Ohio’s Columbiana County school districts got some good news when they received some $350,892 in casino tax revenue in a recent statewide distribution. The total of that distribution statewide hit $38 million. The Ohio Department of Taxation distributed the money which represents only the initial payment that state schools are due. Casinos only began to open in Ohio last summer.
According the plan, these tax revenues are to be handed out two times each year and they are based on a per-pupil formula. It works out to about $20 per Ohio student. 88 percent of the money went to traditional schools in the county and the remainder will go to adjoining counties that are schooling local students. Online and charter schools will also get some money. Even though there are some 612 traditional Ohio school districts, 1019 schools are to get some of the casino tax revenue.
While the money is certainly welcomed, it is not enough to offset the losses that were seen by state funding cuts that the school districts have seen over the last few years. Some school officials have already voiced concerns that the Ohio legislature may start treating these casino tax revenues as they do state lottery profits. Those profits were supposed to be used for education purposes. While a part of these profits are being directed to schools, it does not offset what cuts in education funding have already done to school budgets.
It should be noted that as these new casinos get their footing, their profits may increase. This, of course, would mean more money to Ohio school districts, both traditional and charter. This would be seen as a good thing by most residents of the state.
This new money is generated from state taxes that are currently being imposed on three casinos in Ohio. Another casino, to be located in Cincinnati, is planning to open its doors sometime in March. Of the money that is brought in, school districts are supposed to get 34 percent. 15 percent is then to be divided among the largest cities in Ohio, and the remaining 51 percent is to be paid out to counties each quarter.
In July of 2012, Columbiana Commissioners got casino tax payments that totaled more than $93,000. They received more than $187,000 in October. It has been reported that they are to receive more than $249,000 in January. This will bring this one county’s total to more than $530,000.
While the current school budget is still in trouble, these disbursements of casino tax revenues do show that casinos can be profitable for local governments and school districts. This could help to make it easier for new casinos in other states to get approval. It is no secret that many local authorities are struggling with their budgets, and this type of added revenue. Casinos also bring in new jobs, both temporary (construction) and permanent, both of which help boost local economies.
It is somewhat certain that more local and state agencies will be watching to see how casino tax revenues continue to help or hinder local economies.