Possible Funding Options Narrowed for Master Facilities Plan

Possible funding options for Lakota’s Master Facilities Plan (MFP) were further narrowed down at the May 20 board meeting. The Board will decide on June 9 whether to move forward with a ballot issue in November.

MFP Overview

The MFP is a long-term plan to improve learning opportunities for students, reduce the number of school transitions and address large class sizes. The plan could also create operational savings by closing three older buildings, allowing teachers to stay in one building instead of traveling between schools and improving transportation efficiencies with fewer grade-band transitions.

State Co-Funding

Lakota is now eligible for 33% state co-funding through the Ohio Facilities Construction Commission (OFCC). The State has indicated these funds would be available within the next year, compared to the typical wait time of eight-to-ten years. 

The total estimated cost of the plan is $300 million:

• State Share:        $77 million
• Lakota’s Share:   $223 million

Funding Options

The May 20 vote was expected to determine the final option for a November ballot issue. However, the bond issue resolution stated that collections would begin in January 2027, if approved by voters in November 2026. 

Board member Julie Shaffer said that timeline did not match the Board’s previous discussions about aligning new funding with the expiration of existing debt. This option did not move forward because no motion was made.

Earlier discussions have also included the need for an operating levy in November 2028 to support daily expenses. The district has not requested an operating levy since 2013.

Because bond issues cannot be used for daily operating costs, the Board had discussed a 0.75 percent earned income tax (EIT). This option could fund both the MFP and daily operations, which may remove the need for a future operating levy. If approved, the EIT would begin collection in 2027.

Board members shared different views on this approach:

• Vice President Doug Horton said the EIT could address both facility improvements and operating needs, but he expressed concern that waiting to address operations could lead to challenges with voters in the future.
• Board member Alex Argo noted that any funding plan must gain voter support to move forward and emphasized the importance of maintaining efficient buildings.
• Board member Ben Nguyen preferred a more gradual approach and raised concerns about asking voters to support multiple funding needs at once.
• Board member Julie Shaffer said she sees value in using an earned income tax to address both facilities and operations but is unsure if the community would support that option, noting the challenge of balancing what the District needs with what voters may accept.
• Board President Kelley Casper shared that cost was the top concern raised by voters after the failed November issue. She also noted that financial forecasts can change over time and suggested the district may be able to delay an operating request.

After discussion, the resolution to move forward with the EIT did not pass.

Delayed Collection

The Board approved a new resolution of necessity for a 2.20 mill bond issue with collections beginning in 2029. This resolution will now be reviewed by the Butler County Auditor.

If the Board approves placing this issue on the November ballot at its June 9 meeting, and voters approve it, the delayed start date is intended to align with the expiration of a 2.23 mill bond in 2028. This timing means property owners would not see an increase in taxes to support the first phase of the MFP.

Next Steps

The Board will decide whether to place the bond issue on the November ballot at its June 9 meeting. The meeting will begin at 6 p.m. at Lakota East Freshman School.