Unexpected News: School Funding Picture Brightens

During Thursday night’s work session, Treasurer Bill Parkinson eagerly announced to the public that he received some very optimistic news from the Ohio Senate regarding state funding for next year. 

In March, when Governor John Kasich unveiled his budget proposal, the state office of budget and management projected that would lose about 20 percent or about $1.7 million in state funding for next year alone. 

In early May, after weeks of deliberation within the Ohio House, state representatives predicted that Strongsville would lose about $1.5 million. 

As of Wednesday, the Ohio Senate has said that the district could only lose between $300,000 to $400,000. 

“With the realization by the state that the deficit isn’t going to be as deep, the senate said we’re going to add back, I believe, right around $115 million into school districts and cities, so with that (our state funding would) be at about $9.1 million,” Parkinson said. “So, essentially, we would only lose $300,000 to $400,000 in funding, which would be fantastic, so our cash balances obviously would improve with that.” 

This funding surge stems from the fact that Ohio unexpectedly experienced 13 consecutive months of job growth, which has allowed the state to earn $841 million more in tax revenue versus this time last year. 

Ohio Senate is now looking to pump $115 million into cities and schools during 2012.

Parkinson and the board offered some words of warning as the state’s economic landscapes will continue to shift over the next few weeks, but the news offers a much-needed boost to their budget outlook. 

Kasich and the Ohio General Assembly are expected to finalize the two-year state budget by the end of the month in order for it to go into effect by July 1.