Olentangy has enacted more than $15.7 million in cost-reduction measures since 2008. In many cases, these cost reductions meant staff members took on additional duties when other positions were eliminated. Administrators and members of the district’s two classified unions had no base-wage increase this year, and members of the teachers union will have no base-wage increase next year. All Olentangy employees who take a family healthcare plan currently pay 20 percent of the premium, and now the district is looking for other ways to cut healthcare costs. The district has also gone through a very involved process to remove itself from a health-care consortium, which helped the negotiate lower healthcare costs when it was smaller. At this point, the district’s size makes it a viable group on its own. Due to voting restrictions in the consortium the district could not easily, if at all, make changes to its plan design. This change will allow Olentangy to explore the diverse plan options popular in the private sector. Even if the levy passes, Olentangy has committed to making at least $4.5 million in additional cuts. These cuts include staffing cuts and at least $2 million in savings by addressing long-term sustainability of salary and benefits through negotiations. Olentangy also has several community committees that allow residents to share their expertise from the business world. One of these groups is the Cost Efficiency Committee, which researches cost-savings options and reports to the superintendent. Another example is Project 2020, which is seeking out alternate educational delivery models in hopes of avoiding the cost of a fourth high school.
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Finances
Additional questions: Is it true that a recent court case heard by the Ohio Supreme court changed how the state distributes tax dollars to school districts? If true, does the state take tax dollars that I pay locally (based on the value of my house) and distribute those dollars outside of our school district?
Olentangy Local Schools lost $12.7 million in anticipated revenue for Fiscal Year (FY) 2010 and FY11 due to changes in the state funding system. However, not all school districts in the state experienced this same kind of loss. Some districts saw an increase in funding while others maintained the status quo.
School funding is a complicated topic. However, there was an Ohio Supreme Court ruling that declared Ohio’s previous school funding system to be unconstitutional. The most recent change to the funding system, known as House Bill 1, was Governor Ted Strickland’s response to that court case. This new approach was commonly referred to as the Evidence Based Model which changed the basis of school funding from a per-pupil formula and shifted to paying for specific programs that the state believed would support student learning. However, that approach is not fully funded. It also includes a Challenge Factor that reduces the complete support for Olentangy Local Schools to only 84 percent.
Governor Kasich has not yet unveiled his budget proposal, but has indicated that it may contain some changes to how Ohio funds education. Once Olentangy receives more information about this process, the district will have a better understanding of what kind of future aid it may expect. Currently Olentangy only receives five percent of its per pupil funding from the state and is anticipating up to a 30 percent reduction in this state aid. As additional information about this important topic is made available, Olentangy Local Schools will communicate with the community.