The Devil in details of state budget

Published 9:50 am Tuesday, March 29, 2011

Budget hearings are in full swing, but there is still much to be learned about Governor Kasich’s proposed budget. But we do know that we have 17 percent less revenue that has to be replaced by cuts or finding additional dollars.

Being chairman of the House Finance Primary and Secondary Subcommittee, our five-member committee has already begun to hold hearings on the budget.

We will be reviewing the budgets of several state agencies—from the Commission on Volunteerism to the Board of Audiology and Speech Pathology.

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Every budget season, a printout that every school official and legislator reviews shows how each district fares under the governor’s state foundation school funding formula.

It is a mixed bag in that the standard is “how big is the cut going to be?” School districts have long known and prepared for budget reductions because of the disappearance of one-time federal stimulus funds in the amount of $1.9 billion dollars.

The good news is that state general revenue fund resources are increasing by a very modest rate, instead of being cut.

The net effect, according to The Columbus Dispatch, is that—with all funds being considered—more than 590 school districts out of 612 in Ohio will have less money to work with this year than they did last year.

Most school superintendents I talked to are preparing to make or have made tough decisions working with their employees to manage with the limited resources they have during this difficult economic time.

It appears that when the state foundation funding formula was developed, it took into account the dependence of many schools in our area and across the state who are largely dependent on state funds.

For example, most districts in our area received an increase of state funds to help offset the loss of federal funds.

In visiting with one school superintendent, who will no longer have $1.4 million in federal stimulus funds , his schools will receive an increase in state aid of around $500,000.

The net result will be that his district has $900,000 less to spend than the year before.

High-wealth districts will lose their federal stimulus money and also might receive a cut in state general revenue funds because they have a local funding base that enables them to deal with their budget issue.

I am hoping to have the information to show the total impact of the funding changes in the near future.

Almost every state agency is receiving a cut, and although most districts will have less money to spend this year than last, state funding for schools is increasing but does not replace the loss of $1.9 billion in federal stimulus funds from the United States Congress and President Obama.

I will do my best to work toward making sure that the resources Ohio taxpayers are giving our schools are spent fairly and efficiently.

John Carey serves in Ohio’s 87th District of the House of Representatives, which includes eastern Lawrence County. He may be reached at (614) 466-1366 or by writing to: Ohio House of Representatives, 77 South High Street, Columbus, OH 43215. He can also be reached via e-mail his office at District87@ohr.state.oh.us.