Increased revenue would go to Ohio schools under Gov. John Kasich’s proposed budget, though many districts may actually see less state aid.
Mr. Kasich’s proposed 2016-2017 budget includes more state money for school districts, with general fund revenue, the core of state education aid, projected to increase from about $7.25 billion this year to $7.7 billion in 2016, a 6.1 percent increase. That fund would increase an additional 4.5 percent in 2017 to about $8 billion under the governor’s proposal.
Those increases would be partially mitigated with the continued phaseout of tangible personal-property and utility tax reimbursements. Total revenue to schools, including federal and casino money, should increase from about $10.8 billion in 2015 to $11.1 billion in 2016 and $11.4 billion in 2017.
How that will affect individual districts depends on their circumstances, and a breakdown of projected state revenue for school districts was not available Monday.
“You have to add up all the pluses and minuses,” Toledo Public Schools Treasurer Matt Cleland said.
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The funding picture for schools depends on multiple factors. A major proposed change in school funding is the heavy inclusion of a district’s average income level in the funding formula, which is now heavily weighted on property values. That, the governor said, should mean more state money to school districts with less ability to raise local revenue.
The governor proposed phasing out a guarantee that school districts would not see reduced revenues, meaning about half of districts could see less state money. Those school districts, he said, should tap their budget reserves to help make up for the reduced state funding.
“Either we’re going to have a school funding formula based on that philosophy or we’re not,” Mr. Kasich said.
The inclusion of income levels into the school funding formula could spell trouble for relatively wealthy districts such as Perrysburg.
“We are kind of waiting to see how that will impact us,” Perrysburg Superintendent Tom Hosler said.
At the same time, Mr. Kasich proposes phasing out a cap on revenue increases for school districts. Washington Local Treasurer Jeff Fouke said he’d love to see the funding cap eliminated. If there had been no cap during the last budget, the district likely would have seen an additional $20 million over two years in state funding.
“If the cap didn’t exist, Washington Local would not have been on the ballot this past November,” he said.
Mr. Fouke takes a wait-and-see approach to state budgets, since it’s such a political process.
The governor proposed increased funding for early childhood education and career and technology programming, both focuses of TPS. But the budget also includes proposed increases to charter school funding and school vouchers, which are paired with increased oversight of charter school sponsors.
Darlene Chambers, president of the Ohio Alliance for Public Charter Schools, said she supported the added oversight, and applauded a proposed increase in facility funding for charter schools.
In higher education, Mr. Kasich proposes a 2 percent increase in 2016 in state aid, from $2.38 billion in 2015 to $2.43 billion, with another 2.5 percent increase in 2017. The governor proposes capping tuition for state institutions at 2 percent next year, with tuition frozen in 2017.
Contact Nolan Rosenkrans at: nrosenkrans@theblade.com or 419-724-6086, or on Twitter @NolanRosenkrans.
First Published February 3, 2015, 5:00 a.m.