Fed stimulus schedule stymies Ohio’s budget

COLUMBUS, Ohio (AP) — The U.S. Department of Education’s aggressive schedule for infusing stimulus dollars into ailing school districts nationwide has saddled Gov. Ted Strickland with a potentially big budget problem.

Strickland’s proposed $54 billion operating budget for the two years beginning July 1 counts on $922 million in federal funds earmarked for impoverished districts and special education. But federal education officials said in a Saturday release that the money will start flowing before that budget begins and should be used right away.

“The funding will be coming to the states in the next 30 to 45 days, with the remainder in the next six months,” U.S. Department of Education spokesman Jim Bradshaw said. “The idea is to get the money in the hands of the school districts as quickly as possible, to spur economic growth, save jobs, create jobs and promote their educational goals.”

Strickland spokeswoman Amanda Wurst said Wednesday the administration is seeking further guidance from Washington on how the money should be handled. She said the administration is confident the budget can be adjusted to accommodate the unanticipated timing of the outlay.

Wurst was adamant that the federal government’s intention to distribute the money to districts by its own stimulus formula will not throw off the Democratic governor’s budget calculations.

“This (federal stimulus infusion) is unprecedented, and we will continue to work with the federal government to seek further guidance and clarification,” Wurst said.

Budget documents released by the Strickland administration have repeatedly indicated that the portion of the federal stimulus money in question would be folded into the state education budget financed through the state general revenue fund.

That means one of two things: The state could delay distribution of the portion of the stimulus money that becomes available in a month or so, pushing the intended economic benefits into the next school year. Or state officials would have to adjust the proposed budget to account for the early spending, because the lost dollars are included in their totals for the upcoming budget cycle.

Wurst said the federal money is accounted for in the governor’s new school funding model, which incorporates some of the same standards for quality education as the federal guidelines. The state formula, for instance, fully funds special education.

Senate Finance Chairman John Carey, R-Wellston, said he’s concerned the numbers don’t add up. He said his home district, for example, loses $196,000 under Strickland’s funding formula but receives $449,000 in stimulus money by federal calculations.

“The two statements are conflicting,” he said. “I don’t know whether the governor has some assurance that this money can be included in the state funding formula or not. Our staff has not been able to ascertain that either, so we’re waiting to see what the ramifications of this are.”

Wurst said that President Barack Obama’s stimulus bill calls for states to clearly identify and account for all dollars and that the administration has consistently done that.