History of Education &
School Funding in Ohio
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
When HB 920 became law, it set the amount that can be collected from a local voter-approved property tax at the amount raised when first passed. As a result, local voted millage is rolled back as property values increase, so local school districts must ask voters to approve levies more frequently.
Learn more HERE.
When HB 920 became law, it set the amount that can be collected from a local voter-approved property tax at the amount raised when first passed. As a result, local voted millage is rolled back as property values increase, so local school districts must ask voters to approve levies more frequently.
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.
Ohio establishes two systems of education that compete for public funds: 1) public and accountable, 2) private and unaccountable.
Ohio authorizes use of public funds for private school tuition vouchers and tuition for newly created charter schools.
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.
Ohio establishes two systems of education that compete for public funds: 1) public and accountable, 2) private and unaccountable.
Ohio authorizes use of public funds for private school tuition vouchers and tuition for newly created charter schools.
Funding Public Education in Ohio – A Short Course on a Long History
1851 – In 1850, Ohio voters approved a new state Constitution. Article VI, Section 2 of the document which took effect in 1851, made the General Assembly responsible for funding a statewide public education system. Because education is critical to self-governance, the beneficiaries are communities and democracy, not the individual. Every state constitution includes a provision for funding a public school system that guarantees universal access and equal opportunity in service of the common good.
1934 – Ohio has relied on property tax revenue contributed by school districts, and state resources allocated in the state budget to fund a “thorough and efficient system of common schools.” Lawmakers have frequently modified the source of funds, the level of state spending, and the distribution of state funds. During the Great Depression, local communities struggled to fund their schools, making state funding even more critical. In 1934 the Legislature approved a 3% sales tax and substantially increased the state’s contribution to education. This change was called “Foundation Funding.” Its purpose was to provide every school district a basic foundation for operating its schools. To this day the line item in the state budget for basic operations of public education is known as Foundation Funding. The biennial budget approved in 2021 added into the Foundation Funding line item, spending for charter schools and vouchers, education options that are not operated by public school districts.
1997 - In 1992 a coalition of more than 500 Ohio school districts joined the Coalition for Equity and Adequacy in School Funding in a lawsuit to challenge the failure of the legislature to meet its public school funding obligations as stated in the “thorough and efficient” clause of the Ohio Constitution. The named plaintiff in the case was Nathan DeRolph a middle school student in Green Local school district. In 1997 the Ohio Supreme Court made the first four decisions in the DeRolph case that found the funding system to be unconstitutional. It failed to account for the true cost of education, and it promoted unequal opportunity because of over-reliance on property taxes. Despite multiple short-lived efforts to improve the funding system, the General Assembly has typically relied on “residual” funding (defining per pupil spending by funds they want to spend), and has not reduced reliance on local property taxes to solve funding gaps.
The Legislature’s resistance to the Supreme Court decision was immediate. Instead of adopting a funding remedy, in 1997 the Legislature authorized and funded its first voucher program, and permitted unaccountable organizations to operate charter schools. Part of the cost of these new educational options was assigned to local school districts that had no say in the decision. Regulations guaranteeing quality, transparency, access, student rights, or accountability did not apply to the operation of these publicly funded entities. In a serious departure from the Constitutional requirement of separation of church and state, both options allow religious education at public expense.
Ohio now operates two systems of education that compete for public funds. One system is public and accountable, one private and unaccountable. Since1997, voucher programs and charter schools have grown, payment levels have increased, and restrictions on access removed. Spending has exploded. In 2021 the foundation funding line item included more than $1billion for 115,000 students in charter schools, and $560million for 75,000 students using vouchers. Ohio’s 1.6million public school students received $7.4billion.
2021 – In June of 2021 the Ohio Legislature approved its operating budget for FY 23 and FY 24. This was a breakthrough budget for public education. The Legislature approved most of the components of the Fair School Funding Plan, the school funding reform model developed by an independent group of education practitioners to achieve the long-awaited school funding plan that was both equitable and adequate. The bi-partisan effort to design a true remedy to the DeRolph case began in 2016 and championed by Rep. John Patterson (D-Ashtabula) and Rep. Bob Cupp (R-Lima). The spending levels were established based on an in-put model that assessed the actual costs of educating a typical student and the costs of educating children whose needs require greater investment.
The distribution plan reduced reliance on local property taxes which drive inequality, and more accurately assessed the capacity of local communities to fund their schools. The plan also ended the “deduction” method for funding private school alternatives, thus providing significant relief to affected school districts.
A critical role of the state investment in public schools is to neutralize the negative effect of local property taxes on education opportunities. The fair school funding plan makes it possible for every child in the state, no matter the capacity of their community to pay for education, to have access to adequate resources for a high quality education. The plan accomplishes this by increasing the level of basic aid – the base cost; increasing categorical aid; funding more transportation costs; and providing targeted boosts in funding to the lowest wealth districts. For the plan to be fair to all and fair to taxpayers, all components are needed as is full funding.
While much was accomplished in the last budget, the plan was not made permanent nor was it fully funded. Most elements of the formula and recommendations for additional research were adopted in the budget document, and funds were approved for the first two years of an anticipated six year phase it. The same budget also increased funding and access to vouchers and charter schools.
In a related development, in January of 2021, a coalition of 120 school districts and the Ohio Coalition for Equity and Adequacy of School Funding, filed suit in Franklin County Common Pleas Court challenging the constitutionality of Ohio’s EdChoice and EdChoice Expansion voucher programs claiming they are a violation of the “thorough and efficient” clause of the Ohio Constitution. The persistent growth in vouchers and pending legislation to make vouchers available without restriction, makes them a threat to the state’s capacity to fund public education and to public education itself. Plaintiffs claim the constitution requires the state operate one education system, not two. Vouchers advance individual interests while public education serves the common good.
2023 – This is the year when the Ohio legislature could finally resolve the DeRolph case, by securing and fully funding all of the components of the fair school funding plan, Getting the Fair School Funding plan over the finish line would strengthen Ohio’s public education system, provide property taxpayers and local communities much needed relief from over-reliance on property taxes, and finally advance equal education opportunities for every student in Ohio.