School Funding Matters

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History of School Funding

The DeRolph decisions

In 1991, the Ohio Coalition for Equity and Adequacy of School Funding, an alliance of more than 500 school districts, filed a lawsuit on behalf of Nathan DeRolph, a student at Sheridan High School in the Northern Local School District in Perry County. The lawsuit claimed that by relying so heavily on local property taxes to fund schools the state failed to provide a "thorough and efficient" educational system, as dictated by the Ohio Constitution.

In 1997, and in several other rulings since, the Ohio Supreme Court declared Ohio's school funding system inequitable and ruled it unconstitutional, directing the legislature to enact a "complete, systemic overhaul."

Highlights of School Funding History

1976 House Bill 920 passes.

December 1991 DeRolph lawsuit filed.

July 1994 DeRolph ruling: Funding system unconstitutional.

August 1995 Court reverses DeRolph decision.

March 1997 Supreme Court rules funding system unconstitutional, orders compliance.

1997 Ohio School Facilities Commission created to rebuild schools.

February 1998 Legislature establishes new basic-aid formula.

March 1998 DeRolph deadline for compliance passes.

May 1998 Voters reject sales tax increase for schools/property tax.

February 1999 Lower court rules state has not complied with DeRolph order.

May 2000 Supreme Court rules funding system still unconstitutional.

May 2001 Legislature increases school funding and provides parity aid.

September 2001 Court rules school funding system still unconstitutional, orders state to alter methodology.

March 2002 Three months of court-ordered mediation between the DeRolph parties fails.

December 2002  Supreme Court affirms that funding system remains unconstitutional but ends its oversight.

May 2003 Supreme Court reiterates final DeRolph order; prohibits further litigation.

October 2003 U.S. Supreme Court declines to hear the case.

April 2005 Educate Ohio begins effort to gather signatures for proposed constitutional amendment.

November 2006 Consortium of education groups adopts language for amendment that would establish high quality education as fundamental right and implement new funding model 

January 2007 Campaign does not gain enough signatures to place proposed amendment on November 2007 ballot.

May 2008 Campaign suspends effort to place constitutional amendment on November 2008 ballot.

Learn more about the history of Ohio's school funding issue

Follow the timeline of Ohio's school funding issue.

The legislative response

In the years since the Supreme Court ruling, the Ohio General Assembly has enacted several pieces of legislation aimed at correcting problems identified by the court.

To address infrastructure... the Ohio School Facilities Commission was created in 1997, providing more than $2.3 billion, primarily in tobacco settlement money, to fund a statewide effort to rebuild schools rated as the worst in the nation. (GAO study, 1996)

To address adequacy... The consulting firm Augenblick and Meyers completed a "costing out" study in 1997 to determine what would be adequate funding to educate a student in Ohio. While this study produced an increase in funding, rising 37.5% from 1997 to 2002, the model used has been deemed flawed by some, who argue that it does not accurately capture the costs of adequately educating a student.   

To address equity... Parity aid, which provides additional funding to districts with low property values, was introduced in 2001 to help close the gap between rich and poor districts. Additionally, the legislature responded to the court decisions by favoring low wealth districts with equity aid.

To address funding... In 1999, House Bill 282 marked the first time the state created an education budget separate from its main operating budget, a move aimed at keeping education spending from being overlooked in the larger general fund budget.

Ballot initiatives

In addition to legislation, ballot initiatives proposing solutions have been introduced.

Sales tax. In 1998, Ohio voters rejected 1 cent sales tax increase to raise $1.1 billion a year, half for schools and half for property-tax relief.

Getting It Right Campaign. After four failed attempts to revamp the school funding system through the courts, the Ohio Coalition for Equity and Adequacy of School Funding shifted its energies to placing a constitutional measure on the ballot. The group sought an amendment that would address the concerns of the DeRolph cases, a campaign called Getting It Right For Ohio's Future. The coalition has not been successful in obtaining the signatures needed to put it on the ballot.

Learn more about the current condition of school funding

Make a difference

With political attention now closely focused on the issue of school funding, Ohio citizens have a unique opportunity to decide what kind of schools they want and how to pay for those schools.

Find out how you can make a difference.