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Calls to legislators urged on school funding
(by Sue Hoffman - June 24, 2009)
Calls to legislators urged on school funding
By SUE HOFFMAN
With the state budget conference committee now making final changes to a biennial budget that begins July 1, Solon School Superintendent Joseph V. Regano has asked residents to contact their legislators to protect local revenues.
"I am sure you have seen the news headlines about the revenue shortfalls at the state level that are complicating budget negotiations for the next biennial state budget," Mr. Regano wrote in a June 16 e-mail to Solon school families. "Although the picture is grim, we need your help to make our elected representatives aware of the critical need to retain the hold-harmless payments to school districts for lost tangible personal property taxes."
At stake is $11.5 million in the Solon School District's budget by 2018 when the tangible personal property tax phase-out is complete, he said. Since the phase-out began, the state has been reimbursing school districts through the commercial-activity tax, but the reimbursement is scheduled to decline starting in fiscal 2011.
Mr. Regano asked residents to urge legislators "to preserve the provisions in Senate Bill 111 that maintain the hold-harmless payments to school districts." The bill would make reimbursement for the lost taxes permanent, which would be the solution to the problem, he said.
Without the bill, Solon would experience, beginning in 2011, annual revenue decreases as high as $1.5 million to $1.9 million a year, Mr. Regano said.
"Losses of this magnitude are catastrophic for school districts. The $1.8 million revenue loss Solon would experience in the first year of the phase-out alone is the equivalent of losing 30 teachers. Every year of the phase-out, this loss is compounded, meaning additional positions would need to be cut just to keep up with the lost revenues."
Mr. Regano said the lost tax is "the largest of the concerns" of the district regarding the state budget. He said each school district that has significant tangible property resources has projected deficits in the five-year forecast because of the loss of the taxes and phased-out reimbursement. He said there are about 100 school districts in which the taxes were significant.
The superintendent recommended community members contact local representatives, including Ohio House Speaker Armond Budish, D-Beachwood, Sen. Thomas Patton, R-Strongsville, and Rep. Josh Mandel, R-Lyndhurst, as well as budget conference committee members. Members from the Senate Finance and Financial Institutions Committee are: John Carey, R-Wellston, chairman; Mark Wagoner, R-Toledo, vice chairman; and Dale Miller, D-Cleveland, ranking minority member. Members from the House Finance and Appropriations committee are: Vernon Sykes, D-Akron, chairman; Ron Amstutz, R-Wooster, ranking minority member; and Jay Goyal, D-Mansfield, majority whip.
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