ohio’s school funding system
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Ohio’s School Funding System. It’s not that complicated. Really!. Founders and Followers. Education is the Original Heart of it All. Land Ordinance of 1785. “There shall be reserved the lot No. 16, of every township, for the maintenance of public schools within the said township”. - PowerPoint PPT PresentationTRANSCRIPT
Ohios School Funding System
Ohios School Funding SystemIts not that complicated. Really!
Founders and FollowersEducation is the Original Heart of it All
Land Ordinance of 1785
There shall be reserved the lot No. 16, of every township, for the maintenance of public schools within the said township
Founders and Followers
Ohio ConstitutionThe General Assembly shall make such provisions, by taxation, or otherwise, as, with the income arising from the school trust fund, will secure a thorough and efficient system of common schools throughout the state
What Does That Mean?
How it works:
The State calculates how much it should cost to provide an education in a school districtThe state assumes each district can raise 22 mills in local property taxThe State picks up the restWhats a Mill Anyway?One mill = $31/$100,000 homeWhat if the calculation is wrong?An Even Greater Property Tax Burden
What if the Formula is off?
DeRolph v. Ohio
1991 Nathan DeRolph, a high school student in Perry County sues the states funding system
1997
Ohio Supreme Court rules that the system needed an overhaul and a reduction in the need for property taxes.
2000
Ohio Supreme Court considered the system again. Constitutional?
2001
Ohio Supreme Court considered the system again. Constitutional?
2002
Ohio Supreme Court considered the system again. Constitutional?
Until a complete systematic overhaul of the system is accomplished, it will continue to be far from thorough and efficient and will continue to shortchange our students.
The overreliance on local property taxes is the fatal flaw that until rectified will stand in the way of constitutional compliance.Ohio Supreme Court Justice Alice Robie Resnick, DeRolph IV, December, 2002
So the General Assembly got us a Constitutional Funding System, Right?
Not So Fast!
So What Happened?The Ohio Supreme Court dropped its jurisdiction over the DeRolph case in 2002
18 years laterIn 2009, Gov. Ted Strickland introduced the Evidence-Based Model
It was a systemic overhaul that cut the need for property taxes by an average of 13 mills over 10 years.
However,Gov. John Kasich eliminated the EBMPresent DayHistoric, Massive CutsThe biennial budget cuts nearly $3 billion from education
Increase, rather than decrease need for property tax levies to pay for schools
On average, more than 3 mills will be lost to school districts
Impact of Budget CutsImpact of Budget Cuts
Disproportionately hurt districts that cant raise much property tax
Example: Under the budget as passed, folks in Trimble, who make less than half what folks in Upper Arlington make, will have to tax themselves at 8 times the tax rate to replace the cuts
On average, folks in Ohios most challenged districts have to raise more than 1 times the tax rates of the most advantaged districts
Impact of Budget Cuts
Statewide ExamplesDistrictAmount cut between FY13 and FY11 Revenue Generated from 1 Mill Mills Needed to Replace CutsTrimble Local$ (538,783) $ 41,089 (13.11)Southern Local $ (551,322) $ 44,925(12.27)Rock Hill Local $ (1,184,864) $ 98,795 (11.99)Olentangy $ (4,959,781) $ 3,174,460 (1.56)Dublin$ (6,660,786)$ 2,758,364(2.41)Westerville $ (5,845,912)$ 2,476,884(2.36)Cleveland $(50,556,682) $ 5,606,461(9.02)Charter Schools and VouchersGov. Kasich and General Assembly leaders seek to expand Charter Schools and Vouchers
What Are They Anyway?Charter Schools: Public Schools that are freed up of most regulations school districts face, theoretically allowing them more creativity and innovationVouchers: A check the state gives to a parent for their child to attend a private schoolAt What Cost?$721 Million
Percentage Increases Since Court Dropped CaseBottom Line Post-DeRolphCharter Schools have seen a nearly 103% increase in state money over inflation
Traditional Public Schools have seen a more than 13% cut in state money, relative to inflationAre the Choices Better?In a word,
Ohio State Report CardRates districts and charter schools based on their pupils academic success5 levels:Academic Emergency FAcademic Watch DContinuous Improvement CEffective BExcellent A Excellent with Distinction A+Performance DifferenceNearly Half of all Traditional Public Schools rate A or A+ on the State Report Card
Nearly half of all Charter Schools rate either a D or F on the State Report Card
Money for Charter Schools and Vouchers is taken out of the amount the state distributes to a district
The amount transferred out is almost always more than the state would have given the district for that pupil
So Where does the $ come from?
Example:
Columbus receives $2,040 per pupil from the state through the formula for the more than 65,000 kids it educatesThe state transfers an average of $6,392 per pupil for each of the more than 2,000 kids Columbus loses to E-Schools Implications: Columbus has to either cut services, or use local property taxes to make up the difference
Comparing Costs for the StateLocal school districts: $3,193/ pupil
Charter Schools: $7,219/ pupil
E-Schools: $6,320/ pupil
Vouchers: $5,200/ pupil
Bottom LineOn average, all Charter and Voucher options remove more state money per pupil from a district than the district ends up receiving per pupil from the state. Districts have to make up those losses through cuts or local property tax.Historic Annual IncreasesCharters: 30%
EdChoice voucher program: 23%
If they expand faster, then thats more property tax that will have to be raised locally
The budget would quadruple the EdChoice Voucher program to a greater than $200 million a year deduction
Increasing the Burden
Myth: Vouchers Allow Kids to Be Rescued from Failing Districts
Fact:Vouchers have little to NO IMPACT on student successIts All Teachers FaultUnprecedented attack on the teaching profession
Like other public employees, teachers are also impacted by Senate Bill 5
Senate Bill 5 Anti-TeacherWould permit school districts to adopt any method of evaluation they chose to determine merit payRidiculous: How many football games have you attended?Cruel: What sexual orientation are you?Budget Anti-Teacher ProvisionsForces Merit Pay based on system developed by State School BoardOOPS!!!!!
Been There, Done ThatOhios already developed a Model Teacher Evaluation System with the cooperation of teachers over the last two years
In many ways its actually more rigorous than what the Radical Republicans passedStudent Safety JeopardizedTeachers would no longer be able to advocate for the safety of their students through negotiating things like:Asbestos removalVideo monitoring equipmentNumbers of safety officers at school
There is Hope!1.3 million signatures gathered to kill the bill
Thats more than 10% of all Ohioans!!!
SummaryOhios taking a step back with this budget, furthering districts dependence on local property tax levies
SummaryMeanwhile, money will be increased dramatically to Charter Schools that in most cases perform much worse than traditional public schools
SummarySenate Bill 5 represents an unprecedented attack on the teaching profession, hurting teachers ability to do their jobs while putting our childrens academic success and safety at riskSummaryOn school funding, legal measures have been exhausted, so its up to grassroots activism to advocate for our local school districts
On Senate Bill 5? Kill it in November!!Remember that $8 Billion Budget Hole?
So What?All these proposed cuts can be replaced!So SPEAK UP!
Our Path to Prosperity Begins in the ClassroomWe Dont Want our Kids Facing This PathWe Want Them Facing This One
www.innovationohio.org
Questions?Stephen Dyer Janetta KingEducation Policy Fellow Executive DirectorInnovation Ohio Innovation [email protected] [email protected]