Columbus City Schools' Board of Education's president and vice president spoke in opposition to a proposed utility rate increase by American Electric Power of Ohio Tuesday, saying it could cost the cash-strapped district another $2 million.
Board President Michael Cole and Vice President Jennifer Adair appeared alongside three dozen other people at the Public Utilities Commission of Ohio's final public hearing on the rate hike on Tuesday. The PUCO will decide next year whether or not to approve a 2% distribution rate increase, which would increase the company's revenue by $400 million and cost the average residential customer an extra $4 a month.
Cole and Adair said the state's largest school district has even more to lose. With 46,000 students in more than 100 school buildings, the rate hike could cost the district an estimated $2 million more a year.
Adair said this would increase the district's electric bill from $11 million to $13 million. The district just made $50 million in budget cuts to avoid a budget deficit and has voted to close more than half a dozen schools in the past year alongside planned staffing and program cuts to avoid financial ruin.
Adair said the cost to the district will mean even less money than expected to educate students.
"The way that we are funded is through our taxpayers. So these same residents are going to get hit as a resident, and they are also paying our bills as a public institution," Adair said.
CCS voters just approved new tax levies meant to increase school funding in 2023.
Adair said repeated rate increases make it harder for the district to invest in other things, like clean energy programs to make its energy use more sustainable and efficient.
"Repeated base rate hikes from our monopoly, electric utility make that work harder, not easier, and force us to divert dollars away from the classrooms to pay for utility bills," Adair said.
Adair and Cole said the district is in line for another $50 million in cuts next year, and possibly every following year. The district blames its financial woes on what it calls inadequate state funding for public schools.
Cole said the rate hike threatens the stability, security and support students need in their learning environments. He said a school district can't make significant changes to save on its utility bill.
"This is something that we cannot fix by simply dimming lights, changing the HVAC system or shutting down technology. Every dollar has to be spent to go towards maintaining those costs (rather than) being diverted away from our classroom needs," Cole said.
Cole said AEP and PUCO should consider a temporary rate mitigation for public institutions like CCS while districts statewide navigate inflation, budget cuts and post-COVID-19 pandemic recovery.
