The Urbana City School District Board of Education, at a special meeting on January 28, 2026, approved a resolution to place a 1.0% earned income tax for a five-year term on the May 5, 2026, primary election ballot. The funds generated from this levy will be used to support the District’s day-to-day operations, addressing the ongoing financial challenges faced over the past several years.
The District has been experiencing deficit spending, resulting in a decrease in annual carryover funds. The latest financial forecast indicates that, without intervention, the District will face a negative year-end balance within the next couple of fiscal years.
Recent Biennial Budget restrictions on certain levies, alongside other legislative actions, have created uncertainty regarding the future of property tax levies. Additionally, the Board asked for community approval of a 0.75% traditional income tax, which failed in November of 2025. In response, the Board has decided to pursue the approval of an earned income tax.
The last additional operating levy approved for the District was in 2008. Since then, a bond issue has successfully funded the construction of new school buildings; however, those funds are restricted to building expenses and cannot cover operational costs.
The approval of this levy will maintain current programming and allow the implementation of necessary improvements in educational services.
For any questions or concerns regarding this issue, please contact Charles Thiel, Superintendent, or Mandy Hildebrand, Treasurer, at 937-653-1402.