Republicans in the Ohio House have said their budget will give all school districts an increase over current funding. But a new report shows that budget would slash funding for school districts in Appalachian counties.
The analysis comes from the Ohio River Valley Institute, which has focused largely on research on renewable and clean energy. The report shows those schools—in some of the poorest areas in the state—stand to lose $565.8 million over the next two years in direct funding. And it shows other parts of the budget that provide options for parents, students and taxpayers don't translate well in those counties.
House Speaker Matt Huffman (R-Lima) said every school district gets an increase in the House budget.
“We are increasing spending to K-12 public schools $550 million from the previous General Assembly," Huffman said.
But Nick Messenger, senior researcher for the Ohio River Valley Institute, said Appalachian schools will lose $565.8 million because the budget doesn’t fully fund the final two years of implementation of the Fair School Funding plan, the bipartisan formula passed in 2021.
“The legislature wants voters to compare to 2025: 'hey look, we are giving you more money than you got last year.' But what they are not saying is school districts would have received even more money if they had just funded the plan," Messenger said.
Messenger said it is important to remember that many Appalachian schools cannot simply raise taxes at the local level to compensate for any shortfalls in state funding.
“Portions of Appalachia in Ohio are not places where property values themselves are going to be able to completely support that shortfall," Messenger said. "In Ohio, we see school districts request levies and put bond initiatives and operating levies on the ballot to raise property taxes but at some point, your voters are tapped out."
The House budget also would require school districts to refund to taxpayers anything over 30% in cash reserves from property tax revenue they've collected. Republican lawmakers say districts are holding a record $10.5 billion in cash reserves, and the 30% cap would amount to $4 billion in immediate property tax relief. School districts say it would create financial chaos and create a cycle of refunds followed by levies.
Messenger said most Appalachian districts struggle to get enough cash to pay the bills. And he said Appalachian schools are experiencing rising inflation costs and can’t pass local levies to keep up.
The House budget also expands the use of taxpayer-paid vouchers for public schools. Messenger said this is not something that benefits Appalachian students because there aren’t private or charter local schools that accept them in that part of the state.
“So you’ve got this perfect storm where you want the state to give less money, you want property taxes to get refunded to voters, and you don’t have alternatives for families and students other than the public schools in Appalachia and so, unfortunately if this proposal gets enacted, we will see a lot of Ohio’s Appalachian students and families really left behind.”
The budget is now in the Ohio Senate, which is set to start hearings next week. It needs to be signed by Gov. Mike DeWine by the end of June.
READ MORE:
- Ohio school leaders say GOP plan for 25% cap to trigger tax refunds could cost districts $5 billion
- An Ohio public school district is out of money. Others worry their funds will run dry too
- South-Western and Columbus teachers protest proposed state budget cuts for public schools
