CINCINNATI — The city and Cincinnati Public Schools agreed on a new split Thursday that boosts the school district’s share of property taxes under the city’s abatement policies.
Under the old deal, CPS was receiving 25% to 27% of the property tax value in lieu of taxes on abated properties. The new deal increases that to 33%.
To balance that, the city will no longer pay an annual $5 million lump sum to CPS.
The two sides have been fighting over the last few month with the school district demanding the city “make it whole.”
Mayor John Cranley asked both sides to put their recent bickering behind them so everyone can move forward in the interest of putting students and their education first.
“The success of our Cincinnati Public Schools is vital to the future of our city,” Cranley said, “and there’s almost - I can’t imagine, candidly - anything more important to advance opportunity.”
Since an abatement is a tax break for new development, some say this deal puts a burden on developers.
If so, the mayor said developers need to grin and bear it.
“Development has been good in this city, thank god. Developers are doing well in this city, thank god. And all of us are trying to build an inclusive capitalism that lifts more boats and expands more opportunities,” Cranley said. “And so I think it’s more than appropriate for developers to pay up a little more to the next generation.”
The new deal is for 10 years.
Some city council members want to make sure money is still going to affordable housing. Cranley said that deal and decision are totally separate from the school district deal and that he’s sure they’ll continue to make that a priority as well.
Both sides still need to formally vote and approve this deal, so it’ll be a bit more time before it is formalized.