'Roller coaster': Stark County school districts facing uncertainty about state funding

Yahoo

09-04-2025

As lawmakers consider Gov. Mike DeWine's proposed biennium budget, Stark County's educators wonder what it means for their bottom line.
The governor's proposed budget would spend $23.4 billion on education. The plan fully funds the final phase-in of the Fair School Funding Plan that was first implemented in 2021 but will leave many Stark districts with less funding. DeWine's proposal would cut $103.4 million across hundreds of school districts over two years.
During the past few weeks, school officials have been analyzing the numbers and watching as the state operating budget changes as it makes its way through the state's legislative bodies.
Recently, the Ohio House introduced its budget plan that provides all public schools more state aid in fiscal years 2026 and 2027 than they received in fiscal year 2025. During the two-year budget cycle, the House plan would spend $231 million more on traditional public schools over two years, making sure that no district sees a cut.
Lawmakers in the Ohio House were expected to make more changes to the state's two-year budget on Tuesday before approving it today. Then, the Ohio Senate will decide how much money schools should receive. Any differences must be hashed out before the bill reaches DeWine's desk.
"It's a roller coaster," Stark County Educational Service Center Superintendent Joe Chaddock said. "The reality is it's (school funding) a big line item in the state budget."
School districts must be cautious as they navigate their spending plans, he warned.
Districts need to continue to look for ways to run a tighter, more efficient operation.
"We are asking our school districts to continue to be as frugal as they can with taxpayer money," Chaddock said.
The Educational Service Center, Stark superintendents and board of education members have been talking with local legislators about the impact of the proposed budget, he added.
"We've had multiple conversations expressing our concerns and they are listening. They are fighting for our Stark County kids," Chaddock said. "It really is a nerve-wracking time for everyone. It's hard to project forward when you don't know what the budget plan is going to be. We have to plan two, three, five years ahead as we are required to and it becomes even more complicated."
School treasurers, teachers and parents say lawmakers broke their promise to fund schools adequately, and the House's increased spending doesn't keep up with inflation. They also oppose a new House GOP plan to limit districts' savings to provide property tax relief for homeowners.
"Seeing the Legislature being unwilling to meet that price tag, to provide what's essential, is a clear message that their priorities are elsewhere," said Scott DiMauro, president of the Ohio Education Association, a statewide teachers union. "Especially when you see $600 million committed for a stadium to reward a major donor."
Exactly how much Republicans are shortchanging the "Fair School Funding Plan" depends on whom you ask and how you calculate its cost. House Finance Chairman Brian Stewart, R-Ashville, said the plan would cost $1.8 billion that the state doesn't have. A more conservative Legislative Service Commission estimate put the gap closer to $1 billion for traditional public schools.
But the price tag might be even higher. Policy Matters Ohio, a left-leaning think tank, estimated the House plan is $2.75 billion short of what kids were promised − if you update the cost of special education and courses for children whose primary language isn't English.
"We've just been underfunding schools for so long that that's become the goalpost," said Ali Smith, a researcher with Policy Matters Ohio. "This is not pie in the sky, progressive dream, teachers get $100,000 salaries. This is real middle of the road."
Stewart said House Republicans adjusted the formula, championed by former Reps. Bob Cupp and John Patterson, to help fast-growing districts and those experiencing large spikes in home valuations. Currently, districts that look wealthier − such as those with high property values − get less aid from the state.
"Cupp-Patterson is still kind of the bedrock, but it's the Ohio Revised Code," Stewart said. "Every two years, we need to be able to respond to the situation on the ground. This, I think, accounts for those imbalances that we saw."
The funding formula isn't the only House proposal that sits poorly with schools.
The plan would require counties to reduce property taxes if districts carry over more than 25% of their previous budget. It would work like this: Counties would either cut the tax rate or money raised through levies by the amount of cash districts have in excess of that 25% threshold.
Backers say this would help homeowners who have struggled with high tax bills since property values soared in 2023. But Rep. Bride Rose Sweeney, D-Westlake, believes there are better reforms out there, such as focusing state aid on homeowners who spend more of their income on property taxes.
"If we're talking about really wanting property tax relief, there are real bipartisan ways to do it," Sweeney said.
Ohio school districts had $10.5 billion left over from the 2024 fiscal year, and 86% had reserves above 25%, according to data from the Ohio Department of Education and Workforce. The amount varied by district: Some ended the year with more money than they spent, while others barely had anything in the bank.
That means property tax relief would differ from district to district, and some homeowners wouldn't see tax cuts at all. Instead of helping Ohioans, critics say, the plan would force schools to ask for more money to balance out the decline in savings.
"I don't think they're just hoarding money because they're all rich," Sen. Bill Blessing, R-Colerain Township, said. "They're being good fiscal stewards by doing that.'
School officials say the extra cash can help them navigate economic downturns. Credit rating agencies also look at reserves to determine a district's bond rating, and 25% is considered the bare minimum, Worthington Schools Treasurer TJ Cusick told a House committee.
The House GOP proposal comes as President Donald Trump dismantles the U.S. Department of Education, injecting uncertainty into how schools operate and are paid.
Lawmakers in the Ohio House will make more changes to the state's two-year budget on Tuesday morning before approving it Wednesday. Then, the Ohio Senate will decide how much money schools should receive. Any differences must be hashed out before the bill reaches DeWine's desk.
The Republican governor, who is navigating his fourth and final budget, says the final product is far from settled.
"I've never found that schools are bashful about mentioning the need for money, and I don't blame them. That's what they should be doing," DeWine told reporters Friday. "The thing that I would tell the schools and tell anyone else with concerns about anything in the budget: we still have a long way to go."
Based on the governor's fiscal plan, Fairless isn't waiting to take action.
Last month, Fairless officials issued a letter to parents outlining the district's potential financial situation and offering its solution to combat potential losses.
"What I am seeing in the proposed budget is rural, smaller districts with a less dense population will be the ones taking some funding hits," Fairless Superintendent Mike Hearn said. "Based on the governor's proposal, we will lose about $840,000 in funding. The Ohio House Substitute Bill is far more favorable but still does not keep up with inflation."
In most district budgets, around 80% of expenses are salaries and benefits.
Fairless received about $8.4 million in state aid during the current fiscal year. Under the governor's proposed plan, the district would get about $7.9 million and $7.5 million the following year.
With the House's proposed bill, Fairless would fare much better, but Hearn still has concerns.
Due to the uncertainty of state aid as well as other proposals in the budget, including plans to reduce the tax revenue generated by natural gas pipelines and the modification of the calculation of a school's district effective millage floor, Fairless will continue with its plan to cut expenses.
Fairless has rolled out a plan to cut $650,000 from its budget.
The first phase of the plan is to eliminate staff costs through attrition. Some teaching and support staff positions vacated through retirements and resignations will not be filled, he said.
Based on early estimates and staff notification, Hearn said he believes the district can save about $400,000 through attrition.
Officials also will consider sharing administrative services with neighboring districts. Fairless already shares its treasurer with Tuscarawas Valley.
"We are taking a scalpel approach not a hatchet," Hearn said.
For instance, the aviation teacher is retiring but that position will be filled, Hearn said, adding it is a highly popular program that a huge number of students are taking and it is exposing them to a career field. On the flip side, a Spanish position will not be filled and they will eliminate Spanish classes at the middle school.
"Having Spanish at the middle school is a good thing to have and we have had it for several years, but it comes down to the budget side of things and it is a luxury we can't offer anymore," he said.
Other ways to cut costs: Reducing support staff and ESC support staff, increasing class sizes and eliminating some programs such as summer school, summer camp and supplemental curriculum programming.
"The reality is every budget has some winners and some losers," Hearn said. "We are trying to be as efficient with taxpayers' money but we can't say we won't lose things that are important to our kids. When we have people in key positions that aren't there anymore, it's going to have an impact on kids."
Like Fairless officials, North Canton City Schools and Perry Local Schools leaders are continuing to watch what is going on in Columbus.
Under the governor's proposed budget, North Canton could lose about $1.4 million in state aid during the next two fiscal years.
"We will continue to monitor this situation as the budget moves through the legislative process," district leaders said in a written statement. "As we do each year, we will take a hard look at our staffing and our operating expenditures in an effort to provide the most efficient educational opportunities for our students."
While the district has not taken any moves to reduce spending in response to the proposed state spending plan, the continuation of decreased funding from the state will ultimately result in lost programming or an increased local tax burden, officials said.
Perry Local Schools Superintendent Nate Stutz said the fluidity of the state aid is challenging.
"It's challenging trying to decide and determine how to move forward as a district when you have no idea how you are going to be funded," he said.
Under DeWine's proposed spending plan, Perry would lose $1.3 million over the two years while the House proposal would yield the district a $110,000 to $160,000 increase.
"It always presents some challenges but you just try to make decisions very conservatively," he said. "That has been our approach for some time."
Reach Amy at 330-775-1135 or [e-mail].
This article originally appeared on The Repository: Stark County schools struggle with uncertainty of state funding