COLUMBUS — A day after the Ohio Supreme Court ordered massive new spending on schools, Gov. Bob Taft said budget cuts, rainy day funds and some new taxes could be needed to pay the tab.

        “We're trying to figure out what the price is,” Mr. Taft said Friday, noting estimates range from $400 million to $1.2 billion annually. “I think we all want to know exactly what the court decision means.”

        Although Mr. Taft promised to oppose major increases in sales or income taxes, he left open options such as closing certain tax loopholes and tapping part of the state's $1 billion rainy day fund. He noted the state faces a fiscal crisis regardless of what the final cost will be to fix schools.

        With tax revenues down, officials were considering additional spending cuts even before the court ordered them to spend hundreds of millions more.

        So once again, Mr. Taft and lawmakers find themselves trying to cobble together enough money to meet a Supreme Court mandate to bring Ohio's poor schools up to par with wealthier ones. The Supreme Court has twice found Ohio's school funding system unconstitutional, but this time devised a plan for fixing it.

        Justices ordered lawmakers to change the state's funding formula to increase schools' per-pupil spending. They also gave the state until July 1, 2003, to spend $300 million more on parity aid, a fund intended to help poor schools offer classes and services that wealthier districts already provide.

        Although lawmakers have plenty of time to find the $300 million increase in parity aid, they must find hundreds of millions more literally by yesterday. The ruling makes the per-pupil spending increases retroactive to July 1, meaning the state already owes school districts more than two months of increased funding.

        At the same time, Ohio's financial outlook is bleak.

        Lawmakers cut back on state agency spending and raided Ohio's rainy day fund to craft a $1.4 billion school funding reform plan that the Supreme Court now calls insufficient. Meanwhile, the governor's Office of Budget and Management reports the state's income tax revenues are coming in $70 million lower than projected.

        Despite such budget drains, the governor said he would oppose “draconian cuts in health and human services that could harm seniors and people with disabilities.” He also said he would not “starve higher education and hinder our ability to compete for jobs.”

        In addition, Mr. Taft renewed a threat to veto a plan that would install video slot machines at Ohio's seven racetracks. Some legislators favored the measure earlier this year, saying it could put an extra $421 million a year in state coffers.

Governor shies from tax hike

        Mr. Taft also emphasized his opposition to a “major” tax increase.

        Political analysts say its not surprising that Mr. Taft, who is up for election next year, was quick to dismiss big increases in income or sales taxes. But they also note he's leaving himself few options for meeting the court mandate.

        “He's ruling out a lot of things without first knowing the price tag” of the court mandate, said Herb Asher, professor of political science at Ohio State University. “It's odd in a way because he may not be able to nickel and dime his way through this.”

        Mr. Taft did not, however, rule out closing certain tax loopholes or raising other taxes. One option that was briefly discussed during earlier budget negotiations was a new tax on used car trade-ins — a move that could raise up to $140 million.

        Other lawmakers were also hesitant Friday to discuss how they plan to meet the court mandate. House Speaker Larry Householder, R-Glenford, said it's simply too soon to decide on the best approach.

Adding it up

        Mr. Taft said he's asked the Office of Budget and Management to carefully analyze the court decision. “As a former state budget officer, I know that quick estimates are often wrong estimates,” Mr. Taft said, adding it could take two to three weeks to get an answer.

        It does look as if the final cost will be much higher than the justices originally thought.

        Don Berno, president of the non-partisan Ohio Public Expenditure Council said the cost to the state could reach or exceed $1 billion. That helps support Senate Republicans' $1.24 billion estimate.

        Even Chief Justice Thomas Moyer, who wrote the majority opinion, said the $1.24 billion estimate came as a shock Friday.

        “We thought it would be between $300 million to $400 million,” Justice Moyer said of the decision. “I can say we certainly were surprised at that one ($1.24 billion) projection.”

        The justices based their $300 million to $400 million estimate on an Ohio Education Association cost analysis the coalition of schools submitted as evidence. State Sen. Jeff Jacobson, R-Phillipsburg, the main architect of the new school funding system, said the figures supplied by Russ Harris of the Ohio Education Association were “grossly inaccurate.”

        The bottom line, Mr. Jacobson, said, was that the justices “were given bad math.”

        Justice Moyer would not say whether the decision would have been different if the cost exceeded $1 billion instead of $400 million.

        “I always thought there should be more money for the schools,” said Cee Bishop of Mount Auburn, whose 12-year-old daughter attends Clark Montessori. Mr. Bishop said he doesn't mind that the court decision may cost him more money through means other than property taxes.

        “They raise everything else. They're up and down with gas every two to three days. Might as well give it to the schools.”

       Enquirer reporter Jennifer Mrozowski contributed to this report.

Decision means Ohio to pay millions more
       

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