Jan Resseger writes frequently about education in Ohio. Her major concern has always been the common good. She describes the latest state budget as “opportunity hoarding.” It includes a welcome increase for public schools, but an even bigger increase for private schools.
She writes:
This blog has focused recently on the fraught political debate about public school finance as part of Ohio’s budget—passed on June 30 and signed into law on the 4th of July. Two years ago, the Ohio Legislature failed to implement a long-awaited Fair School Funding Plan in a stand-alone law. Although a new formula must be fully enacted for the state to allocate adequate school funding and distribute it equitably, the legislature chose to phase in the formula in three steps—making its full implementation dependent on the will of the legislature across three biennial budgets.
Despite efforts this year by the Ohio Senate to undermine school finance equity, the second step of the Fair School Funding Plan was, thanks to House Speaker Jason Stephens and his coalition, enacted fully in the new budget.
Ohio’s new budget and the political fight that led up to it has epitomized what Princeton University sociologist and acclaimed author of Evicted, Matthew Desmond defines as a fight about “opportunity hoarding.” Desmond devotes a chapter of his new book, Poverty, by America, to “How We Buy Opportunity”:
“Among advanced democracies, America stands out for its embrace of class extremities… What happens to a country when fortunes diverge so sharply, when millions of poor people live alongside millions of rich ones? In a country with such vast inequality, the poor increasingly come to depend on public services and the rich increasingly seek to divest from them. This leads to ‘private opulence and public squalor’…. As our incomes have grown, we’ve chosen to spend more on personal consumption and less on public works. Our vacations are more lavish, but school teachers must now buy their own school supplies. We put more money into savings to fuel intergenerational wealth creation but collectively spend less on expanding opportunity to all children… By 2021, government spending on all public goods… made up just 17.6 percent of GDP… Equal opportunity is possible only if everyone can access childcare centers, good schools, and safe neighborhoods—all of which serve as engines of social mobility… Opportunity can be hoarded… not only by abandoning public goods for private ones, but also by leveraging individual fortunes to acquire access to exclusive public goods, (like) buying yourself into an upscale community.” (Poverty, by America, pp. 106-112)
Policy Matters Ohio’s press release about the new Ohio budget might have been copied right out of Desmond’s chapter on opportunity hoarding: “Years of underfunding in our public sector have taken a toll which has been compounded by stagnant wages for many workers… Ohio tax revenues consistently beat estimates, in large part due to rising incomes spurred by federal support for COVID recovery, and a tight labor market. Instead of putting those dollars to work strengthening programs that ensure Ohioans share in the prosperity they help create, lawmakers once again prioritized giveaways to private interests, as well as tax cuts for the wealthy and big business.”
Policy Matters Ohio summarizes some of the details: “The operating budget includes a $1-billion-per-year income-tax cut that disproportionately benefits the wealthy, does nothing for Ohioans in the lowest-income 20%, and temporarily increases taxes for some middle-income households. According to modeling provided by the Institute on Taxation and Economic Policy… 85.4% of the value of this billion-dollar cut will go to the richest 20% in Ohio… The budget also reduces the state’s main business tax, the Commercial Activity tax… The governor signed off on a $2-billion giveaway to private schools through voucher expansion… Kids will have continuous Medicaid coverage through age 3, greatly reducing gaps in care and supporting healthy kids and babies. However, the conference committee removed provisions that would have extended health insurance coverage for kids and pregnant people to those with incomes up to 300% of poverty…. The bill that made it to Governor DeWine’s desk raised wages for the direct care workforce to $18 over the biennium. The mandate was removed by the governor and replaced with only a promise to work toward implementing an increase. Child care workers did not even receive that… The elements of this budget that benefit the majority of Ohioans pale in comparison to the great need.”
Likewise, the private school tuition voucher expansion shifts the entitlement to wealthy families. Making students in families with income at 450% of the federal poverty level ($135,000) eligible for a full voucher, and students in families with even higher incomes eligible for a 50% or 25% or a minimal 10% voucher as family income gets higher—only exacerbates a current trend that tilts Ohio voucher use to middle and upper income families. These are families who were previously ineligible because their incomes are too high.
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