Making Sense of School Funding

Making sense of school funding is truly a difficult task. Tax Levies and Bond Issues-- what are they and why do we need them?  A Tax Levy is a property tax that is used by the school district for a “legally defined school district purpose.” In the case of Euclid Schools, our Tax Levies are used to operate the district.  A specific millage is assigned to the levy by the county auditor and if passed by the voters this property tax will be collected continuously.  An Emergency Levy is a property tax that is collected for a limited time.  A proposed dollar amount is requested. These funds will be collected for the length of time determined at the time the Levy is put to vote. A Bond Issue is a property tax that provides local revenue to support construction projects. The Euclid Voters passed a Bond Issue in November of 2009 that made the construction of four new elementary schools possible.

Property Taxes are collected by the County Treasurer in January and July. The appropriate funds are then paid to the school district from the County Auditor to be used for operation of schools. This is how school districts make ends meet. Property tax dollars collected do not increase with the cost of operation. School Districts are continuously forced to go to the voters to ask for yet another increase in property tax to support schools.

To better understand the process let’s take the most recently passed Emergency School Levy Issue 109 as an example. In the spring of 2011, the Treasurer of the Euclid City Schools came to the board and communicated the financial needs of the school district. State funds had been cut, a business tax--the Tangible Personal Property Tax--was being phased out, property values, and income tax collection were on the decline. Over a two-year period of time, Euclid City Schools lost $6 million in revenue. 

The school district needed more funds to make ends meet. The first course of action was to tighten the district's belt and make cuts. If the district was going to go out to the voters for additional financial support, we knew we had to do everything that we could to lessen the burden on Euclid’s property owners. Cuts were made.

The Board of Education made the decision to ask voters for a 6.9 mil Levy, Issue 2, to support the operation of the schools.

In May 2011 this issue was defeated. More cuts were made. All employees took a 3% cut in wages and benefits. The Board made a decision to go back on the ballot because the district still faced a $2 million deficit. A 5.4 mil levy was on the ballot in November of 2011 and failed. More cuts were made including high school busing. 

Issue 109, a 9 mil 10-year Emergency Levy, was placed on the ballot this past Fall. In November of 2012 the issue passed. The district will collect $5.4 million  additional funds over the next 10 years as a result of the issue’s  passage, however, it is important to realize that over the last 3 years Euclid City Schools have reduced their staff by 12% and spending by the district has been reduced by more than $5million.

The support of the Euclid voters has made it possible for Euclid’s public school’s students to receive a high quality education. Those who supported the Issue should understand how much they are appreciated and that, because of their support, our public schools provide students with the 21st century skills they need to be successful in the future. 

On January 31, Governor John Kasich announced a plan to reform school funding in Ohio. Gov. Kasich said that his “plan will not cut any school district’s funding, but it will work to reduce gaps between the wealthy and poor.”  He also said “the program is fully-funded, which was made possible by extra revenue gained from Ohio’s economic rebound.”  If the budget does indeed become law, Euclid Schools may be receiving additional funds from the state of Ohio. Hopefully this new school funding system will provide an alternative to a system that relies too heavily on local property taxes. Time will tell how the proposed budget will benefit the district.  

But for now our schools, thanks to the residents of Euclid, have made ends meet and continue to educate children.