Kevin Kroskey's Ohio Faculty Advisor

Below is the reprinted news release by STRS from 10/18/2010. This is an important news release that lists revisions to the proposed changes to pension reform. In my opinion it appears the changes to get the state pension systems in fiscal order are falling short of what is required. While participants are going to have to contribute an additional 2.5% to the pension plan, phased in over time, so too are the school districts. At a time when property taxes in Ohio are already what they are and schools face the funding challenges they do, it hardly seems like a sound fiscal idea to legislate additional funding, regardless of the time over which the changes may be phased in. After all, who knows what the next several years may hold in our era of high unemployment and (current) slow growth. With the current meager 60% funded ratio of STRS and the reform falling short of what is required, it is a safe assumption that additional changes are going to be needed in the not too distant future