COLUMBUS, Ohio — A provision passed in the Ohio House's budget that schools say will require them to go back to the voters more frequently to ask for money.
“I think this is the most consequential budget that I've been in, and this is now my 17th year in the General Assembly," House Speaker Matt Huffman (R-Lima) said. "It does more things, on more fronts, than any budget that I've ever had been involved in."
Huffman and most of his Republican colleagues cheered the state passing its $60 billion 2-year budget, helping fund the new Browns stadium, but cutting millions of dollars from public libraries and schools.
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Parma City Schools Superintendent Charles Smialek continues to break down the impact on public schools.
"We always talked about a slippery slope, and I think that the slope is covered in oil at this point," Smialek said.
The superintendent has been speaking to me for months about his concerns now that the state is slashing hundreds of millions in expected public school funding, but he said another aspect of the budget bill will cause additional problems for districts.
RELATED: Ohio House GOP budget proposal slashes public school funding
"Schools are just sitting on a lot more money than they can spend," Huffman said.
According to the House GOP, schools have carried over $10.5 billion, which should be going back to the residents. The bill would require counties to cut property tax rates, distributing back unspent cash, if school districts save more than 30% of the previous year's budget.
"We simply looked at this as saying, 'Here's lots of money that isn't being used and that can provide the property tax relief right now,'" the speaker continued.
For a further in-depth recap of education funding, click here.
Those reserves are essential, Smialek said, because they have to prepare for inflation and increasing costs for resources, energy and gas — plus pay raises for teachers and staff.
Parma’s current carryover rate is 26%, but the administrator added that they will need to go over if their levy fails this May.
"If we were at 32%, we had to give that money back — that's going to make us come back and just ask for it back again from local taxpayers," he said. "It really becomes almost a tug of war."
If schools have larger reserves, that means voters don't need to worry as much about levies.
"For us to have to give back a cash balance because there's this perception that we're hoarding cash just belies common sense," he said.
Some districts worry about what happens when they are saving for larger projects — such as a move or a total renovation — and they need more than 30%. Huffman said that wouldn't be an issue.
"Right now school districts can take money out of their operating fund and segregate it for those kinds of projects," the speaker said, noting that there are capital funds.
When moving money around, Smialek said that you can move operating funds to capital, but you can't move it back. Giving an example, he said that if someone is building a new school, they can anticipate a certain number of increase in enrollment or teachers — but there is never a for sure.
"You want to be able to budget for that, you want to be able to afford that," he said. "You don't want to have to wait until that year and go out to your, community and say, 'Oh my gosh, we knew this was coming, but we weren't able to carry the cash over, we weren't able to have the savings, and so now we need more money from you.'"
The Ohio Education Association reports that right now, about 80% of school districts will be impacted due to the 30% cutoff. This will continue a cycle of voters rejecting levies, on top of state spending cuts, Smialek said.
The result? Schools will be forced to cut jobs and classes.
"If we don't have those funds, you continue to squeeze your labor force, you continue to make cuts that impact kids every day," Smialek said.
The budget isn’t final, as it heads to the GOP-controlled Senate for review.
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