Dear parents and community members,
School funding issues are back in the headlines as Ohio’s governor and legislature begin discussions of the next biennium budget. This complex—and sometimes confusing—process will continue over the next six months. Here are a couple important points to keep in mind.
Under the Governor’s current proposal, two different components of Kent Schools’ state funding would be impacted.
- Our Core Aid is proposed to increase by about $715,000 in 2016, but then decrease in 2017. Under the current proposal for FY 2016 and 2017, our Core Aid would increase approximately $1,421,000. That’s positive.
- However, the Governor’s budget proposes to resume the phase-out of state reimbursements to schools for the loss of tangible personal property taxes. Ohio businesses no longer pay this tax on the value of their machinery, inventory and equipment. Initially, school districts were reimbursed for the loss of this tax income, but this is coming to an end. The Governor’s proposed drop in tangible personal property reimbursements produces a net loss for the Kent Schools of approximately $1,578,000. This is a loss of funding for us.
Treasurer Debbie Krutz explains it this way. “When viewed together, the increase in Core Aid would be more than offset by our reduction in tangible personal property reimbursements over the next two years.” And, she cautions, “Under this proposal, it appears that any reimbursements for loss of this tax income would be essentially eliminated in the future.”
Although it is early in the budget process, please know that we will be monitoring our funding situation as the budget bill makes its way through the legislature. Thank you for your support of the Kent City Schools.