In a November 2 policy brief, Buckeye Institute reveals the real reason for the Ohio Education Association claim that state-level funding cuts require many school districts to introduce new levies.
The Institute presents historical evidence for school district overspending. Average annual inflation has been around 4.2 percent since 1975 while school spending has increased by 5.5 percent on average during the same time period. In many Ohio school districts, average teacher compensation is 50% higher than the average income of residents in their communities. While the current legislature has increased school funding, median income is declining. Since 2001, median has declined 16 percent.
Because employee compensation consumes 96 percent of most school budgets, Ohio overspending on schooling is simply unsustainable.
How can this problem be fixed? The Buckeye Institute makes the following proposal:
“Simply providing more tax revenue is not going to solve the problem. If taxpayers in this state are ever to get a break from the hamster wheel of local levies, compensation reforms are essential. To accomplish this, collective bargaining reform cannot be swept under the rug indefinitely.” Changing Ohio collective bargaining law, local school boards would have more flexibility to adjust compensation to reflect current fiscal reality.
To read the policy brief, go to http://www.buckeyeinstitute.org/issues/education-k-12-and-higher-ed.
Mandel’s Debt Management Office Director: An Answer to Cronyism Allegations
by Daniel Downs
U.S. Senate candidate Josh Mandel is being accused of cronyism by incumbent Sherrod Brown. Mandel is guilty but with some qualification. Obviously, before becoming Ohio’s Treasurer, Mandel had his sights on Congress. When he became Treasurer he hired his friend and campaign manager Joe Aquilino. Keeping Joe’s valuable services for his present and future work was important for Mandel’s future success.
Yes, Mandel deserves criticism for hiring an inexperienced investment bonds manager. If you read how Aquilino’s job is described you will glimpse Mandel’s reasonable strategy. First, he is referred to as the Director of the Debt Management Office and not of the Office of Debt Management. Second, the following is an excerpt from an April 4, 2012 Huffington Post article in which is disclosed Mandel’s view of Aquilino’s position:
“Joe is a licensed attorney. He managed staff in the Debt Management Department, and worked under Seth Metcalf’s direction on debt issuances,” Unger said. “Mr. Metcalf has extensive experience with debt issues, and continues to be the key person overseeing debt issuances in the treasurer’s office.”
In other words, Mandel hired experienced bonds manager Seth Metcalf to handle debt management. He kept attorney Joe Aquilino employed because he is an excellent manager of people and organizations. That is also why Aquilino is now employed as Mandel campaign manager.
Mandel was not rewarding his buddies with big jobs as campaign booty. Rather, it was a wise business decision: keeping a valuable employee.
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Posted in commentary, Ohio, politics
Tagged cronyism or strategic business decision, Election 2012, Josh Mandel, U.S. Senate race