Suburban Ohio School District Asks For $100 Million Bailout From Treasury Dept

CLEVELAND — A financially ailing Ohio school district has joined the ranks of banks and automakers clamoring for a portion of the $700 billion economic bailout package.

Olmsted Falls Superintendent Todd Hoadley said Tuesday that if automakers and big U.S. cities can ask for federal bailout money, schools should be able to follow suit.

"I feel a moral obligation to our taxpayers to make this attempt," said Hoadley, who requested $100 million from the Treasury Department last week. "This is a legitimate request. I'll be frankly disappointed if something positive doesn't come out of this."

Hoadley said rising enrollment and strained finances have forced the suburban Cleveland district to take measures such as converting maintenance closets into classrooms.

The district submitted the request to Treasury Secretary Henry Paulson and the Federal Reserve Bank of Cleveland. Paulson has said the Troubled Asset Relief Program, known as TARP, was meant to stabilize financial institutions, and the regional reserve bank told Hoadley the same thing last week.

But Hoadley isn't giving up _ he's seeking help from Congressman Dennis Kucinich and U.S. Sen. Sherrod Brown, both Ohio Democrats, in obtaining bailout dollars.

Several school associations were trying to determine whether other districts have sought TARP funding. Miami-Dade Schools chief Alberto Carvalho told The Miami Herald last week that Congress should consider bailing out the nation's schools, but the district didn't apply for funding.

Olmsted Falls' total enrollment has swelled by 29 percent over the last decade to 3,800 students. The district would spend half of the $100 million in TARP money on building and renovation projects, while the other half would go toward operating expenses.

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Two local ballot issues seeking additional school funding failed last month, and the district projects a deficit of $2.6 million at the end of the 2009-10 school year.

"We're not looking at this from a bailout standpoint. We don't want to be lumped in with failing corporations," said Hoadley. He noted that Olmsted Falls has long been one of the state's top-rated school districts.

Hoadley is encouraging others to make similar requests to the Treasury Department.

"Somebody has to be looking long-term," Hoadley said. "The only way we're going to dig ourselves out of this economic hole is investing in education."

So far, the Treasury Department has committed about $270 billion in TARP money for banks and another $40 billion for the insurance company American International Group. U.S. automakers are seeking $25 billion in federal loans, and last month the mayors of Philadelphia, Atlanta and Phoenix asked for a share of the bailout funds.

The Treasury Department and the Federal Reserve Bank of Cleveland did not respond to requests for comment.

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On the Net:

Federal Reserve Bank of Cleveland: http://www.clevelandfed.org/

Olmsted Falls City Schools: http://www.ofcs.k12.oh.us/

Treasury Department: http://www.ustreas.gov/

Comments

[Chinesepeasant]

Maybe if I lined up, I would get my share ,too.

[cyoohoos]

Go get "Joe the Plumber" to pay his taxes.

[tempest624]

These events are starting to sound like one of Oprah's shows (the one where she gives a car out to everyone in the audience) ... You get a bail-out! And, You get a bail-out! And, You get a bail-out!

[XME]

And where is the line drawn on who gets bailout money?

On second thought...I need a bailout, and I won't be greedy: $100K should do the job!

[alienufo]

id rather give the money to schools than to banks personally.

[saber75]

Jesus, what's with Ohio falling apart? I thankful that I live in Wisconsin; even though we have high taxes, we have always been willing to vote 'yes' on measures to give schools more money. The school districts of our capital, Madison, have come back to the voters continuously for more money and the voters have always responded overwhelmingly by 60-70% margins to give them more money.

[UnreasonableTeacher]

I love this! Now granted, TARP is "meant to stabilize financial institutions", and $100 million is a little more than they should be asking for (especially for a school district of only 3,800 students). However, I think there is an excellent point here. If we can give all of this money to companies who are about to go bankrupt (completely their own fault, by the way), then why can't we give more money to public schools?

http://unreasonableteacher.blogspot.com/

[instagladiator]

The ole domino effect taking shape..... I have some ocean side property in Arizona that I'd like the government to purchase, you know "bail me out of this one and I promise not to do it again".

[GeoLee]

I live in a district with 38,000 students and our city barely won a bond issue to build a new schol and update facilities some of which were built in the early 1900's It is the second bond issue in 9 years to pass, but they will never ask for the amount to tar donw hundreds of totally inadequate buildings in order to have up to date schools most suburban districts already have. Aging populations these days include far too many who forget what our folks and grandparents and great grand parents were willing to support for our generation in the 50's and 60's. I am ashamed of many of my peers who vote against any money for schools. To me, it is our obligation to the next generation to support education...after all in a few years they will be earning the salaries and paying for our medicare and social security. All alI know is that if Barack Obama had not been the candidate I am not sure our bond vote would have passed...his candidacy brought out enough younger voters and high school seniors to have it pass by a little over a hundred votes our of around 80,000 votes cast in the election. They have spent a lot of time in the buildings in recent years to know how crumbling and inadequate they are for the 21st century.

[blessinggirl]

I grew up in the Cleveland area, and the biggest problem is the fact that townships, villages and little political subdivisions have taxing power. Therefore, there is extreme redundancy from every little burg having its own government, school district, police, fire, etc. Ohio needs to move to a county system of government and take away the taxing and spending power from Olmsted Falls and about a hundred other little places. A central school district would not run out of money, or need to have a "CEO" paid as much as a Ford executive running the Cleveland city schools.

[slobone]

No no no! The bailout money is reserved for incompetently managed auto companies and irresponsible investment banks. Not for something useless like a school!

[SColbert]

Yes, we need cars and banks. Not more elitist.

[lynnn]

No wonder the kids from Olmstead are butts, apparently the admin of the district are *ss holes.