One piece of the budget puzzle fell into place Thursday when school district leaders across Ohio found out how much Gov. John Kasich wants to give them in basic state aid over the next two years.
The proposed budget divvies up the money so that districts relying heavily on the state won't bear the brunt of federal stimulus money disappearing, according to the Office of Budget and Management.
Although the spending plan includes about $170 million more in basic state aid over the next two years, some local superintendents and treasurers say the bottom line promises to be far more devastating than Thursday's numbers would suggest.
"I'm angry," said Solon Superintendent Joseph Regano. "We're one of Ohio's top-performing districts. We've played by the rules from each governor and department of education. And now they're going to decimate this district. It's ridiculous - beyond belief."
Solon doesn't get much of its revenue from the state, but what it does get is going to be cut drastically. The estimates show Solon losing almost $1 million in basic aid over the next two years.
However, that doesn't include the loss of close to $400,000 in federal stimulus money that was part of the district's basic aid in the last budget.
And it doesn't include $1.2 million a year that the district was supposed to get for the next eight years to make up for a business tax that the state eliminated in 2005. The state has been reimbursing districts for that lost revenue during a phase-out period, but the amount funneled to them is cut almost in half in the proposed budget.
The state will try to limit the effect on districts that got a high percentage of their revenue from the business tax, Robert Sommers, Kasich's education advisor, told educators in a Franklin County meeting on Monday.
Sommers also said the state will give districts more choices in how they spend their money as well as incentives to share services and be more efficient.
Over the next year, the Kasichadministration will come up with a new formula for directing money to districts, he said, characterizing it as a funding system that will focus on student performance.
The legislature already has voted to end the mandate for all-day kindergarten, and Senate Bill 5's proposed changes in collective bargaining theoretically could help districts spend less on their employees.
Daniel Bowman, treasurer of the Parma schools, said a budget proposal to change pension contributions also has the potential to save money down the road.
If it becomes law, the teachers' share would rise from 10 percent of their salaries to 12 percent, while the district share would drop from 14 percent of salaries to 12 percent.
It's unclear how that would gibe with another bill now before the legislature that would shore up the State Teachers Retirement System with a 3-percent increase in employee contributions.
"We'll have to see how it all washes out in the legislature," Bowman said.
In the meantime, Parma will be on the May 3 ballot with its eighth attempt to get a levy passed.
The Highland district in Medina County also will be trying for a levy in May. The district will lose about $600,000 in basic state aid next year, based on the budget estimates, but would gain back almost half of it the year after.
However, that doesn't count losses in the business tax reimbursement, federal stimulus money and possibly other revenue streams.
"It's pretty devastating for a district like ours that's been in a deficit-spending mode for a couple of years," said Treasurer Neil Barnes.
Highland hasn't passed a tax for more operating money since 1998 and has already made $2 million in cuts, Barnes said. With a growing enrollment, its per-pupil costs are the lowest in the county and well below the state average.
"I feel like the district has been demonstrating financial leadership for a long time, but we need additional resources," Barnes said. "We are in a really tough position."
Plain Dealer reporter Aaron Marshall contributed to this story.
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