Springfield’s Tax Shake-Up: City Workers Frustrated by Outsourcing Plans!

The city is facing a pivotal decision that will affect a dozen dedicated staff members, who are making their voices heard in protest.

City Manager Bryan Heck revealed that this option has been under consideration since 2016, as officials scrutinized the efficiency and effectiveness of city operations.

“Our discussions intensified this past March and April when we assessed our income tax projections. The reality is that we are grappling with the consequences of state-level policies, which are frustratingly out of our control and misaligned with the needs of our municipalities. We’ve been left with no choice but to become overly dependent on income tax – it’s our lifeblood,” Heck explained.

Heck pointed out that remote work policies are also complicating the collection of city income taxes.

He mentioned that collaborating with the Regional Council of Governments to join RITA could be a game changer in addressing these challenges.

“RITA has access to federal and state income tax data, allowing us to ensure that every resident pays their fair share of taxes. This is essential to fund the services we provide to our community,” Heck emphasized.

Upon reviewing tax returns, Heck noted a troubling trend: many employers have ceased courtesy tax withholdings, forcing the city to consider joining RITA, a move already adopted by several municipalities across Ohio.

City Finance Director Katie Eviston presented the projected 2025 budget during a recent meeting, noting that while Springfield is experiencing robust job growth, this surge isn’t translating into increased income tax revenue. She reported a modest 1.3% rise in tax collections last year.

“RITA’s access to federal tax data allows them to identify Springfield residents who haven’t filed their taxes. Unfortunately, our income tax department lacks this essential information,” she said.

Eviston further emphasized that RITA offers a superior return on investment. The city shelled out $927,000 for income tax collection in 2024, while partnering with RITA is projected to cost just $529,000.

“That’s a staggering $400,000 in savings on operating costs alone, and it doesn’t even factor in the extra revenue we anticipate from RITA’s compliance efforts, which ensure that everyone is contributing their fair share for the services we provide,” she added.

City Manager Heck stressed that this decision is being made with careful consideration. “My role demands that I make choices that positively influence our community. This decision is about securing both immediate and long-term sustainability for Springfield… it’s a necessary step forward,” he asserted.

Mayor Rob Rue echoed this sentiment, acknowledging the gravity of the decision.

Yet, the employees affected by this decision are seeking more than just words of sympathy.

Matt Linger and Leslie Vasquez, both integral members of the income tax and revenue collections divisions, urged the commission to assure that affected employees could transition into other city positions.

“There are several open positions available,” Vasquez highlighted. “While the city manager mentioned they would try to relocate us, a formal guarantee would go a long way in alleviating our concerns.”

Linger, a veteran employee with nearly 27 years of service, expressed that many impacted have dedicated years to their roles.

“We’ve always valued hard work and dedication in this city. It’s disheartening to feel sidelined in such a crucial decision. We deserve to be treated with dignity and respect,” Linger asserted, sharing their commitment to ensuring that their voices are heard.

Linger also mentioned ongoing efforts to unionize city workers, aiming for a stronger voice in future workplace decisions.