Ohio school funding: What to know about possible changes in 2025

Yahoo

24-06-2025

COLUMBUS, Ohio (WCMH) — Between the Ohio biennial budget and a new property tax bill, central Ohio public school districts are nervous about the future of school funding.
'I wish I had better news on the funding front because it continues to be a real, real serious challenge and it's going to impact this community and the state more broadly,' Olentangy school board President Brandon Lester said.
The state is considering several legislative changes that could have major effects on Ohio's public school funding. If both the state budget and a new property tax relief bill pass in their current forms, districts could lose hundreds of thousands or millions of dollars. See previous coverage of funding concerns in the video player above.
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In Ohio, public school districts receive funds from a combination of state, federal and local revenue. The majority of funds come from the state, which uses a complex formula that weighs each individual district's circumstances to distribute funds equitably. Wealthier districts receive less support from the state and may rely more heavily on local property taxes. Federal funding makes up the smallest portion of district financial support.
The state's formula came from a bipartisan effort to make school funding more equitable, called the Fair School Funding Plan. The formula asks both the state and individual districts to input data so it can appropriately consider how to fund schools.
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Ohio releases a state budget every two years, and the General Assembly is working to finish the budget for fiscal years 2026 and 2027. The most recent iteration came from the state Senate, which amended drafts from the House and Gov. Mike DeWine.
Under the Senate's budget proposal, Ohio would implement an adjusted version of the Fair School Funding plan. The budget asks school districts to update their formula inputs with 2025 financial data, but the state will estimate costs under 2022 financial data. School districts said this unfairly affects the formula, providing less each year.
The Senate budget also provides a bonus payment for public schools based on their state report card performance.
The Senate and House budget drafts also each included a district carryover provision, which would limit how much money schools can keep from year to year. Under the Senate's version, the cap would be 50%. This means if a school district carries over more than 50% of it's budget from year to year, the money above would be returned to homeowners as property tax relief.
The Legislative Budget Office estimates the Senate's foundation aid will total $8.22 billion in Fiscal Year 2026 and $8.31 billion in FY27, similar to the House's budget. Both are higher than DeWine's suggestion, which would see $8.09 billion in FY26 and $8.05 billion in FY27.
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The carryover clause is one of several property tax changes in the mix at the Statehouse, with House Bill 355 released this week. Under H.B. 355, Ohioans would save an average of $850 per year in property taxes.
Ohio public schools — many of which are speaking out against the bill alongside local municipalities — said H.B. 355 would dramatically limit districts' funding, especially among wealthier districts that receive less funding from the state. According to the Ohio Association of School Business Officials, H.B. 335 would eliminate more than $1.5 billion in school funding. OASBO equated this cut to 20,000 teachers, one-fifth of teachers statewide.
OASBO said H.B. 355 may temporarily lower property taxes, but it is also likely to lead to more frequent levy requests and cuts at local schools.
'There's a smarter way to deliver that relief. Senate Bill 22 is a property tax circuit breaker that would provide targeted help to families who are struggling now, while protecting the schools that sustain our property values and community strength,' the OASBO said.
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'Proposed changes could reduce our annual tax revenue by $2.7 million, more than 10% of our annual operating budget, weakening our financial stability and jeopardizing resources we depend on for classrooms, teachers and programs our community expects,' Grandview Heights schools said in a statement.
Policy Matters Ohio, a left-leaning policy research nonprofit, calculated losses for all districts that would receive less under the Senate budget than they would under a fully implemented formula. Executive Director Hannah Halbert said districts with negative numbers indicate a decrease in state funding from 2025. NBC4 compiled the data from all affected schools in Delaware, Fairfield, Franklin, Licking, Pickaway and Union counties.
'This is in addition to cuts that will happen under the property tax and levy changes,' Halbert said.
Many school districts have been asking families and community members to advocate for budget adjustments since DeWine's budget debuted. This week, districts like Upper Arlington, Big Walnut and Hilliard issued statements asking the public to protest H.B. 355. As property tax revenue also benefits local governments, several districts released joint statements with governing municipalities.
'While we understand the concerns surrounding property tax levels in our state, our residents, students and staff depend on strong schools and stable city services,' Gahanna-Jefferson Superintendent Tracey Deagle and Gahanna Mayor Laurie Jadwin said jointly. 'We cannot afford to let a proposal of this magnitude pass without the scrutiny and accountability it demands.'
If H.B. 355 passes, Gahanna-Jefferson schools said it would lose $11 million annually, equal to more than 100 teaching positions. Upper Arlington said it would lose $16.7 million each year. Big Walnut said it would lose $8.1 million, equal to 14.1% of its total budget. Hilliard said H.B. 355 would eliminate $20.8 million, leading to an estimated 260 teaching positions cut.
Dublin schools said 80% of its funding comes from property taxes, and implementing the bill could force the district to remove 250 of its roughly 1,200 teaching positions. Dublin and other schools that do not receive as much funding from the formula said H.B. 335 and the money cap would both be difficult funding sources to replace.
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