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Monday, June 23, 2008
Big ‘oops’ helps Middletown, hurts others
A budget correction bill passed by the legislature will fix an error in school funding and also will cost two area districts a chunk of state cash.
West Carrollton and Northridge schools each will have to pay back more than $200,000 to the state by receiving lower payments than anticipated starting this fall. The change subtracts about 3 percent from Northridge’s state aid and 2 percent from West Carrollton’s.
On the other side of the coin, Middletown gets almost $1.5 million extra — the biggest windfall among the 118 Ohio districts getting more money out of the change. That equates to about 7 percent of the district’s state aid. Monroe schools in Butler County get $445,000, which equates to 11 percent of its state aid; Miamisburg schools get $$718,000 or about 4 percent of state aid; and Anna schools in Shelby County get $249,000, or the equivalent of 9 percent of state aid.
All four of those districts are among the 20 biggest winners in the recalculation among Ohio’s 610 school districts. Miamisburg and Northridge are among the five hardest hit. Most area districts were not significantly affected.
For Middletown, a district with financial struggles that just passed a levy, the money can be an immediate help, Treasurer Eric Sotzig said. And the new calculation method will bring more money in upcoming years, too.
“This certainly impacts Middletown schools in a positive way,” Sotzig said.
In all, 188 districts will have to pay back about $6.4 million collectively while another 116 districts get an extra $15.9 million.
The fix was related to the gradual phase out of the tangible personal property tax, which taxes inventory and equipment held by businesses. The Columbus Dispatch first reported Monday that state reimbursements for the lost taxes — which will shrink every year until disappearing in 2017 — were based at first on projected enrollment rather than the actual numbers of students in each district.
Ryan Shone, treasurer of West Carrollton schools, said the $289,305 overpayment to that district will not be a major problem as it is subtracted from state aid payments in August, October and May of the upcoming year.
“The amount in October last year was higher than what I was estimating,” he said. “It turns out what I was estimating was pretty much on target and the state sent us more. The net effect is that they are sending us this year the amount that I was estimating a year ago.”
Slone said new money coming in from a recently passed levy will help make up any small shortfalls that might occur. With $36 million in total revenue from state and local taxes, the deduction amounts to less than 1 percent — a manageable sum, he said.
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