District Faces Challenges from the State Budget

By Dan Griscom Treasurer of PLSD Early in the summer, as Governor Ted Strickland and Ohio legislators were wrangling with the state budget, school officials across Ohio found themselves in great suspense. The budget deadline was looming, and districts were on pins and needles, anxious to see how the numbers would pan out.  Governor Strickland offered a bold new plan with additional academic requirements for schools. But with our state and the nation in the midst of a severe recession, where would the money come from? At Pickerington Local Schools, the stakes are high. Over half of our operating revenue comes from the state. We have a high percentage of residential property and a low percentage of commercial and industrial property in our tax base. It is important that the District protects our local taxpayers, and get our fair share of state funds. The plot thickened with new twists and turns: one day Pickerington Local School District was up; the next we were down. It was like riding a rollercoaster, or watching a summer movie blockbuster -- without the popcorn (due to budget cuts). In the past our District could count on some increase in state funding each year (about 3% annually) due to our growing enrollment. This helped us keep up with the expenses of educating more children. However, it was evident that the state funding formula was changing. Old assumptions would not hold true anymore. The old system was tossed out in favor of Governor Strickland’s “Ohio Evidence-Based Model” (with some tweaks from the House and Senate). How would we fare under this new plan? We finally received the answer, but not the answer we had hoped for. Due to the budget strain at the state level, many districts received decreases in state funding. However, federal stimulus funds were added in by the state for the next two years. With the stimulus money included, most Ohio school districts received either an increase under the new plan, or the same as before. There are only five school districts in the state, which are projected to receive a net decrease over the next two years, and unfortunately, Pickerington is one of them. In fact, Pickerington has the largest percentage reduction of all districts in the state. Our schools will receive a two-year net decrease of -.6% (six-tenths of one percent) in state funding, including the stimulus money. This scenario is caused largely by federal fund qualifiers and guidelines which do not help our district as much as others. The negative hit on our bottom line (compared to previous funding trends) is about $2 million over the next two years, which will be very challenging. School funding is complex and it seems there is always another “cliff-hanger” around the corner. Surely there will be more changes as we go along. The good news is that we have been proactive by making budget reductions and improving efficiencies in many areas of the district. We will remain vigilant in holding a tight rein on expenditures, and making sure we are utilizing all state and local resources wisely, for the maximum benefit of Pickerington students.