The Cleveland Metropolitan School District (CMSD) faces a complex web of funding challenges, from declining enrollment to the fiscal cliff created by the expiration of one-time federal COVID-19 funds. As the district seeks voter approval for a crucial tax levy, this article delves into the nuanced landscape of CMSD's financial landscape, shedding light on the broader implications and potential solutions.

Empowering Cleveland's Students: A Levy for Sustainable Progress

Addressing the Fiscal Cliff and Beyond

The CMSD's funding woes extend far beyond the immediate impact of COVID-19 funds. The district's population has steadily declined over the decades, from a high of 148,000 students in 1963 to just 34,598 last year. This enrollment drop has had a significant impact on the district's state educational aid, which is a key component of its funding. Additionally, the state's funding formula for economically disadvantaged students has resulted in decreasing aid for CMSD.Compounding these challenges, the local property tax revenue has remained stagnant, leaving the district with limited options to generate additional funds. Candice Grose, a CMSD spokeswoman, emphasizes the district's reliance on voter support, stating, "Since neither local nor state aid are increasing, we must regularly request voter support for schools." This cyclical need for levies is a common occurrence across Ohio, with the state leading the nation in the number of school levies since 1976.

Demonstrating Progress and Investing in the Future

Despite the financial hurdles, CMSD has shown signs of progress. In the most recent state report card, the district earned three stars, meeting state performance expectations for the first time in its history. This achievement underscores the district's commitment to improving educational outcomes for its students.However, Candice Grose emphasizes that the work is far from over. The district's financial needs extend beyond immediate fixes, requiring long-term investments in the sustainability and success of its students and schools. The proposed levy, if approved by voters, will allow CMSD to continue building equitable, high-quality educational experiences, ensuring that every student has the opportunity to thrive.

Navigating the COVID-19 Fiscal Cliff

The COVID-19 pandemic has further complicated CMSD's financial landscape. The district received $465 million in federal funds, which had to be spent by September 30th. These funds were used to address pressing needs, such as placing nurses in every school, opening libraries daily, and expanding the school day to provide more opportunities for art, music, and extracurricular activities.While the COVID-19 funds provided a much-needed boost, they have also created a fiscal cliff that the district must navigate. The original expectation was for a budget deficit of $18.3 million to begin this school year. However, CMSD has implemented a plan to eliminate central office staff, restrict travel, and roll back some of the programs funded by the COVID-19 money, staving off the fiscal cliff until the 2026-2027 school year.

The Levy's Impact: Softening the Blow and Securing the Future

The proposed levy, if approved by voters, will play a crucial role in mitigating the impending fiscal cliff. According to CMSD CEO Warren Morgan, the levy will "soften the blow" of the projected $110.2 million deficit in the 2026-2027 school year and the $235.9 million deficit in the 2027-2028 school year. The campaign supporting the levy emphasizes that the size of the 2026-2027 deficit is equivalent to over 700 teaching positions, underscoring the gravity of the situation.The levy consists of an 8.6-mill operating levy and a 2.65-mill bond issue for renovating and constructing district buildings, as well as other capital expenses. If approved, the total cost for a typical Cleveland homeowner with a median home value of $64,400 would be approximately $254 per year.

Navigating the Complexities of Ohio's School Funding Landscape

The funding challenges faced by CMSD are not unique to the district; they are part of a broader trend affecting school districts across Ohio. The passage of House Bill 920 in 1976, and its subsequent enshrining in the state's constitution in 1980, has had a significant impact on school funding.This legislation provides tax relief to property owners when their homes are reappraised, resulting in a reduction of voted tax levy rates. The consequence is that school districts, including CMSD, must regularly seek voter approval for new levies to maintain funding levels, as they no longer benefit from inflation-driven increases in property tax revenue.Furthermore, the state's school funding formula, while beneficial to many districts, has not been as advantageous for CMSD. The district's aid for economically disadvantaged students is decreasing, while other areas of state funding remain flat.

Transforming Cleveland's Schools: The Cleveland Plan and Voter Support

CMSD's funding challenges are intertwined with the district's broader transformation efforts, known as the Cleveland Plan. Initiated in 2012 under then-Mayor Frank Jackson, the plan aimed to improve the district's schools by partnering with high-performing charter schools, offering parents a portfolio of choices, and providing more flexibility in disciplining and dismissing educators.While the Cleveland Plan does not directly include a levy, voters have consistently supported the district's funding needs, approving a levy in 2012 and renewing and increasing it every four years since then. The most recent 10-year levy was approved in 2020, but the post-pandemic fiscal challenges have prompted the district to seek additional voter support through the current ballot measure.As CMSD navigates these complex funding challenges, the district's progress and the community's continued investment in its schools will be crucial in ensuring a brighter future for Cleveland's students.