Schools
Despite Billions in Proposed State Cuts, Lakewood City Schools in 'Decent Shape' for Now
Through proactive cutting of expenditures, school officials have bought themselves time to help plan for turbulent period.
School officials cringed when they learned that Gov. John Kasich’s proposed state budget would cut education by $3.1 billion, but they’re hesitant to say how bad it will get for the district as the state’s economic landscape will repeatedly shift over the next several months.
Despite all the unknowns, officials do have some projections and concerns that shed light on what financial hardships the could face through 2016.
Before the governor’s proposed budget was released on March 15, Treasurer Rick Berdine had projected a over the next five years, which equates to about a $1.9 million loss per year.
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However, it appears this projection could rise, given Kasich’s plan to accelerate the elimination of Ohio’s tangible personal property tax guarantees that account for billions in state school funding.
Legislators had planned on phasing out the guarantees over the next five years, but in light of the state’s current budget crisis, they want to eliminate them by 2013, resulting in a $2.2 million loss for the district over the next two school years.
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“If we lose these guarantees, it would put the (loss) projection somewhere between 10 and 20 percent,” Berdine said. “It wouldn’t put us between 20 and 30 percent.”
That’s good news because officials don’t want the total five year loss projection to hit 20 percent, or about $4 million per year, because the outcome could be disastrous since the district would have to slash educational programs and lay off staff and teachers to absorb the massive loss in state funding.
For now, Lakewood City Schools are in “decent shape and, in some cases, are much better off than neighboring school districts,” Superintedent Dr. Joe Madak said.
That’s because when the federal economy collapsed in 2008, Madak and Berdine predicted the current education funding dilemma. Over the last two and a half years, they’ve worked to reduce the district’s budget by $8 million.
In effect, these cuts to expenditures, plus the passing of a 6.9 mill levy last May, have bought the district one very valuable commodity—time.
It’s likely that the district will be able to absorb the 2011-12 state funding cuts, giving school officials a year to plot out how they can best survive this turbulent economic period.
