School Funding Matters

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A Timeline of Ohio School Funding

1976
House Bill 920 passes

The passage of HB 920, which holds the dollar amount raised by a levy constant regardless of changes in property values, forces boards of education to constantly go back to their voters for more money just to maintain the current level of educational programming. At the time, the bill is seen as keeping property tax in check in the face of rapidly rising property values.

1990
Ohio Coalition for Equity and Adequacy of School Funding is formed

The Ohio Coalition for Equity and Adequacy of School Funding is formed to challenge the constitutionality of the Ohio school funding system. The coalition represents more than 500 school districts.

December 1991
DeRolph - Lawsuit filed

The Ohio Coalition for Equity and Adequacy of School Funding files a lawsuit against the State of Ohio in the Perry County Common Pleas Court on behalf of Nathan DeRolph, a student at Sheridan High School in the Northern Local School District in Perry County.  The districts claim that the state failed to provide an "efficient" educational system, as dictated by the Ohio Constitution of 1851, by relying so heavily upon local property taxes to fund schools.

1991
Failed legislative attempt

Senator Bob Cupp introduces legislation that would address disparities in the business property tax. The proposal does not gain any momentum.

October-December 1993
DeRolph - Case in court

Perry County Common Pleas Court Judge Linton D. Lewis, Jr. hears the DeRolph case.

July 1994
DeRolph - Ruling: School system unconstitutional

July 1 - Judge Linton Lewis, Jr. rules Ohio's public education system is neither thorough nor efficient as stipulated in the Ohio constitution due to disparities created by the funding method. Linton rules that education is a fundamental right in the state, overturning the Ohio Supreme Court's decision in Cincinnati School District Board of Education v. Walter. Linton directs the Ohio Superintendent of Public Instruction and Ohio Board of Education to present proposals for the elimination of wealth-based disparities to the legislature.

August 1994
DeRolph  - State appeals

State defendants file an appeal to Lewis' ruling in Ohio's Fifth District Court of Appeals.

1995
"Panel of Experts" study on school funding.

A panel of experts is hired by the state in response to Judge Lewis' order to conduct a costing-out study on ways to eliminate wealth-based disparities. The study recommends an increase in spending of $1,200 per pupil.

August 1995
DeRolph I - Court reverses Lewis' decision

In a split decision, the Fifth District Court of Appeals overturns Lewis' ruling. The decision relies on Supreme Court case law as defined in the Walter case, which allowed for district disparities as long as the state provided for basic education. The appeals court finds that Lewis does not have jurisdiction to order the state to recommend changes to public education funding nor to review them.

October 1995
DeRolph - Plaintiffs appeal

The Ohio Coalition for Equity and Adequacy of School Funding files an appeal with the Ohio Supreme Court.

January 1996
Ohio Supreme Court accepts jurisdiction of the case.

March 1997
DeRolph - The Supreme Court rules funding system unconstitutional, orders compliance

In a 4-3 vote, the Supreme Court upholds a lower court ruling that the Ohio education funding system is unconstitutional and orders a "complete, systematic overhaul" of the system, including reduced reliance on local property taxes, by March 24, 1998. The benchmark to measure the new system's adequacy would be the thorough and efficient clause, as set forth in Section 2, Article VI of the Ohio Constitution. The court remands the case to the trial court to conduct a hearing and issue findings as to whether the anticipated remedial legislation satisfies the mandates of the Ohio Supreme Court. This ruling comes to be known as DeRolph I.

1997
"Costing Out" study completed

The consulting firm Augenblick and Meyers completes a "costing out" study in response to the 1997 ruling using the Successful Schools Model for the Department of Education's School Funding Task Force. The study recommends a 37.5% increase in per-student funding from 1996-97 to 2001-02.

1997
Legislative - Ohio School Facilities Commission created

Senate Bill 102 creates the Ohio School Facilities Commission to fund a statewide effort to rebuild schools, providing $300 million in appropriations. 

February 1998
Legislature establishes new basic-aid formula

In House Bill 650, the legislature establishes a new basic-aid formula, determining the base cost of an education for state and local funding to school districts, phased in to reach $4,414 per student in 2002. It also provides $170 million in appropriations for school facilities construction.

March 1998
DeRolph - Deadline for compliance passes

March 24 - The Supreme Court's one-year deadline for compliance with its findings passes.

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

Ohio voters reject a penny-on-the-dollar increase in the state sales tax to raise $1.1 billion a year, half for schools and half for property-tax relief.  This was proposed and supported by business groups and the governor as their response to DeRolph, but was opposed by education groups as being inadequate to addressing education needs.

1999
Successful Schools report acted on.

Augenblick's successful schools report is implemented, but with modifications from the General Assembly.

February 1999
DeRolph - Lewis rules state has not complied

Judge Lewis in Perry County rules that the state legislature has not complied with the Supreme Court's order for a "complete, systematic overhaul"' of school funding.

June 1999
Legislative - Separate education budget created

For the first time the legislature creates an education budget separate from its main operating budget as required in HB 650. This is intended to keep education spending from being overlooked in the larger state general fund budget.

November 1999
DeRolph - Oral arguments

The Supreme Court hears oral arguments relating to the state's appeal of Lewis' ruling.

March 2000
Facilities - Funding from tobacco settlement

Senate Bill 192 commits $2.5 billion over 12 years for school construction and repair. The funding is a result of the money received by the state from the Tobacco Master Settlement Agreement.

May 2000
DeRolph II - Supreme Court rules school funding system still unconstitutional

The Supreme Court rules that Ohio's school funding system remains unconstitutional and gives the state until June 15, 2001, to bring the system into compliance. The court retains jurisdiction to review the legislation enacted in response to its remedial orders.

May 2001
Legislature increases school funding

The legislature increases funding to schools by $1.4 billion, boosting state aid to $4,814 per student in fall 2001 and $4,949 the next year, as well as providing parity aid to poorer districts to lessen disparities.

June 2001
DeRolph III - Oral arguments

The Ohio Supreme Court hears oral arguments on whether the latest legislative fix meets the court's mandate.

September 2001
DeRolph III - Court Ruled School Funding System Still Unconstitutional, Ordered Concrete Way to Comply

September 6 - In another 4-3 ruling, the Supreme Court ruled that Ohio's school funding system remained unconstitutional, but ordered the state to alter the methodology for determining per-pupil base support and accelerate phase-in of parity aid, at which point the system would become constitutional.

September 2001
DeRolph III - Taft asks for reconsideration

Over the objections of legislative leaders, Gov. Bob Taft asks the court to reconsider its latest ruling.

December 2001
DeRolph - Mediator appointed

The court appoints mediator Howard S. Bellman to negotiate a settlement in the case.

March 2002
DeRolph - Mediation fails

Bellman notifies the court that mediation has failed.

December 2002
DeRolph IV - Supreme Court vacates September 2001 ruling

By a vote of 4-3, the Supreme Court vacates its September 2001 ruling and declares its first two rulings as the law of the case, affirming that the state school funding system remains unconstitutional but giving no deadline to fix it and effectively ending its oversight of the General Assembly's actions toward compliance.

May 2003
DeRolph  - No more court action allowed

The Supreme Court reiterates the DeRolph IV order but prohibits any further litigation in the case.

August 2003
DeRolph - Plaintiffs ask for review

The Ohio Coalition for Equity and Adequacy of School Funding asks the U.S. Supreme Court to review the impact of the Ohio Supreme Court's decision barring further litigation.

October 2003
DeRolph - Court denies review

The U.S. Supreme Court declines to hear the case and does not issue an opinion, effectively ending the DeRolph litigation.

2003
Blue Ribbon Task Force on Financing Student Success

Gov. Bob Taft forms a 35-member Blue Ribbon Task Force to examine school funding. The group meets over 18 months and recommends, among other things, a new Building Blocks funding structure.

2004
Failed legislative attempt - Flannery Education Act

Following the DeRolph IV decision, state Rep. Bryan Flannery introduces a bill into the Ohio House that would revamp Ohio's public school funding system by reducing the reliance on property taxes and increasing the amount of state funds available for public education. The issue does not obtain sufficient signatures for ballot placement.

April 2005
Failed public action - Educate Ohio petition

The group Educate Ohio begins a petition campaign seeking a constitutional amendment to address school funding. Educate Ohio's petition calls for the creation of a committee to define the components of an adequate education and determine the cost of the components, and would require the state to fund schools at that level while significantly lowering property taxes and ending school levies for operations.

February 2006
Public action - Consortium

A consortium of 11 statewide education organizations meets to seek a solution to the school funding problem. The groups meet throughout the year to find consensus for a constitutional amendment.

November 2006
Public action - Constitutional amendment drive

The consortium, along with the Ohio Mayors Education Roundtable, adopts amendment language that would "establish high-quality education as a fundamental right for Ohio's children through the implementation of a new school funding model." The proposed amendment includes a process to identify, cost out and fund the components of a high quality education.

January 2007
Public action - Campaign for Ohio's Future petition

The consortium's Campaign for Ohio's Future/Getting it Right for Ohio begins the petition process to place its constitutional amendment on the November 2007 ballot. The drive does not gain enough signatures for November 2007, but continues to gather signatures with hopes to place the amendment on the ballot in November 2008.

July 2007
Legislature - Funding increase

In House Bill 66, the legislature increases state funding for schools by $270 million over two years and approves the Blue Ribbon Task Force's Building Blocks model of school funding to better direct funding to districts' critical needs. 

May 2008
Public Action - Campaign for Ohio's Future suspends efforts

The Campaign for Ohio's Future suspends its effort to collect enough signatures to place a constitutional amendment on school funding on the November 2008 ballot.

July 2008
Strickland's Conversation on Education

Gov. Strickland kicks off his Conversation on Education, a series of regional meetings to gather public input on school reform. He plans to follow up with similar meetings on school funding later in the year. The goal of these sessions is to craft a full education reform proposal for 2009.