BY MICHAEL HAWTHORNE
Enquirer Columbus Bureau
COLUMBUS -- Ohio legislative leaders decided Wednesday to grant bigger tax cuts to individuals instead of doing more to meet their court-ordered obligation to fix public schools.
Some rank-and-file legislators wanted to earmark an additional $160 million to refurbish the state's crumbling public schools. But if the money had been directed to schools, the amount set aside for tax cuts would have been less than last year.
As a result, taxpayers would have ended up paying more in state taxes this year than they did last year.
Republican legislative leaders are wary of anything that could be defined as an income tax increase in an election year, especially after voters rejected a sales tax increase earlier this month by a 4-1 margin.
"Issue 2 (the failed sales tax increase) has changed the dynamics in this General Assembly and within my caucus, there is no question about that," said Senate President Richard Finan, R-Evendale. Combined with $140 million in surplus funds for school construction already included in the state school budget for the coming year, the additional money would have provided $300 million to help finance projects in 18 districts.
Seven of those districts, including New Miami Local Schools in Butler County, will still be in line to get state money for buildings if they pass tax levies this fall to generate local matching dollars. The other districts, though, will have to keep waiting for state assistance to replace and repair their school buildings, many of which were built in the early 1900s.
"I don't want to mislead our people into thinking the state will uphold any commitment," said Jake Grooms, superintendent of Adena Local Schools in Ross County, one of the state's poorest systems. "If our legislative leaders really believe the kids count, they should do something about it."
As late as Wednesday morning, Mr. Grooms had been reassured by state officials that his district should prepare to put an issue on the ballot this November for matching funds. Hours later, lawmakers abandoned the plan.
They were motivated in part by the fear of political fallout for any legislator who chose schools instead of tax cuts.
Their decision was based on a simple calculation. The state is expected to have $350 million on hand for tax cuts when the budget year ends June 30. If another $160 million had been shaved off that amount, there would be less money available for tax cuts than there was last year.
"I think they (lawmakers) have read loud and clear that additional taxes, which that could be conceived to be, are not really on the minds of the general public at this point in time," Mr. Finan said. Legislative leaders noted the General Assembly has earmarked about $1 billion for school construction needs during the past seven years.
However, the amount falls short of the needs identified by an Ohio Supreme Court decision last year that declared the state's school funding system inadequate and unconstitutional. The non-partisan legislative budget office estimates that $16.5 billion is needed to construct and repair school buildings across the state.
William Phillis, executive director of the Coalition for Equity and Adequacy of School Funding, chided lawmakers for failing to develop a comprehensive plan to deal with the problem.
"If NASA took the approach Ohio takes with regards to its school facilities problem, Americans wouldn't have stepped foot on the moon unless they hitchhiked a ride with the Russians," said Mr. Phillis, whose group represents school districts that won the court case.
Gov. George Voinovich had originally suggested that lawmakers include $300 million for school buildings in the two-year state construction budget.
Paolo DeMaria, state budget director, said the governor still wants to authorize the sale of bonds for school construction in the capital bill. But lawmakers aren't expected to consider the measure until this fall.
If school needs were financed exclusively with bonds, that would mean there is less available for other projects, including $15 million sought by Hamilton County to help finance stadiums for the Bengals and Reds.
Because borrowing costs must be figured into the tab, using bonds also would be more expensive than using cash to finance school construction.
