School Funding Matters

Giving Ohioans a voice in shaping the future of public education
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Components of Ohio’s new school funding plan

In a statement titled Reforming Ohio’s Education System for the Modern Economy, the governor's office outlined the education and school funding changes adopted as part of the 2010-11 budget as follows:

Establishing a constitutional funding system and reducing the reliance on local taxpayers

Despite an ongoing recession and budget cuts to many other areas, Governor Strickland and the state legislature have made unprecedented investments in Ohio’s system of education to ensure our schools are constitutionally funded and prepare students with the skills and knowledge they need to succeed in the jobs of the future.
The Governor’s plan for reforming Ohio’s schools uses a funding mechanism, the Ohio evidence-based model, which is founded on what components are proven to be critical for student success and reduces the overreliance on local property taxpayers to fund Ohio’s public schools.

A new, constitutional system of funding for Ohio schools

The Governor’s plan:
• Raises the state share of education funding to more than 60 percent when fully phased in FY 2018-2019
• Eliminates “residual budgeting” by implementing an evidence-based model that uses research to cost out the components of a quality education
• Begins the phase out of “phantom revenue” by lowering the state charge-off to 22-mills this biennium and allowing states to use conversion levies to reach the 20-mill floor
• Creates the Ohio School Funding Advisory Council to continuously review and update the funding formula through recommendations to the governor and legislature

A funding increase for districts, even in difficult budget times
• With resources (Title 1 and IDEA) from the American Recovery and Reinvestment Act, all school districts receive an increase in FY 10. Ohio’s public school districts will receive an average of 5.78 percent increase in FY 10 (over FY 09) and an average 5.54 percent increase in FY 11 (over FY
09). * With ARRA resources, five districts receive a decrease in FY 11, the greatest reduction is .6 percent.
• Under the Governor’s plan, poorer districts receive the largest financial benefit. Without factoring in federal Title 1/IDEA ARRA resources, 79 percent of Ohio’s 124 poorest school districts will receive a funding increase in FY 10 and 85 percent will receive an increase in FY 11.