The Ohio legislature and Governor Mike DeWine have recently adopted the State of Ohio biennium budget. This budget totaled about $69 billion. The City of North Royalton and the North Royalton School District are receiving preliminary information about how that budget will affect their finances in the upcoming two years. In 2019, the state received $72 billion in revenue and had $2.96 billion in their rainy day fund.
Although the deadline for the state’s budget is June 30, the legislators missed the deadline, passing a 17-day budget extension, which was needed to continue to fund the state’s agencies and services at the same level they had been funded for the past year. On July 17, the bill was adopted. The house approved the measure 75-17; the Senate 29-1.
According to the Ohio Office of Budget and Management, the cabinet-level agency within the executive branch of the Ohio state government, some of the highlights of the bill include a slight increase in the funding of the Local Government Fund (LGF). The increase was meant to “fund local crisis services related to substance use disorder with money from the General Revenue Fund instead of diverting funds from the Local Government Fund. This decision, coupled with natural revenue growth, will provide an additional $33.8 million in fiscal year 2020 and $6.4 million in revenue for the Local Government Fund.”
North Royalton Finance Director, Eric Dean, said that according to his records, the city is expected to receive an additional $20,660.74 for next year from the Direct Municipal Local Government Fund. That is up from the $3,494.45 it received last year. “That is something that we didn’t get before,” said Dean. In addition, the city will receive an overall increase of about two percent, or about another $6,000 over the $303,394 that they received this year. In 2010, we received $552,000, almost double what it will be receiving. “The big thing is that we’ll get an additional $720,000 next year from the gas tax,” said Mayor Bob Stefanik.
School Superintendent Greg Gurka noted that the District has seen only one simulation so far regarding what is to be expected with this newly passed budget. “It’s pretty much our funding is seeing the same as before,” he said. According to North Royalton Treasurer, Biagio Sidoti, the funding is determined through an Ohio Department of Education formula which takes into account student population, community demographics, property values and growth forecasts.
According to Sidoti, the District is anticipating an increase $133,558 next fiscal year, 2020 and projected increase of $57,325 for fiscal year, 2021. This reflects a 2.8% increase for 2020 and 1.2% increase for 2021. These projected increases add up to revenue from the State totaling $4,845,124 for 2020 and $4,902,449 in 2021. “That is what we are projecting so far,” said Sidoti. “ It can still change.”
In 2018 the district received a $74,362 increase and in fiscal year 2019, the district received an increase of $50,345. The difference between that budget and the new budget increases is that the increases for 2020 and 2021 will be directed toward student wellness programs. The excess money that was received in the previous budget, for fiscal years 2018 and 2019 could be used at the District’s discretion. “It is still additional dollars to be directed to our students,” said Sidoti. “For that we are always grateful.”
By GLORIA PLEVA KACIK
Contributing Writer