Overview of School Funding
Overview of School Funding
Last fiscal year (FY 2017), the state of Ohio spent more on primary and secondary education than at any other time in state history. FY17 State General Revenue Fund and Lottery Profit spending for primary and secondary education exceeded FY10 funding levels by nearly $1.9 billion, or 27.5 percent. Even including one-time, federal stimulus funding, TPP/KwH reimbursements, and property tax relief, FY17 funding levels exceeded FY10 funding levels by $775.3 million, or 8.1. percent.
The current biennial budget for FY18 and FY19 continues this record investment. Resources allocated primary and secondary education total $10.48 billion in FY18 and $10.59 billion in FY19; increasing $197.3 million during the biennium. The GRF portion of these appropriations is $7.99 billion in FY18 and $8.12 billion in FY19, representing growth of $115.1 million, or 1.5%, in FY18, and another $128.7 million, or 1.6%, in FY19. Lottery appropriations equal slightly more than $1.1 billion in both fiscal years. State education appropriations represent the largest commitment of state appropriations.
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How School Funding is Distributed
Public school districts use a combination of state funds, local sources such as property taxes (and in some cases income taxes) and federal funds.
The amount of state funds that a district receives is based on a formula that takes into account the student enrollment and the property wealth of the district.
About School Funding
The Department of Education’s General Revenue Fund budget represents the largest component of primary and secondary education.
These funds, along with profits from the Ohio Lottery are used to fund Ohio’s 612 public school districts, 49 joint vocational school districts, and approximately 370 public community schools. They also fund the activities of the Ohio Department of Education, including funding for early childhood education, pre-school special education, assessments, and the A-F report card.
In addition to state aid through the foundation program, many school districts receive reimbursements payments for lost property tax revenue caused by the phase out of the general business tangible personal property tax (TPP) and the reduction of property tax assessments rates on utility property (KwH). Finally, the state pays 10% of locally levied property taxes for residential and agricultural real property owners and an additional 2.5% for homeowners and represents property tax relief to individual property taxpayers in Ohio.
Most Requested Reports
Last Modified: 3/16/2018 12:39:26 PM