Voters have rejected a 4.75 mill levy for the Lakota School District.
Had it passed, the owner a $100,000 home will pay $145 more a year in taxes.
The levy failed by a vote of 16,314 for and 18,788 against.
"We have always said it is the communities choice, and we are going to continue to move forward, I am going to move forward," said Sandy Wheatley, Lakota levy chairperson.
"It makes it tougher to take only because Lakota is a district of excellence and we want to maintain that and there is no way you can cut your way out of the situation Lakota is in," said Leroy Reshard, Lakota levy supporter.
"We respect the votes our residents and we will continue to lead the district, we'll move forward and it is an uncertain future but we will go to the board of education and talk about next steps," said Dr. Karen Mantia, Superintendent of Lakota Schools.
Chairman for "No" Lakota, Rich Hoffman, released this statement to FOX19:
"We are pleased that the margin of victory is virtually the same from one year ago to now, even with the busing cuts, and other inconvenience reductions inflicted on Lakota's parents. The administration at Lakota should take this vote as a mandate to sit down with the teachers union and require them to formulate their employee costs to our current approved funding allocation established with this vote. It is important that the LEA realize that they are employees of the community, and not the other way around."
A computer glitch earlier Tuesday night prematurity called for the levy's defeat.
Lakota is now facing $6.8 million in cuts. Had the levy passed, it would have gotten Lakota out of deficit spending until at least 2015.