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Cleveland Schools Seek Tax Hike Even as COVID-19 Hammers Families

Cleveland Mayor Frank Jackson urges voters to pass a school tax increase in 2012, the city鈥檚 first operating tax since 1996, in a television ad for the tax. The district is seeking its first increase since then this fall, while also trying to renew the 2012 tax.

Cleveland school officials have taken the unusual step during the pandemic of asking voters to approve a 12 percent property tax hike 鈥 even as the city鈥檚 overwhelmingly poor residents struggle with COVID-19鈥檚 economic punch.

鈥淲e know this is a particularly difficult time to ask for an increase, which we have worked to keep as small as possible,鈥 Cleveland school CEO Eric Gordon told the board before the Tuesday night vote. 鈥淏ut we believe our eight-year track record of progress combined with the new educational needs created by the COVID-19 pandemic make it necessary.鈥

Voters must approve the tax hike 鈥 which would raise an additional $23 million annually for the district 鈥 in November. It would be the district鈥檚 first increase toward school operations in eight years.

District spokesperson Roseann Canfora said the district expects to spend the money on a new system to manage online classwork, and on internet access costs, personal protective equipment and additional busing for students. More details will come when the district releases its school reopening plan late this month.

The vote comes as unemployment has soared with businesses shut down to contain the virus. More than 25 percent of Cleveland鈥檚 adults were unemployed in April and more than 20 percent in May, compared with about 5 percent a year ago. The United Way and Cleveland Food Bank say the number of new families seeking aid has tripled since March.

School as state and local income, sales and other taxes have plummeted while states have slashed funding to schools. But most have focused on pressing Congress for more emergency aid 鈥 an effort Cleveland schools CEO Eric Gordon helped lead 鈥 or lobbying states to maintain school funding.

Philadelphia鈥檚 mayor proposed a local increase in school taxes but Districts have mostly slashed expenses, frozen salaries or added small tax increases they could just impose under their states鈥 laws.

, which the district relies on for 55 percent of its budget. Cleveland, like other districts across the country, also faced increased costs to buy Chromebooks and internet hotspots to quickly teach students online.

At Gordon鈥檚 urging, the board unanimously voted Tuesday to ask voters to extend a 2012 tax that generates about $67 million a year, but which would expire at the end of this year, and then add a $23 million tax on top of it.

Those totals assume tax collections maintain their 88 percent rate and do not fall because families can鈥檛 afford to pay.

The tax, if passed, would cost the average homeowner about $87 more per year. (It would cost $175 more a year per $100,000 in home value.) The median household income in Cleveland is $29,000.

Homeowners currently pay a little over $1,500 per $100,000 home value each year in Cleveland school taxes, according to the Ohio Department of Taxation.

Cleveland residents are not sure yet what they think of the tax proposal and want to see whether the district really reopens schools to students this fall.

鈥淎 lot of people are out of work and they don鈥檛 know if schools will open,鈥 said Vianca Johnson. You鈥檙e asking us for more money, but the kids won’t actually be in school.鈥

Resident Felicia Kent she is still working, but the economy is too bad to spend more on schools.

鈥淭he neighbors, they don鈥檛 have a job,鈥 Kent said. 鈥淭hey鈥檙e unemployed, or they鈥檙e on welfare. I know I will vote against it.鈥

Part of the district鈥檚 strategy could also draw opposition. Gordon and the board are combining the renewal of the old tax with the new increase into a single issue on the ballot. Voters will have to approve both or reject both, which would result in massive cuts and layoffs when the $67 million tax expires.

Gordon said he expects that if they were presented to voters as two separate questions, the renewal would pass and the increase would fail. That would leave the district with budget deficits next year, he said.

Shari Obrenski, president of the Cleveland Teachers Union, said she supports the increase.

鈥淚f we just went for a straight renewal, within a year we would be in a deficit situation,鈥 she said. 鈥淲ith no additional funds after eight years at the same level, we were bound to need an increase.鈥

She is optimistic the tax will pass.

鈥淚f the closure period has shown the community anything, it鈥檚 that our schools are more important than ever,鈥 she said. 鈥淭his is absolutely necessary.鈥

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