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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A coalition of South Dakota groups is voicing its opposition to a ballot measure intended to end a state sales tax on consumables.

If passed this November, Initiated Measure 28 would repeal the state's 4.2% sales tax on "anything sold for human consumption," including food and other products from toothpaste to tobacco, CBD and vaping products.

Sandra Waltman, director of public affairs for the South Dakota Education Association, said the teachers union opposes the repeal because it does not include a plan to replace the money the current tax contributes to education.

"Our main reason for opposing this is the lack of a plan for replacing the $176 million and what that will do, not only for K-12 students but for higher education," Waltman explained. "Districts would probably be looking at a very bare-bones budget."

Currently, Waltman said about 60% of public school funding comes from state coffers, and the other 40% from local property taxes. She called the potential effect on education "drastic," saying they could lead to fewer teachers, larger class sizes and cuts to newer resources like mental health support and programs for career and technical education.

Proponents of the measure said repealing the tax could help the nearly 9% of South Dakotans who are food insecure but Waltman countered the same people would likely feel the effects of underfunded school systems.

"To repeal one tax without a more broad conversation about how you replace that revenue is shortsighted, and we think you shouldn't just be repealing a tax without a plan."

Other groups opposing the measure include the South Dakota Cattlemen's Association, Chamber of Commerce and Industry, South Dakotans Against a State Income Tax and the South Dakota Farm Bureau.

North Dakota officials will highlight a new project today to boost childcare access for parents with nontraditional work hours.

A local provider likes what the state's been doing to help facilities and families but hopes for more action. Health and Human Services leaders will appear at a child care facility in Fargo to discuss a pilot initiative, giving operators financial incentives to increase capacity for childcare slots outside the hours of 7:30 a.m to 5:30 p.m.

Kathy Busche, owner of Kathy's Kids Daycare in Hazen, said she will need to see more details but would have interest in signing up. She explained it has been a big need in her area.

"We're right in the middle of coal country and so, a lot of our plant workers are working 12-hour shifts, starting at 6:30 in the morning," Busche observed. "We have hospital workers that are working 12-hour shifts."

The announcement is part of a series of investments the state adopted last year to ease the childcare burden felt across North Dakota. Busche noted she especially likes the inclusion grant to provide day care for kids with special needs. She feels the state could go further in offering incentives to retain staff.

The state has been providing a stipend, which maxes out at $3,600, to help stabilize the child care workforce. Busche emphasized her workers have already used up their portions.

"Now, there's really no incentives left to keep staff," Busche contended. "Without staff, we can't have more kids."

Busche feels the state should not write a "blank check" to address problems and wants policymakers to keep evaluating what is working. She hopes staff retention is among the topics state lawmakers revisit when they return to session early next year.

By Ashli Blow for Tennessee Lookout.
Broadcast version by Danielle Smith for Tennessee News Service reporting for the Solutions Journalism Network-Public News Service Collaboration

Rebecca Maino would set aside $20 each month for her house repairs. Her aging home in Memphis had a leaky sink, an outdated air conditioner, and holes in the walls.

It just wasn’t enough to cover the costs. On her limited budget, she couldn’t manage to save more money while paying her family’s bills.

“When [contractors] come in and the scope of work that they tell you is thousands of dollars, people that are on fixed incomes that have worked their whole life to pay their home off, they simply cannot afford that,” said Maino. 

Over the years, the inconvenience evolved into a safety concern. With the increasing frequency of extreme weather — like last week’s deadly, subfreezing temperatures — her energy-inefficient home was becoming a health risk. Maino turned to Memphis Gas Light and Water (MLGW) and their weatherization program that could help with improvements. 

As storms intensify, environmental coalitions are backing these assistance programs as a viable climate solution in southern cities like Memphis. Weatherization gives residents the resources they need to protect themselves while reducing energy use from sources that emit climate-altering pollution. It also reduces energy during peak power demands that Tennessee now experiences as people try to stay warm in winter weather.

Weatherization programs have a longstanding presence across the nation. It’s a strong policy framework that MLGW has adapted into a program that is uniquely its own, some of which comes down to Memphis grit: the people behind the program who are dedicated to working hard for their community. 

“I take my job personally, because I came from a challenging upbringing right here in Memphis. I know what it’s like to be cold in the wintertime, hot in the summertime, and not having a lot of necessary needs to be met,” said David Wright, the technician who was assigned to Maino’s case. 

“We can’t rebuild a house all over again,” he said. “We try to make the [recommendations] the best that we possibly can give to a customer and to meet the needs they have.” 

When Wright showed up at Maino’s doorstep, that’s exactly what he did. He walked Maino through the issues while writing a work order that prescribed her a new air conditioner and heater, pipe repairs, and wall patchups. That order also identified the contractors responsible for installing appliances and making the necessary fixes. 

Maino never received an invoice, because the ratepayers had it covered. 

$8.3M in ratepayer donations funds weatherization projects 

In 2016, a MLGW customer-led advisory board told the utility it wasn’t doing enough with Share The Pennies—a small program that rounded up utility bills to the next whole dollar for weatherization services. For three years, customers were given the option to donate their extra change, but many weren’t checking the box. 

The board worked with Memphis City Councilmember Patrice Robinson to propose a resolution that would make Share The Pennies an opt-out program, asking customers to remove themselves if they didn’t want to participate. The city council passed it. 

Margie Borrum-Smith took the calls from unhappy customers. 

“People would say, ‘I don’t want anybody telling me what to do with my money,’ but when they hear about what’s going on, they want to participate,” said Borrum-Smith, who is now the manager of MLGW’s energy services and oversees the Share The Pennies program. 

Customers contributing to the program give about $12 each year, resulting in a collective revenue of $8.3 million. It has funded the weatherization of 935 homes. 

But, managing the program budget is not just about the quantity of work, it’s about the quality of the work, said Borrum-Smith. 

MLGW technicians oversee home projects from beginning to end. To perform services, they are required to hold certification as a home energy rater, an accreditation recognized by the U.S. Department of Energy. 

Trained to conduct ethical inspections and uphold industry standards, they offer cost-saving recommendations and investments in sustainable appliances such as heat pumps—an energy-efficient technology capable of both heating and cooling homes.

During installations, technicians collaborate with a roster of 41 local contractors, with many being small businesses owned by people of color and women. Together, they adhere to a set of standards and code enforcements.

“In the end, the technician has to sign off and the customer has to sign off,” said Borrum-Smith. “It’s the technician that should be asking, ‘are you satisfied?’ Because we shouldn’t let anything pass that should not be like we want it in our home.” 

The demand for weatherization services exceeds what Borrum-Smith’s team can currently meet. In addition to better living conditions, people want more affordable monthly utility bills. 

Memphis has one of the highest energy burdens nationally, where families or individuals allocate a significant portion of their income to utility bills. Thirteen percent of households face energy burdens, nearly 10% higher than the national average, as reported by the American Council for an Energy-Efficient Economy. 

MLGW’s next enrollment period opens on Tuesday. The utility partners with the Metropolitan Interfaith Association to manage the hundreds of people who ask for weatherization services. In past years, they’ve received so many applications, they closed the portal in just a day. 

Borrum-Smith hopes that the program can eventually offer a second enrollment period each year, but this expansion would require more funding. Despite that MLGW receives federal and state funding for weatherization programs, as well as contributions from ratepayers, meeting the pace and scale of demands will require more funding. 

Energy efficiency as a solution in motion 

Weatherization is among America’s oldest resiliency policies. 

In response to the 1973 oil crisis that brought about soaring energy costs, the U.S. The Department of Energy created its weatherization assistance program. Now, nearly half a century later, the Biden administration is using similar approaches as a tool to meet climate targets with unprecedented funding packages for clean energy. 

“Weatherization is key from a climate resilience standpoint,” said Will Bryan, policy director with the Southern Energy Efficiency Alliance. 

“There are two dimensions to this,” he said. “There’s certainly reducing greenhouse gas emissions, which is vital and which weatherization does. The other benefit improves the kind of resilience of a household in the face of climate impacts.”

The impacts of climate change, such as hotter summers and more intense winter storms, pose dual threats to both safety and the operational integrity of energy grids. Tennessee Valley Authority, the energy provider for MLGW, has been grappling with these challenges. 

In recent years, the utilities have implemented rolling blackouts due to high electrical demand that strains its energy grid. Just last week, they jointly issued energy conservation alerts, urging customers to voluntarily reduce their energy usage when temperatures dropped to single digits.

While cohesive emergency plans and the adoption of clean energy sources are imperative for a holistic climate response across Tennessee, these solutions are years away. But weatherization already has a strong policy groundwork. 

That’s why Bryan and his colleagues at SEEA are actively aiding state energy offices now on home energy programs, offering guidance on effective strategies for administering and allocating federal funding. He anticipates that millions of dollars could come through Tennessee because of initiatives such as the Inflation Reduction Act and the Bipartisan Infrastructure Law. These funding packages offer rebates and other funding streams that can be used to directly lower the cost of energy improvements. 

Already, Memphis city planners funneled $500,000 awarded from the American Rescue Plan Act into the Share The Pennies program last year. 

As program managers and energy consultants try to expand their financial resources for weatherization programs, they are grateful to customers like those at MLGW who are helping their neighbors. This accessible and dependable revenue source is something even Share the Pennies participants, like Maino herself, can contribute to. With her monthly utility costs now $30 lower, Maino rounds up her bill, passing on the assistance to others. 

“Everybody wants to be Bill Gates. Everybody wants to be Warren Buffet, but the reality is when you’re a single mother, like I am, I don’t have the liberty to sit here and write a $10,000 or $10 million check,” said Maino. “But rounding up to the nearest dollar, that’s not going to affect anyone’s bottom line.”


Ashli Blow wrote this article for Tennessee Lookout.


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