FOR IMMEDIATE RELEASE
Fairfield Board of Education to Move Forward with 1.25% Earned Income Tax Proposal for May 5, 2026 Ballot
At its January 8 meeting, the Fairfield City School District Board of Education received a comprehensive update on the district’s current and long-term financial outlook. Treasurer Jay Phillips and Superintendent Billy Smith outlined significant fiscal challenges facing the district, including the impact of a failed levy attempt in March 2024 and ongoing reductions in state funding.
District leadership reviewed the substantial steps already taken to manage financial pressures. Between 2009 and 2012, the district eliminated 140.5 positions. Since 2023, an additional 1.5 administrative positions and 12 teaching positions have been eliminated through attrition, along with 12 positions through a reduction in force. The district has also delayed capital improvements, postponed technology upgrades, and extended its bus replacement cycle beyond the planned timeline. The last levy approved by Fairfield voters was in 2011 and was expected to sustain the district for five years.
Despite these efforts, district expenditures are currently outpacing revenue by approximately $9 million. District leaders emphasized that reductions of this magnitude cannot be achieved without significantly impacting teaching, learning, and student services.
Assistant Superintendent Kim Hauer also summarized themes that emerged during two recent community engagement sessions titled “FCSD Finances: The Road Ahead.” These sessions were designed to share financial information and hear general perspectives from participants. Participants discussed the importance of students, staff, academic programming, fine arts, extracurricular opportunities, mental health services, and supports for the whole child. Many participants noted the difficulty of identifying additional reductions that could be made without negatively affecting students.
As part of these sessions, district staff provided informational overviews of three potential revenue options:
- An 8.6-mill operating levy
- A 1.0% traditional school district income tax, which would apply to all income earners, including those receiving retirement and disability income
- A 1.25% earned income tax, which would apply only to earned income and would not impact retirement or disability income
During the discussions, participants asked questions and shared perspectives about how each option could affect different groups within the community. The exemption of retirement and disability income under an earned income tax was a point that was frequently referenced in those conversations.
Based on these discussions, along with the district’s long-term financial projections and legal requirements, the Fairfield City School District will be moving forward with placing a 1.25% earned income tax on the May 5, 2026 election ballot. State law requires the Board to take action through two separate public meetings. At the first meeting, the Board will consider a Resolution of Necessity. At the second meeting, the Board will consider a resolution to proceed with placing the issue on the ballot.
The required meetings are open to the public and will be held on:
- Thursday, January 15, 2026, at 6:30 p.m.
- Tuesday, January 27, 2026, at 6:30 p.m.
Both meetings will take place in the Catherine D. Milligan Community Room at Fairfield High School, located at 8800 Holden Boulevard.
The district encourages residents to remain engaged as this process continues and as additional information is shared. Fairfield City School District remains committed to transparency, ongoing communication, and ensuring long-term financial stability while preserving the educational programs and services valued by the Fairfield community.