Some expenses are directly connected to the number of students, while others are largely fixed or change only gradually.

What expenses remain even when enrollment declines?

Buildings still have to be heated, maintained and insured. Transportation still has to be provided. Technology, curriculum, utilities, maintenance and required programs still have to be funded.

What expenses are outside the district’s direct control?

There are also expenses that are outside the district’s direct control, including:

• State and federal requirements, including special education, transportation and testing

• Changes in health insurance, utilities and supplies

• Inflation and market conditions

• Required curriculum and technology costs

What adjustments has the district made?

Staffing is one area where the district can make adjustments. Since the 2022 income tax passed, the district has continued to evaluate positions when employees retire or resign to determine whether positions should be maintained, eliminated, absorbed or restructured.

The district has also implemented other cost-containment and fiscal responsibility measures, including:

• Schooley Mitchell Vendor Audit: A review of vendor contracts resulted in $33,500 in annual savings, or $167,500 over five years.

• Zero-Based Budgeting and Cost Containment: Fiscal responsibility is a district priority, with an emphasis on reviewing expenses and managing available resources.

• Preventive HVAC Maintenance: Expanded maintenance protocols help extend equipment lifespans and prevent premature replacement costs.

What is the key takeaway?

Wauseon Schools' enrollment decline has been relatively small—58 students across PreK–12 from 2022 to 2026, or an average of approximately 4.46 students per grade level.

A reduction in the number of students does not automatically create an equal reduction in the cost of operating a school district. Enrollment changes do affect some costs, but many expenses are fixed, required or influenced by factors outside the district’s direct control.

The income tax provides significant, ongoing revenue that helps support the district’s operations. Losing that $5 million would leave a major hole in the budget and require significant and severe cuts to make up the difference.

State funding and district expenses also affect the district’s overall financial picture, so it would not be accurate to attribute every financial change to the income tax alone. However, the income tax has played a significant role in stabilizing the district’s finances since 2022.

The bottom line: The income tax makes up about 18% of the district’s budget. Without that revenue, the district would face difficult decisions about what costs, services, and personnel would need to be reduced.

We are not saying that state funding has decreased every year. The important question is whether state funding has kept pace with the rising cost of operating our schools.

1. Funding increases don’t always cover rising costs.

Curriculum, health insurance, utilities, transportation, salaries, technology, supplies and building maintenance all cost money. Even when state funding increases, the district can have less purchasing power if expenses rise faster than revenue.

2. Ohio’s funding formula still uses FY2022 cost data.

Ohio’s current school funding formula uses FY2022 salary and cost data for its base-cost calculation. In simple terms, some of the cost information used in the formula is based on figures from 2022, even though the cost of running schools has continued to increase.

The formula considers factors such as student-to-teacher ratios, staffing levels and costs. But it does not simply recalculate the full, actual cost of educating Wauseon students every year using today’s prices.  Think about how much prices have increased since 2022.

3. Wauseon’s forecast projects less unrestricted state aid in the coming years.

The district’s current five-year forecast projects unrestricted state aid to change as follows:

• FY2027: $13.09 million

• FY2028: $12.42 million

• FY2029: $12.02 million

• FY2030: $11.63 million

• FY2031: $11.35 million

That’s a projected decrease of approximately $1.74 million from FY2027 to FY2031. Restricted state aid is also projected to decline.

These are projections, not guaranteed future outcomes. But they are important when planning for the district’s future expenses.

Why does all of this matter?

Wauseon must plan for its actual expenses, the state funding it receives and the revenue available to support its schools. At the same time, approximately $5 million in annual earned-income-tax revenue is scheduled to expire after FY2027.

The bottom line: State foundation funding has increased over time, but that alone doesn’t tell the whole story. Rising costs, changes in projected state aid and the scheduled expiration of the income tax all matter when considering how the district will pay for its schools in the years ahead.

1. Reviewing every staffing vacancy

When employees resign or retire, the district critically reviews the position before hiring a replacement. Depending on the district’s needs, a position may be eliminated, responsibilities may be absorbed by other employees, or the role may be restructured.

2. Reviewing vendor contracts

Through a Schooley Mitchell audit of vendor contracts, the district identified savings of approximately $33,500 annually—or $167,500 over five years.

3. Focusing on cost containment and budgeting

Fiscal responsibility is a district priority, including cost containment and zero-based budgeting. This approach emphasizes reviewing expenses and evaluating budget needs rather than simply assuming every existing expense should continue unchanged.

4. Maintaining HVAC equipment

The district has expanded preventive maintenance practices for heating, ventilation, and air-conditioning systems. Regular maintenance can help extend equipment life, reduce avoidable repairs, and prevent premature replacement costs.

5. Strengthening community financial oversight

The district has a Finance Committee that includes board members, the superintendent, treasurer, and five community liaisons who review financial matters and advise district leadership.

The community liaisons are:

• Charlotte Emerson

• Bubba Reeves

• Edwin Rodriguez

• Brent Shea

• Lindy Zeigler

The district has also adopted a Community Taxation Policy addressing financial management, transparency, revenue, expenditures, taxes, reserves, and financial benchmarks. Wauseon Schools continues to undergo annual financial audits through the Ohio Auditor of State.

The bottom line: Wauseon Schools has implemented staffing reviews, vendor contract analysis, budgeting practices, preventive maintenance, and community financial oversight. The vendor review alone is expected to save approximately $167,500 over five years, while the other measures are intended to help manage costs and support responsible financial planning.

How does Wauseon compare with nearby districts?

For FY2025, Wauseon’s average teacher salary was approximately $69,401, compared with approximately $70,092 among comparable nearby districts (Bryan, Napoleon, Defiance)—a difference of about 1%.

Wauseon doesn’t need to be the highest-paying district in the area, but remaining competitive helps the district recruit and retain qualified employees.

How does Wauseon’s spending per pupil compare?

The figures below show Wauseon’s reported spending per pupil compared with the four-county average and the Ohio average.

Wauseon is below both comparison averages in all five categories.

These figures provide additional context when discussing district spending. Wauseon’s reported per-pupil expenditures are lower than both comparison averages across these categories.

The bottom line: Employee salaries and benefits are a large part of school spending because education is a people-centered service. Wauseon’s reported spending per pupil is below the four-county and state averages in each category listed. The district’s challenge is to manage costs responsibly while remaining competitive in attracting and retaining the people who serve our students.

Wauseon’s operating and instructional expenditures per student are below the peer averages, and average teacher salary is within approximately 1% of the peer average.

What do these numbers tell us?

Following the passage of the 1.75% earned income tax, Wauseon’s local revenue increased substantially, and its revenue figures moved much closer to those of comparable districts. We would not claim that the income tax alone explains every change in the district’s finances, but it provided significant additional local revenue that helped the district address its financial needs.

The goal isn’t to dramatically outspend neighboring districts. It’s to have the resources needed to operate our schools while remaining financially responsible and competitive with similar districts.

The bottom line: In FY2022, Wauseon was well below its peers in both local revenue and total revenue per student. By FY2025, those figures were much more closely aligned. Meanwhile, Wauseon’s per-student operating and instructional expenditures remained below the peer averages, and teacher salaries were nearly in line with those districts.

Issue 5 is a renewal of the existing 1.75% earned income tax—not a new tax. We’re sharing these numbers so our community can see where Wauseon was, where it is today, and what is at stake on November 3.

Why does predictability matter?

Schools have recurring expenses, including salaries, benefits, transportation, utilities, technology, and building maintenance. These costs don’t automatically stop after five years.

At the same time, state funding is not entirely within the district’s control. State budgets, funding formulas, enrollment, and state policy decisions can affect how much funding a district receives. The state funding system can change over time, making it more challenging for districts to plan for expenses several years into the future.

Wauseon cannot control decisions made at the state level, but it must still plan for the cost of educating students.

What does Wauseon’s five-year forecast show?

Under the forecast’s current assumptions:

• Earned income tax revenue drops substantially after the existing tax expires.

• District expenses are projected to continue increasing.

• Deficit spending is projected to begin in FY2029, with increasingly larger annual deficits through FY2031.

Why not another five-year renewal?

A five-year renewal would provide revenue for another five years, but it would also create another expiration date that the district would need to plan around.

A continuing tax provides a longer-term source of local revenue for recurring expenses, rather than automatically ending on a set date.

Does “continuing” mean voters never get a say again?

No. Continuing does not mean the tax can never be changed or repealed. Ohio law provides legal mechanisms for changing or repealing a school district income tax.

The bottom line: A continuing tax is intended to provide more predictable local revenue for ongoing school expenses, especially when future state funding and operating costs can change. The key difference is that a five-year renewal has another expiration date, while a continuing tax does not automatically expire after five years.