Senate finance panel begins hearings on tax freeze proposal

The Senate Finance and Financial Institutions Committee has started hearings on House Bill (HB) 318, legislation that includes Gov. Ted Strickland’s proposal to temporarily freeze at 2008 levels the final reduction in the state income tax rate. The bill also includes another proposal to cut the salaries of lawmakers by 5%. The tax freeze would be effective through June 30, 2011.

Bill sponsor Rep. Vernon Sykes (D-Akron), Tax Commissioner Rich Levin and Ohio Office of Budget and Management Director Pari Sabety all testified in support of the proposal. Sabety commented that the legislature should act soon so local school officials have budgetary certainty moving forward. Levin shared that if the legislature wants to move forward with HB 318, it would have to be done before the end of the year. The Department of Taxation will also need time to produce tax return form booklets.

Senators focused on the possibility of tapping casino revenues (if Issue 3 should pass) to help fill the budget hole and the possibility of delaying education reform. It is likely that the committee will continue hearings on the bill throughout November.

Senate Education Committee

Proponent testimony continued on HB 19, legislation requiring school districts to adopt a dating violence prevention policy and to include dating violence prevention education within the health education curriculum.

Jim and Elsa Croucher of Butler County, whose daughter was murdered in 1992 by an abusive boyfriend who then killed himself, testified in support. The bill is named the Tina Croucher Act in memory of their daughter. They speak at high schools to educate students and prevent abuse.

Katie Edwards, an advanced doctoral student in clinical psychology at Ohio University, testified in support on behalf of the Ohio Psychological Association and Kenneth Steinman of the Ohio Family Violence Prevention Project and a clinical assistant professor at the Ohio State University College of Public Health also testified in support.

Proponent testimony continued on Senate Bill (SB) 180, legislation to allow new Internet- or computer-based community schools to open under certain conditions; requires the use of student performance data in evaluating teachers and principals for licensure; and qualifies Teach for America participants for a professional educator license.

The Ohio Alliance for Public Charter Schools offered support for the bill, which would lift the moratorium on e-schools. They also suggested it could be amended to also lift caps on brick-and mortar-charter schools in Ohio.

Terry Ryan, vice president of the Thomas Fordham Institute, supports the use of value-added data and stated that SB 180 could help Ohio become a national leader in using value-added data to help gauge teacher effectiveness.

Susan Haverkos, a member of the State Board of Education, testified as an individual in support of the proposal.

John Dues, codirector of curriculum and instruction at Columbus Collegiate Academy, and Abbey Kinson, a math teacher at the school, both testified in support. They shared their experiences with Teach for America and noted that community schools face other difficulties in competing with traditional public schools — including less funding and transportation issues.

OSBA and the Buckeye Association of School Administrators (BASA) provided joint testimony in support of SB 167, legislation revising the performance ratings for school districts and buildings.

SB 167 keeps accountability intact, but in a more transparent manner. If two or more of the same subgroups do not make adequate yearly progress (AYP) for three or more years, the school would be declared effective instead of in continuous improvement as in current law. Under SB 167, the district must show a pattern of not making AYP with the same types of students to have its rating lowered.

At the same time, OSBA and BASA recognize the importance of serving the needs of all children, including those who are part of a subgroup. This legislation does not lessen the importance of initiatives to help all children succeed; it must be recognized that inadequate performance by sufficient numbers of students in subgroups will also depress the total scores. Instead, SB 167 seeks to eliminate the confusion surrounding the designation of school districts meeting all or almost all of their report indicators, but earn only a designation of continuous improvement.


House Elections and Ethics Committee

Testimony continues on HB 260, legislation proposing to overhaul elections in Ohio. Jeanette Mullane, vice president of the Ohio Association of Elections Officials and director of the Stark County Board of Elections, testified on the bill. The Ohio Association of Elections Officials supports eliminating special elections, and in its testimony stated:

“Special elections have proven to be a costly and inefficient endeavor for both boards of elections and voters. The ‘bang for the buck’ to conduct special elections is simply not there. Counties pour out millions of dollars a year for elections that usually net turnout in the teens. While this money is later reimbursed, the full cost is almost never recouped, the money comes in the next fiscal year and the strain on the system itself is unaccounted for. While we are sensitive to the plight of local governments who utilize these elections, we believe two bites at the apple per year are sufficient.”

OSBA is opposed to the elimination of special elections. This provision will undermine the ability of school districts to raise critical funding support from local communities needed to help implement education reforms, strengthen curriculum offerings, provide extracurricular activities and build new school facilities.

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House passes tax rate freeze; bill heads to Senate

The Ohio House of Representatives passed House Bill (HB) 318, legislation that includes Gov. Ted Strickland’s proposal to temporarily freeze the final reduction in the state income tax rate at 2008 levels. The bill also includes another proposal to cut the salaries of lawmakers by 5%. The tax freeze would be effective through June 30, 2011.

HB 318 would address the $850 million budget hole created by the uncertain fate of the implementation of video lottery terminals (VLTs).

OSBA, along with the Buckeye Association of School Administrators and the Ohio Association of School Business Officials, released a joint statement on the Ohio House’s passage of HB 318. The groups appreciate the response by the House and hope the legislature’s commitment to avoid reductions in school funding will continue as the bill now moves to the Senate. To view the entire press statement, click here.

The Senate Finance Committee has scheduled meetings on HB 318 starting the week of Oct. 26. Senate Republican leaders have stated they do not have a position yet on HB 318 and are considering other options.

House Education Committee update

The House Education Committee heard sponsor testimony on the following bills:

• HB 279, sponsored by Rep. Mike Foley (D-Cleveland), legislation that would replace the licensing standards specifying maximum child-to-staff ratios and group sizes for Montessori programs that combine preschoolers and kindergartners. HB 279 also includes a requirement that those programs be consistent with Montessori accreditation standards.

• HB 290, sponsored by Reps. Danny Bubp (R-West Union) and Raymond Pryor (D-Chillicothe), legislation that would include Junior ROTC as a permitted elective within the Ohio Core curriculum and to permit schools to excuse Junior ROTC students from high school physical education.

Senate Education Committee update

The Senate Education Committee heard sponsor testimony on the following bills:

• HB 19, sponsored by Rep. Sandra Harwood (D-Warren) legislation requiring districts to adopt a dating violence prevention policy and to include dating violence prevention education within the health education curriculum. 

• SB 102, sponsored Sen. Nina Turner (D-Cleveland), legislation requiring the State Board of Education to recommend performance standards for dropout programs operated by school districts. Turner said the bill gives the State Board of Education one year to make recommendations on standards for dropout prevention and recovery programs.

Turner also provided testimony on Senate Bill (SB) 122, legislation authorizing a board of education of a school district or governing board of an educational service center to employ public high school law enforcement officers. The bill would also prohibit the impersonation of a public high school law enforcement officer, and specifies the powers of arrest and citation of public high school law enforcement officers. 

• SB 126, sponsored by Sen. Teresa Fedor (D-Toledo), legislation regarding bullying. The bill does the following:
•    prohibits school administrators from knowingly failing to report to law enforcement authorities menacing by stalking of telecommunications harassment that occurs on school grounds;
•    requires a board of education to adopt a policy that prohibits bullying by electronic means;
•    requires a school district’s harassment policy to address acts that occur off school property, but materially disrupt the educational environment of the school;
•    requires a school district to provide annual training on the district’s bullying policy for district employees and volunteers;
•    requires a school district to notify parents or guardians of students if the annual training is not completed. 

• SB 180, sponsored by Sen. Jon Husted (R-Kettering) would allow new Internet- or computer-based community schools to open under certain conditions; require the use of student performance data in evaluating teachers and principals for licensure; and qualify Teach for America participants for a professional educator license.

Husted stated that SB 180 puts Ohio in the best possible position to secure federal Race To The Top grant funds, referring to what federal education officials have been clear in specifying how states can best position themselves to be selected for these competitive funds.

Hearings also continued on SB 167, sponsored by Sen. Gary Cates (R-West Chester), legislation revising the performance ratings for school districts and buildings. 

School districts testifying in support included Kettering City, Lebanon City and Lakota Local (Butler). All shared concerns about how the current report card system doesn’t measure districts equitably and how school ratings can impact community support.

The committee also heard proponent testimony on SB 173, also sponsored by Cates, legislation that would delay by one year the effective date of rules regarding school districts’ expenditure of funds for core teachers and the requirement for districts to provide all-day kindergarten for all kindergartners.

Both Olentangy Local (Delaware) and Lakota Local offered support for the bill, stating a delay in all-day kindergarten is essential because of space and other considerations.

House Public Safety and Homeland Security Committee

The committee heard sponsor testimony on HB 80, sponsored by Rep. John Domenick (D-Smithfield), requiring that all new school buses be equipped with a single white strobe light to be activated at all times when the bus is transporting passengers.

House Judiciary Committee

The committee heard sponsor testimony on HB 197, sponsored by Rep. Marian Harris (D-Columbus), legislation to expand the class of persons who may execute a caretaker authorization affidavit or be designated as attorney in fact under a power of attorney for the purpose of exercising authority over the care, custody, and control of a child and to enhance Ohio's policies regarding kinship caregivers.

In her sponsor testimony, Rep. Harris stated the bill would give families the ability to enroll children in school and make medical decisions, noting this is something many families already manage to do.

 

Budget update

Hearings are set to begin immediately in the Ohio House Finance and Appropriations Committee on House Bill (HB) 318, a bill that includes Gov. Ted Strickland's proposal to temporarily freeze at 2008 levels the final reduction in the state income tax rate. The bill also includes another proposal to cut the salaries of lawmakers by five percent. The tax freeze would be effective through June 30, 2011.

HB 318 would address the $850 million budget hole created by the uncertain fate of the implementation of video lottery terminals (VLTs). As HB 318 moves through the legislative process, OSBA will keep you updated.

Senate Education Committee update

Senate Education Committee Chairman Gary Cates (R-West Chester) provided sponsor testimony on SB 173, legislation that would delay the phase-in of all-day kindergarten and the rules regarding school districts' expenditure of funds for core teachers. The effective date would be rescheduled from the current requirement of 2010-2011 to 2011-2012 for all-day kindergarten, while the effective date for rules pertaining to the expenditure of funds calculated for the core teacher factor would be delayed until July 1, 2012.

Chairman Cates also provided sponsor testimony on SB 167, legislation that would  revise the performance ratings for school districts and buildings. Specifically SB 167:

• Revises the requirement to lower the excellent or effective rating of a school district or building that fails to make adequate yearly progress (AYP) for three or more consecutive years, by specifying (1) that the failure must involve two or more of the same student subgroups each year and (2) that an excellent rating may be lowered only one level, to effective (instead of two levels, to continuous improvement, as in current law).
• States that a district or building that makes AYP may receive a rating of academic watch, if it does not meet at least 31% of the performance indicators and has a performance index score established by the Department of Education. Under current law, a district or building that makes AYP currently may be ranked no lower than continuous improvement, regardless of its performance on the other components of the rating system.
• Repeals the prohibition against lowering a district's or building's performance rating from the previous year based solely on one subgroup not making AYP.

Election reform update

Hearings and debate continue on HB 260, legislation that would overhaul Ohio’s election laws. OSBA, along with the Ohio Education Association, Ohio Association of School Business Officials, Buckeye Association of School Administrators and Ohio Federation of Teachers, sent a joint letter to members of the House Elections Committee and legislative leaders to share our opposition to the proposal that would eliminate special elections in February and August. To view the letter, click here.

Pension reform update

The Ohio Retirement Study Council (ORSC) met on Oct. 14 and received a summary of the state pension systems’ 30-year funding plans that were submitted at the council’s September meeting. ORSC helps the legislature, governor and other public officials develop public pension policy. Members include legislators and local government officials.

Many of the proposed changes — including increases in contribution rates and changes in requirement eligibility and benefit formulas — will require legislation.

State Rep. Todd Book (D-Portsmouth), ORSC chair, said officials are working to have a bill drafted. He said the legislation could be ready for introduction by the end of 2009 or beginning of 2010.

Meanwhile, the systems reported that a slight market turnaround has helped their bottom line over the last six months, but fund balances are still suffering from poor investment returns over the past year.

 

 

October 5, 2009

Mary Ann Meadows, Principal

Struthers High School

99 Euclid Ave.

Struthers, OH 44471

Dear Principal Meadows:

Congratulations to your school on being recognized as a School of Promise for the 2008-2009 school year!

Your students, staff, parents and community should all be proud of this honor that demonstrates your commitment to closing achievement gaps and helping all students reach higher levels of achievement.

In being named a School of Promise, your school is part of an elite group of 134 schools recognized this year for high achievement in reading and mathematics for all groups of students, despite having 40 percent or more of your students coming from low-income backgrounds.

As a former district superintendent, principal and teacher, I have worked with students from diverse ethnic and socioeconomic backgrounds. I truly believe all students have the potential to succeed and that all students, regardless of their zip code, income, race or disability should receive the highest quality education we can provide. I thank you for your leadership and the commitment of your staff to help all students achieve at high levels.

In the coming weeks, you will receive an official Schools of Promise banner to display in your school building. If you have any questions about the banner or the award, please contact Sherry Panizo in the

ODE Office of Policy and Accountability at (614) 387-0546 or sherry.panizo@ode.state.oh.us.

Again, congratulations on this achievement, and best wishes for continued success.

 

No action yet on governor’s proposal to postpone tax cut

It has been almost two weeks since Gov. Ted Strickland presented his proposal to address the $850 million budget hole created by the uncertain fate of the implementation of video lottery terminals (VLTs). The governor outlined three possible options to make up for the budget shortfall:
• raise taxes, such as the state sales tax;
• cut the corresponding amount from schools;
• postpone a planned reduction in the state income tax rate. He is proposing the legislature go with the last option.

The Ohio House of Representatives, where Democrats hold a majority, indicated that they understand the urgency of the matter, but they have not developed a time frame for freezing the tax cut and there is currently no schedule for taking up the matter.

Senate President Bill Harris (R-Ashland) responded to the governor’s proposal by stating that any attempt to resolve the education funding shortfall should include a repeal of the budget provisions authorizing slot machines at horse racetracks. He has also stated that he doubts if legislators can meet Strickland's timetable for action on the proposal.

In the meantime, major business groups, such as the Ohio Chamber of Commerce and the Ohio Farm Bureau Federation, have both endorsed Strickland’s plan and are encouraging the legislature to adopt a mechanism to restore the tax break when certain criteria are met.

To view OSBA’s reaction to the proposal, click here.

House Education Committee

The House Education Committee heard sponsor testimony from Rep. Denise Driehaus (D-Cincinnati) on House Bill (HB) 268. The bill calls for temporarily reducing the per-pupil base-cost payments to community schools in academic watch or academic emergency, and use approximately $70 million from the reduction to make supplemental payments for auxiliary services and administrative cost reimbursement for non-public chartered school students.

This bill is in response to the $10 million in budget reductions made over the past year to auxiliary services and administrative cost reimbursement to balance the state budget, and the $59 million reduction made in these funds through in the fiscal year 2010-11 state budget. The intent of the bill is to re-establish “parity” for state funding for non-public schools. Community schools in academic watch and emergency would lose approximately $700 per student if the bill is approved.

Three witnesses testified in support of HB 253, legislation addressing leadership and character ethics in public schools and public institutions of higher education. Lucy Fontera, executive director of Ohio Partners in Character Education, and Chip Weiant, senior fellow at the Center for Civic Character at Sagamore Institute for Policy Research in Columbus, presented testimony together. Mary Alice Casalina testified on behalf of Stuart Muszynski, chief executive officer of Project Love in Cleveland.

House Health Committee

House Bill 60, legislation establishing nutritional standards for food and beverages sold in vending machines in public schools, was favorably voted out of committee. The committee heard proponent testimony from Pat McKnight, licensed registered dietician of the Ohio Dietetic Association, and Christina Borchers, a senior at Oakwood City’s Oakwood High School.

OSBA, along with the Buckeye Association of School Administrators (BASA) and the Ohio Association of School Business Officials (OASBO,) met with the sponsor of HB 60 to share some ideas regarding the bill, including providing input from the School Nutrition Association of Ohio and other practitioners. We plan to continue the conversation as HB 60 moves through the legislative process.

Election reform update

Hearings continue on both HB 260 and Senate Bill (SB) 8, legislation seeking to overhaul elections in Ohio. Although there is a lot to be worked out, Rep. Dan Stewart (D-Columbus), one of the sponsors of HB 260, is hopeful it can get done for the 2010 May primary election. House Bill 260 proposes eliminating special elections in February and August. OSBA has strong concerns with this provision because it will undermine the ability of school districts to raise critical funding support from local communities needed to help implement education reforms, strengthen curriculum offerings, provide extracurricular activities and build new school facilities.

 

For Immediate Release:                                            Contact: Amanda Wurst

Wednesday, September 30, 2009                                614 644-0957/614 832-7512

                                                                                     Amanda.Wurst@governor.ohio.gov

 

Governor Proposes Plan to Balance Budget and
Protect Ohio Schools

 

Columbus, Ohio – Governor Ted Strickland today discussed the state budget situation.  Below are his prepared remarks.

 

In July I signed a balanced budget.  Although we faced the worst decline in state revenue in at least 50 years – a direct result of the national economic downturn – we were able to prioritize our limited resources to invest in a reformed education system by cutting spending and resizing state government.

 

In fact, we reduced state government spending by nearly $2 billion compared to actual spending in the last budget.  That actual spending reflected more than $1.5 billion of cuts already made in response to the recession.

 

Still, those cuts were not enough.  Even after those spending reductions, the legislature and I had a gap of nearly $900 million to solve.  At the time, we had three essential choices to fill the gap: raise taxes, cut more or find another source of revenue.

 

I did not believe a tax increase was wise during a recession.  I also did not believe that further cuts were a viable option because that would have hurt the most vulnerable Ohioans.  Further cuts, for example, would have meant Ohio children would go without guaranteed access to health care, or that those who need medical oxygen would have had to go without.  That was simply intolerable. 

 

Further cuts would also have made it impossible to prioritize education as we did.  We could not have initiated 21^st Century school reforms, kept college tuition costs down or helped workers acquire the skills they need to find and keep jobs.  These are the exact priorities that will position Ohio for growth after the recovery.  They are where we must invest.

 

So I put forward a plan to authorize video lottery terminals at Ohio’s seven racetracks, which we conservatively estimated would have brought in the revenue to appropriate $851 million for our schools.  Those resources also ensured a balanced budget.

 

Video Lottery Terminals

 

Last week, the Ohio Supreme Court ruled the video lottery terminal proposal is subject to referendum, a decision I disagree with but I am obligated to abide by. 

 

That decision by the state Supreme Court made it a practical impossibility to utilize video lottery revenue in the current budget and reopened an $851 million hole, placing our schools at risk of funding cuts and our budget at risk of imbalance.

 

Waiting for a November 2010 referendum, even if it is successful, still denies the state the revenue necessary to protect our schools from devastating funding cuts in this biennium.  Some have suggested placing video lottery terminals on the ballot at an earlier date, such as May.  That would still be too late to generate the necessary revenue to fund education.  And this would not resolve the legal challenges facing the state today.

 

An outstanding question remains before the courts: Whether or not the Ohio Lottery has the authority to implement video lottery terminals without legislative approval.  We need to hear from the courts on this Constitutional question, and I will seek a Declaratory Judgment for clarification.  But while we wait for that clarification, we must find another way to balance the biennial budget.

 

Three Options to Balance Budget

 

The legislature and I find ourselves confronted once more with the shared responsibility to balance the budget.  Again, I believe there are three primary options before all of us to fill the budget gap.

 

One option is to raise taxes, such as the state sales tax.

 

A second option is to cut $851 million from Ohio schools over this biennium.

 

A third option is to freeze the income tax rates at the 2008 level, postponing the final 4.2 percent reduction while leaving in place the rate cuts made to date.

 

  Education Cuts

 

Of these three options, I believe the worst possible decision is to cut education funding.  We crafted a lean budget that prioritized education because improving our schools is the single most effective thing we can do to attract new jobs to Ohio and prepare the next generation of Ohioans to fill those jobs. 

 

I have spent nearly every day for the past two months meeting with business leaders and workers to discuss how our education reform plan will help their businesses grow.  Not one business leader ever said we should be reducing funding for education.  Not one said our plan to modernize schools is the wrong way to move Ohio forward. 

 

Instead, they have told me that in this emerging 21st Century economy, jobs will go where the workforce is most educated, creative and innovative.  I am more convinced than ever that Ohioans understand the link between education and job creation. 

 

Underfunding education at this critical time would undermine our ability to position the state for growth after the economic recovery.  It would also be devastating to our schools in the near term.

 

According to the Department of Education, an $851 million cut to schools would put at risk the state’s ability to draw down federal funds.  That means absent a federal waiver every school district would be cut an average of 10 percent in the current fiscal year and 15 percent in fiscal year 2011, for a total shortfall of $2.3 billion.

 

Here is what the Education Department said those cuts would look like for Ohio’s largest school districts:

 

            Cleveland Municipal Schools:  $111.1 million

Columbus City Schools: $60.3 million

Toledo City Schools: $53.4 million

Cincinnati City Schools: $37.9 million

Dayton City Schools: $34.6 million

Youngstown City Schools: $20.8 million

 

The list goes on, but the end result would be the same across the board – hundreds of teacher layoffs, diminished curriculum offerings, and likely suspension of athletics and other extracurricular activities.

 

  Tax Increases

 

A second option is to raise taxes.  A half-penny sales tax increase would provide enough revenue to balance the budget and spare education.  A sales tax increase has been the preferred response in the past when our state was confronted with less severe recessions.  But I am concerned that a sales tax increase, even a temporary one, could have the effect of depressing consumer spending, prolonging the recession and delaying Ohio’s recovery.  This is especially true within the manufacturing and automotive sectors of our economy. 

 

  Postpone Income Tax Reduction

 

A third option is to postpone the last part of the income tax cuts while leaving the cuts we’ve made to date in place. 

 

If the legislature adopts this proposal, Ohio taxpayers will continue to pay at a tax rate 16.8 percent less than it was in 2004.  The state will collect approximately $844 million in revenue, close to the $851 million needed to protect education funding and balance the budget.  The rest will be made up in cuts if necessary.

 

This would freeze income tax rates so they remain exactly the same as last year.   And if a family’s earnings are the same as in 2008, because of the slight increase in the personal exemption, they will still pay fewer taxes this year than they did last year.

 

Since becoming governor, I have worked to protect the tax reforms first enacted in House Bill 66.  I believe this delay will have a minimal impact on the totality of the tax reforms, which have established Ohio’s taxes as the lowest in the Midwest.

 

I believe postponing the last part of the scheduled income tax reduction will protect our schools from destructive cuts while avoiding a sales tax increase on Ohio families and businesses during this recession.

 

Of course some will try to score political points by branding this delay as a tax increase.  But again, tax rates are staying the same as last year.

 

What I am proposing today requires the legislature’s approval.  If no legislative action is taken, our schools will, by default, be forced to absorb $851 million in state cuts, and perhaps much more if federal resources are lost.  The cost of not acting is clear. 

 

I look forward to cooperative action and a bipartisan determination to do what is right for the people of Ohio.  The men and women who elected us to serve expect – and deserve – serious and constructive leadership. 

 

The budget is not in balance today.  We need to act quickly as our ability to balance the budget and protect our schools will become only more difficult with delays. 

 

The choice is clear: We can cut education, raise taxes or postpone the last phase of the income tax rate reduction.

 

Postponing the income tax reduction is my recommended solution.  If members of the legislature have other ideas, I encourage them to bring them forward for consideration.  My door will remain open to leaders of both chambers and both parties in the coming days as we work to address the challenge before us. 

   

                

 

                                        

 

 

The state budget is of concern due to the Ohio Supreme Court ruling from Sept. 21, 2009 that stated that the installation of Video Lottery Terminals (VLTs) at Ohio’s horse-race tracks is subject to referendum. The referendum cannot appear on the ballot until November 2010.

 

House Bill 1, the state budget bill, included VLTs as an extension of the Ohio Lottery; as such, the proceeds from VLTs would only be able to be used for education. The biennial budget for K-12 education in H.B. 1 included $851 million in revenues from VLTs.

 

Since the ruling, we have received many questions about the impact the loss of those funds might potentially have on the budget for education in Ohio.

 

Yesterday, Governor Ted Strickland’s Office asked ODE to provide information about how potential additional reductions would affect K-12 funding. The Governor’s Office is releasing the information ODE provided to the media shortly, and I want to be certain you have access to it, should you receive any inquiries. I do want to stress that, very similar to prior scenario building during the budget development process, these figures and examples are being used to DEMONSTRATE how devastating any additional reductions would be to education. NO decisions have been made about altering the education budget.

 

ODE has developed information for two scenarios. One scenario is based on ODE receiving a waiver from meeting maintenance of effort (MOE) and use of funds criteria from the U.S. Department of Education (USDOE). This would allow ODE to shift State Fiscal Stabilization Funds (SFSF) from FY11 to FY10. Shifting funds would minimize the impact of the revenue loss in FY10, but would require the entire loss of revenue to be made up in FY11.

 

The other scenario assumes that USDOE does not grant a waiver to ODE. This would result in not only the loss of VLT revenue, but could also cause the loss of SFSF appropriated for both ODE and the Board of Regents as the state would not be able to meet its obligations for MOE and use of funds. The reductions would then have to be split over both years of the biennium.

 

Without a waiver from the USDOE

 

Losing both the VLT and SFSF funding results in a shortfall of $2.3 billion. Based on the simulations released earlier this month, a 10.31% reduction in districts’ FY 2010 payments and 15.74% in FY 2011 payments would be necessary. In the scenario, reductions have been applied at these percentages across the board. We have only provided estimates for traditional districts, but reductions at the same levels for community schools are assumed.

 

We do not know if the USDOE would grant a waiver of these particular requirements and allow us to remain eligible to receive SFSF funds.

 

Click here to visit Education Reform on the ODE Web and view the funding adjustment under this scenario.

 

With a waiver from the USDOE

 

If ODE were granted a waiver for meeting MOE and use of funds criteria by the USDOE, reductions would be shifted to affect FY11 only. Under this scenario, $285.2 million which has already been included in the FY11 K-12 education budget would have to be shifted to fill the shortfall in FY10. The shift in funds would be necessary because USDOE guidance for the use of SFSF funds requires any shortfalls in FY10 to be addressed before applying funds to shortfalls in FY11.

This avoids a deficit in FY10, but means that the full impact of the cuts would need to be absorbed in FY11 and shared by both K-12 education and the Board of Regents. Reductions to districts would be in the amount of $654.2 million, or an across-the-board reduction of 10.06% per district in FY11. This also results in a budget shortfall for the Board of Regents of $197.3million.

 

Click here to visit Education Reform on the ODE Web and view the funding adjustment under this scenario.

 

For the purposes of this exercise, Joint Vocational Schools are not included in either reduction scenario. Any further reduction to the JVS budget would put an additional $44 million in federal Perkins grant funds at risk.

 

Additionally, neither of these scenarios can fully account for the implications these reductions might have at the local level. For example, in order to preserve Title I or IDEA funds (both regular and stimulus) a district may need to divert resources to those programs.

 

We understand that the uncertainty of the last year has been difficult for you as planning budgets and making important decisions about your finances have been thrown into flux by issues with the state budget. The current situation definitely adds to the angst we all feel. Let me reiterate that NO decisions have been made about education funding. Please understand that we are doing everything we can at ODE to assist you through these tough financial times. I will keep you informed as soon as ODE receives any information.

 

 

Great news for Ohio schools — commercial activities tax upheld

Ohio schools got great news today when the Ohio Supreme Court upheld the constitutionality of the commercial activities tax (CAT) as it applies to grocers in Ohio Grocers Assn. v. Levin, Slip Opinion No. 2009-Ohio-4872. A group of plaintiffs, including the Ohio Grocer’s Association, grocery store owners and food wholesalers, had sought a ruling that the state tax commissioner is prohibited from assessing the CAT against any of their gross business receipts arising from the sale of food for off-premises consumption. They also sought a refund of prior-year commercial activities taxes they have paid on their receipts from food sales since 2005.

The decision is a tremendous win for schools since school districts receive most of the proceeds from the CAT. Had the grocers prevailed, they would have been exempt from about $188 million a year in taxes going forward and entitled to receive a $350 million refund from the state.

Fred Livingstone, of the law firm Taft, Stettinius and Hollister LLP, wrote the amicus brief on behalf of the Ohio School Boards Association, the Buckeye Association of School Administrators and the Ohio Association of School Business Officials, as well as a reply brief responding to issues raised during the litigation.

“We’re very pleased with the ruling and think it is important for the financial health of our state and Ohio schools,” Livingstone said. “We think the case was decided correctly. We are pleased that the court considered the points we raised in our brief.”

The grocers argued that the Ohio Constitution prohibits the state from levying or collecting any “excise tax upon the sale or purchase of food” and that the CAT was akin to a sales tax in violation of that provision. The impact of a determination that the CAT, a broad-based tax, did not apply to any sector of business owners would have been devastating for schools, and led the Ohio School Boards Association Legal Assistance Fund trustees to authorize, on their own motion, a brief amicus curiae to be filed on behalf of OSBA.

The team of lawyers, which also included Donald Mottley and Judson Stelter, focused the argument on the history of the enactment of the provisions of the Ohio Constitution in issue and on the standard of review to be used when considering the constitutionality of a statute, and challenged the conclusions of the expert on behalf of the grocer plaintiffs.

The OSBA Legal Assistance Fund has been working to benefit Ohio schools with favorable judicial precedent since 1976. Trustees of the fund include OSBA President Tawana Lynn Keels, a school board member at Princeton City and Great Oaks ITCD; President-elect John Pennycuff, a school board member at Winton Woods City; and Executive Director Richard Lewis.

 

Patriot Day 2009

 

On September 11^th of each year we observe Patriot Day as a remembrance of the lives lost and the selfless dedication of members of our public safety community on that day in 2001. We also honor the families and loved ones left behind.  

 

 

In observance of Patriot Day, I hereby proclaim by the authority vested in me as Governor of the State of Ohio by the Ohio Constitution and the laws of the United States of America that the flags of the United States and the State of Ohio shall be flown at half-staff upon all public buildings and grounds throughout the State of Ohio from Sunrise until Sunset Friday September 11, 2009.

 

 

On this 10^th day of September 2009

 

Ted Strickland

Governor

 

 

 

 

 

 

 

 

 

 I  thought it would be appropriate to post Barack Obama's full, unedited planned remarks to America's schools. I see now why the Right was so upset...all that talk about personal responsibility and the importance of education...what could be more Maoist?

Without further adieu, The full text...

Hello everyone - how's everybody doing today? I'm here with students at Wakefield High School in Arlington, Virginia. And we've got students tuning in from all across America, kindergarten through twelfth grade. I'm glad you all could join us today.

I know that for many of you, today is the first day of school. And for those of you in kindergarten, or starting middle or high school, it's your first day in a new school, so it's understandable if you're a little nervous. I imagine there are some seniors out there who are feeling pretty good right now, with just one more year to go. And no matter what grade you're in, some of you are probably wishing it were still summer, and you could've stayed in bed just a little longer this morning.

I know that feeling. When I was young, my family lived in Indonesia for a few years, and my mother didn't have the money to send me where all the American kids went to school. So she decided to teach me extra lessons herself, Monday through Friday - at 4:30 in the morning.

Now I wasn't too happy about getting up that early. A lot of times, I'd fall asleep right there at the kitchen table. But whenever I'd complain, my mother would just give me one of those looks and say, "This is no picnic for me either, buster."

So I know some of you are still adjusting to being back at school. But I'm here today because I have something important to discuss with you. I'm here because I want to talk with you about your education and what's expected of all of you in this new school year.

Now I've given a lot of speeches about education. And I've talked a lot about responsibility.

I've talked about your teachers' responsibility for inspiring you, and pushing you to learn.

I've talked about your parents' responsibility for making sure you stay on track, and get your homework done, and don't spend every waking hour in front of the TV or with that Xbox.

I've talked a lot about your government's responsibility for setting high standards, supporting teachers and principals, and turning around schools that aren't working where students aren't getting the opportunities they deserve.

But at the end of the day, we can have the most dedicated teachers, the most supportive parents, and the best schools in the world - and none of it will matter unless all of you fulfill your responsibilities. Unless you show up to those schools; pay attention to those teachers; listen to your parents, grandparents and other adults; and put in the hard work it takes to succeed.

And that's what I want to focus on today: the responsibility each of you has for your education. I want to start with the responsibility you have to yourself.
Every single one of you has something you're good at. Every single one of you has something to offer. And you have a responsibility to yourself to discover what that is. That's the opportunity an education can provide.

Maybe you could be a good writer - maybe even good enough to write a book or articles in a newspaper - but you might not know it until you write a paper for your English class. Maybe you could be an innovator or an inventor - maybe even good enough to come up with the next iPhone or a new medicine or vaccine - but you might not know it until you do a project for your science class. Maybe you could be a mayor or a Senator or a Supreme Court Justice, but you might not know that until you join student government or the debate team.

And no matter what you want to do with your life - I guarantee that you'll need an education to do it. You want to be a doctor, or a teacher, or a police officer? You want to be a nurse or an architect, a lawyer or a member of our military? You're going to need a good education for every single one of those careers. You can't drop out of school and just drop into a good job. You've got to work for it and train for it and learn for it.

And this isn't just important for your own life and your own future. What you make of your education will decide nothing less than the future of this country. What you're learning in school today will determine whether we as a nation can meet our greatest challenges in the future.

You'll need the knowledge and problem-solving skills you learn in science and math to cure diseases like cancer and AIDS, and to develop new energy technologies and protect our environment. You'll need the insights and critical thinking skills you gain in history and social studies to fight poverty and homelessness, crime and discrimination, and make our nation more fair and more free. You'll need the creativity and ingenuity you develop in all your classes to build new companies that will create new jobs and boost our economy.

We need every single one of you to develop your talents, skills and intellect so you can help solve our most difficult problems. If you don't do that - if you quit on school - you're not just quitting on yourself, you're quitting on your country.

Now I know it's not always easy to do well in school. I know a lot of you have challenges in your lives right now that can make it hard to focus on your schoolwork.

I get it. I know what that's like. My father left my family when I was two years old, and I was raised by a single mother who struggled at times to pay the bills and wasn't always able to give us things the other kids had. There were times when I missed having a father in my life. There were times when I was lonely and felt like I didn't fit in.

So I wasn't always as focused as I should have been. I did some things I'm not proud of, and got in more trouble than I should have. And my life could have easily taken a turn for the worse.

But I was fortunate. I got a lot of second chances and had the opportunity to go to college, and law school, and follow my dreams. My wife, our First Lady Michelle Obama, has a similar story. Neither of her parents had gone to college, and they didn't have much. But they worked hard, and she worked hard, so that she could go to the best schools in this country.

Some of you might not have those advantages. Maybe you don't have adults in your life who give you the support that you need. Maybe someone in your family has lost their job, and there's not enough money to go around. Maybe you live in a neighborhood where you don't feel safe, or have friends who are pressuring you to do things you know aren't right.

But at the end of the day, the circumstances of your life - what you look like, where you come from, how much money you have, what you've got going on at home - that's no excuse for neglecting your homework or having a bad attitude. That's no excuse for talking back to your teacher, or cutting class, or dropping out of school. That's no excuse for not trying.

Where you are right now doesn't have to determine where you'll end up. No one's written your destiny for you. Here in America, you write your own destiny. You make your own future.

That's what young people like you are doing every day, all across America.

Young people like Jazmin Perez, from Roma, Texas. Jazmin didn't speak English when she first started school. Hardly anyone in her hometown went to college, and neither of her parents had gone either. But she worked hard, earned good grades, got a scholarship to Brown University, and is now in graduate school, studying public health, on her way to being Dr. Jazmin Perez.

I'm thinking about Andoni Schultz, from Los Altos, California, who's fought brain cancer since he was three. He's endured all sorts of treatments and surgeries, one of which affected his memory, so it took him much longer - hundreds of extra hours - to do his schoolwork. But he never fell behind, and he's headed to college this fall.

And then there's Shantell Steve, from my hometown of Chicago, Illinois. Even when bouncing from foster home to foster home in the toughest neighborhoods, she managed to get a job at a local health center; start a program to keep young people out of gangs; and she's on track to graduate high school with honors and go on to college.

Jazmin, Andoni and Shantell aren't any different from any of you. They faced challenges in their lives just like you do. But they refused to give up. They chose to take responsibility for their education and set goals for themselves. And I expect all of you to do the same.

That's why today, I'm calling on each of you to set your own goals for your education - and to do everything you can to meet them. Your goal can be something as simple as doing all your homework, paying attention in class, or spending time each day reading a book. Maybe you'll decide to get involved in an extracurricular activity, or volunteer in your community. Maybe you'll decide to stand up for kids who are being teased or bullied because of who they are or how they look, because you believe, like I do, that all kids deserve a safe environment to study and learn. Maybe you'll decide to take better care of yourself so you can be more ready to learn. And along those lines, I hope you'll all wash your hands a lot, and stay home from school when you don't feel well, so we can keep people from getting the flu this fall and winter.

Whatever you resolve to do, I want you to commit to it. I want you to really work at it.

I know that sometimes, you get the sense from TV that you can be rich and successful without any hard work -- that your ticket to success is through rapping or basketball or being a reality TV star, when chances are, you're not going to be any of those things.

But the truth is, being successful is hard. You won't love every subject you study. You won't click with every teacher. Not every homework assignment will seem completely relevant to your life right this minute. And you won't necessarily succeed at everything the first time you try.

That's OK. Some of the most successful people in the world are the ones who've had the most failures. JK Rowling's first Harry Potter book was rejected twelve times before it was finally published. Michael Jordan was cut from his high school basketball team, and he lost hundreds of games and missed thousands of shots during his career. But he once said, "I have failed over and over and over again in my life. And that is why I succeed."

These people succeeded because they understand that you can't let your failures define you - you have to let them teach you. You have to let them show you what to do differently next time. If you get in trouble, that doesn't mean you're a troublemaker, it means you need to try harder to behave. If you get a bad grade, that doesn't mean you're stupid, it just means you need to spend more time studying.

No one's born being good at things, you become good at things through hard work. You're not a varsity athlete the first time you play a new sport. You don't hit every note the first time you sing a song. You've got to practice. It's the same with your schoolwork. You might have to do a math problem a few times before you get it right, or read something a few times before you understand it, or do a few drafts of a paper before it's good enough to hand in.

Don't be afraid to ask questions. Don't be afraid to ask for help when you need it. I do that every day. Asking for help isn't a sign of weakness, it's a sign of strength. It shows you have the courage to admit when you don't know something, and to learn something new. So find an adult you trust - a parent, grandparent or teacher; a coach or counselor - and ask them to help you stay on track to meet your goals.

And even when you're struggling, even when you're discouraged, and you feel like other people have given up on you - don't ever give up on yourself. Because when you give up on yourself, you give up on your country.

The story of America isn't about people who quit when things got tough. It's about people who kept going, who tried harder, who loved their country too much to do anything less than their best.

It's the story of students who sat where you sit 250 years ago, and went on to wage a revolution and found this nation. Students who sat where you sit 75 years ago who overcame a Depression and won a world war; who fought for civil rights and put a man on the moon. Students who sat where you sit 20 years ago who founded Google, Twitter and Facebook and changed the way we communicate with each other.

So today, I want to ask you, what's your contribution going to be? What problems are you going to solve? What discoveries will you make? What will a president who comes here in twenty or fifty or one hundred years say about what all of you did for this country?

Your families, your teachers, and I are doing everything we can to make sure you have the education you need to answer these questions. I'm working hard to fix up your classrooms and get you the books, equipment and computers you need to learn. But you've got to do your part too. So I expect you to get serious this year. I expect you to put your best effort into everything you do. I expect great things from each of you. So don't let us down - don't let your family or your country or yourself down. Make us all proud. I know you can do it.

Thank you, God bless you, and God bless America.

 

 

As a school board member, I will work with th administration to see that we maintain clean school buildings and that we limit the amount of flu numbers throughout the district this year.

 

Middle school is critical

What happens in middle school can determine a student’s success, according to Robert Balfanz, a research scientist at the Johns Hopkins University Center for Social Organization of Schools and associate director of the Talent Development Middle and High School Project.

Two thousand high schools produce half the nation’s dropouts and more than two-thirds of its minority dropouts. The nation’s dropout crisis is driven by these high schools and their feeder middle grades schools. Until we transform these high schools and the middle grades schools in which large numbers of students are falling off the path to graduation, the nation will not achieve its goal of graduating all its students from high school prepared for college, career, and civic life.

As our research, experience, and the work of many others have shown, particularly in high-poverty environments, a student’s middle grades experience is critical to his or her life’s chances. It is during the middle grades that students either launch toward achievement and attainment, or slide off track and placed on a path of frustration, failure, and, ultimately, early exit from the only secure path to adult success. This essential path is leaving high school prepared for post-secondary education and career training.

Our research, experience, and the work of many others, however, also shows that there is hope and considerable knowledge and know-how regarding how the middle grades can be transformed to enable all students to stay on the graduation path. Our challenge is to use this knowledge and know-how where it is needed most and in ways tailored to local circumstances.

 

As a board of Education member, I continue to work with our administration in finding ways to improve the success of our middle school students.