Former Super give the legislators an earful

From John Curry, June 2, 2011

http://www.akron.com/akron-ohio-opinions.asp?aID=12632

Former super questions legislators' statements

West Side Leader (Akron), June 2, 2011

To the editor:

Re: Senate and House legislative bills regarding State Teachers Retirement System (STRS) and the School Employees Retirement System (SERS).

1. The governor and legislature have considered who pays and how much into the above retirement systems “to save state of Ohio general fund money.” This is invalid as the state of Ohio general fund pays nothing directly into those funds. This statement is derived from lack of information, lack of research or intended propaganda.

2. The voters of Ohio need to know the Ohio general fund does not and has never paid any direct funding into those retirement systems. These systems are funded by 10 percent from an employee’s salary (after they pay federal tax, state income tax, local income tax) and funds from the board of education where they are employed (14 percent) and income earned from investment of those funds.

3. The state of Ohio funds Ohio schools with the State School Foundation Program. This is calculated on a formula adopted by the legislature that considers, among other things, student enrollment, assessed valuation of the property in the district, the millage voted by the residents of the school district, transportation cost, special education allotments, plus eligible employees in specified areas. This program has nothing in it for retirement.

4. Each board of education places this money in the general fund. A board of education general fund has money from local property taxes (voted by district residents) and monies from the state foundation program. The percentage of those funds differ in each district. This general fund pays for all costs of a school operation. Those costs are for operating expenses, including employee salaries, fringe benefits, employee retirement, inclusive of all other costs.

5. STRS and SERS are not state agencies. They are created as an independent retirement system and do not have an allocation of state funds.

6. The Ohio School Boards Association, each board of education, the Ohio Retired Teachers Association and every superintendent in Ohio should immediately let their elected senator and representative know the above. The legislature sets the state budget, but they do not set local school budgets. This is the legal responsibility of each school board, as supported by Ohio school law. It is the responsibility of elected representatives to know proper funding laws.

7. As a former superintendent in Ohio for 22 years, I challenge those persons responsible for the above statement on saving state funds to show me where the state of Ohio has ever paid funds from the general fund as a direct expense to either of the above retirement systems for retirement benefits.

Roger Goddard, Norton