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FREQUENTLY ASKED QUESTIONS
Streetsboro City Schools Issue 10
November 6, 2007
Frequently Asked Questions
Q. With all the growth in homes and business in Streetsboro, why is Issue 10 on the ballot?
A. Superintendent Tom Giovangnoli addressed this question at a recent Streetsboro Chamber of Commerce meeting.
He noted that most of the Streetsboro school tax issues on the ballot over the past 25 years raised a set amount of money and did not grow as Streetsboro has grown. These are called “emergency” levies. Meanwhile, the need has grown. Since the mid-1990s, enrollment has grown by more than 500 students. As a result, the schools have needed additional money just to keep pace. This means that those “emergency” levies approved over the last 25 years have not kept pace with the growth in our city.
Q. The ballot question has two distinct parts: Money for “current expenses” and money for “permanent improvements.” What do these terms mean?
A. “Current expenses” is the term used on the ballot to describe money requested to pay for the day-to-day bills of the schools. This includes everything from teacher salaries to pencils. A few other examples of major current operating expenses include utilities, bus fuel, classroom supplies, cleaning supplies, paper and money other items.
“Permanent improvements” is the term used on the ballot to describe money requested for major capital maintenance and equipment items. This includes everything from roof repairs to student desks. A few other major permanent improvements include repaving parking lots, replacing school buses, repairing sidewalks, replacing computer equipment, and replacing musical instruments.
Q. How do the schools use all these millions of dollars they’re getting from the federal government?
A. Whoops! This isn’t a million-dollar item! Last school year, Streetsboro City Schools received a total of about $600,000 from the federal government. That comes out to less than $25 per month per student. Of that $25 per student, about $15 is restricted to special education programs mandated by federal law.
Q. The schools receive most of their money from the State government, right?
A. That’s wrong! That hasn’t been correct since the mid-1990s. Today, less than a quarter of the money Streetsboro City Schools receives for day-to-day operating expenses comes from the State of Ohio. The share of State-to-local dollars for the schools has dropped for each of the past 10 years. That State school funding budget approved this summer had not one additional dollar for Streetsboro. The Treasurer and the Board have repeatedly discussed this problem at Board of Education meetings. Last school year, State funding per Streetsboro student this school year stands at about $1,800.
Q. Many people are concerned about all the tax abatement in Streetsboro. Where does the school board stand?
A. In the middle of a storm! Economic development is important to bringing jobs and dollars to our community, as everyone knows. Ohio law gives school boards very limited power and say about tax abatement matters. The City government of Streetsboro aggressively used tax abatement in the 1990s to bring new companies to town. Many of those abatements have ended; others are nearing an end. Advocates of tax abatement believe this has helped Streetsboro economically. As a result, they observe that Streetsboro has several industrial parks, a growing commercial center and thousands of jobs.
In recent years, the City and Schools have worked more cooperatively on tax abatement issues. Terms of compensation agreements have improved for the schools. Also, as the City has become more of a regional business center, the City has become more selective in how it grants tax abatements.
Q. How does Streetsboro school spending compare with other Ohio school districts?
A. Streetsboro schools spend about $9,000 per student, according to Ohio Department of Education data. This is slightly (about 1%) below the State average. Streetsboro’s location near the big cities of Northeastern Ohio make it a more costly place to do business than in more rural parts of the State. Streetsboro no longer is a rural community. Remember, the average spending number includes data for all school districts, including those in less costly rural areas.
Meanwhile, your Streetsboro schools offer excellent programs that simply are not available in other school districts, even in this area. In the past, neighboring districts have charged parents up to $2,000 per child per year for full-day every-day kindergarten. The parent cost in Streetsboro has been $0 per child from day one. In Streetsboro, you get more for your money. It’s that simple.
Q. Why is all-day every-day kindergarten so important to our children?
A. Many studies show that a child’s success in school is most influenced by what happens at an early age. Money spent for all-day every-day kindergarten, academic pre-school, Head Start and similar early childhood education money is well spent. Outside experts, and your Streetsboro school principals, agree that these investments help a child acquire and retain an edge in learning that they will have for life.
One way to measure the benefit of all-day every-day kindergarten is through the State academic report card. The children who have been through the all-day every-day kindergarten, as a class, have exceeded all minimum academic report card standards. This program is in its fifth year.
Q. It seems like our schools our constantly on the ballot. Tell me why?
A. The School District has relied on fixed-dollar (no growth) “emergency” levies for many years for additional money to fund the schools. This was fine when the School District had a stable or declining student population. For the past 10 to 12 years, though, the student population has been growing. As a result, simply renewing fixed-dollar levies has not been enough to meet the needs of our growing student population. In recent years, when old “emergency” levies have come up for renewal, the School Board has sought to convert the “emergency” levies to “current expense” levies. The reason to do this is so that the schools actually receive money from new construction in our city. This is the last old “emergency” levy that needs to be converted.
Q. How is school spending audited to make sure that taxpayer dollars aren’t misspent. Isn’t there an audit every year?
A. There school district has been through two types of audits recently, a financial audit and a performance audit.
A “financial audit” is an examination of the books of the school district that occurs every year. The purpose of the audit is to detect fraud, to assess compliance with grant programs, and to make sure the books of the school district are accurate. The audit for the 2005-2006 school year is complete. No findings for recovery for misspending money were issued. Also, there are no citations for noncompliance with law.
A “performance audit” reviews the efficiency of school district operations. It helps to determine whether the school district uses money wisely. The Auditor of State spent a year examining the financial performance of the school district, and presented its report to the school board last fall. The performance audit determined that the school district needs to keep existing operating funding in place and seek voter approval for permanent improvement funding. The Board of Education presented a report to the community about the Performance Audit in November 2006.
Q. Many people who work in nearby communities complain about having to pay the city RITA income tax. How much money do the schools receive from my payroll tax?
A. Not a penny! The city income tax pays for your city services such as police and fire protection; building, zoning and code enforcement; snow plowing and road maintenance; and other services provided by the City government of Streetsboro. Ohio law sets up city government and school districts as independent agencies.
Q. I have heard from people who have lived in Pennsylvania about a “head tax” for schools they have there. Why not try that in Streetsboro?
A. Ohio law doesn’t allow it, period. The Pennsylvania per-capita tax for schools, commonly known as the “head tax,” is a tax assessed on the families of students on a per student basis. There has been no interest in implementing a head tax in Ohio among our State legislators. If you think this is a good idea, contact your legislators. By the way, homeowners in Pennsylvania also pay school property taxes that are comparable to Ohio school property taxes.
Q. I just want to know the bottom line. What will Issue 10 cost me if it passes?
A. The additional cost is 1.98 mills over the tax rate you are paying on your property taxes this year. (The 5.1 mills in the ballot wording includes 3.12 mills for a levy that expires this year that will not be renewed.)
If you live in a typical home in Streetsboro, which has a fair market value of $145,000 for tax purposes, the additional cost is less than $88 per year or less than $7.50 per month.
The table below gives a couple of other common values:
Fair Market Value Added Cost Per Year Added Cost Per Month $100,000 $60 $5 $150,000 $90 $7.50 $200,000 $120 $10 $250,000 $150 $12.50 $300,000 $180 $15
Q. I am a senior citizen who qualifies for the additional property tax break that the governor signed into law over the summer. Will my cost be even less if Issue 10 passes?
A. Yes! For eligible Streetsboro taxpayers, the tax break is a savings of $329 per year based on this year’s property tax rate. The tax break for senior citizens (and the disabled) increases to $344 per year if voters approve Issue 10. The chart below shows the annual net financial impact for those taxpayers that qualify for the tax break.
Fair Market Value Issue 10 Cost Minus Tax Break Net Tax Decrease $100,000 $45 $344 $284 $150,000 $75 $344 $269 $200,000 $105 $344 $239 $250,000 $135 $344 $209
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