The Ohio House passed the two-year operating budget proposed by Republicans in a mostly party-line vote. The budget, totaling $61 billion in state-only funds, includes some controversial changes in school funding that are likely to be the focus of further debate as the budget heads to the Senate.
House Bill 96 increases funding for all K-12 public schools over current levels, but not because of the formula established under the bipartisan Fair School Funding Plan in 2021. Gov. Mike DeWine's budget had used that formula but also fell short, using salary and financial data from 2022 instead of current numbers. Republicans said the formula would have resulted in less money for some districts.
Republicans note their budget increases funding for public K-12 schools by $226 million and ensures no district will get a cut. The budget also adds more money into private school vouchers, puts $35 million into education savings accounts for students who want to attend schools that don't accept vouchers, and increases a tax credit to homeschooling parents.
Perhaps the most controversial measure is the cap on how much a district can carryover in its budget annually. Any district that exceeds a carryover of more than 30% of its operating budget would be required to refund that money to taxpayers. That was increased from a 25% cap in the initial House budget.
"You don't exactly have to be Thomas Jefferson to think that taxpayers should be able to keep, use and invest their own money, to make that investment income for themselves, rather than having it squirreled away by government for years on end to make money for government," said House Finance Chair Brian Stewart (R-Ashville). "House Bill 96 provides the swiftest, most significant tax relief that we can provide."
"These carryover balances average 45%, but they range up to 75% 100%—some districts with 200% carry over balances," Stewart added. "In fact, 486 of Ohio's 609 public school districts have a carryover balance in excess of 30%."
Rep. Bride Rose Sweeney (D-Westlake) has called the provision "fake property tax relief."
"We want property tax relief just as badly as anyone in this room. But this isn't property tax relief reform. It doesn't solve any long term issues," Sweeney said. "There are two possible solutions here. Either it devastates our school districts to provide short term property tax relief randomly across the state, or just becomes a talking point and does nothing for property owners, and instead forces almost mandates schools to spend like drunken sailors."
Ohio Education Association President Scott DiMauro said the carryover plan is "punitive" to school districts that have been fiscally responsible with planning how to use of tax dollars.
"The net impact is going to be a massive cut to many of those districts," DiMauro said. "It's also extremely inequitable, because you're going to see that if someone happens to be in a district with a carryover balance that's above this arbitrary threshold, you going see a significant change in their property taxes, but somebody else who is in a district just under that threshold will get zero relief."
The budget also eliminates the State Board of Education as an elected body. It replaces the 11 elected members and eight members appointed by the governor with five appointed members. The last budget transferred power over curriculum and academic standards away from the 19-member board and to the newly renamed Department of Education and Workforce. Seven of those elected members sued, but the case was ultimately dismissed.
The budget passed with 60 of 65 House Republicans voting for it and all 34 Democrats against it. The five Republicans votes against it were from Reps. Levi Dean (R-Xenia), Ron Ferguson (R-Wintersville), Jennifer Gross (R-West Chester), Michelle Teska (R-Clearcreek Twp.) and former Speaker Jason Stephens (R-Kitts Hill).
The budget now goes to the Ohio Senate. By law, it must be passed and signed into law by DeWine at the end of June.
READ MORE:
- Ohio House Committee makes last-minute changes to K-12 education funding in its budget
- After A Generation, Does Ohio Finally Have A Way To Fix School Funding?
