Supt. Bird warns against state budget cuts

New Richmond Exempted Village School District Supt. Adam Bird testified March 19 before the Ohio House Finance Subcommittee on Primary and Secondary Education against House Bill 64 and proposed cuts in the 2016-2017 Biennium Budget that would result in what he described as a “Perfect Storm” for New Richmond Schools and the Grant Career and Technical district.

Ohio Gov. John Kasich had proposed a 2016-17 Biennium Budget that would reduce the state funding guarantee by 1% and an additional phase out of the Public Utility Tangible Personal Property tax reimbursement (Deregulation payments) to district affected when the state deregulated electrical generation which greatly reduced local property taxes paid by electrical utilities.

In his testimony to the subcommittee, Supt. Bird noted that the 1% guarantee cut would cost New Richmond $250,000 in each of the next two years for an accumulative effect of $750,000 and the $500,000 cut in deregulation payments in each of the next two years would mean an additional $1.5 million loss to New Richmond and Grant.

The proposed reductions would come on top of an annual loss of $1.6 million from Duke Energy’s closing of the Beckjord generating station.

“These three together represent a ‘perfect storm’ for NREVSD and Grant,” Bird told the subcommittee.

New Richmond’s deregulation payments was previously reduced by $500,00 in fiscal year 2012 and again by an additional $500,000 in fiscal year 2013 for a cumulative effect of $3.5 million by the end of fiscal year 2015. Bird testified that it would take a total of 4 mills to make up for the past cuts coupled with the proposed cuts in House Bill 64.

“If future budget bills were to take all of this (deregulation payments) reimbursement away, our community would have to pass another 12 mill levy to replace it,” Bird told the subcommittee.

The deregulation payments have allowed New Richmond to renovate its three elementary schools and the high school without any assistance from the Ohio Facilities Commission.

Bird noted that New Richmond teacher base pay has stayed the same for the past five years with two more years left to be frozen. Teachers were given a bonus when they agreed to the latest 3-year contract in lieu of an increase in base pay. New Richmond classified employees have experienced a similar wage freeze for three years.

“We are not a community with property wealth and disposable income. We are not a community with factories, malls, large companies and industries,” Bird said in his conclusion. “ Please do not take tax money from any of these local communities and schools and put that in the general fund.  Ohio’s general fund is doing very well and should not be increased at the expense of small communities in Ohio.”