Toledo Public Schools faces $53.4 million budget cut if budget “hole” not fixed
This in via e-mail from Representative Matt Szollosi:
Rep. Szollosi Warns of Cuts to Area Schools if Senate Refuses to Act
Failure to Balance State Budget Would Drastically Reduce School Dollars
TOLEDO – Ohio House Speaker Pro Tempore Matthew A. Szollosi today warned that failure to close the budget hole before the end of the year would result in deep cuts to Toledo area schools. He was joined by several area school district officials at a Toledo news conference.
The Toledo Public School district would be cut by at least $53.4 million, and the Oregon district would lose at least $2.4 million. Washington Local Schools would be faced with a loss of at least $5.4 million.
“Thus far, the Ohio Senate Republicans have failed to demonstrate any leadership with regard to the budget deficit. “They’re very good at saying “NO,” but when asked for alternatives to avoid these cuts, they have nothing to offer.” “Their stubborn refusal to take any action is bringing Ohio dangerously close to drastic spending cuts to schools, and in all likelihood, higher property taxes through new operating levies” said Rep. Szollosi. “That too is unacceptable, but will be unavoidable if the Senate majority continues to stonewall any kind of solution.”
Governor Strickland and House Democrats offered a straightforward plan to deal with the budget deficit in HB 318. This bill fills an $840 million gap in education funding by delaying the last phase-in of the 2005 income tax cuts. If this budget gap is not filled, the loss of funding would be multiplied because Ohio would lose federal matching funds. This would ultimately lead to a $2.4 billion cut to education from reduced state and federal dollars.
The House of Representatives passed HB 318 nearly two months ago on October 21, 2009. Senate Republicans have failed to act since.
House Democrats also decided to share in the pain being felt by their constituents and cut their salary by 5 percent. Senate Republicans have thus far refused to consider cutting their salary.
The December 31st deadline is crucial because the tax freeze cannot be implemented after that date.
From the earlier release announcing the press conference, the list of those expected to attend:
House Speaker Pro Tempore Matt Szollosi
John Foley, Supt., Toledo Public Schools
Members of Toledo Bd. of Education
Patrick Hickey, Supt. Washington Local Schools
Jeff Ziviski, Oregon Board of Education Member President
Francine Lawrence, Toledo Federation of Teachers
Area Students
Other state lawmakers
Everyone (Republicans, Democrats, Ohio house, senate and Governor) are to blame for the budget hole. They passed a budget that relied upon one-time stimulus funds as well as revenue from certain gambling operations. When the Ohio Supreme Court ruled those gambling operations unconstitutional, they ended up with a huge hole in the budget.
(And no one is yet addressing what will happen in the next budget when those one-time funds are no longer there….)
And now the politicians are saying that the only way to address the problem is to take more money from us?!?
I don’t like this approach in Szollosi’s letter – that unless the state takes more money from us, local school districts will.
Basically, they’re saying they’re going to take more of our money regardless…not much of a choice when you look at it.
December 14th, 2009 at 8:21 pmsorry – everyone * *IS* * to blame…
December 14th, 2009 at 8:22 pmAs much as I will miss Mr. Foley….I think he got out before a lot of fires are going up!!!
December 14th, 2009 at 10:26 pmI don’t disagree that everyone that voted for the gambling plan as a solution is to blame, some of us thought that was a bad idea. If the Republicans who hold the Senate majority have a plan to fix the budget hole, I’d be interested in hearing it.
Yet I also have mixed emotions on this, since money going to the state which is then doled out to schools (sometimes unfairly) versus local levies which we have a bit more control over and the funding would go directly to that local school, seems a bit more desirable given the Governor and the General Assembly’s “giving then taking away” school funding. But…I have not ran the numbers to see which would cost us more.
December 14th, 2009 at 10:27 pmThe perfect storm may have arrived in education funding. For the four years I served the BOE, I asked the question if we have a cost structure that can no longer be sustained by federal, state and local dollars. Rarely did I get an answer to the question but it is very much – a “yes”.
Even with the district looking at budget/cost centers from a zero based approach, we have mandates and contractural agreements that keep cost structures in public education high. In Toledo as the local tax base continues to shrink, the reliance on state funding grows. Now the State can not sustain and they want to go back to the locals to make up the shortfall.
I sense significant cuts may be on the way at a time when federal funds are going to be linked to Obama’s “Race to the Top” funds where districts must show the ability to be innovative. Where will Toledo fall in the innovation mode when the focus will only be on what we can no longer afford to provide. I wish the new board much luck in this work and I hope they have the ability to make some very difficult decisions.
December 14th, 2009 at 10:29 pmThis Policy Report was prepared for
KnowledgeWorks Foundation by Andrew
Benson, the foundation’s director of policy and
communications, with research support from Julie
Brinker, a foundation consultant. The public opinion research was conducted by Paul Fallon, of Fallon Research and Communications of Columbus. For
more information and the full report please visit http://www.kwfdn.org.
“On the local level, the public did not express
confidence that local school districts were spending tax money in an effective and responsible
manner. Only 12% rated their districts excellent
on spending tax money effectively and responsibly,
and 33% rated them good. Thirty-one percent rated their districts fair on spending effectively and responsibly, while nearly 21% rated their districts poor. Hence, a majority (52%) rated their districts fair or poor on spending tax
money in an effective and responsible manner.
Most of those who rated their districts poor
On the school funding issues, 71% said they
had no opinion or were not informed about
what Gov. Strickland was doing to address
school funding, while only 15% approved and
11% disapproved.
Responding to a separate question, the public
indicated that the most common reason they
vote against levies is they don’t have confidence
in the fiscal management of local school districts.
Indeed, of the half of Ohio voters who
said they either always vote against local school
levies or vote against them some of the time,
most (51%) said the biggest reason they voted
against school levies was they did not feel that
there was enough careful financial management
of taxes to earn their support. That compares
to nearly 20% who said that personal financial
circumstances prevented them from supporting
levies, or the nearly 20% who had other reasons.
Notably, only 7% said they voted against levies
because they did not feel there was enough academic
achievement to earn their support.”
This report was done in 2007 but we are supposed to believe that no one__ with the ability to do anything about it__ saw this coming?
December 14th, 2009 at 10:48 pmhttp://www.tps.org/
‘The Toledo City School District has debt ratings of Aaa and AAA from Moody’s and Fitch rating
services, respectively. Financial information was provided to all external-rating agencies resulting in our maintaining the above-mentioned rating. Financial information was also furnished to the Ohio Municipal Advisory Council (OMAC), which has applied for and received the designation of being the State Information Depository (SID) for the State of Ohio. The establishment of SID provides the State with more uniform central distribution of financial information to debt holders and potential bidders of debt for the Toledo City School District. The Toledo City Schools’ “Aaa and AAA” ratings continue to be unique to large city school districts in the State of Ohio. It speaks well of our financial stability and fiscal integrity.”
No need to worry right?
December 15th, 2009 at 12:32 am