11-03-2026 9:55pm

Voters Reject School Income Tax Proposals in Franklin and Lebanon

Beth Callahan Editor

WARREN COUNTY, OH — Voters in the Franklin and Lebanon city school districts rejected proposed earned income taxes Tuesday, Nov. 3, leaving both districts without the additional operating revenue they had sought.

According to unofficial election-night results, with 100% of precincts reporting, approximately 64% of Franklin voters opposed Issue 4, while more than 60% of Lebanon voters rejected Issue 5.

Franklin Voters Reject Fourth Funding Request

For Franklin City Schools, Tuesday's defeat marked the fourth time since May 2025 that voters have rejected a request for additional school funding.

Issue 4 sought a 1.25% earned income tax for five years, beginning in January 2027. The proposal was defeated by 5,115 votes against to 2,876 in favor, a margin of 2,239 votes.

The tax was projected to generate approximately $7.4 million annually for district operating expenses.

If approved, the district planned to reduce an existing property tax by one mill and use the additional revenue to restore all-day kindergarten, expand transportation services and lower student participation fees.

Franklin officials previously reported making substantial budget reductions, including reducing transportation to state minimum requirements, eliminating all-day kindergarten, increasing class sizes and raising extracurricular participation fees.

According to the district, it has reduced projected expenses by millions of dollars since the 2022-23 school year and previously warned of a potential negative cash balance in fiscal year 2029.

Tuesday's defeat follows unsuccessful funding requests in May 2025, November 2025 and May 2026.

Lebanon's Proposed Income Tax Also Fails

Voters in the Lebanon City School District also rejected a proposed earned income tax.

Issue 5 sought a 1% earned income tax for 10 years, beginning in January 2027.

The proposal received 10,774 votes against and 7,079 in favor, failing by 3,695 votes.

The tax was expected to generate approximately $13.5 million annually for district expenses.

As part of the proposal, the Lebanon Board of Education had planned to stop collecting 2.15 mills in existing property taxes over two years.

That reduction would have included 1.38 mills associated with the early payoff of school construction bonds and an additional 0.77 mill permanent improvement levy.

District officials had presented the proposal as a way to generate operating revenue while providing some property tax relief to homeowners.

With the income tax rejected, the proposed tax rollback tied to its approval will not move forward as planned.

What Happens Next?

The rejection of both proposals leaves school officials facing decisions about future budgets, staffing, programs and whether to pursue additional funding requests.

For Franklin, the latest defeat comes after several rounds of spending reductions and repeated unsuccessful appeals to voters.

Both districts will now have to determine how to address their financial needs without the proposed additional revenue.

Tuesday's figures are unofficial. Final results remain subject to the county board of elections' canvass and certification process.