10/27/08

Columbus Dispatch

Catherine Candisky

Ohio’s massive school construction program has been a good deal for local districts wanting to build or repair their schools.

Since the program was created a decade ago, the state has provided $6.5 billion to districts where voters approved levies to cover a portion of the costs.

But with rising home foreclosures, persistent job loss, sinking 401(k) funds and a looming recession, is any tax increase a good deal?

Weary educators in 27 school districts will find out Nov. 4 when their voters decide on bond issues to provide local shares for the state building program. Those issues are among 237 levies on the ballot in about a third of Ohio’s school districts this fall.

Last year, 14 building assistance levies were on the ballot; six passed.

“It’s the best deal in town, but it’s going to be much, much, much harder this time,” said Superintendent Dennis L. Recker of the Liberty-Benton Local School District.

In August, voters in the Hancock County district turned down by 13 votes a 7-mill bond issue to raise $15.7 million, a move that would have brought a like amount from the state to replace and renovate district schools.

In light of the economy and in anticipation that the proposal was going to be a tougher sell than usual, Recker said the district dropped the Nov. 4 bond issue to 5.9 mills by trimming $4 million from the project.

The stakes are high. This is the district’s third attempt to come up with matching funds. If it fails, the state aid no longer will be available and any future assistance will be at a reduced rate, Recker said.

David Varda, executive director of the Ohio Association of School Business Officials, said he expects that the troubled economy likely will translate to a lower passage rate for school levies. But tax increases for school construction projects typically fare better than ones for operating expenses because the benefits are more tangible.

Voters in the Whitehall school district haven’t been asked to raise taxes for schools since 1995, “but the economy is the one thing that scares me out there, whether this will pass or not,” said Brian Hamler, Whitehall’s associate superintendent.

The district is seeking passage of a 6.87-mill bond issue to raise $30.4 million. If voters agree to provide the local share, the state will kick in $47 million to build a high school, middle school and three elementary schools.

“One of the points we are trying to make, is that because of the state of the economy, we really need to take advantage of this state money,” Hamler said.

“But it may be the gray elephant in the room but people may be thinking that ‘The economy is bad; I can’t afford it no matter how good a deal it is.’  ”

The Bloom-Carroll school district in Fairfield County has been seeking voter approval of school construction projects since November 2000. The most recent request was turned down by an 8-point margin in March.

“We’ve definitely heard from the naysayers, and the main reason is the economy and their ability to afford it,” said Travis Bigam, district treasurer.

“We’re expecting a huge turnout and usually that’s good, but with the economy it may end up hurting us.”

District voters will decide on a combination bond issue and income tax to raise $63 million to help build two elementary schools and a high school and renovate the existing high school into a middle school.

“We tell people if you can’t afford it, don’t vote for it,” Bigam said.

“Unfortunately, it’s not getting any cheaper with construction prices, and the longer this gets put off, the more expensive it gets.”