School Leaders Urge Action to Protect Schools

Dear Bexley Families:

We are sharing information again to help you and others throughout our community understand what is at stake for Ohio’s public schools in the state’s next biennium budget. In short, the next state budget has the potential to be calamitous to Bexley Schools and all public schools in Ohio.

For many years, the state’s funding formula for public schools has given a relatively small amount of funding to Bexley Schools, compelling us to rely on local residents to fund our operations. For example:

• 8% of our total revenue comes from the state school funding formula.

•  61% of our revenue comes from local property taxes

• 20% of our revenue comes from local income taxes

• 6% of our revenue comes from state reimbursements on portions of property taxes.

Under Consideration in the State’s Budget Proposals

Basic State Funding of Public Schools

• The Senate’s budget proposal gives Bexley Schools more revenue by continuing the 2021 Fair School Funding Plan, with some modifications; we are grateful and hopeful for the Senate’s proposal to be implemented.

Proposed Cap on Cash Balances

• The Senate’s proposed 50% revenue carryover cap, as compared to the House of Representatives’ 30% carryover cap, is still financially problematic. We would be more comfortable if it were in the range of 75%

• These carryover caps greatly inhibit school districts’ cash management and budget forecasting

• The carryover caps also remove local decision-making from our locally funded schools

• Because we could no longer rely on the ability to spend down our cash balance over time as we expected to do with our five-year incremental levy approved by voters last November, we could be forced back to the ballot repeatedly to request new funding sooner than intended

Flat Income Tax Proposed

• Senate proposes a 2.75% flat income tax in Ohio – The Legislative Service Commission (LSC) estimates this would reduce state revenues by nearly $1 billion

House Bill 335 Would Remove School Districts’ Ability to Levy Inside Millage

• HB 335 is currently under consideration in the Ohio House, and it is feared it could be included in the state budget during conference committee and voted on next week

• What is inside millage? Since the 1930s, the Ohio Constitution allows counties to divide up to 10 mills of non-voter-approved property tax millage to communities throughout a county and charge it to property owners

• Bexley Schools’ revenue includes 5.7 mills of inside millage, equal to 13.2% of Bexley residential property taxes. 

• The bill does not address how school districts would make up that revenue

What could HB 335 mean for Bexley City Schools?

• A loss of $4.8 million, as soon as next calendar year

• Without replacement revenue from the state or local taxes, this financial loss would force our schools to cut 40 staff members

• We cannot categorically state at this time what services for our students could be at risk, but it is certain that our current level of educational programming and levels of student support would be affected.

• We could go back to the ballot THIS November seeking a levy to replace the millions of dollars lost through HB 335.

As leaders of our schools, we collaborated just last year with our district’s Finance Committee members and our Board of Education to prudently and judiciously propose a five-year incremental levy to Bexley voters that we believed would support our district finances through the next five years, likely more. Voters graciously approved that levy.

That levy proposal was developed in good faith based upon long-held state funding norms and a framework of sound financial practices. If the provisions of HB 335 pass, then our funding predictions and practices are no longer valid.

With all of this in mind, we believe public school funding could be in jeopardy for many years to come. And others agree.

• Officials from Ohio’s public education professional organizations – for school treasurers and business officials, superintendents, and school boards – now refer to these proposed measures as being “cataclysmic” to the future of public schools in our state

• Dr. Howard Fleeter, a well-respected Ohio public policy analyst and expert, this week estimated that HB 335 would cost Ohio public schools a loss of $2 BILLION, affecting 20,000 education-related jobs statewide.

We implore you again to contact Ohio legislators quickly as they are now in final budget negotiations. Although some legislators appear to be skeptical of some HB 335’s provisions, some portions may be included. The state budget must be approved by the end of this month.

Please contact members of the Budget Conference Committee and urge them to:

• Support stable and fair funding for public schools

• Keep school decisions local

• Protect students, not politics

Ohio House & Senate Conferees

• Rep. Brian Stewart (R-Ashville), Chair, House Finance Committee
  Email: rep12@ohiohouse.gov | Phone: (614) 466-1464

• Rep. Michael Dovilla (R-Berea), Vice Chair, House Finance Committee
  Email: rep17@ohiohouse.gov | Phone: (614) 466-4895

• Rep. Bride Rose Sweeney (D-Cleveland), Ranking Member, House Finance Committee
  Email: rep16@ohiohouse.gov | Phone: (614) 466-3350

• Sen. Jerry Cirino (R-Kirtland), Chair, Senate Finance Committee
  Email: cirino@ohiosenate.gov | Phone: (614) 644-7718

• Sen. Brian Chavez (R-Marietta), Vice Chair, Senate Finance Committee
  Email: chavez@ohiosenate.gov | Phone: (614) 466-8056

• Sen. Paula Hicks-Hudson (D-Akron), Ranking Member, Senate Finance Committee
  Email: hicks-hudson@ohiosenate.gov | Phone: (614) 466-5204

School finance decision-making is best controlled locally by those who understand a community’s values and priorities. It’s urgent that you join us in encouraging support from our legislative leaders.

Sincerely,

Kyle Smith, Treasurer/CFO                     Dr. Jason Fine, Superintendent

 

 

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