Letter: Bait-and-switch

As a member of the Northwood Budget Committee, I paid close attention to our School Board’s presentation on its proposed operating budget, especially to the money allocated to be paid into the retirement system. $744,688 was budgeted out of the $15,070,878 total. This represents 4.9% of the budget.

If this were 1967, the state would be covering 40% of this amount, but today, the state contributes zero to school employee retirement. Why is this? In 1967, when the retirement system was set up, the state needed to expand the pool beyond just state employees to make the system viable. The state offered to pay “participating political subdivisions” 40% of their employees costs. That was the “bait.”

In 1977, the state’s contribution for teachers was reduced from 40% to 35%. Then, in 2009, the Legislature reduced the 35% state’s contribution rates for teachers, police and firefighters to 30% in fiscal year 2010 and 25% in 2011, resuming a 35% contribution in 2012. In 2011, HB 2 changed the 2012 appropriation to a lump sum of $3.5 million and eliminated the state contribution entirely for subsequent years.

That was the “switch.“ Here we are in 2025 with taxpayers in Northwood picking up 100% of the tab. In the meantime, the Republican legislature has launched a voucher program that will divert millions to some kids. While it is seldom noted, when those kids leave public school, it eliminates the so-called “adequacy” payment that the school would otherwise receive, about $4,200 per kid minimum.

Tom Chase

Northwood