CPS has run out of paperclips to cut. Now what? | Opinion

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Six Hamilton County school districts − including Cincinnati Public Schools − and eight more districts in neighboring counties have tax levies on the November ballot. When that many school districts are asking voters for funding at the same time, it’s worth asking why. Much of the answer lies in how Ohio funds its public schools. And part of it lies in the growing cost of operating them.

In 2021, Ohio adopted the bipartisan Fair School Funding Plan to calculate state funding based on what it actually costs to educate students. But the state hasn’t fully updated the costs used in the formula. Much of the calculation still relies on 2022 figures, even though we’re operating schools in 2026.

Meanwhile, the price of transportation, utilities, insurance, employee benefits and other essentials has increased. We have to pay today’s bills with funding calculated using costs from four years ago.

In January, Ohio changed its property tax laws. The state’s 20-mill floor has historically allowed certain school districts to receive additional revenue when property values increased. Recent legislation limits that growth and changes how the floor is calculated.

Property tax relief is important, especially as families face rising costs. At the same time, changes to how Ohio funds its schools need to account for what it actually costs to educate students. When funding doesn’t keep pace with those costs, local districts are left to make up the difference or reduce services.

CPS has already made millions in cuts

At Cincinnati Public Schools, we’ve spent three years reducing expenses. This year alone, we closed a projected $58 million budget gap by eliminating more than 100 positions, implementing five furlough days, reducing non-personnel school spending by 10%, restricting hiring and reorganizing operations. We also used approximately $6.7 million of one-time resources that won’t be available next year to balance the budget.

CPS hasn’t asked voters for new operating funds in a decade.

Here’s the distinction I want taxpayers to understand: We balanced this year’s budget, but we haven’t solved the underlying problem. Revenues are flat while the cost of operating our schools continues to rise. And when we talk about further reductions, we have to acknowledge that the largest expense in public education is people − teachers, counselors, social workers, classroom support staff and the employees who keep our schools operating every day.

Superintendent Shauna Murphy has a saying that sums up where we stand: “There are no more paperclips to cut.”

What another $25 million in cuts could mean for students

Consider the size of our operation. Cincinnati Public Schools serves more meals within our 90-square-mile district than LaRosa’s Pizza and Skyline Chili combined. We educate more than 34,000 students across 66 schools, maintain buildings, provide transportation and deliver services that extend well beyond the classroom.

Without additional recurring revenue, CPS could face another $20 million to $25 million in cuts next year, with further reductions potentially needed in the years that follow. Those reductions could mean consolidating or closing schools, increasing class sizes, reducing transportation eligibility, or having fewer counselors and social workers available to students.

Athletics could come with participation fees. Arts, enrichment and after-school programs could be reduced or eliminated. Programs Cincinnati families value − including Montessori education, high schools of choice, career pathways and opportunities to earn college credit in high school − also require people, facilities and resources to operate.

None of those decisions have been finalized. The Board of Education would determine future reductions through a public budget process. People deserve to understand the choices we’re facing and how those decisions could affect students.

I also hear people say CPS needs an independent audit. The fact is, we already undergo independent financial audits every year, along with reviews of federal funding. Our Internal Audit Department examines district operations, financial controls and compliance, reporting to the Board of Education with oversight from a community-led audit committee. Our financial reports, budget forecasts and audit findings are publicly available. We’ve also released our first Popular Annual Financial Report to make district finances easier to understand.

I know Cincinnati families are dealing with rising costs. Gasoline, groceries and many other expenses have gone up. I understand why people have questions about public spending.

CPS faces difficult choices after November

The November election will shape the financial decisions the Board of Education must make in the months ahead. Regardless of the outcome, CPS will continue managing expenses and looking for ways to operate more efficiently. But we need to be clear about what comes next. If CPS must cut another $20 million to $25 million, those reductions will reach further into our schools. The Board will have difficult choices to make about buildings, staffing and programs, and those choices will affect students and families.

We will create a balanced budget for next school year. The question is, without new funding, what will Cincinnati Public Schools have to give up?

Michael Gustin is treasurer and chief financial officer for Cincinnati Public Schools.

Michael Gustin is the treasurer and chief financial officer for Cincinnati Public Schools.

This article originally appeared on Cincinnati Enquirer: CPS has run out of paperclips to cut. Now what? | Opinion

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