This report was written by Tanisha Pruitt, Ph.D., for Policy Matters Ohio in April 2023. It provides a comprehensive review of the funding of K-12 education in the state. The state has 1.6 million students. The state Constitution says (Article 6, section 2):
The 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; but no religious or other sect, or sects, shall ever have any exclusive right to, or control of, any part of the school funds of this state.
The legislature and governor of Ohio apparently believe that the state Constitution does not mean what it says. The Republican leadership has steadily increased the funding of charter schools (which are not “common schools,” but are privately managed schools, some for-profit) and vouchers, which go primarily up religious schools.
The report was written before the legislature lifted income caps on vouchers, agreeing to subsidize the tuition of all students regardless of family income.
Please open the link to see the graphs.
The Policy Matters Ohio report begins:
School is a place where childhood happens. Ohio’s public educators teach children of all races and backgrounds basic skills, but also challenge and inspire them to follow their dreams. For many students, school is a safe place to learn, develop and grow.
Ohio currently educates 1.6 million children attending school in our cities, suburbs and small towns. For years, almost no one was happy about how the state of Ohio funded public schools. The system pitted communities against each other and private and charter schools against public schools. We were living in the K-12 version of the “Hunger Games”: The wealthier your district, the stronger your chances of success.
Most state lawmakers signed off on a system that relied too heavily on local property taxes,[1] so communities where many residents have low incomes struggled to pay for the basics like updated resources and teaching materials. The state capped the funding it sent to some districts, often leaving those districts feeling cheated. In others, state funding failed to keep up with changing costs and student needs. Since 2005, lawmakers have been systematically sending more resources to the wealthiest Ohioans by cutting the state income tax, which accounts for nearly one-third of the state’s spending on schools. Meanwhile, lawmakers have diverted almost $1 billion a year from local levies to private and charter schools.[2]
These policy choices have taken a toll on Ohio’s educational outcomes. Education Week ranks Ohio 46th in the nation for equitable distribution of funding.[3] The performance metrics included: (1) state spending by examining per-pupil expenditures adjusted for regional cost differences, the percent of students in districts with per-pupil spending at or above the national average, spending index, and percent of total taxable resources spent on education and (2) Equity, by examining the degree to which education funding is equitably distributed across the districts within the state.[4]
The pandemic has contributed to a decline in test scores, which could have an impact on our overall ranking, if we do not get students caught up.[5] Over nearly two decades, we can draw a straight line between the racial and economic achievement gaps and the lack of funding to provide Black, brown, economically disadvantaged students[6] and students with disabilities what they need to succeed in school.
Ohio’s schools are becoming more racially and ethnically diverse; the Hispanic[7]population (a close proxy for Latinx) alone has more than doubled over the last 10 years.[8] Student poverty is also on the rise with 51% of students considered economically disadvantaged and the homeless student population doubling over the last decade.[9]
COVID-19 created unstable and even chaotic learning environments across Ohio. The elevated stress and social isolation caused by the move to virtual learning[10]exacerbated students’ need for mental health services.[11] The pandemic continues to take a toll on educators as well. COVID and other outbreaks are making educators sick. Moreover, increased stress and low pay cause many educators to leave the profession. Districts across the state have grappled with unprecedented staff shortages. For example, Columbus City Schools (CCS) had 800 employees absent every day during the height of the pandemic.[12] Hamilton City School officials were forced to cancel classes when 170 staff members were out due to illness.[13]
COVID has especially hammered school districts in communities that can’t raise enough money through local property taxes — especially in big cities, where Black, brown and economically disadvantaged students are more likely to live.[14] Schools in these communities often have fewer resources for COVID mitigation efforts like improving ventilation.[15]
Long before COVID, many policymakers neglected public schools, siphoning away their funding for tax giveaways[16] to corporations and undercutting them with schemes that send public money to charters and private schools. Combined with the effects of COVID, Ohio’s legacy of inadequate and inequitable funding has weakened the role school plays as a foundational public service for families and communities. For our state to be a vibrant place where people want to live, we need fully and fairly funded schools in all districts, no matter what students look like, or how much money their families have.
This report describes how the state funds public K-12 education and some key investments proposed in the 2024-25 Executive Budget, the legacy of unconstitutional funding, the role private school vouchers play in harming public schools, and how the Fair School Funding Plan — when fully funded and fully implemented, including weights and cost corrections — can provide districts with more resources to prepare Ohio’s children to succeed.
A brief history of Ohio school funding
The framers of Ohio’s constitution obligated the state to provide a “thorough and efficient system of common schools” for all students.[17] In 1991, the Ohio Coalition for Equity & Adequacy of School Funding, representing more than 500 school districts in Ohio, filed suit in the Perry County courts against the State of Ohio for failing to uphold this constitutional requirement.[18] In DeRolph vs. The State of Ohio — named for Perry County school district student Nathan DeRolph — plaintiffs argued the state was failing to live up to its obligation due to over-reliance on local property taxes for school funding: In wealthy communities, high property values generated revenues needed to provide students with more resources for cutting-edge technology, advanced classes, and extracurricular activities; the opposite was true in poor communities. This left schools in cities, rural areas and many low-income communities severely under-resourced, significantly harming outcomes for their students.
The litigation dragged on until 1994 when Perry County Court Judge Linton Lewis, Jr. ruled that “public education is a fundamental right in the state of Ohio” and that the state legislature must provide a better and more equitable means of financing education.
The DeRolph case was the start of a foundational shift in the school funding system in Ohio, but the fight for constitutional and equitable funding continued for decades following the ruling. By failing to keep up with inflation and by diverting public funds to charter schools[19] and vouchers (i.e., scholarships to private schools), lawmakers in fact cut state aid to traditional public schools over time.[20] As a result, public schools have increasingly relied even more on local resources, which exacerbates the problem of unequal funding and quality across districts,[21] a problem that persists today….
Public dollars, private benefits
Two smaller education systems run alongside Ohio’s traditional public schools: charters and private schools. When legislators redirect funding from traditional public schools to pay for charters and vouchers (which pass public dollars through parents and into private schools), the vast majority of Ohio students who attend traditional public schools have to make do with less.
In Ohio charter schools have been branded “community schools” and are considered “public” because they cannot charge tuition and they are supposed to accept all students. However, charter schools do not necessarily serve the public good. Charter school sponsors may contract with for-profit companies to operate the schools. In 2020, Ohio had 313 charter schools serving 102,645 students and 178 (57%) of them were operated by for-profit entities.[48]These “operators” have been the source of much scandal in Ohio. Simply put: The charter system in Ohio has lots of loopholes for private, profit-seeking companies to siphon off public dollars.
In FY 2022 the state sent $1.45 billion to charter schools — up from nearly $620 million in 2007.[49] During that time, Ohio’s legislators earned our state a reputation as “the wild west of charter schools” by failing to hold charters and their operators accountable.[50] Problems with Ohio’s charter school system came to a head with the ECOT scandal: A for-profit online charter school, the Electronic Classroom of Tomorrow squandered millions in public money by inflating enrollment numbers.[51] Other charter scandals have prompted rounds of legislative reform to reduce self-dealing, prevent the state from paying for students who were not actually attending school, and stop attempts at double-dipping by selling state-purchased materials back to the state for even more public dollars.[52]
The Ohio Charter School Accountability Project, a joint effort of the Ohio Education Association (OEA) and Innovation Ohio, using data primarily from the Ohio Department of Education (ODE), created a tool to help Ohioans know the state of publicly funded charters and private schools that accept public vouchers, and how they compare to traditional school districts. Analysis includes state report card rankings, classroom expenditures, and state aid deductions to charter schools. This system is intended to provide transparency so that parents, teachers, students and advocates can hold charter schools accountable.[53]
Based on the recent Annual Community Schools report conducted by the Ohio Department of Education (ODE),[54]community schools in Ohio are receiving more funding through the Quality Community School Support Grant (QCSS). Eligibility requirements for these grants are based on performance standards and overall academic achievement. In the current budget lawmakers increased funding to QCSS to $54 million for FY 2022, a $24 million increase from 2021. This increase includes a per-pupil increase of $1,750 for economically disadvantaged students and a $1,000 per-pupil increase for all other students.[55]
Vouchers eat up state funding for K-12 schools
As problematic as under-regulated charter schools can be, the proliferation of private school vouchers has had the most serious consequences for public schools and the vast majority of Ohio students who attend them. Since the Cleveland Voucher Program for low-income students in Cleveland City Schools launched in 1996, policymakers have expanded voucher programs across the state. Ohio currently has four main school voucher programs: the Educational Choice (EdChoice) Scholarship Program, the Cleveland Scholarship and Tutoring Program (CSTP), the Autism Scholarship Program, and the Jon Peterson Special Needs (JPSN) Scholarship Program. The EdChoice program is split into two types: the Traditional EdChoice Scholarship, also known as performance-based EdChoice, and the EdChoice Expansion Scholarship, also known as income-based EdChoice.
Policymakers introduced the Traditional EdChoice scholarship program in 2005 and continue to expand it. The EdChoice Expansion program was introduced in 2014 and has also expanded in scope. The performance-based EdChoice program is available to students in underperforming school districts, while the income-based EdChoice program is available to low-income students. The Cleveland Scholarship is for all K-12 students in the Cleveland Metropolitan School District. The other two scholarships, Autism and JPSN, are for autistic students and students with any disability, respectively.
What started as a program to provide alternative education options for students in what the state perceived to be underachieving schools has now expanded to include students from public schools with high achievement grades. According to a brief by the Northwest Local School District, 47.7% of the buildings on the current list of Ohio schools eligible for vouchers have overall grades of “A,” “B,” or “C” under the state’s report card system. The number of eligible schools has also grown rapidly. During the 2018-19 school year Ohio had fewer than 300 school buildings that were considered eligible; by 2020-21, 1,200 school buildings were eligible: a 300% increase in just two years.[56] Similarly, income-based vouchers are now being proposed for families earning up to 400% of the federal poverty level. This expansion would be a costly and needless expansion, subsidizing private education for families that need no help. A family of four could earn up to $120,000 and be considered income eligible. This expansion will make vouchers nearly universal, by providing an additional handout to upper-middle-class families at the expense of public schools.
Vouchers in the state budget
After years of tax cuts for the wealthy and corporations that have drained resources from public schools, and as COVID has created new pressures, the state further undercuts public schools by pumping hundreds of millions of public dollars into private schools.[57]
The 2022-23 biennial budget expanded funding of private schools, especially through EdChoice and other voucher programs. Traditional, performance-based EdChoice received $212.5 million, and the income-based EdChoice Expansion program received close to $103 million, a combined 61.4% of voucher payments statewide in FY 2022. The Autism and JPSN scholarships received $116.5 million and $76.6 million, respectively, making up 17% and 12.4% of distributed scholarship funds. The Cleveland Scholarship program received $46 million and only makes up 9.1% of distributed scholarship funds.[58]
Legislators have increased voucher payments from state funds since 2014, as illustrated in Figure 6.[59]
Figure 6
https://datawrapper.dwcdn.net/7sKMh/2/
The FSFP funds vouchers directly instead of allowing them siphon away districts’ state funding. Lawmakers increased total voucher allocations from $395.4 million in FY 2020 to $635.1 million in FY 2022.[60]They also increased direct state aid to private schools, though not as dramatically. Policymakers increased funding for “auxiliary services” to private schools from $149.9 million in FY 2021 to $154.1 in FY 2022 and just under $156 million in FY 2023. Meanwhile, “nonpublic administrative cost reimbursement” aid — which reimburses charter schools for the cost of mandated administrative and clerical activities such as preparation, filing and records keeping[61] — increased from $68.9 in FY 2021 to $70.8 in FY 2022 and $71.6 in FY 2023.[62]
Lawmakers have increased spending on vouchers by increasing the amount families can receive. For income-based EdChoice Expansion vouchers for FY 2022-23 the state now awards qualifying K-8 students $5,500 per year and high school students $7,500 per year for tuition at non-public schools, up from previous award amounts in FY 2020-21 which provided $4,650 for K-8 students and $6,000 for students grades 9-12.[63]….
Voucher expansion threatens our public schools
Because of the General Assembly’s continued expansion of voucher programs, more Ohio families are enrolling in them — up from 52,000 in 2019 to 69,991 in 2021. Even accounting for this growth, most voucher students were already attending private school before receiving vouchers.[64] Further, the number of vouchers is a fraction of the number of students served in public schools. When students use state-funded vouchers to attend private schools, even if they were never enrolled in traditional school districts, it means less money in the state budget that could otherwise be spent creating great public schools, which must serve all students.
The Ohio Coalition for Equity and Adequacy of School Funding, a coalition of over 100 school district and 20 education and community groups, took the state of Ohio to court, claiming that EdChoice Expansion violates the constitutional requirement that the state provide a “thorough and efficient system of common schools.” Coalition advocates believe that state lawmakers’ growing investment in vouchers could lead to a school funding system that privileges private education even more in years to come.[65]
Many proponents of voucher expansion have painted it as the state simply supporting parents’ right to choose where their child will be educated, but choice is not the problem, priorities are. The state has not fulfilled its constitutionally mandated responsibility to fairly fund public schools. Key components of the FSFP are still outstanding. Allocating close to $1 billion in public funds for students to take vouchers to private schools is a huge disservice to the 90% of students who attend our public schools.
Ultimately, the way the executive budget proposes to distribute foundation aid over FY 2024-25 will further erode the share going to traditional public schools by allocating a greater share to charters. The proposed budget would send 77.9% of foundation funds to traditional schools, compared to 79.1% in the last budget. Charters would take 10.8%, up from 9.9%. Voucher programs stay at 7.1%, and joint vocational school districts increase to 4.2% from 3.8%.
Recommendations & conclusion
Ohio has underfunded public schools and other essential public services for years.[66] Ohio lawmakers have cut state income taxes since 2005, reducing our ability to provide an equitable education system for all our students, and giving huge windfalls to the wealthiest Ohioans and little or no benefit to people with middle or low incomes.
Policymakers have a constitutional duty to protect public schools. Ensuring a thorough and efficient system of common schools means correcting disparities generated from over-reliance on property taxes by fully implementing the FSFP, with accurate estimates of how much it really costs to educate our kids.
Lawmakers in Ohio need to invest in developing an educator workforce of qualified teachers who are paid fairly for their essential work and strongly supported while doing it. Other pressing issues include a bussing crisis,[67] fewer 5-year-olds prepared for kindergarten,[68]lowered reading and math proficiency scores,[69] chronic absenteeism,[70] and a persistent digital divide.[71]
The state has sufficient revenue to meet these challenges, so long as legislators make public schools and kids a priority. Ohio has the money to fully commit to the FSFP in this budget. Instead of phasing in funding piece by piece, year after year, lawmakers should fully fund it right now. Ohioans must come together to demand lawmakers live up to the promise of the FSFP in the next biennium and beyond.
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