Local schools’ funding would rise under proposed state budget

Big winners would include Kettering, Beavercreek, Miamisburg, Troy, Vandalia-Butler, West Carrollton, Franklin, Trotwood-Madison, Northridge and Bethel, all of whom would see their core state funding rise by about 5 percent in each year of the two-year budget.

The biggest losers would be three tiny districts that have lost more than 10 percent of their enrollment over the past five years – Jefferson Twp., Cedar Cliff and Bradford. Each would lose 4 to 5 percent of their core state funding next year, then be held at that level again in 2018-19. Statewide, more than half of all school districts would see funding drop, with many rural schools affected after losing enrollment.

But there are two significant caveats to be considered. First, the state legislature is likely to tweak the details of Kasich’s proposal before it gets voted into law near the end of June. And second, core state funding matters more to some schools than others, making up less than 20 percent of overall revenue in Centerville and Beavercreek schools, but more than 60 percent in Dayton and Trotwood.

School funding capped

Office of Budget and Management spokesman John Charlton said the state continues to push closer to using the pure school funding formula, rather than the existing system of “caps and guarantees” that modifies the formula, limiting how much a district’s funding can change – either up or down – from year to year.

“(Funding caps) can put districts in a tough spot,” Charlton said. “But we have a pretty restrained budget this year, and education is getting more money. Not everybody else is.”

Barbara Shaner of the Ohio Association of School Business Officials acknowledged small increases, but said factors outside of core state funding are a drag on school finances. She pointed to the continuing decrease in tangible personal property tax for schools, plus the deduction for students who attend charter schools.

“Even though there were increases in the most recent budgets, we still have not kept up with inflation. It’s important to understand that,” Shaner said.

The funding cap issue affects numerous local schools. West Carrollton schools would see back-to-back 5 percent funding increases under Kasich’s proposal, but would still get $2 million less per year than the state formula calls for, because they’re a capped district.

Dayton, Miamisburg, Vandalia-Butler, Beavercreek and Franklin are among other local districts whose funding is capped, according to Office of Budget and Management documents. Kettering schools are the most severely capped locally, at $7 million below their state formula level.

Charlton said in each biennium budget process, the state sets a maximum percentage by which a district’s funding can increase, based on what state officials believe they can afford. Two years ago, it was 7.5 percent. This time, it’s 5 percent.

West Carrollton Superintendent Rusty Clifford said it was a huge plus that residents approved a levy in November so district supporters don’t have to simultaneously plan a levy campaign while also trying to figure out how state funding will turn out. He said he won’t get worked up about the budget proposal yet.

“There’s not much to talk about until maybe April,” Clifford said. “When the budget process started (last time) we were going to get a double-digit increase, but we ended up getting about 7 percent. … It comes down to how big of an adjustment will (the legislature) make?”

Two years ago, Kasich proposed a budget that would have significantly increased funding to many capped districts, including Dayton Public Schools, while cutting money for others, including some wealthy suburban districts. But, facing political pressure from some voting blocs, legislators changed that formula in the final budget.

Centerville’s odd example

Shaner pointed out that the school funding process is very complex, with each district having a slightly different scenario depending on whether they’re capped or not, and based on changes in enrollment, property valuation and other factors.

Centerville City Schools is a good example, with possibly the strangest projection in Kasich’s proposal. Centerville’s core state aid increase for the first year of the budget is listed at 5.3 percent – the highest increase among all 610 school districts in the state.

Of the 130 districts slated for the largest Year 1 increases, 128 of them also are due for a funding increase in Year 2 of the proposal. One of the two exceptions? Centerville, which would see its core state aid drop 4.5 percent in the second year of the Kasich plan, almost back to where it is today.

Shaner said at first glance, Centerville’s issue might be linked to a state change in transportation funding. Charlton said OBM was still checking, but their theory was a change in property values. Centerville Superintendent Tom Henderson said he had not yet checked the funding projections, and would look into the data in the coming days.