2026 State Budget Surplus
Honesty for Ohio Education joins the Heights Coalition for Public Education in calling on lawmakers to invest the state's remaining $536 million surplus in Ohio's most vulnerable students
August 25, 2026 — One day after the Heights Coalition for Public Education released a statement warning that more than 20% of Ohio school districts are projected to run out of funds by fiscal year 2029, Honesty for Ohio Education is amplifying that call to action: Ohio lawmakers must direct the state's remaining budget surplus to the public school students the state has shortchanged for the past two years.
Ohio closed fiscal year 2026 with more than $2.428 billion in unencumbered surplus revenue, according to the Ohio Office of Budget and Management. "The state's financial position has never been stronger," OBM Director Kimberly Murnieks said. As the Heights Coalition noted in its statement, Ohio raised more in tax revenue than it predicted and spent less than it planned. As of July 18, roughly $536 million of the surplus remained unallocated.
"Communities across Ohio are facing new levy requests and deep cuts to education opportunities not because local officials mismanaged their budgets, but because the legislature walked away from its own funding formula," said the Heights Coalition for Public Education in its statement.
"The Fair School Funding Plan worked because it reflected the diversity of student needs and costs to educate. When lawmakers failed to fully implement it in 2025, the children who lost the most were kids in poverty, kids with disabilities, English learners, and students in rural districts. There is more than half a billion dollars on the table right now that could begin to make that right," said Dr. Christina Collins, Executive Director of Honesty for Ohio Education. "Funding the formula is about the state fulfilling its constitutional obligation to fund public schools."
Honesty for Ohio Education, joining the Heights Coalition for Public Education and partners statewide, is calling on the General Assembly to:
Direct the remaining $536 million surplus toward the state's overdue obligations to public school students by funding the most vulnerable populations: children living in poverty, students with disabilities, and English learners; and,
Commit to fully funding the state's share of public education, restoring predictability for districts and relief for local taxpayers, when work on the state's next budget begins in January 2027.
As the Heights Coalition emphasized, a one-time infusion of surplus funds will not remove the need for local levies. Voters must also pay attention to their ballots and hold their elected officials accountable.
“Ohio has the funds. Ohio has the formula” Collins said. “Now it needs the will to finish the job. Until then, Ohioans must support our local levies to keep the lights on this year and commit to a longer fight for re-prioritizing our children in state budgets."
TAKE ACTION
Ohio’s legislature has underfunded public school students for decades, including most recently in the state budget for 2026 and 2027 where they shortchanged public schools by $2.75 billion.
At the same time, the state has decreased its share of school funding, causing districts to go back to voters for more frequent levies. As of July 18, the state has approximately $536 million unspent of a $2 billion surplus.
Remaining Funds Should Fund Public Education
Ohio’s population of children living in poverty and children with disabilities has increased over the last four years,1 but state funding has failed to keep up with the cost of educating these students. Legislators should direct remaining surplus funds to these students and promise to fully fund the Fair School Funding Plan in the 2027 budget cycle.
Tell Ohio Legislators to Direct Remaining Surplus Funds to Ohio’s Most Vulnerable Students. The remaining $536 million should go to students with disabilities, students in poverty, and English learners.
Support Local School Levies this November. The funding crisis facing our schools is a direct result of legislators’ budget decisions. We must support schools with a “yes” vote at the ballot and elect pro-public education candidates.
Join the Fight for Fair Funding. Next spring, Ohio lawmakers will determine our state budget for 2028 and 2029. Join the fight to fully fund our public schools, which serve nearly 90% of Ohio’s students.