State could cut school funding

HURON — Local school districts could see a decrease in state funding for the next two years. Earlier this month, Ohio Gov. Mike DeWine released his executive budget proposal which outlined his priorities to invest in. If approved by the end of the budget process, local districts could see their state funding through the Fair School Funding formula reduced by 5% in the 2025-26 school year and by 10% in the 2026-27 school year, according to the Ohio School Board Association's summary of the budget. The funding formula is how Ohio determines how much state money a school district receives. It was created in the 2022-23 fiscal year budget and has several factors considered to determine the cost: • The cost needed to provide a basic education, also defined as "cost per pupil" by Perkins Schools treasurer Mike Spafford, like the expenses of teachers, other staff, supplies and technology. • It also considers district taxpayers' income and property valuations. Spafford said this proposal would freeze the base cost per pupil where it is now which was based on fiscal year 2022 data. The reduction percentages apply to districts collecting "the guarantee," which ensures school districts do not receive less funding than what they received in fiscal year 2021, Spafford said. Five local school districts — Huron, Margaretta, Vermilion, Perkins and Norwalk — gave input on DeWine's funding decision. A request for information sent to Edison Schools on this topic went unreturned. Huron Huron Schools receives about $2.8 million in state funding for this current school year. According to DeWine's proposed cuts, in the fiscal year 2026, Huron Schools will receive $2.6 million and $2.5 million the following year. Huron Schools superintendent James Tatman said the district will continue to monitor proposals coming out of the governor's office and will incorporate the projections into the district's next five-year forecast which is due to the state in May. Huron's previously submitted forecast from November shows its officials accounted for an uptick in funding the district is due to recieve from recent property tax increases. The May forecast will include updated projections. Tatman said the district is committed to ensuring every dollar it receives is used strategically to benefit students and their families, but this is not an easy task. "The continued shift of funding responsibility to local taxpayers presents challenges," Tatman said. "While property owners have already seen increased taxes, the governor's budget proposal does not include any provisions to offset this burden, such as a homestead rollback or other state-funded relief programs previously available." When it comes to how the cuts will affect Huron Schools programs and staff, Tatman said the district does not anticipate immediate reductions but less state funding will affect the district. "Any decline in state funding affects our long-term ability to sustain current levels of programming and services," Tatman said. "We remain proactive in assessing financial trends and will continue advocating for responsible state funding policies that support our students and community." Vermilion Vermilion Schools superintendent David Hile did not want to make predictions of the district's future. "It is my view that it is way too early in the state budget process to know what is going to happen in the end to our district's state funding within that process, and it is certainly way too early to put any specific numbers to it," Hile said. With this reasoning, Hile did not want to analyze the proposal before July 1. According to the Ohio Capital Journal, this is when the budget must be finalized. "It will change numerous times between now and then," Hile said. "It always does." According to the Capital Journal, the next step in the budget process is to send DeWine's proposal to lawmakers and allow them to shape it. Perkins Perkins Schools estimated it will lose $75,000 in the first year and an additional $87,000 in the second, for a total $162,000 loss over the two years. Spafford said it is important to note the state budget process is still in its early stages. "The governor's proposal is a starting point in what will be a monthslong deliberation," Spafford said. "While the governor's budget can provide an initial indicator, school funding outcomes will ultimately be determined by the legislature's final version of the budget to be adopted this summer." Spafford said the district is monitoring discussions in Columbus for the impact talks will have on the district and its financial planning. "While Ohio has made progress in improving its school funding model, these factors underscore that costs predictably rise over time, while revenue sources are often stagnant or uncertain," Spafford said. "If anything is certain in school funding, it's that things will change. Regardless of the changes, we remain committed to delivering excellent programs, services, and opportunities for our students." Norwalk When asked, Norwalk Schools treasurer Joyce Dupont said that her district is not on the "guarantee," but that the district would still stand to lose under DeWine's proposal. That's because what's been proposed does not take into account inflation and increasing costs incurred by the district. Dupont said that the proposal was considering district expenses from the 2022 fiscal year and that costs have risen since then. "Things cost more than they did four years ago," Dupont said. But the district, regardless, has already lost state money. Dupont said that because the funding is capped per year, the district is not receiving what state officials originally said it would be — for a total of about $7 million less over four years than what was determined by the Fair School Funding formula. "We have this formula but we don't really have a formula because they don't fully fund it," Dupont said. It's not clear if Norwalk Schools will ever recieve the amount of state funds originally proposed under the Fair School Funding formula. To reach that originally proposed figure, state officials would need to adjust the formula to account for increases in input costs, or expenses incurred by districts. Margaretta According to Margaretta Schools treasurer Keegan Hall, the district would lose about $128,000 in the first year and $122,000 in the second. "The district will continue to rightsize based on student populations and operate within budgetary constraints as necessary," Hall said.