House K-12 Formula Wins Out in Budget Deal; Voucher, Charter Funding Increase
Bills in this Story
134-HB110 OPERATING BUDGET (Oelslager, S)
Mentioned in this Story
Rep. Bob Cupp (R-Lima)
Governor Mike DeWine (R)
Sen. Matt Dolan (R-Columbus)
Sen. Matt Huffman (R-Columbus)
Rep. Scott Oelslager (R-North Canton)

The budget conference report on HB110 (Oelslager) “almost entirely” restores the K-12 formula laid out in the House’s Fair School Funding Plan, in the words of Rep. Scott Oelslager (R-North Canton), the conference committee chairman. However, intent language speaking to how the House plan would go into effect beyond this coming biennium was deleted, as were proposed and previously authorized cost studies on various elements of the formula. The final version of the budget also grants Senate-proposed increases to funding for school choice programs.

Yet to be seen are what items might fall to Gov. Mike DeWine’s line-item vetoes.

“We wanted to recognize the hard work done by all the advocates, the importance of this to Speaker Cupp. But all throughout the process we’ve had some questions about the sustainability of the program, how they were coming up with their metrics. So we look forward to the next two years, to see how it rolls out. And then, as required, we will make the appropriate changes going forward. But there is not a commitment beyond year two to follow that plan to its fruition,” said Sen. Matt Dolan (R-Chagrin Falls), chair of the Senate Finance Committee and a member of the budget conference.

“I think what we really wanted to do, because this was a bit of a sea change, we wanted to make sure we had two more years’ worth of information before the path continues to go down this direction,” said Senate President Matt Huffman (R-Lima).

Advocates for the Fair School Funding Plan had presented a six-year phase-in period to reach full implementation.

School funding changes in the HB110 conference report were incorporated via amendment 4647-3.

As called for in the House version, DeWine’s Student Wellness and Success initiative, which provided funding for wraparound services, is rolled into the overall formula rather than kept as a standalone fund.

The final version maintains the direct funding policy for choice programs like vouchers and charter schools that was included in both chambers’ versions of the bill, specifically opting for Senate language on charter and STEM schools and vouchers, but House language for open enrollment.

The conference report increases per-student facilities funding for charter students to $500, down from the Senate proposal of $750. Per-student voucher amounts are also set to increase under the final version, as proposed by the Senate, from $4,650 to $5,500 for K-8 students and from $6,000 to $7,500 for high school students, with a mechanism for future increases in line with average base cost growth in public schools.

The Senate also won other EdChoice changes, including outright elimination of the 60,000-voucher cap and expansion of eligibility, including to foster children and students whose siblings received a voucher the year prior, among other categories.

New brick-and-mortar startup charter schools could be opened anywhere in the state under the final budget, which lifts the restriction that such schools open only in “challenged” districts. And new e-schools can be opened in excess of usual limits if their sponsors are rated “exemplary” in state ratings.

Funding for bus purchases, which was stripped in the Senate version, was partially restored, with the final version providing $50 million in FY22, versus $45 million in both FY22 and FY23 in the House plan.

The three Ohio school districts under state oversight will have an opportunity to return to local control with adoption of a Senate-added provision to create a path out of academic distress for East Cleveland, Lorain and Youngstown schools. The districts will be able to develop a three-year academic improvement plan in order to regain control from the academic distress commission.

The conference report also uses $125 million in federal COVID funding to support establishment of education savings accounts for students from families earning below 300 percent of the federal poverty guidelines. Students can get up to $500 per fiscal year to pay for before- and after-school programs, day camps, field trips, tutoring, music lessons and the like.

School management and labor organizations praised the final funding deal while also highlighting its pullback from the House’s longer term outlook.

“This is a bold and historic decision that will reverberate for decades,” said Rick Lewis, Ohio School Boards Association (OSBA) chief executive officer. “Enacting this funding model represents a generational investment that will thrust Ohio forward into an era of stable and predictable education budgets to help schools meet the needs of all students. The work does not end today, though. The bill only funds two years of the six-year plan, which means future lawmakers must commit themselves to push this adequate and equitable funding formula across the finish line. We commend and thank Speaker Cupp, Senate President Matt Huffman and Gov. Mike DeWine for their leadership and commitment to children.”

“We are extremely pleased that the Fair School Funding Plan will be our school funding system during this biennium and appreciate the House negotiators for providing a convincing argument that our kids are worth the investment,” Ohio Education Association (OEA) President Scott DiMauro said. “It will provide the framework for the state of Ohio to finally meet its constitutional mandate of providing a world-class education to every Ohio public school student, regardless of location or station. But in order to do so, the state must fulfill this plan’s great promise beyond these next two years. So the work continues. But the good news is advocacy from our members, communities, parents and students made a difference. And it will continue to do so.”

Among other education-related details of the conference report were the following:

- Maintaining administration-proposed language to requiring instruction on the harmful effects of vaping as a part of health curriculum.

- Prohibiting schools from offering sex education instruction beyond what’s already specified in law unless they first notify and get permission from parents.

- Removing administration-proposed language that would have required completion of the Free Application for Federal Student Aid (FAFSA) in order to qualify for a high school diploma.

- Maintaining administration language for the Ohio Department of Education (ODE) and Ohio Department of Higher Education (ODHE) to establish a committee to develop a state plan for computer science education, but removing language requiring that all high school students have access to computer science courses.

- Requiring, per House-added language, that ODE submit proposed changes to the Education Management Information System (EMIS) or department business rules that affect charter schools to the Joint Committee on Agency Rule Review, which must determine whether schools can reasonably comply before they can go into effect.

Story originally published in The Hannah Report on June 28, 2021.  Copyright 2021 Hannah News Service, Inc.