the District just tighten their belt or make cuts?

Riverside already operates incredibly efficiently. In FY25, the District’s average per pupil spending was $13,416.24; the second lowest combined across Lake and Geauga County. The state average expenditure per pupil in FY25 was $17,757.74.

In addition the District continually reviews its budget and looks for opportunities to operate as efficiently as possible. Like most school districts, Riverside evaluates staffing, contracts, purchasing and operations to ensure taxpayer dollars are used responsibly.

We also look for grants when available and applicable. Most of our District’s budget is spent on essential services that directly support students including: teachers and classroom staff, student transportation, special education services, utilities and building operations, and safety and security. These costs continue to increase due to inflation, rising healthcare and insurance expenses, utility costs, transportation and state and federal requirements.

Because the majority of the budget supports people and services, significant budget reductions would likely result in fewer educational opportunities, larger class sizes, reduced programs or extracurricular activities, delayed maintenance, or fewer staff members serving students.

The District's goal is to be a responsible steward of taxpayer dollars while continuing to provide students with a safe learning environment and a high-quality education.

What has the District done to reduce expenditures?

Through attrition the District has eliminated more than 15 positions in the past two years. In addition, the District netted significant savings in switching healthcare consortiums in 2025. Lastly, the District continues to work with several other local school districts to share services to help cut expenditures.

Why does the District need to address the High School?

Riverside High School is now 77-years-old and is the oldest high school in Lake County.

Over the course of the past 20 years, the building and its grounds have been professionally inspected and assessed by the Ohio Facilities Construction Commission, Bialosky and Partners Architects and ThenDesign Architecture.

All three firms investigated the condition of major architectural, structural, mechanical and electrical systems as well as identified deficiencies and prioritized critical needs to address.

The overwhelming synopsis amongst those reports was that significant renovations are needed to ensure Riverside High School could meet the needs of students, staff and community members.

What will be involved in the renovations? 
A complete overhaul of the building including roofs, windows, lights, floors, HVAC and more.  The auditorium will be completely renovated and a new, modern, student commons space will be built.  The building will retain its classic, grand facade on Riverside drive, while providing modern, learning spaces on the interior.

Why has the burden of school taxes shifted from businesses to homeowners?
Over the past several decades, changes in Ohio tax policy have reduced or eliminated many taxes paid by businesses and public utilities, while state funding has not kept pace with the growing cost of operating schools.

As a result, homeowners and farmers now pay a much larger share of local school property taxes than they did in the past.

In 1991, Ohio homeowners and farmers paid approximately 47% of all school property taxes statewide. Today, they pay nearly 70%.

In the Riverside Local School District, homeowners and farmers currently pay approximately 92.1% of the District's school property taxes, with businesses paying the remaining 7.9%.

The State of Ohio provides Riverside with approximately 20% of its General Fund operating revenue. The remaining 80% comes from local sources, meaning local taxpayers provide roughly four out of every five dollars used to operate the school district.

Why does Riverside receive such a small share from the state? 

The state's funding formula expects Riverside to raise most of its operating revenue locally because of the district's property values and residents' income.

The state does not consider Riverside a high-poverty District. In fact, Riverside is considered one of the wealthier Districts in the state. As a result, Riverside relies more heavily on local taxpayers than many other districts to fund educational programs, transportation, staffing, and building maintenance.

What happened to additional funding for school districts from the Ohio Lottery and the casinos?

Ohio Lottery profits do help fund public education. However, lottery dollars are part of the state's overall education budget—not additional funding on top of it. As a result, lottery revenue has not eliminated the need for local property taxes or school levies because it represents only a small portion of the total funding needed to operate Ohio's public schools.

Casino tax revenue also helps fund Ohio's public schools. However, because the money is divided among every public school district in the state, each district receives only a relatively small share. While the funding helps, it is not nearly enough to cover the full cost of operating schools or maintaining school facilities. As a result, local school districts still rely heavily on state aid and local tax revenue to fund education.

I don’t have kids in the District. What’s in it for me?

Whether you have students in the District or not, the entire community benefits from a strong public school system. High quality schools build a stronger sense of community, improve home values, attract new families, and, most importantly, develop and educate the youth of our community to prepare them for a successful future.

The District is also working with several community partners to offer amenities to all residents of the area once the Campus project is completed.

The timing is not great for a levy. Why now? 

The truth is, there is never a great time for a levy. There will also always be unknowns about future costs, inflation, interest rates, tax fatigue, etc. The District is in danger of entering fiscal emergency if not for new operating funds.

 

In addition, the District has been working on a Facilities Plan for more than a decade, and the high school is in desperate need of attention, as it is now 77-years-old and the oldest high school in Lake County.