Legislative Updates: Education issues in Ohio, & Teacher Retirement System

HOW THE STRS BOARD HIJACKING OCCURRED

It may come as a shock to many, but the changes made to the STRS Board in the budget bill recently signed by Governor DeWine, reducing the elected number of teacher positions from 7 (5 active, 2 retired) to 3 (2 active, 1 retired), were NOT included in the budget bills approved by the House and the Senate. So how did the change--taking away the majority held by elected members and retirees--happen?

When the House and Senate pass an operating budget, the differences between the two versions are reconciled in what is known as a budget conference committee. The committee includes a small number of House and Senate members, usually from their respective chambers' finance committees. The majority party in the House and Senate retains its majority in conference committee appointments. It was during this reconciliation process that language changing the STRS Board composition was introduced and approved. The budget proposal eventually approved by the conference committee was then voted on and passed by the House and Senate. The STRS provision was not among the items vetoed by Governor DeWine. There has been some speculation that legal action may be taken in an attempt to block the Board changes. The basis for a legal challenge has not been discussed or written about publicly.

It's interesting to note that the idea for the Board change was initiated and pushed by Rep. Adam Bird (R-New Richmond). Bird is chairman of the Ohio Retirement Study Council (ORSC), the bi-partisan group that oversees Ohio's public pension plans. Bird's wishes were added to the conference committee's compromise budget by Chair Rep. Brian Stewart (R-Ashville) without any recommendation for or against the change by the ORSC body. Finally, one has to wonder if the plan all along was to hold the proposed changes until talks reached the conference committee stage...typically, there are no public hearings during conference committee deliberations.

Changes to the Board will be phased in over time; current elected member positions will be eliminated as the incumbents' terms expire until just the three elected positions remain. By September, 2028, the transition to 8 appointees and 3 elected members will be complete. Between now and then, the combined total number of Board members will change annually, going from 11 to 15 to 13 to 12 then back to 11.

We'll take a look at what may have led the legislature to take over our retirement system in the next SCRTA newsletter.

VOUCHERS RULED UNCONSTITUTIONAL - THE BATTLE IS JUST BEGINNING

Ohio's School Voucher Plan was ruled unconstitutional late in June by Franklin County Common Pleas Court Judge Jaiza Page. In her summary judgement, Page wrote "...private schools participating in EdChoice receive substantially more state funding per student than public schools..." Page did not go so far as to order a halt to the voucher program in anticipation of the appeals process she believes (as does everyone) is sure to follow.

The Fair School Funding Plan, a bi-partisan plan to correct the inequity in Ohio's school funding formula, was put in place in 2021. The two-year budget just signed into law by Governor DeWine was supposed to have included the last two years of the six year phase-in of the Funding Plan. Instead of following through on that implementation, the Ohio legislature and DeWine approved alternate funding for public schools roughly $2 billion less over the two year period. The new budget allocates $2.44 billion for vouchers, a dubious record amount in Ohio. Funding for vouchers comes from the same pot as funding for public schools, laying any cost increase at the doorstep of the state's public schools and its property tax payers.

We will keep you informed as the appeals process moves forward.

STRS STILL COMMITTED TO EMPLOYER CONTRIBUTION RATE INCREASE. THE SLOPE JUST GOT SLIPPERIER

STRS continues its efforts to work through the ORSC to win an increase in the employer contribution rate from 14% to 18% in 1/2% increments over an eight year period. The provision would be part of SB 69, the ORSC's bill (yet to be written) intended to reform Ohio's public retirement systems law. The bill's primary sponsor is Sen. Mark Romanchuk (R-Ontario). The path being taken through the ORSC is a strategy that has been endorsed by the STRS Board. Whether that strategy changes as the Board changes in the near future remains to be seen.

One huge obstacle to moving forward with legislation that includes employer contribution increase language is the threat by the Republican controlled legislature to override Governor DeWine's veto of several property tax measures that hamper a district's ability to win taxpayer support. A second roadblock is the failure of the legislature to properly fund the last two years of the six year bi-partisan Fair School Funding Plan which will cost public schools a reported $2 billion over the course of the two-year budget. This while vouchers are being funded at unprecedented levels.

We'll report developments as they happen.

CAN THIS BE REAL?

You may recall that in our last Email Update (May 24), yours truly suggested that members write their Ohio House and Senate representatives to express opposition to reducing or eliminating the number of elected active and retired teachers on the STRS Board. I attached a copy of the letter I was planning to send on behalf of the SCRTA Management Board and membership to all senators (2) and representatives (5) whose districts included areas within Summit County. I emailed my letter to all on May 26.

As is usually the case after writing to an elected representative, one gets in return a very polite acknowledgement that your thoughts were received and appreciated. With two exceptions, that's what happened with the 7 emails I sent.

One of the responses I got was from the office of State Senator Kristina Roegner (R-27). A Legislative Page in her office thanked me for "reaching out to share your concerns regarding proposed changes to the STRS Board," and for expressing my support for "preserving the voting authority of elected teacher representatives." "Senator Roegner values hearing from constituents, particularly from organizations like the Summit County Retired Teachers Association (emphasis added) who are directly impacted by state retirement system policies." The response continued, "I will be sure to share your perspective with Senator Roegner so she is aware of the Association's position as discussions continue in the General Assembly and through the Ohio Retirement Study Council."

So why the headline "CAN THIS BE REAL?" Very simply put, the response was sent to me on Wednesday, July 9, at 10:59 a.m. That's a full 14 days AFTER Sen. Roegner (a co-sponsor) voted for the bill (June 25) and roughly 8.5 days AFTER DeWine signed the bill into law at 11:15 on June 30. For the Senator's office correspondence to have been written as though a decision had yet to be made about the STRS Board, and not until so many days after the decision was actually made, is inconceivable. This is not to suggest that had the Senator read and considered our opinion before the vote that her vote would have been different. Roegner has not been an advocate for public schools and public employees in general. She strongly supports vouchers and she was a key House member and supporter of SB 5 in 2011. That bill would have crippled public employee collective bargaining in Ohio, but was soundly repealed by voters in November, 2011.