CPS Board Rescinds Income Tax Levy

UPDATE 8/3/2026: 

The Cincinnati Board of Education voted Monday evening to rescind the previously approved 0.75% earned-income tax proposal and place a five-year, 7-mill property-tax levy on the November 3, 2026, general election ballot.

The Board acted after hearing significant community concern about the impact an earned-
income tax would have on working residents. While the funding method has changed, the financial need facing Cincinnati Public Schools has not.

If approved, the 7-mill levy would generate approximately $66,336,723 annually, with collections beginning in January 2027. It would cost the owner of a home with a market value of $100,000 approximately $245 per year.

CPS BOARD PLACES FIVE-YEAR, 7-MILL PROPERTY-TAXY LEVY

PREVIOUS STORY 7/27/2026:

The Cincinnati Board of Education voted Monday evening to place a five-year, 0.75 percent earned-income tax levy on the November 3, 2026, general election ballot.

If approved, the levy would generate approximately $74 million annually for Cincinnati Public Schools. For a resident with $50,000 in annual earned income, the tax would be $375 per year, or $31.25 per month. For a resident with $100,000 in annual earned income, it would be $750 per year, or $62.50 per month.

How the earned-income tax would work

This is the first earned-income tax levy proposed by Cincinnati Public Schools. The tax would apply to the earned income of residents who live within the CPS district, including wages, salaries, tips and net earnings from self-employment.

It would not apply to Social Security benefits, pensions or other retirement income, investment income, or income earned by people who work in Cincinnati but live outside the school district. Unlike a property-tax levy, the amount paid would be based on a resident’s earned income rather than the value of a home. The Board considered this structure as a way to generate recurring revenue without adding new property-tax millage.

More than a decade without new operating money

CPS has not asked Cincinnati voters for new operating money in more than a decade. During that time, families have seen the price of everyday necessities climb sharply, and the District has faced those same pressures across a school system serving thousands of students and operating dozens of buildings.

Transportation, insurance, utilities, instructional materials, building repairs and specialized student services all cost more today. Existing revenue has not kept pace, which means available dollars purchase less for students each year. Legally required responsibilities further limit the District’s flexibility, but they are only one part of the rising cost of providing a high-quality education.

“Inflation has changed the math. CPS has gone more than a decade without new operating money while the cost of nearly every service we provide has increased. We closed a projected gap of nearly $58 million and balanced the coming year, but one-time measures and repeated reductions cannot solve an ongoing revenue problem. An earned-income tax would provide recurring revenue tied to residents’ earnings while excluding retirement and investment income.”
— Mike Gustin, Treasurer

CPS acted before asking voters for additional revenue

CPS closed a projected budget gap of nearly $58 million and adopted a balanced $634.6 million general-fund budget for the 2026-27 school year. The financial plan includes staffing reductions, five furlough days, a 10 percent reduction in non-personnel spending, stronger spending and hiring controls, service reorganization, outside funding and limited one-time resources.

Those decisions addressed the immediate budget gap while protecting core instruction, student support, educational choices and pathways to college and careers. Some of the measures used to balance the coming year cannot be repeated annually. Approximately $6.7 million of the FY2027 budget relies on one-time revenue that will not be available in future years.

“We examined every part of our operation, made difficult decisions and pursued responsible opportunities to stretch our resources further. Through those reductions, we protected the strong instruction, support and educational opportunities that Cincinnati’s students deserve.”
— Shauna Murphy, Superintendent

The levy would protect educational quality

The levy would provide five years of recurring funding to help CPS keep pace with inflation and sustain:

• High-quality instruction, with a continued focus on literacy and mathematics
• College Credit Plus, Advanced Placement, Career and Technical Education, industry credentials and other pathways to college and careers
• Magnet, Montessori and other specialized learning options
• Academic, attendance, health and behavioral-health support
• Arts, athletics, enrichment and transportation access
• Implementation of the District’s strategic plan with clear measures of progress

Strong public schools strengthen Cincinnati

The proposal has implications beyond CPS classrooms. Strong public schools prepare Cincinnati’s future workforce, strengthen neighborhoods, support economic growth and help make the city a place where families want to live and invest. Protecting educational quality is a citywide responsibility with a citywide benefit.

The five-year term aligns with the District’s financial forecast and strategic-planning period, giving the public a defined period to evaluate CPS’s financial stewardship, educational progress and use of additional revenue.