The Paladin Project

Political Action Committee

CURRENT FUNDING METHOD

Though some funding is provided by the state and federal governments, Ohio’s public schools are funded primarily by local property taxes. As a result, funding inequities abound across Ohio.

Until the General Assembly crafts a solution, we are stuck with an inequitable, complicated, flawed and far too burdensome method of funding public schools.

Here is a rather simplistic explanation: There are a vast array of levies – regular operating levies, emergency levies, incremental levies, replacement levies, permanent improvement levies, and bond issues. Property taxes are levied on 35% of the County Auditor’s appraised value, and the tax rates are computed in mills. A mill is equal to $1 for every $1000 of the auditor’s assessed value. So a property appraised by the Auditor at $100,000 costs the property owner $35 for each mill levied.

There is inside millage and outside millage. Article XII, Section 2 of Ohio’s Constitution allows political subdivisions to levy ten mills (one percent of the property’s true value) without a vote. Inside millage is allocated among the school district and the city and county governments. Outside millage is levied only upon the approval of the voters.

Inside millage grows with increases in property values. Outside millage, however, does not, and that is why school districts must go to the voters so often for a tax increase. Enacted in 1976, HB 920 freezes the outside millage to the Auditor’s appraisal at the time the outside mills were approved by the voters. When the Auditor reappraises real properties (every six years) and the appraisals increase, the tax rate stays the same. School districts, therefore, receive no more money in the future than they receive the year the millage became effective. As the costs of education rise, many school districts struggle to break even.      

The State then uses a convoluted formula to determine the amount of funds it will provide each district. Suffice it that the State’s funding formula ensures that property taxes will pay the bulk of the bill for public schools across Ohio. Our property taxes are choking us and our economy and it needs to stop.

SENATE BILL 1: THE GENERAL ASSEMBLY PUNTS 

Our representatives and senators in the General Assembly do not lack the ability to fix this; they just lack the will, which is glaringly evident with the passage of Senate Bill 1. SB 1 provides: “To reserve this bill number for the Governor’s school funding reform plan.” (Emphasis added). As Governor, Ted Strickland has given Ohioans some reason for hope, and any school funding proposal by him is welcome. But, again, this is not the Governor’s job. The Ohio Supreme Court did not order the Governor to reform public school funding; it ordered the General Assembly to do so because it is their responsibility.

If Ohio’s budget had a nickel for every pamphlet handed out on Election Day by candidates for Representative or Senator in the General Assembly promising to advocate for school funding reform we could fund the schools. The Paladin Project was founded to hold them to their promises.

Last Modified:  August 26, 2007 - tmzamiska © 2007