District News

The Kings Local School District Board of Education has fulfilled its commitment to the community by making the operating levy approved in 2022 last the full three years as promised. With that commitment now complete, the Board has been exploring new approaches to school funding that would provide greater sustainability and predictability for our community.

Over the last 24 months, board discussions have focused on moving away from the traditional three-year property tax levy cycle that requires voters to repeatedly approve funding measures. There has also been considerable discussion about lessening the property tax burden on our community.

The current funding need is necessary to maintain our district's core operations, including student programs and services, day-to-day operational expenses, and competitive staff salaries and benefits that ensure our schools can continue providing quality education to our students. Stable, predictable funding is required to maintain current programming. As a result, the board has established two main financial goals and three solutions. 

Two Financial Goals:  

1. Create Long-Term Financial Sustainability 
The goal is to find a more stable funding model for our schools that reduces the dependence on property taxes and eliminates the need for frequent operating levy votes. Because the state's school funding formula provides limited funding for Kings schools, the district must diversify its revenue sources in order to move away from the current three-year levy cycle.

Currently, our school district has to ask voters every three years to approve operating levies that help fund basic school operations. This creates an ongoing cycle where the community must repeatedly vote on additional funding for the schools.   

2. Lower Property Taxes for All Residents
The second goal is to reduce the property tax burden for every homeowner in the district through a reduction of property tax millage, providing direct financial relief to all property owners.

Three Long-Term Solutions: 

1. Earned Income Tax:  The board of education is considering a 1% earned income tax that would only apply to wages and salaries. This tax would NOT apply to:

• Pension income

• Social Security benefits

• Disability benefits

• Capital gains

• Investment income

• Other non-earned income sources

This means retirees and those on fixed incomes would not be affected by the new tax.

2. Immediate Property Tax Reduction:  With the approval of a new revenue source (earned income tax), there would be a simultaneous reduction of 1 Mill of property tax. This reduction would provide tangible savings on property tax bills for every homeowner in the district starting in January 2026 and beyond. 

3. Future Property Tax Reductions:  The board is committed to continuing to lower property taxes for all residents by developing a resolution that requires an analysis of district finances annually, which may provide the community with additional property tax reductions in the future. 

The Combined Earned Income Tax and Property Tax Reduction Benefits: The combined approach ensures that property tax relief is directly tied to the new revenue source. This restructuring represents a shift toward a more diversified revenue approach that reduces reliance on property taxes, creating stable funding for schools while lowering property taxes for every resident in the district.  If approved, the five-year financial forecast does not show the need for additional property tax levies.   

Next Steps:  On Tuesday, June 17, the Board voted 5-0 to approve a resolution of necessity as the first step toward putting this earned income tax and property tax reduction measure on the November 4th ballot. A resolution of necessity is the formal declaration by the school board that additional funding is needed to maintain district operations and services. This resolution establishes the legal foundation for proceeding with a tax measure and demonstrates that the board has determined the new revenue is essential for the district's financial stability.   

Following the resolution of necessity, the district must now complete several procedural steps, including finalizing ballot language and meeting statutory deadlines. The final board action will take place at the Kings Board of Education meeting on July 8th, when the board will vote on final approval of the ballot language and adopt a formal resolution to place the measure on the November 4, 2025, ballot.

If approved by voters, the ballot issue would establish the new earned income tax while simultaneously reducing property taxes for all homeowners.  

To view the board of education discussion from the June 10th meeting on this potential ballot issue, please click here.

If you have more questions regarding the Earned Income Tax and Property Tax Reduction, please visit the Earned Income Tax and Property Tax Reduction Frequently Asked Questions.

If you have additional questions, please don't hesitate to reach out to Kings Superintendent, Greg Sears, or Treasurer, Mike Morrow.