Latest news with #FairSchoolFundingPlan
Yahoo
09-07-2025
- Business
- Yahoo
What's the effect of governor's line-item vetoes on Ohio public school funding?
COLUMBUS, Ohio (WCMH) — After months of discourse about public school funding and property tax relief, the state has settled on its funding plan. Public school funding in Ohio has been a major talking point this budget cycle, but the state has finally determined how districts will be funded over the next two years. Gov. Mike DeWine vetoed some of the more controversial changes to public school funding, but some public school advocates still say the budget will underfund districts. See previous coverage of the budget in the video player above. 'In signing this budget, I line-item vetoed several provisions related to property taxes. I felt that these ideas were thoughtful, but I was also concerned that imposing them now, all of them at once on our local schools, would create a huge, huge problem,' DeWine said. What the state's new flat income tax will mean for Ohioans 'Regardless of these vetoes, Governor DeWine failed, through multiple steps in this process, to propose and fight for full and fair funding for Ohio's schools,' Melissa Cropper, Ohio Federation of Teachers president, said. Ohio schools are funded through state, local and minimal federal sources, with state funding allocated in the budget and local funding typically coming from property tax levies. State shares for public schools are determined through the Fair School Funding formula, a bipartisan plan introduced in 2022. The formula calculates state funding based on each district's circumstances to try to more equitably fund public schools. Under this formula, a district with more demonstrated financial need should get more state funding. For example, Columbus City Schools, the state's largest district, received $350.1 million in its last state formula payment where the much smaller Bexley City Schools, which benefits from substantial property tax support, received just $20.5 million. In the final budget, the Fair School Funding formula is mostly implemented. Public school advocates said this is a big improvement from the House version of the budget, which scrapped the plan entirely, but it still falls short of the formula's promise to public school districts. Advocates say the plan underfunds districts because the formula inputs will be out of sync. Under the budget, school districts will update the formula using 2025 financial data, but the state will estimate costs using 2022 pricing. By only adjusting school districts' inputs, the formula will calculate schools as demonstrating less financial need, resulting in less state money. Ohio Education Association President Scott DiMauro called the final version a 'knockoff version of the Fair School Funding Plan.' DeWine said it was the largest investment into public schools in the state's history. DeWine signs bill banning police ticketing quotas The final draft allocated $8.15 billion in Fiscal Year 2026 and $8.26 billion in FY 2027 to traditional school funding, making DeWine's claim accurate, although advocates say it lacks key context. The Ohio Education Association, which represents nearly 120,000 Ohio educators, said the bill still underfunds public schools by $2 billion. Although advocates are still concerned about public school funding, DeWine's vetoes eliminated provisions that troubled many districts, including property tax relief proposals. DeWine said property tax relief is a major concern, but the budget items did not guarantee long-term tax relief and would have created significant barriers for districts. 'We must address these legitimate concerns that Ohio voters are talking to us about,' DeWine said. 'Accordingly, I will be convening a working group, to be formalized and announced in the coming weeks, which will make recommendations to the General Assembly and to me about how we can provide meaningful property tax relief to Ohioans and still fund our schools.' DeWine vetoed a limit on how much money school districts could carry over from school year to school year, easing the fears of many districts that rely on long-term financial planning. The budget would have stopped districts from carrying over more than 40% of their general fund expenses, returning the remaining funds to residents as property tax relief. 'I think the short answer here is that while the legislature tried to spin the property tax changes as 'tax relief;' in reality, they (particularly the 40% cash balance cap) would have been extremely destabilizing for schools and very confusing for taxpayers,' Howard Fleeter, a well-established research consultant with the Ohio Education Policy Institute, said in an email. DeWine also removed a 20-mill floor calculation provision, which affects how much property tax revenue schools can collect as home prices rise. Without the veto, State Rep. Allison Russo (D-Upper Arlington) said the 20-mill floor change would have cost districts millions of dollars. DeWine also removed restrictions the budget would have placed on school property tax levies. Before the veto, districts would no longer have the authority to enact several emergency and fixed-sum levies. DeWine said these levies allow for important funding for districts, hence the veto. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
24-06-2025
- Business
- Yahoo
Ohio school funding: What to know about possible changes in 2025
COLUMBUS, Ohio (WCMH) — Between the Ohio biennial budget and a new property tax bill, central Ohio public school districts are nervous about the future of school funding. 'I wish I had better news on the funding front because it continues to be a real, real serious challenge and it's going to impact this community and the state more broadly,' Olentangy school board President Brandon Lester said. The state is considering several legislative changes that could have major effects on Ohio's public school funding. If both the state budget and a new property tax relief bill pass in their current forms, districts could lose hundreds of thousands or millions of dollars. See previous coverage of funding concerns in the video player above. Ohio lawmakers seek to ban abortions in the state, treat the procedure as homicide In Ohio, public school districts receive funds from a combination of state, federal and local revenue. The majority of funds come from the state, which uses a complex formula that weighs each individual district's circumstances to distribute funds equitably. Wealthier districts receive less support from the state and may rely more heavily on local property taxes. Federal funding makes up the smallest portion of district financial support. The state's formula came from a bipartisan effort to make school funding more equitable, called the Fair School Funding Plan. The formula asks both the state and individual districts to input data so it can appropriately consider how to fund schools. Sweeping property tax reform may save Ohioans $850 Ohio releases a state budget every two years, and the General Assembly is working to finish the budget for fiscal years 2026 and 2027. The most recent iteration came from the state Senate, which amended drafts from the House and Gov. Mike DeWine. Under the Senate's budget proposal, Ohio would implement an adjusted version of the Fair School Funding plan. The budget asks school districts to update their formula inputs with 2025 financial data, but the state will estimate costs under 2022 financial data. School districts said this unfairly affects the formula, providing less each year. The Senate budget also provides a bonus payment for public schools based on their state report card performance. The Senate and House budget drafts also each included a district carryover provision, which would limit how much money schools can keep from year to year. Under the Senate's version, the cap would be 50%. This means if a school district carries over more than 50% of it's budget from year to year, the money above would be returned to homeowners as property tax relief. The Legislative Budget Office estimates the Senate's foundation aid will total $8.22 billion in Fiscal Year 2026 and $8.31 billion in FY27, similar to the House's budget. Both are higher than DeWine's suggestion, which would see $8.09 billion in FY26 and $8.05 billion in FY27. Intel to lay off up to 20% of division behind Ohio plant The carryover clause is one of several property tax changes in the mix at the Statehouse, with House Bill 355 released this week. Under H.B. 355, Ohioans would save an average of $850 per year in property taxes. Ohio public schools — many of which are speaking out against the bill alongside local municipalities — said H.B. 355 would dramatically limit districts' funding, especially among wealthier districts that receive less funding from the state. According to the Ohio Association of School Business Officials, H.B. 335 would eliminate more than $1.5 billion in school funding. OASBO equated this cut to 20,000 teachers, one-fifth of teachers statewide. OASBO said H.B. 355 may temporarily lower property taxes, but it is also likely to lead to more frequent levy requests and cuts at local schools. 'There's a smarter way to deliver that relief. Senate Bill 22 is a property tax circuit breaker that would provide targeted help to families who are struggling now, while protecting the schools that sustain our property values and community strength,' the OASBO said. Ohio lawmakers OK end to police ticket quotas 'Proposed changes could reduce our annual tax revenue by $2.7 million, more than 10% of our annual operating budget, weakening our financial stability and jeopardizing resources we depend on for classrooms, teachers and programs our community expects,' Grandview Heights schools said in a statement. Policy Matters Ohio, a left-leaning policy research nonprofit, calculated losses for all districts that would receive less under the Senate budget than they would under a fully implemented formula. Executive Director Hannah Halbert said districts with negative numbers indicate a decrease in state funding from 2025. NBC4 compiled the data from all affected schools in Delaware, Fairfield, Franklin, Licking, Pickaway and Union counties. 'This is in addition to cuts that will happen under the property tax and levy changes,' Halbert said. Many school districts have been asking families and community members to advocate for budget adjustments since DeWine's budget debuted. This week, districts like Upper Arlington, Big Walnut and Hilliard issued statements asking the public to protest H.B. 355. As property tax revenue also benefits local governments, several districts released joint statements with governing municipalities. 'While we understand the concerns surrounding property tax levels in our state, our residents, students and staff depend on strong schools and stable city services,' Gahanna-Jefferson Superintendent Tracey Deagle and Gahanna Mayor Laurie Jadwin said jointly. 'We cannot afford to let a proposal of this magnitude pass without the scrutiny and accountability it demands.' If H.B. 355 passes, Gahanna-Jefferson schools said it would lose $11 million annually, equal to more than 100 teaching positions. Upper Arlington said it would lose $16.7 million each year. Big Walnut said it would lose $8.1 million, equal to 14.1% of its total budget. Hilliard said H.B. 355 would eliminate $20.8 million, leading to an estimated 260 teaching positions cut. Dublin schools said 80% of its funding comes from property taxes, and implementing the bill could force the district to remove 250 of its roughly 1,200 teaching positions. Dublin and other schools that do not receive as much funding from the formula said H.B. 335 and the money cap would both be difficult funding sources to replace. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
11-06-2025
- Business
- Yahoo
Ohio Senate passes budget giving Browns $600 million, tax cut to wealthy, more public school money
Ohio Senate President Rob McColley, R-Napoleon. (Photo by Graham Stokes for Ohio Capital Journal. Republish photo only with original article.) The Ohio Senate has passed a $60 billion state biennial operating budget, which includes a tax cut for the wealthy, some increased public education funding, and $600 million in funding to the Cleveland Browns for their new stadium. The total budget is expected to be around $200 billion once federal dollars come in. Ohio House Bill 96 was voted on mainly along party lines, 23-10. State Sen. Bill Blessing, R-Colerain Township, joined the Democrats to vote no. The senators increased the amount of money going to public schools from the Ohio House's proposal. The Senate budget gives public schools about $100 million more than the House. Although they follow most of the Ohio House's proposed budget, which only gives schools about $226 million of an increase for school funding, the Senate changed the funding 'guarantee' amount. Right now, some districts have guarantees that a portion of their funding will not be reduced, even if their enrollment goes down This $100 million added back would only go to high-performing or 'improving' districts. However, to be fully funded based on statistics from the Fair School Funding Plan (FSFP) from 2021, schools would need an additional $666-800 million, compared to the $226 million given by the House. Still, the Senate's version is closer to the FSFP than the House's. 'We're following the funding scheme that was put together in the first place,' Senate Finance Chair Jerry Cirino, R-Kirtland, said. 'Our bill is the closest way to get there.' They also raised the House proposal's cap on districts' rainy day funds to 50%, instead of 30%. This would mean that the schools would have to refund anything above that back to the taxpayer to provide property tax relief. 'The priority is not, obviously, in fully funding education, investing in our children and our future,' Senate Minority Leader Nickie Antonio, D-Lakewood, said. The Senate's budget proposal still includes $600 million for a new Cleveland Browns stadium in Brook Park. However, the funding structure differs from what the Browns proposed and what the House approved earlier this year. The House proposed borrowing $600 million by issuing bonds and repaying the debt, with interest, over 25 years, at a cost of about $1 billion. The Senate is proposing a $600 million grant for the stadium using unclaimed funds. That's other people's money that the state is holding, from things like forgotten bank accounts, rent, or utility deposits or uncashed insurance policies. The Ohio Department of Commerce's website states the state is sitting on $4.8 billion in unclaimed funds. Asked about the possibility of Ohio Gov. Mike DeWine vetoing that provision, Cirino noted that DeWine said publicly he did not like the debt arrangement of the House for the $600 million. DeWine himself had proposed raising gambling taxes. 'I'm pretty confident and feel good that the governor and the House will look at our approach to it,' Cirino said. Ohio Democratic lawmakers remain staunchly opposed to the project. 'If they could find that money for the Browns and their stadium's move to Brook Park, why didn't they decide to use those funds for the schools?' Antonio asked. The budget also includes a 2.75% flat income tax. There are three income tax brackets in Ohio. Those making up to $26,000 do not need to pay state income tax. Ohioans earning between $26,000 and $100,000 pay a tax of 2.75%. Those making more than $100,000 have to pay 3.5%. State data reveals that this flat tax could result in a loss of about $1.1 billion in the General Revenue Fund. 'The dollars that we're foregoing in the flat tax are already incorporated into our overall spending,' Cirino said. Funding for schools, Medicaid, libraries, lead abatement, food banks, and child care face funding decreases from the current status or from the governor's budget. Asked about these cuts these cuts to social services for lower-income people while giving a tax cut to the state's highest earners, Cirino said Republicans think it's going to be good for the economy. 'It's going to be good for attracting people,' Cirino responded. Antonio disagreed. 'It's a gift to the wealthiest among us on the backs of the poorest and lowest-income and middle-class folks in the state of Ohio,' she said. Senate Republicans propose giving $20,000 to top high school students to encourage them to stay in the state for their higher education. The Governor's Merit Scholarship was passed in the House budget. Already existing, the House language would extend the proposal that gives the top 5% of each graduating high school class $5,000 a year to attend a public or private school in Ohio. But the Senate version reduces the scholarship to the top 2% of students. The money would also have strings attached. The scholarship recipients would be required to reside in Ohio for three years after graduation. There would be an 'expectation' that the money would be returned if they leave within the three years. Now, the Senate and House leaders will enter a conference committee, a closed-door negotiation period to create a final budget. Once a decision is made, both chambers must pass the combined bill. If it passes through both sides, it will be sent to Gov. Mike DeWine for review. In the past, he issued dozens of line-item vetoes on operating budgets. Line-item vetoing is the ability for the governor to pick and choose which policies within a larger piece of legislation get to stay or must go. The deadline for the budget to be passed is July 1. Follow WEWS statehouse reporter Morgan Trau on X and Facebook. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
10-06-2025
- Business
- Yahoo
As Ohio budget process continues, educators, parents push for school funding
COLUMBUS, Ohio (WCMH) — State lawmakers are working on the budget and the Ohio House and Senate disagree on public school funding. The House version of the state budget was criticized by school districts and the Ohio Education Association. The Senate's version would increase the total amount of money going to public schools, but some said it still isn't enough. Ohio State announces every student will use AI in class Despite the changes, local education leaders said they are still disappointed in the Senate's version. 'For us, bottom line is that public schools in Ohio are still shortchanged by the funding formula as being proposed by the Senate,' Scott DiMauro, president of the Ohio Education Association, said. The Fair School Funding Plan was created in 2021 to make sure public schools get enough money. DiMauro said the Senate's version includes the Fair School Funding Plan but does not update cost information based on inflation. 'If you have schools that are just short-funded, it means an increase in class sizes. It could mean a reduction in course offerings, cuts in other kinds of services. That's not good for kids,' DiMauro said. Westerville City Schools Treasurer Nicole Marshall said the state currently pays for 38% of the cost of public education while property taxpayers cover the rest. Marshall said it should be a 50-50 split. Dispensary reacts to Ohio marijuana limit changes 'I would venture to guess that our state share will continue to drop over the biennium under the Senate's proposal, which would mean that our community would be asked to pick up more of the share of the cost to educate students in our district,' Marshall said. With the Fair School Funding Plan not fully implemented in the Senate's version of the budget, Marshall said districts across Ohio are not able to adequately prepare for the future. 'We need to be able to understand what we'll have available so that we know what students, what services and programs will be able to offer to our students in the future,' Marshall said. Ryan Wynia, a parent of three students at Big Walnut Local School District, said he has been going to some of the hearings on the state budget. He said he is worried about how the Senate version could impact not only his kids, but students across Ohio. Parents of fallen Morrow County deputy speak out as suspect awaits new court date 'As a parent, I'm very frustrated. We've been waiting for the fair school funding plan to be funded,' Wynia said. 'The biggest fear that I have is kids not having what they need to make their way for the future.' DiMauro, Marshall and Wynia all said they are optimistic that the Senate's version of the state budget could change and improve before it is passed by the end of June. They all said they believe legislators will listen. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
03-06-2025
- Business
- Yahoo
Ohio Senate GOP budget increases school funding, gives Browns $600M grant, creates flat tax
Senate President Rob McColley, R-Napoleon, speaks at the Ohio Senate Republican Budget Press Conference. Sen. Jerry Cirino, R-Kirtland, the chair of the Senate Finance Committee, stands in the background. Photo: Morgan Trau, WEWS The Ohio Senate has announced its version of the state budget, one that provides a slight increase in public school funding, gives a $600 million grant to the Cleveland Browns for their new stadium and creates a flat income tax of 2.75%. Senate President Rob McColley (R-Napoleon) and Finance Chair Jerry Cirino (R-Kirtland) announced their proposed amendments to the state's biennial operating budget on Tuesday afternoon. House Bill 96, the number for the House's budget bill, passed in April. The senators increased the amount of money going to public schools compared to the House's proposal. The Senate budget gives public schools about $100 million more than the House. Although it follows most of the House's proposed budget – which only gives schools about $226 million for school funding, or $550 million total – the Senate changed the funding 'guarantee' amount. Right now, some districts have guarantees that a portion of their funding will not be reduced, even if their enrollment goes down. However, to be fully funded, based on statistics from the Fair School Funding Plan from 2021, schools would need an additional $666-800 million, compared to the $226 million given by the House. They also raised the House proposal's cap on districts' rainy day funds to 50%, instead of 30%. This would mean that the schools would have to refund anything above that back to the taxpayer in a method legislators want to use to provide property tax relief. The Senate's budget proposal still includes $600 million for a new Cleveland Browns stadium in Brook Park. However, the funding structure differs from what the Browns proposed and what the House approved earlier this year. The House proposed borrowing $600 million by issuing bonds and repaying the debt, with interest, over 25 years, at a cost of about $1 billion. The Senate is proposing a $600 million grant for the stadium using unclaimed funds. That money is property of Ohioans held by the state, things like forgotten bank accounts, rent or utility deposits or uncashed insurance policies. The Ohio Department of Commerce's website says the state is sitting on $4.8 billion in unclaimed funds. The Senate believes the state will more than recoup that investment through sales tax, income tax and commercial activity tax revenues from the 176-acre Brook Park stadium district. The budget also includes a 2.75% flat income tax. This mirrors a bill currently in the House, which would eliminate the separate brackets of the non-business income tax. People making more than $102,400 would have their taxes reduced from 3.5% to 3.125% in 2025 and then down to 2.75% in 2026. The lower bracket would stay at 2.75%. Now, the Senate and House leaders will enter a conference committee, a closed-door negotiation period to create a final budget. Once a decision is made, both chambers must pass the combined bill. If it passes through both sides, it will be sent to Gov. Mike DeWine for review. In the past, he issued dozens of line-item vetoes on operating budgets. Line-item vetoing is the ability for the governor to pick and choose which policies within a larger piece of legislation get to stay or must go. DeWine is adamantly against giving the bond package to the Browns, and we have asked repeatedly if he plans to veto it. He says he hopes it doesn't get to that point. The budget must be passed by the end of June. This is a developing story and will be updated. Follow WEWS statehouse reporter Morgan Trau on Twitter and Facebook. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
