How does school funding work in Ohio today?
- Ohio's schools are unconstitutionally funded, and have been unconstitutionally funded for more than 25 years
- The Ohio Constitution says the state must fund "a system of common schools"; education is a constitutionally mandated responsibility of our state government
- Funding for schools is derived from local tax sources (like property taxes) and state tax sources (like sales taxes), and a small amount (about 6% of the total budget) comes from the federal government
- Because the state caps the amount of funding it will allocate to local districts, local districts place levies on their local ballots for their communities to vote on
- Funding for private and charter schools is diverted from funding for local schools
- Homeschooling families receive a tax credit to offset education costs
In 2015, Senator Bob Cupp and Representative John Patterson determined that they would work together to find a lasting solution for Ohio's unconstitutional school funding formula.
Read the complete Fair School Funding Plan they co-authored HERE.
Read a summary and analysis of the Fair School Funding Plan HERE.
The Cupp-Patterson Fair School Funding Plan has several key features:
- It uses the actual cost of education to establish the base cost for the budget, providing a more precise calculation of how to account for each local district's capacity.
- It ended deduction funding for charters and voucher programs that would divert funding away from local schools, subsidizing private education for some students instead.
- It established funding levels for "categorial aid," meaning for categories of students who would require additional resources in some way (like kids who need additional resources to get up to reading at their grade level, or kids whose families are in poverty).
The Cupp-Patterson plan was originally offered as a bill in the legislature, but instead of passing as legislation, it was written into the state budget with a six-year implementation schedule. This means that full funding, and full implementation of the plan, must be advocated for each state budgeting process. In 2023, we have completed two years of the planned six year implementation period.
Fair school funding in Ohio is incomplete.
So what's next?
Making the system work well is a work in progress. Honesty for Ohio Education advocates for complete, and completely constitutional, funding for Ohio's schools. The work ahead will take place in two categories:
We must make sure funding for Ohio's schools is always constitutional, and is always funded in full. |
We must make sure funding for Ohio's schools accounts for the variations and needs of our students and communities. |
Ohio's state-level leaders have multiple opportunities to help achieve these goals:
- Continue to support the ongoing implementation of the plan. A six-year phase-in was laid out for the Fair School Funding Plan; we have accomplished 2 of those 6 years.
- Call for the studies that are needed to undergird the methodology of the Fair School Funding Plan formula. For instance, we need to have a complete understanding of what it costs to educate a child living in poverty. In order to plan and accurately fund for the needs of districts that serve children who live in poverty, we need to study that category of student, understand their needs, and understand the financial commitment required to adequately support that child.
- Complete the implementation of the fair school funding commission, which has always been a part of the Fair School Funding Plan. This commission should be tasked with uncovering problems throughout the implementation process, and devising ways to make the program work better for Ohio's families.
In his February 2023 State of the State address, Governor DeWine promised to continue the funding of the Fair School Funding Plan, but more than just the financial allocations are needed.
How has Ohio's system of school funding grown?
1803
Ohio was founded as a state, with a population of 45,000 residents.
Ohio was founded as a state, with a population of 45,000 residents.
1825
The first system of local schools was established in Ohio, and was financed by property taxes.
The first system of local schools was established in Ohio, and was financed by property taxes.
1851
The Ohio State Constitution establishes the requirement of a "thorough and efficient system of common schools."
See Ohio Revised Code HERE.
The Ohio State Constitution establishes the requirement of a "thorough and efficient system of common schools."
See Ohio Revised Code HERE.
1934
After the Great Depression, Ohio allocated a sales tax to help fund education for the first time.
After the Great Depression, Ohio allocated a sales tax to help fund education for the first time.
1975
The Ohio Lottery was founded, with the stipulation that some proceeds go toward funding education; this has not resulted in improved funding for Ohio's schools.
Learn more HERE.
The Ohio Lottery was founded, with the stipulation that some proceeds go toward funding education; this has not resulted in improved funding for Ohio's schools.
Learn more HERE.
1976
HB 920 passed the Ohio legislature, freezing the way property taxes are assessed for education funding without adjustments for inflation; this is part of why Ohio local school districts must regularly place a levy on the ballot asking for voters to support their local schools.
Learn more HERE.
HB 920 passed the Ohio legislature, freezing the way property taxes are assessed for education funding without adjustments for inflation; this is part of why Ohio local school districts must regularly place a levy on the ballot asking for voters to support their local schools.
Learn more HERE.
1991
The DeRolph v. State case was filed in Ohio, alleging that some school districts are inequitably funded, and therefore providing inequitable education to some Ohio students.
Learn more HERE.
The DeRolph v. State case was filed in Ohio, alleging that some school districts are inequitably funded, and therefore providing inequitable education to some Ohio students.
Learn more HERE.
1997
The Ohio Supreme Court found that Ohio's schools are funded unconstitutionally. In total, four rulings are issued with that same finding.
Learn more HERE.
The Ohio Supreme Court found that Ohio's schools are funded unconstitutionally. In total, four rulings are issued with that same finding.
Learn more HERE.
Find additional history on Ohio's school funding HERE.