The Urbana City Schools Board of Education is weighing the possibility of returning to voters with a new tax proposal after a levy attempt failed last fall.
During a special meeting held on Thursday, January 15, the board discussed placing an earned income tax levy on the spring 2026 ballot. After discussion, board members agreed to move forward with two options for further consideration: a 1% earned income tax levy for five years, and a 1.25% earned income tax levy for five years.
The discussion comes just months after voters rejected the district’s most recent levy request in November. That measure proposed a 0.75% traditional income tax for five years. The levy failed by a wide margin, with 1,564 votes against and 796 votes in favor.
Board members acknowledged the outcome of the November vote and discussed how the proposed earned income tax would differ from the traditional income tax previously presented to voters. Earned income taxes apply only to wages and self-employment income, while traditional income taxes also include retirement income.
Board President Taylor Armstrong addressed the need for continued conversation and community engagement as the district evaluates its financial future and determines whether to place a measure on the ballot.
No formal action was taken Thursday night to place a levy before voters. District leaders say another special meeting will be scheduled at a later date to continue discussions and determine next steps.
