School funding is improved, experts say

SANDUSKY — Erie County school districts, like many across the state, will see increased state funding under Ohio's new two-year budget approved by lawmakers earlier this month. The Fair School Funding Plan, which received mostly bipartisan support before being signed into law by Gov. Mike DeWine, is the first plan that seeks to address Ohio's problematic school funding system in place for several decades. Ohio's previous school funding system lacked a way to determine the cost of educating a student, and how the funding of education is shared between the state and local taxpayers. Under the previous system, poor districts had it harder than rich districts to provide for their students. In 1997, the state Supreme Court ruled, in the DeRolph v. State of Ohio case, that the school funding system was unconstitutional, and it was most recently reaffirmed in 2002. Up until this year, lawmakers sought ways to fix it, but failed. Under the Fair School Funding Plan, however, state officials will consider local incomes and property values to determine how much a school district should be able to cover on its own. Their base amount, or the cost to educate the average student, will be determined by local costs instead of a uniform, statewide average. The plan spends about $12.4 billion this year and $12.6 billion in 2023. "It's much more of a 'What do kids need, and let's pay for it thing,' rather than, 'Here's how much money we're willing to spend, let's divide it by the number of kids and see what we come up with,'" said Steve Dyer, government relations director at the Ohio Education Association and a former Democratic state lawmaker from Akron. "It's a totally different way of looking at school funding." State Rep. D.J. Swearingen, R-Huron, said he's pleased local schools will benefit from the budget. "The Senate and the House worked together to put together a plan that should work well for students. We all want to get away from the over-reliance on property taxes for funding our schools," Swearingen said. State Sen. Theresa Gavarone, R-Bowling Green, who was one of six lawmakers named to the conference committee to write the final version of the state budget, also spoke highly of the new education budget. "I strongly advocated for the 'Fair School Funding Plan' in conference committee and was happy to see it turn out the way it did for Ohio's students," she said. What could they get? With the new funding plan, more than 80% of Ohio's 600-plus districts would receive between $7,000 and $8,000 in per-pupil base funding, according to a legislative analysis. The state's cost per pupil is now based on actual expenses faced by a district, such as teacher salaries and benefits, transportation, technology needs and the number of administrators. The bulk of the money, about 60%, goes to direct classroom instruction. The base cost averages $7,200 per student for most districts. Locally, school district treasurers are cautiously optimistic about the state's new funding plan. Sandusky Schools, for instance, is estimated to get more than $2 million over two years. According to state data, the district received about $17.8 million in state funding in the previous fiscal year, which ended June 30. That rose to about $19.5 million in the new fiscal year on July 1 and about $21.2 million in the second year of the budget. It's an increase of about $1.65 million in the first year and $1.7 million in the second year. Sandusky Schools treasurer Jeff Hall said district officials are pleased with the final outcome. "Always thrilled when it goes that way," he previously told the Register. Through June 30, Margaretta Schools got $4.5 million in state funding in the previous fiscal year. Margaretta is now poised to receive about $4.6 million each year during the new budget. It's an increase of about $148,000 over the two-year period, with $129,000 in the first year and $19,000 the second year. "I think there has been a lot of thought and analysis that has gone into this funding reform and it was great to see the committee included district treasurers that have a wealth of knowledge to tap into when studying the reform," treasurer Diane Keegan said of the new education budget. "The formula is much more explainable to the community and staff." Perkins Schools treasurer Dan Bowman remains cautious. Perkins, after getting $4.3 million in the last fiscal year, will likely secure about the same amount both years of the budget. Increases are estimated to be about $69,000 the first year and $15,100 the second year. "We will not know for certain from the Ohio Department of Education until October when they will have the actual formula calculating funding," he said. "The savings to us is in not having deductions for open enrollment, community schools and Peterson scholarships (for students with disabilities)." "The structure is something completely new to Ohio," Bowman said. "Only time will tell if it is the correct solution for funding education." Editor's note: The Associated Press and Register reporter Tom Jackson contributed to this article. Reach reporter Caitlin Nearhood at nearhood@sanduskyregister.com and follow her on Twitter @CaitlinNearhood