By Anna Huntsman
Broadcast version by Mary Kuhlman
Reporting for the Kent State-Ohio News Connection Collaboration

COLUMBUS, Ohio – Uncertainty and confusion abound among Northern Ohio school districts, which are awaiting a promised funding windfall from the Nexus pipeline tentatively scheduled for completion late this year.

Beginning in the 2019-20 school year, 37 Ohio school districts are expecting to receive nearly $57.7 million in new property tax revenues from the Nexus pipeline. However, some districts are waiting to see how the state’s formula for school funding will affect the anticipated “windfall,” and if the estimates of the tax amounts are accurate.

“We haven’t even discussed, if you can believe it or not, what we would do with these funds,” said Kerri Johnson, treasurer of Lucas County’s Anthony Wayne Local Schools. “We kind of have a policy that is: Until we receive the money, we don’t put it in our budget. We don’t count on it.”

A media spokesperson for Nexus Gas Transmission, Adam Parker, did not return requests for an interview, but said in an email that the tax value estimates are based on “ad valorem taxes” in Ohio, which are taxes based on the value of items such as real estate or personal property. “The tax is largely based on the value of pipeline in each taxing district,” he said.

Anthony Wayne is one of the districts expecting to get revenue from the pipeline, which is an ongoing project that will transport natural gas from eastern Ohio to southeastern Michigan. Public Finance Resources, Inc. (PFR), a financial analysis group, compiled estimates for Nexus Gas Transmission on the total revenues for the districts.

According to PFR’s data, Anthony Wayne schools are scheduled to receive about $5.9 million in revenue the first year after the pipeline’s completion, which is the second-highest amount on the list of schools.

The school district projected to receive the most from the pipeline is Margaretta Local Schools near Sandusky, which is estimated to receive about $6.2 million. Superintendent Dennis Mock said that while the pipeline could increase school funding based on property taxes, the Ohio Department of Education (ODE) will likely decrease the funding their districts regularly receive from the state.

“All the talk is ... we might gain in one area, but we’re going to lose in the other,” Mock said. “Our valuation of property will be most likely increased, which will reduce our funding from the state.”

Some districts are concerned their state funding will be cut because of the pipeline revenue and result in no actual net increase.

“In some districts, it’s probably going to be a wash,” said Jon Strong, co-founder of the Coalition to Reroute Nexus (CoRN) and a homeowner whose land is affected by pipeline construction. He added that ODE funding for school districts strongly considers their ability to collect property tax. The more funding they can raise on their own, the less money they’re likely to get from the state. “And the [schools], I would think, [that] are going to make out are the poorer districts that get a lot of money from Nexus.”

Strong said he gathered information for four years about Nexus from county executives and ODE officials. He said he initially opposed pipeline construction, not for environmental or financial reasons but as a private landowner.

“This is a violation of property rights," he said, "and the route choice was just insane.”

Strong and CoRN proposed an alternate route for the pipeline, but despite complaints and efforts like his group’s, the Federal Energy Regulatory Commission approved construction of the pipeline last October. The Ohio EPA also approved construction of four compressor stations along its route.

The environmental group No NEXUS Pipeline details potential safety hazards from the construction of compressor stations on its website, nopipelies.org. It warns cities near the Seville station, such as Medina and Wadsworth, of potential "contamination to soils, waterways and, most importantly, health issues."

Despite the safety concerns about the nearby compressor station, Wadsworth Local Schools Treasurer Doug Beeman said he is excited for the eventual revenue gains. "From my position as a treasurer," he said, "it’s going to be a great windfall for schools in our community."

Beeman added that his district, like Anthony Wayne, will wait to budget the money.

"I haven’t put those exact numbers into the [five-year] forecast," he said. "I don’t want to give my Board of Education and my community a false sense of security that this money is coming when there’s ... some questions about it."

Beeman said county executives are skeptical about what could be overestimated numbers from PFR, the company that analyzed the finances for Nexus. He still is confident the district will receive some funding.

"How much it’s going to be and when it’s going to be are more the questions — not if or if not we’re going to get it," he said. The money would likely be added to the district’s reserves to hold off the need for a future levy.

Similarly, Kerri Johnson from Anthony Wayne Local Schools said she would consider using money from the pipeline to reduce what taxpayers are paying each year. She said initially, she was frustrated when those numbers were released, as her district had just put a $44 million bond levy on the ballot for a building project. The levy ended up passing.

The pipeline money "would definitely keep the school from going for new levies," she said.

Mock, Margaretta’s superintendent, said he is preparing to hold community meetings to discuss how potentially more than $6.2 million from the pipeline could be spent.

“If that [estimate] is accurate,” he said, “it’s our hope that we can use the funds to build new buildings.”

Mock added some school buildings in the district are more than 100 years old, and that the middle and elementary schools are combined. “If we can get new buildings without going to the voters, that is pretty exciting news for our community,” he said.

Melissa Baker, treasurer of United Local Schools in Columbiana County, said her district also would plan to use the potential revenue gains from the pipeline to replace aging buildings.

"It would be a game-changer for us," she said.

United Local is projected to receive more than $4 million in property tax revenue after completion of the pipeline. Baker said United, like many Ohio schools, recently lost significant funding, including $150,000 from state foundation funding and $100,000 from federal title money. She said United would use the surplus of money from the pipeline to build a new school, just as the Margaretta district plans to do.

At this point, school districts set to receive funds will have to work with the estimated numbers, as the money will not be available until spring 2020. According to Parker’s email, the pipeline is expected to be completed in the third quarter of this year.

“I’m sure as time gets closer and the reality of the revenue becomes an issue, yes, those conversations will take place,” Johnson said. “We’re going to deal with all of that when the time comes.”

More information about Ohio’s school funding model is online at plunderbund.com.

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This collaboration is produced in association with Media in the Public Interest and funded in part by the George Gund Foundation.


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Even in a stable economy, consumers in Wisconsin and elsewhere still express pessimism and advocates said a key federal agency working on issues like unfair business practices cannot risk losing resources needed to help consumers.

To avoid a government shutdown, Congress has to approve a new federal budget by month's end. Over the summer, House Republicans floated cuts in certain areas, including a 27% funding cut for the Federal Trade Commission.

Erin Witte, director of consumer protection for the Consumer Federation of America, said the timing could not be worse for such a move.

"We've seen people talk a lot about feeling like their costs are increased in lots of ways," Witte pointed out. "The FTC's work is really aimed at trying to lower a lot of those costs, to bring some fairness back to the process."

Last month, the agency co-hosted the first meeting of a task force about whether companies are price-gouging and the effect on consumers. GOP leaders on the Appropriations Committee said they want a financial services bill prioritizing combating terrorism-money activity, maintaining the integrity of financial markets and spurring small business growth.

Witte contends the FTC has made progress in standing up for consumers with great efficiency. She pointed to the proposed "click to cancel" rule, which would remove barriers for people worried about recurring charges for an unwanted subscription for a service or product.

"That would make it as easy for someone to cancel a subscription as it is to sign up for it," Witte explained. "That proposal has gotten thousands of comments from consumers about how much time they are wasting on things like unnecessary subscriptions."

The state-level organization Opportunity Wisconsin has also cited concerns about consumer protections being gutted. It called on Congress to pass clean funding bills without extreme provisions it said would "hurt Wisconsin families." It is unclear if any of the budget ideas floated over the past several months will find their way into a final spending plan.

Congress is back from recess and lawmakers are hearing from producers about getting a new Farm Bill passed with the latest deadline looming.

North Dakota farmers were among those who traveled to Washington, D.C., to demand progress. More than two dozen North Dakota Farmers Union members were part of a large contingent getting face-to-face time with federal lawmakers this week.

The Farm Bill, last updated in 2018, needs to be reauthorized by the end of the month or elements of the current version will expire.

Bob Kuylen, a farmer from the western half of the state, said the uncertainty comes as small-to-mid-sized producers face the prospect of dwindling profits.

"Inputs are awful high and we're down there in prices quite a ways," Kuylen pointed out.

A glut of crops and other products on the market are resulting in smaller financial returns for the farmers who grow them. The Union said a stronger safety net in a new Farm Bill could make losses easier to absorb. However, with the fall election approaching and a federal budget also needing a vote, complications are mounting in getting the agricultural policy reauthorized.

The Farm Bill also funds key initiatives to address hunger relief like the Supplemental Nutrition Assistance Program. Kuylen noted it shows the sweeping policy touches a lot of facets within the food production system, affecting many Americans.

"Eighty-two percent of the Farm Bill is nutrition," Kuylen explained. "Farmers get a very small part of the Farm Bill. You know, it covers things like conservation programs."

The statistic he cited is reported by the Congressional Research Service. Union voices said the urgency comes as farmers also deal with rising machinery costs and corporate consolidation within agriculture. Last fall, Congress approved a one-year extension of the Farm Bill, prompting fears lawmakers would again let negotiations drag on until the last minute.

West Virginia lawmakers will convene for a Special Session on Sept. 30, with the state's child care crisis, proposed income tax cuts and supplemental appropriations on the agenda.

The Mountain State's spending on child care is much lower than neighboring states and has steadily declined over the past decade, according to the West Virginia Center on Budget and Policy. It is estimated the parents of around 26,000 children currently lack affordable child care options.

Gov. Jim Justice is reiterating his push for child care tax credits.

"Absolutely try to get our tax break across the finish line with child care," Justice urged. "There's supplemental appropriations that need to be done, and we need to get the money out the door."

Previous bills proposing a child care tax credit for households with incomes less than $65,000 a year have stalled in the Legislature. The Biden administration has said the state needs to contribute between $20 million and $30 million to keep a federal subsidy program afloat for the next year, to direct money to child care centers, making costs more affordable for families.

The governor is also proposing another 5% income tax cut.

"We need another tax break," Justice contended. "I'm very, very hopeful and optimistic that we're going to be able to get it through."

According to state data, tax revenue collections for August were lower than expected at around $403 million and down from last August, when $410 million in tax revenue was collected.

Support for this reporting was provided by The Carnegie Corporation of New York.