Local officials say state budget cuts are manageable
By
Brandy Chandler-brandychandler@gmail.com
Gov. John Kasich's much-anticipated biennial budget was announced Tuesday, and while the cuts were significant in some areas, local officials say they are cuts they can sustain.
Local governments will see a 50-percent cut over the next two years, and colleges will have a mandatory tuition cap of 3.5 percent.
Highland County Commissioner Shane Wilkin had told The Highland County Press last week that they were budgeting for a 50-percent decrease in funds, so Tuesday's announcement fits with projection.
"That is what we were planning for," Wilkin said.
Wilkin had previously said the board of commissioners had been told to anticipate cuts between 40 and 60 percent, so they went for the middle and budgeted for 50 percent.
"It's a 25-percent cut each year, so it's a 50-percent cut," Wilkin said Tuesday. "That is what we projected, and we will continue with our plan to continue to get the county in the best possible fiscal condition and take it from there."
According to The Columbus Dispatch, the cuts will "cost counties, municipalities and townships $167.1 million the first year, including an estimated $5 million for Columbus and $388.2 million starting in the second year, when the full 50 percent reduction would take effect. Kasich said those governmental units will get money back by sharing services and relief from the state on such issues as requirements to pay prevailing (union) wages. Meanwhile, 400 school districts are expected to see increases in state-generated funding."
State Budget Director Tim Keen said that there will be increases in the budget for higher education and K-12 schools.
"The increases in state aid amount to $170 million for K-12 schools, $62 million for higher education," he said, according to The Dispatch.
Southern State Community College had anticipated cuts in funding and had discussed the budget in recent finance committee and board of trustees meetings.
During a March 9 meeting, board member Paul Hall had said, “There will be a tuition increase. We know that. It will probably be less than most (other colleges). We will have a recommendation at the April board meeting. We need to get this out there so people know it’s coming.”
Hall had said the tuition increase, which, if proposed, would be voted on at the board's April meeting, would most likely be in single digits. On Tuesday he told The Highland County Press that while he would have liked to have seen a higher cap, the college will be able to deal with it.
The board voted to implement a 7-percent tuition increase in May 2010. Board members Rory Ryan and Ben Houser both voted against that increase. Ryan and Houser also voted against accepting the fiscal year 2011 budget. Board members Kay Ayres and Paul Hall and former trustees Patty Griffiths, Ralph Shell and Jim Ward each voted for the increase and to accept the budget.
"Obviously we'll have to look at making some cuts and use reserves and take the maximum 3.5 percent (tuition increase), and that depends on what the state budget ends up ultimately being," Hall said, indicating that it will go through many changes before it's finalized at the end of June.
Hall said SSCC is in a good shape financially to deal with the cuts, which are in total around 12.5 percent. The college, he said, is in much better shape than many other schools.
"I think, obviously, we need to look at how we can be more efficient, and if there are areas we need to cut," Hall said. "I don't think the board is looking to cut programming areas at this point. I was thinking we would be looking at about a 5-percent tuition increase. SSCC is so far ahead of the game, there are other institutions in the state - The Ohio States, the UCs - I don't see how they will be able to leverage it without some kind of major cut."
Hall said that state funding is only a percentage of SSCC's total budget, they have reserves to help get them through.
"Money is money," Hall said. "So we have reserves that are there to help us operate. I would have preferred to see the cap at 5 percent rather than 3.5 percent. We'll have to look at the real numbers and see. Who knows what it will look like by the time the legislature gets done with it. We actually made money last year. And if you're a private enterprise person and you made money in 2010, even if 2011 has some bumps, at least it hasn't been your third year in a row of losing money. We can probably take the hit because we had a profit line last year. It wasn't anything significant, but in this economy, making anything more than a dollar is huge."
SSCC board member Rory Ryan said the cuts the college will have to work with are "reasonable."
"Gov. Kasich's recommendation of a 3.5-percent cap on tuition increases is more than generous to the state's colleges," Ryan said. "Given recent private-sector labor statistics, especially here in southern Ohio, it is painfully obvious that most working college students, recent graduates and their parents are not seeing anything close to a 3.5-percent increase in their respective incomes. This does not appear to be an unreasonable budget proposal."
SSCC President Dr. Kevin Boys said that considering what could have been cut from the budget, Kasich's announcement left him "relieved."
"It looks like we're going to get about a 12.5 percent reduction," Boys said. "If you look at the budget, they're actually funding the general budget more than they did last year. But that doesn't include the federal stimulus for higher education. Certainly (the cuts) were in the range we had been anticipating. There were no surprises there. As far as the tuition cap, I think we would have liked to have seen some additional flexibility. But we will will be able to weather this temporary lapse in funding. We had been anticipating up to a 20 percent cut, so the optimistic person that I am, I am a bit relieved."
Boys and SSCC Vice President of Business and Finance Jim Buck had previously reported that the college would sustain the cuts through some small cuts in the budget, increasing tuition and tapping reserve funds. Boys said that Tuesday's budget announcement would not change that.
"We could do a combination of things," Boys said. "There's not that much of a difference in our state subsidy. It's a small portion. It's not a 12.5 percent reduction in our total budget. We'll get through it with a combination of (tuition) and use of reserves, and there could even be some savings from our current budget year."
Other voices
Ohio State University President E. Gordon Gee on Governor Kasich's proposed budget:
"I am grateful to Governor Kasich, whose proposed budget reflects the unquestionable financial challenges of the day, as well as the understanding that higher education and our state's long-term strength are inextricably linked.
"It is my firm belief that times of great challenge which require sacrifice are also times of enormous opportunity. Now more than ever, it is clear that our shared future lies in sustained investment in education, creativity, and innovation, all of which directly fuel economic growth. For our part, and for the lasting benefit of Ohioans, we at Ohio State continue to move aggressively in both advocating for regulatory freedom and reconfiguring and reinventing our institution."
University of Cincinnati President Greg Williams on Governor Kasich's proposed budget:
"In a very challenging environment that calls for shared sacrifice, we are very appreciative that Gov. Kasich's proposed budget has done as much as possible to support higher education and suggests some first steps toward much-needed construction reform.
"In that spirit, the governor's proposal shows an understanding that colleges and universities play a key role in Ohio's future well-being. If we want our state to move forward and grow, higher education must remain accessible to as many Ohioans as possible."[[In-content Ad]]
Local governments will see a 50-percent cut over the next two years, and colleges will have a mandatory tuition cap of 3.5 percent.
Highland County Commissioner Shane Wilkin had told The Highland County Press last week that they were budgeting for a 50-percent decrease in funds, so Tuesday's announcement fits with projection.
"That is what we were planning for," Wilkin said.
Wilkin had previously said the board of commissioners had been told to anticipate cuts between 40 and 60 percent, so they went for the middle and budgeted for 50 percent.
"It's a 25-percent cut each year, so it's a 50-percent cut," Wilkin said Tuesday. "That is what we projected, and we will continue with our plan to continue to get the county in the best possible fiscal condition and take it from there."
According to The Columbus Dispatch, the cuts will "cost counties, municipalities and townships $167.1 million the first year, including an estimated $5 million for Columbus and $388.2 million starting in the second year, when the full 50 percent reduction would take effect. Kasich said those governmental units will get money back by sharing services and relief from the state on such issues as requirements to pay prevailing (union) wages. Meanwhile, 400 school districts are expected to see increases in state-generated funding."
State Budget Director Tim Keen said that there will be increases in the budget for higher education and K-12 schools.
"The increases in state aid amount to $170 million for K-12 schools, $62 million for higher education," he said, according to The Dispatch.
Southern State Community College had anticipated cuts in funding and had discussed the budget in recent finance committee and board of trustees meetings.
During a March 9 meeting, board member Paul Hall had said, “There will be a tuition increase. We know that. It will probably be less than most (other colleges). We will have a recommendation at the April board meeting. We need to get this out there so people know it’s coming.”
Hall had said the tuition increase, which, if proposed, would be voted on at the board's April meeting, would most likely be in single digits. On Tuesday he told The Highland County Press that while he would have liked to have seen a higher cap, the college will be able to deal with it.
The board voted to implement a 7-percent tuition increase in May 2010. Board members Rory Ryan and Ben Houser both voted against that increase. Ryan and Houser also voted against accepting the fiscal year 2011 budget. Board members Kay Ayres and Paul Hall and former trustees Patty Griffiths, Ralph Shell and Jim Ward each voted for the increase and to accept the budget.
"Obviously we'll have to look at making some cuts and use reserves and take the maximum 3.5 percent (tuition increase), and that depends on what the state budget ends up ultimately being," Hall said, indicating that it will go through many changes before it's finalized at the end of June.
Hall said SSCC is in a good shape financially to deal with the cuts, which are in total around 12.5 percent. The college, he said, is in much better shape than many other schools.
"I think, obviously, we need to look at how we can be more efficient, and if there are areas we need to cut," Hall said. "I don't think the board is looking to cut programming areas at this point. I was thinking we would be looking at about a 5-percent tuition increase. SSCC is so far ahead of the game, there are other institutions in the state - The Ohio States, the UCs - I don't see how they will be able to leverage it without some kind of major cut."
Hall said that state funding is only a percentage of SSCC's total budget, they have reserves to help get them through.
"Money is money," Hall said. "So we have reserves that are there to help us operate. I would have preferred to see the cap at 5 percent rather than 3.5 percent. We'll have to look at the real numbers and see. Who knows what it will look like by the time the legislature gets done with it. We actually made money last year. And if you're a private enterprise person and you made money in 2010, even if 2011 has some bumps, at least it hasn't been your third year in a row of losing money. We can probably take the hit because we had a profit line last year. It wasn't anything significant, but in this economy, making anything more than a dollar is huge."
SSCC board member Rory Ryan said the cuts the college will have to work with are "reasonable."
"Gov. Kasich's recommendation of a 3.5-percent cap on tuition increases is more than generous to the state's colleges," Ryan said. "Given recent private-sector labor statistics, especially here in southern Ohio, it is painfully obvious that most working college students, recent graduates and their parents are not seeing anything close to a 3.5-percent increase in their respective incomes. This does not appear to be an unreasonable budget proposal."
SSCC President Dr. Kevin Boys said that considering what could have been cut from the budget, Kasich's announcement left him "relieved."
"It looks like we're going to get about a 12.5 percent reduction," Boys said. "If you look at the budget, they're actually funding the general budget more than they did last year. But that doesn't include the federal stimulus for higher education. Certainly (the cuts) were in the range we had been anticipating. There were no surprises there. As far as the tuition cap, I think we would have liked to have seen some additional flexibility. But we will will be able to weather this temporary lapse in funding. We had been anticipating up to a 20 percent cut, so the optimistic person that I am, I am a bit relieved."
Boys and SSCC Vice President of Business and Finance Jim Buck had previously reported that the college would sustain the cuts through some small cuts in the budget, increasing tuition and tapping reserve funds. Boys said that Tuesday's budget announcement would not change that.
"We could do a combination of things," Boys said. "There's not that much of a difference in our state subsidy. It's a small portion. It's not a 12.5 percent reduction in our total budget. We'll get through it with a combination of (tuition) and use of reserves, and there could even be some savings from our current budget year."
Other voices
Ohio State University President E. Gordon Gee on Governor Kasich's proposed budget:
"I am grateful to Governor Kasich, whose proposed budget reflects the unquestionable financial challenges of the day, as well as the understanding that higher education and our state's long-term strength are inextricably linked.
"It is my firm belief that times of great challenge which require sacrifice are also times of enormous opportunity. Now more than ever, it is clear that our shared future lies in sustained investment in education, creativity, and innovation, all of which directly fuel economic growth. For our part, and for the lasting benefit of Ohioans, we at Ohio State continue to move aggressively in both advocating for regulatory freedom and reconfiguring and reinventing our institution."
University of Cincinnati President Greg Williams on Governor Kasich's proposed budget:
"In a very challenging environment that calls for shared sacrifice, we are very appreciative that Gov. Kasich's proposed budget has done as much as possible to support higher education and suggests some first steps toward much-needed construction reform.
"In that spirit, the governor's proposal shows an understanding that colleges and universities play a key role in Ohio's future well-being. If we want our state to move forward and grow, higher education must remain accessible to as many Ohioans as possible."[[In-content Ad]]