1. Successes in Ohio's Education System

2. What is the result of the DeRolph Case?

3. Historical Timeline

4. FY 2003 Graph Per Pupil Revenue Source by Wealth

Successes in Ohio’s Education System

We can all agree that there is nothing more paramount than the education of Ohio’s school children. Providing our children with the tools they need for future opportunity and success is essential. Recognizing this, the Ohio House has, and will continue to, make education a top priority. Our efforts in passing a fiscally conservative budget have allowed us to accomplish a great deal by way of increased funding and standards-based reforms for our schools. These policies have produced positive results in areas ranging from academic standards to resource equity and will continue to do so in the future.

 Through House Bill 66, the operating budget bill, we were able to provide record funding to our schools. In recent years, Ohio’s rank for the allocation of funds for K-12 education has climbed to 15^th in the nation. The provisions of House Bill 66 continue our commitment to improvement and provide $16 billion over the biennium for Ohio’s school children. The budget marks the great strides we have taken to increase the funding for K-12 education. In the 11 years between Fiscal Year 1996 and Fiscal Year 2007, education spending has grown at a staggering rate. During this time period, funding has increased by $3.3 billion – more than 78 percent. The money we have allocated per-pupil has more than doubled from that which was spent just 10 years ago. We continue to improve on our record of school funding in many ways including a provision in House Bill 66 that makes certain each and every school district in the state is guaranteed to receive no less funding than they received in the previous year. Extra dollars were also made available to school districts for academic intervention and professional development programs, as well as to those school districts struggling with poverty.

The budget also contained measures to increase funding for new school construction projects as well as facility updates. These investments help to ensure that each child in our state is afforded a safe and secure environment in which to learn and grow. An average of $3 million dollars is spent on new school construction projects in Ohio each day. The budget maintains the updating of school facilities with a commitment of more than $495 million over the biennium, ensuring safe school buildings and modern classrooms for Ohio’s children. The recent passage of HB 530 appropriated another $635 million for school facilities.

 Our continued commitment to standards-based reform, coupled with record funding, has allowed for increases in achievement in Ohio each year. Strong state policies, such as those set forth in our budget have been linked to improved scores on the national Assessment of Educational Progress tests – the nation’s report card between 1996 and 2005, which show Ohio’s grades have been on the rise throughout the last decade. Moreover, Education Week’s Quality Counts education report graded Ohio in the areas of standards and accountability, efforts to improve teacher quality, school climate and resource equity. This year, on our state’s report card, Ohio received an overall grade of B-, putting Ohio above the nation’s C+ average.

 Ohio earned its highest grade in the area of standards and accountability, where the state ranks 11^th in the nation. Here, Ohio received an A-. Standards in our state have been rated as clear, specific and grounded in content.

 Posting a better than average grade for improving teacher quality, the state received a B. In this area, the state ranks eighth in the nation. Measures related to professional support and training for teachers received full credit. It was also noted that Ohio was one of only 15 states that require and finance mentoring for new teachers.

 Class and school size helped Ohio earn a C+ for its school climates. The state was also acknowledged for its school facilities because it tracks the condition of schools and provides funds for construction. However, the report card also noted that parent involvement and student engagement are areas where there is room for improvement.

 While Ohio received an average grade in resource equity, the funding disparity between high income and low income school districts continues to shrink. Poor school districts in Ohio received an average of $54 more per-student dollars in state and local funding than affluent districts in 2002-03. This is a substantial improvement from the funding levels of just a few years ago. In 2000, poorer students received $394 less and $667 less in 1997.

 As members of the General Assembly, we were able to once again provide a record amount of funds for K-12 education. This allocation helps to ensure that Ohio’s school children are provided with the most effective education possible. Through our sustained efforts and support, we are working to enact policy that will continue to boost our grades on the national education report card. Funding, coupled with increased achievement for Ohio’s schools, will properly educate the next generation and provide them with the skills necessary for obtaining good high-paying jobs.

What has been the result of the DeRolph case?

The Court defined the Constitution’s clause “thorough and efficient” as: “A thorough system means that each and every school district has enough funds to operate. An efficient system means one in which each and every school district in the state has an ample number of teachers, sound buildings that are in compliance with state building codes, and equipment sufficient for all students to be afforded an educational opportunity.”

Summarizing the Court defines what is needed to be Constitutional:

1. More state money

2. More state money for low wealth districts

3. A funding level based on factors that relate to costs to educate a child

4. Better school facilities

What has the General Assembly done?

Number one; State funding has increased 95 percent since the original lawsuit was filed, a 62 percent increase above inflation. State operating funding for schools FY 2002 was $7.96 billion. Nearly 50 percent of the total dollars spent for operating expenses. Fiscal year 2002, local taxes generated $8.1 billion. Basic foundation aid per student increases 2.2 percent  per year. Annual operating funding in the current budget is over $8.5 billion.

Number two; The Parity Aid program was established in districts not in the top 20 percentile. Additional funding for 490 of the 612 districts based on a wealth indicator that incorporates both income and property valuation. Parity Aid in FY 2002 biennium budget totals $747,628,527. This money is additional to basic foundation aid.

Number three; This is the area which causes much debate. We want to maintain local control, but how do we determine what the cost is to provide an adequate education? There are many variables in the equation: management, salaries, contracts, transportation, special needs students, etc; just to name a few. Historically, this is where local control through voting levies determines how much local districts will spend. The state’s involvement is to ensure spending per pupil is at a sufficient level. It is important to realize that money is not the only factor that determines a quality education. The Ohio Supreme Court ruled in DeRolph that an adequate amount on a per student basis should be determined by what the top performing 127 districts spent. Variables such as good family support, income levels and so on impact the academic performance of students, regardless of spending amounts.

Number four; The Legislature created schools facilities program. We are currently spending more than $3 million per day on new schools to date over $4 billion has been invested with a commitment to invest over $10 billion in a 12 year plan. Local match dollars varies by 5 percent to 95 percent depending on wealth and per capita income.

The Ohio Supreme Court ruled the state school funding system unconstitutional after DeRolph I & II. The DeRolph III ruling generally upheld the state’s funding system as constitutional, but stated funding needs to be increased to fully fund the new provisions. The case went to mediation to resolve how quickly the new provisions could be fully funded. Mediation failed and the State asked for another decision. The DeRolph IV ruling vacated DeRolph III, stating without fully funding the new elements the system remains unconstitutional. DeRolph III  stated that Ohio’s school children are better off today than before the DeRolph suit was filed. “The new statutory framework has made positive changes in the base cost amount. The plan also restructures gap aid and introduces parity aid…. to assist poor districts. The plan is also designed to ensure that an adequate number of teachers and supplies will exist in every district, thereby affording every child an opportunity to receive a basic education.” The Court also stated, “The state’s reliance on property taxes is unconstitutional only if the disparity is so dramatic that children in the poorest of our school districts are deprived of a basic educational experience, and a thorough and efficient distribution of funds need only ensure that each Ohio district is financially able to offer an adequate education. We recognize that the General Assembly has made significant changes to the prior structure in order to reduce reliance on local property taxes.”

Certainly, more work needs to be done, but the impetus is now at work. The Court also states, in DeRolph IV, “a pragmatic compromise to resolve an impasse has been divisive for too long.” Additional legislative action since the last ruling has not been reviewed by the Court.