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Lakewood Local Schools
525 E. Main Street
Hebron, OH 43025

Financial Impact of Governor's Budget Bill

FINANCIAL IMPACT OF GOVERNOR’S BUDGET BILL

The Governor’s Budget Bill for fiscal years 2018 and 2019 has been introduced as House Bill 49. Under the proposed bill, the funding level of $6,000 per pupil for each budget year will remain the same as the current funding level. Districts with a state share index of less than 50% will see their transportation funding decreased from the current 50% level to 37.5%. Lakewood Local’s state share index is 28.49%, so Lakewood’s transportation funding would decrease. Lakewood will also stay on a guarantee, referred to as Transitional Aid, however since the District’s Average Daily Membership (ADM) has declined by 10.1% over a five (5) year period, our guarantee will reduce by 5%.

Because there are many funding formula components that work together simultaneously, the change in our funding is attributed to a combination of factors. According to the simulations prepared by the OBM (Office of Budget and Management), Lakewood is projected to lose formula Core Aid of $254,537 in fiscal year 2018 and remain unchanged for fiscal year 2019.

Another significant funding source for Lakewood relates to the Tangible Personal Property (TPP) Reimbursement and the TPP Supplement. The TPP Reimbursement will continue to phase-down in fiscal years 2018 and 2019 according to the formula prescribed in SB208. In addition, the fiscal years 2016 and 2017 TPP Supplement, which was vetoed by Governor Kasich in HB64 but partially reinstated in SB208 will also be eliminated in fiscal year 2018. The financial impact of losing this source of funding is huge for our District.

The analysis below shows the projected formula Core Aid loss from the Governor’s Budget Bill and the projected TPP loss resulting from the budget bill not addressing continued funding for the TPP.

 

As the chart above shows, Lakewood could lose an estimated $1,134,364 in funding from fiscal year 2017 to fiscal year 2018, of which $879,827 results from the reduction in the TPP Reimbursement and the loss of the TPP Supplement. 

When taking into consideration the state funding formula, the TPP Reimbursement and Supplement, Lakewood is one of the 390 districts in the state that would receive less funding in fiscal year 2018 than they did in fiscal year 2017, according to an analysis prepared by Dr. Howard Fleeter, consultant for the Ohio Education Policy Institute. In fact, Lakewood is the 2nd most negatively impacted District in the State for loss of funding. 

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