Thursday, February 17, 2000
Cities push change in school funds
Fight expected over tobacco money spending
BY SPENCER HUNT
Enquirer Columbus Bureau
COLUMBUS — Ohio lawmakers who just approved up to $4.5 billion in tobacco settlement funds for school construction face a new problem: How to spend it?
It took politicians in the General Assembly months before they could agree on a plan to spend Ohio's $10.1 billion share of a historic national settlement with tobacco companies. That plan will fund new school construction, biomedical research, anti-smoking efforts and public health initiatives.
But the Senate's 21-12 vote and the House's 87-9 vote to approve that plan also sets the stage for renewal of a more difficult fight. About $2.5 billion of the tobacco money is earmarked for a 12-year, $10.2 billion school construction program supported by Gov. Bob Taft.
Mr. Taft wants that money to be divided among Ohio's 611 school districts according to a formula that relies on property values, with the poorest districts first in line. As lawmakers pump more money into construction, school districts that think they deserve more are pushing for a larger cut.
“If you think it was tough to get agreement on this (tobacco plan), start fooling around with the school facilities money,” said Senate President Richard Finan, R-Evendale. “Reaching a consensus is not going to be easy between now and the end of May.”
The state doles out con struction money to schools based on property values. Property-poor districts get more money than wealthier districts.
Several school officials claim this system treats them unfairly. They say high property values can mask high numbers of poverty-stricken and working-poor families in their districts.
Cincinnati Public Schools, for example, would get only 19 percent of an estimated $700 million in needed renovation and construction costs from the state under the current formula. CPS Treasurer Richard Gardner said high property values downtown don't equate to a rich building fund.
Last November, officials from CPS, Columbus and Cleveland schools shopped an alternative funding plan around the statehouse. The plan would emphasize school districts' average median incomes as a new way to calculate schools' construction funds.
Under this plan, CPS would see its share of state construction funding rise to 36 percent from 19 percent. Columbus Schools would see its share go up to 40 percent from 25 percent, and Cleveland Schools would jump to 74 percent from 59 percent.
Urban districts wouldn't be the only ones to benefit, said Kent Cashell, CPS business executive, who helped draft the plan. He said 150 rural districts also would see their shares of state funding increase.
“It's not an urban schools plan,” Mr. Cashell said. “It's a comprehensive proposal for the entire state.”
Legislative leaders are critical of the idea, however.
“I'm not sure there is a consensus on introducing poverty statistics into a school construction formula,” said Sen. Robert Cupp, R-Lima, the likely sponsor of the funding bill. “I don't detect a sense that we should throw out (the formula) we already have if we can find ways to make it work better.”
House Speaker Jo Ann Davidson, R-Reynoldsburg, echoed Mr. Cupp's remarks. She said it's more likely the General Assembly will allow CPS and other school districts to use alternative methods to raise local dollars needed to match state construction funds.
Right now, tax dollars are the only way school districts can provide the money needed to secure state construction funds.
One other way, Ms. Davidson said, is to let school districts count city and county government donations to districts' construction projects as match money. The CPS proposal also asks that contributions from charitable organizations and businesses also count.
“I can see us helping (CPS) and others on a project-by-project basis,” Ms. Davidson said.
A bill containing some proposed changes to the state's school construction formula could emerge sometime within the next month. Lawmakers hope to pass a final plan by the end of May.
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