The theory of the system the State of Ohio uses to fund schools is simple and sensible:

1. Every school system in Ohio is evaluated using a scoring system devised by the State.
    
2. All the school systems which met 20 of the 27 state performance standards are listed.
    
3. Of those districts, the ones with the highest and lowest 5% in income wealth are eliminated. The districts with the top and bottom 5% of property wealth are also eliminated.
    
4. The per-student spending amounts for all the districts on this list (about 120) are averaged together, and this average is deemed to be the minimum amount of money per student a school system must have to deliver the level of education required by our State Constitution. Let's assume this calculation determines that this number is $5,200 per student. For a school system the size of Hilliard, with 14,500 students, that equates to $75.4 million.
    
5. The formula then assumes that the local district is levying at least 23 mils of taxes on its own taxpayers. Let's assume that the total assessed property value (both residential and commercial) in the example school district is $1 billion. If we apply 23 mils to this amount, we get $23 million. Therefore, the amount the State would contribute is $75.4 million less the $23 million "charge-off," making the adjusted State Aid equal to $52.4 million. (see also Phantom Revenue)

If this school system can really educate its kids for $5,200 per student, or a total of $75.4 million, the State Aid system would provide nearly 70% of the funding. Most communities don't think this is enough, and assess tax rates much higher than 23 mils. Hilliard assesses a total of 42.114270 mils right now.

Why are there continued court cases about the State Aid program, and why has the State Supreme Court declared it unconstitutional?   In simple words, the problem is that the current funding system does not, in the opinion of the Supreme Court, work well enough to satisfy the State Constitution, which requires that each youth in Ohio be given a "thorough and efficient" education. The problem is that there are many school districts in Ohio which still fail to deliver such an education, and the Supreme Court feels this is in a large part due to the amount of funding a school system has to operate with.

I am not a lawyer, so I do not pretend to understand all the legal arguments. I do believe the current State Aid algorithm, described above, would work fine if the Legislature would simply fund it to the degree it calls for. However, as the Supreme Court notes, the State cannot spend money it doesn't have. The Supreme Court has made it clear that the Legislature has to fix this problem, but so far the Legislature as failed to do so.

One thing we in Hilliard can be sure of: The solution to this problem will not be for the State to give us more money. We should expect that our State Aid will diminish over time, and has in fact begun to do so already. The cost of education is shifting steadily from the State to the local residents and businesses.

Source:

• Stabile, Robert, Ohio School Finance Handbook, 2002-2003 edition, copyright 2001

See also:

• Carr, Matthew, "The Case for Community Schools in Ohio," The Buckeye Institute, April 2005
   
• Rural School and Community Organizing Project

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Last modified: 09/20/09