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Posted: 9:59 p.m. Friday, Dec. 28, 2012

Fiscal cliff effect on k-12 education

Districts that receive “Federal Impact Aid” would see a reduction dollars

By Randy Tucker

Three area school districts that receive “Federal Impact Aid” — Mad River, Fairborn and Beavercreek — would see a reduction of those dollars this school year if the automatic cuts take effect.

Mad River Local Schools Treasurer Jerry Ellender said his district would feel the impact more because it receives the most funding, about $1 million. He said a 9 percent cut to that funding would mean the district would lose about $100,000 this school year. The district receives those dollars because Wright-Patterson, which is tax exempt, comprises about 25 percent of the school district. The Impact Aid is designed to help districts make up that lost property tax revenue.

Ellender said districts also can receive such aid if they have a large number of students whose parents are in the military. The Fairborn and Beavercreek districts receive funding, which Ellender estimated to be about $500,000 annually.

report by U.S. Sen. Tom Harkin, D-Iowa, said Ohio could lose more than 1,500 education-related jobs and more than $98 million in federal education funding if the automatic discretionary spending cuts take effect.

The cuts from Harkin’s report were based on a funding reduction of 7.5 percent for three programs combined: about $43 million in Title I grants, $36 million in special education funding and more than $20 million to Head Start programs.

Deborah Rigsby, director of federal legislation for the National School Boards Association, said they still point to that report, although they now using a greater funding reduction estimate of 8.3 percent.

Damon Asbury, legislative director for the Ohio School Boards Association, said most school districts would not feel the impact of sequestration until next school year because most of their money is received in advance. “Obviously that will impact school districts planning for the coming year and staffing levels,” he said.

Charlie Graham, executive director of Dayton Public Schools’ Office of State and Federal Grants Management, said it’s too early to determine the impact of potential reductions in federal funds, such as Title I grants used to improve the educational opportunities for poor students.

“The 8.5 percent reduction in federal grants under the sequestration would impact several Dayton Public Schools grant-funded programs. This reduction would be based on fiscal year 2014 allocations, as the U.S. Department of Education has chosen to delay education cuts until July 1 and October 1, 2013.”

This year, Dayton Public received nearly $24 million in formula and competitive federal grants. An 8.5 percent reduction for the next school year means the district would receive $1.9 million less, Graham said.

“It remains too early to determine the impact of these reductions upon specific programs,” he said. “We are hopeful that Congress will resolve the situation without limiting opportunities for children.”

National School Boards Association President-elect David A. Pickler said automatic budget cuts would have the most profound impact on the “most fragile and at-risk students” because the two largest federal K-12 programs — Title I and the Individuals with Disabilities Education Act — benefit disadvantaged students and students with disabilities.

Using budget figures from the White House’s Office of Management and Budget, NSBA estimates public education would see cuts of about $4 billion in the next academic year. That translates to about $82,000 from every $1 million in federal funds that a school district receives.

Read more about those in jeopardy in Ohio:

Fiscal cliff effect on local:   Agriculture  |  Health care  |  National security  | Local/state governments  |  Jobless benefits  |  Financial markets  |  K-12 education  | Colleges and universities

Read more about the fiscal cliff:              

               Your opinion: Who's to blame for no solutions?

               With "cliff" solved, taxes to increase in 2013

               Over the fiscal cliff: Soft or hard landing?

               What exactly is the fiscal cliff?    

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