1. Fair School Funding Plan A comprehensive, fair school funding plan for Ohio
Sponsors: State Representatives Bob Cupp & John Patterson
Slide

2. Education is the Key to Ohio’s Future
Appropriate workforce development is essential for Ohio’s future growth.
And Ohio needs much higher educational attainment to compete.
Ohio’s schools and students face real challenges in a changing world.
But Ohio school funding is a patchwork not based on student needs.
Ohio needs a new system – fair to students, schools and taxpayers.
Ellen

3. Bipartisan Cupp & Patterson Plan Built by Leading Educators
Educators (superintendents, treasurers, teachers) know the needs best.
15 months of research on Ohio’s formula, other states’ and experts’ ideas
Asked
3 essential questions about school funding
Base state school funding on what students actually need to succeed in a rapidly changing world.
Assess every community’s capacity to pay its fair share – transparently!
Treat all Ohio’s school districts and taxpayers as fairly as possible
Three Charges to Create Fair School Funding Plan 1. 2. 3.
Ellen

4. Define Ensure Provide Fund
Our Critical Values
What does it cost to educate every child and operate a district?
Define
All students can achieve their greatest potential, regardless of their economic circumstances or their school district’s property wealth.
Ensure
Fair and stable funding formula that does not favor one district over another.
Provide
Dollars flow directly to where students are educated.
Fund
Ellen
During the process of creating this fair funding model, this number was key in keeping our focus on what mattered most. While the legislature and administration must often wrestle with a variety of large and important numbers, let’s make 2031 one of the most important.
In schools across Ohio today, the current kindergarten class, the Class of 2031, is with their teachers, in a classroom taking the first steps of their educational journey. Throughout our process lead by Representatives Cupp and Patterson, we focused on the question, what does it take to educate a typical child in a typical district and how can we ensure ALL students can achieve their greatest potential regardless of zip code?
These core values enabled us to think about what all students need. At no time did we consider the impact on our own districts. By doing so, we made certain to emphasize the need for stable funding that is based around the student and their unique needs. The funds will follow the students. Equally important, this is a formula based on each district’s unique attributes. Funding is based in what happens inside the district boundaries – not outside.
This plan offers a vision for one Ohio and not a system that pits district against district

5. The Ohio Fair School Funding Workgroup
How does the Ohio Fair School Funding Plan address the woes of the current formula?
Tom/Ryan –
22 years and a day ago. The first ruling of school funding declared unconstitutional., I was in 8th grade in Mt. Gilead and little did I know this was going on. Mt. Gilead played a small role in these deliberations as our facilities were in dire need….A coal room converted to a classroom receibed statewide attention
As Ellen mentioned, Superintendent Hosler couldn’t be here, but let me tell you about Tom’s Elevator speech
As we introduce the base costs concept for this plan, let’s pause for a moment to recognize that being here is a little unusual.
You have a group of school leaders, superintendents, and treasurers testifying before a committee of House members about school funding.
Ok, maybe that isn’t unusual.
But what is different and unusual about this time is that we are excited to be doing so. Yes, we are actually excited to talk about school funding – in a positive way. We are pleased to have been part of this process and proud of the bipartisan leadership from Representatives Cupp and Patterson and proud of the work that has been accomplished by our team of educators

6. on Cap or Guarantee The Formula Doesn’t Work
4/5 of Districts
Current
on Cap or Guarantee
The Formula Doesn’t Work
Ryan - As we begin to talk about how this funding formula addresses the woes of the current formula – we need to spend a little time describing how the current formula is broken.
These are not typos-----Today we have a formula where 503 of the 610 school districts in Ohio are either on the guarantee or cap. Essentially, 4/5 or more than 80% of our districts cannot look to the current formula for guidance. Caps limit funding and guarantees underpinning
The current model is not based on the programs and services students and local communities need to succeed. Instead, it is a system that lacks transparency and continues create a complex, self-defeating patchwork of funding for schools. A question we all ask is “as my state and local community changes, how do I influence the current formula to address modern needs
As you will here from our testimony, this will be one of the few times we will be taking a look back at Ohio School Funding. There have been several attempts in the past to reach the summit of solving school funding in Ohio. Task forces, blue ribbon commissions, administrations have all attempted to make that climb to the top of this mountain.
As we began this process, we knew that there are people still stuck … frozen in time, never reaching the top. We are truly grateful for their efforts to establish a new base to climb even higher and reach the summit
In the meantime, generations of students, educators, legislators have come and gone. We have learned from those that have tried and failed in the past and have built this plan learning from their successes and failures. This is a powerful and unique plan that is based on the needs of Ohio’s students.
It is a system no one likes and no one can understand. But yet, here we are.

7. Making School Funding Fair…. and Getting it Right
A New, Fair Funding Formula…
Rational, Understandable & Transparent
Based on Actual Costs of Ohio Education
Eliminate Artificial “Caps” on Formula- Driven Increases
Reduce the Number of Districts on Artificial “Guarantees”
Respect Local Control
…to Address Critical Needs
Provide Basic Instructional Resources
Add Funds for Poverty and Mental Health
Help Special Needs, Gifted, English Learners
Improve Security and School Bus Safety
Invest in Career Tech Education, STEM, Educational Service Centers
Ryan - The proposed comprehensive, fair funding plan will allocate costs based on the actual needs of students.
It is based on the actual costs of an Ohio education using best practices from our state and nationally recognized research.
It eliminates artificial caps and reduces the number of districts on an artificial guarantee.
Most importantly, it targets the most essential component in the educational process – the classroom.
This system recognizes what it needs to meet students where they are and provide them with the experiences and supports that they need to achieve their greatest potential.
You will hear this week how it will help students with special needs and mental health concerns, address the impact of poverty on learning, make students more safe and secure, expand quality preschool, put technology in the hands of Ohio’s students, provide essential services for high poverty districts and reflect the real cost of operating Ohio public schools.
Fair school funding will better prepare our state and local workforce to be more competitive in the nation and the world.
It also respects a long standing tradition of local control and is not a prescriptive model.

8. Base Cost Distribution Add-ons
Poverty, Preschool, Special Education, Gifted, English Learners, Career Tech Education, STEM, Open Enrollment, Charter/Community Schools, Vouchers, Transportation, Educational Service Centers
Distribution
Ryan
Again, 3 major takeaways for today
Deep dive today on base cost – base cost is the foundation upon which all other funding elements of a funding formula are built.
Answering the question “what is the appropriate per student base cost and is sufficient to provide students with essential high quality opportunities
Add-ons, what special circumstances are added on to base cost
Finally, distribution will be discussed, because without a fair and transparent method the formula breaks down.

9. Base Cost Different Approach than the Past
Formula built around the local student and the educational experience
What it actually costs
Allows schools to use state funds according to local needs
Uses research and experience to compute base cost
Transparent, rational, stable
Funds the “whole student”
Instruction, co-curriculars, social-emotional needs, safety and security, career readiness, counselors, technology, teacher professional development...
Accounts for actual costs to run a district
Classroom instruction, instructional supports, English Learners, grade by grade student/teacher ratios and costs, materials...
Maintain local control over how state formula funds are used
Ryan – Local Districts know how best to spend their money. Not prescriptive.
Around local needs – One of our members, Claudia Zaler from Waverly, who co-chaired the poverty sub-group with Superintendent Doug Ute, talked about how poverty is so different around the state of Ohio. As she explained their research we talked about how it would be impossible for Akron and Waverly to follow a prescriptive model.
Research – As you will see from the next slide we start with the classroom.
Whole Student – Schools are finding ways to fund these items, but under a cloak.

10. Base Cost Breakdown Base Cost Breakdown
Ryan – Included in your handout is a detail, line-by-line review. We will take questions at the end of our testimony regarding the handout.
Isn’t it refreshing that we begin in the classroom. What every student needs in classroom instruction accounts for 60%
Another 15% to enhance the classroom goes to instructional and student support. These items are refer to handout
School operations accounts for refer to handout
And 5% goes to district leadership and accountability
Base Cost Breakdown

11. What’s Included Inside Base Costs
Funding for classroom teachers
Recognition of the need for social-emotional and security resources
Career counseling and readiness
Access to technology, for all students
Co-Curriculars
Data and accountability
Ryan
While not a comprehensive – As you have heard We are addressing the needs of the whole child AND the needs of every district

12. Base Cost Distribution Add-ons
Poverty, Preschool, Special Education, Gifted, English Learners, Career Tech Education, STEM, Open Enrollment, Charter/Community Schools, Vouchers, Transportation, Educational Service Centers
Distribution
Ryan - Introduce Jenni Logan to talk
In addition to base cost Jenni will review those add-ons to our base cost. You will hear testimony this week and next week from the co-chairs of our fair school funding plan. Again, Add-ons are those essential services needed to enhance basic needs.

13. Funding Outside Base Costs Poverty, Preschool and Special Education
Make more funding available for students living in poverty to address social, emotional, mental health and academic needs.
Recommend every economically disadvantaged 4-year-old has access to high-quality preschool.
Fund special education at 100% (in place of the current 90%) with the additional 10% allocated for catastrophic aid. In addition conduct an updated comprehensive special education cost study.
Jenni
Ohio's official poverty level, those below the federal standard for a family of 4 is 22%.
Free and reduced lunch rate in Ohio is 50.9%
Our funding report only refers to poverty at 22% following federal standard
Recommendations from team is to study how to accurately count “economically disadvantaged”

14. Funding Outside Base Costs Gifted, English Learners and Transportation
Fund costs of gifted education students based on May study.
Develop fair and consistent criteria for funding English Learners based upon a study.
Modify current method for funding transportation, reward efficiency, and re-institute the school bus purchasing program.
Jenni
Details for Category 2 and Category 3 recommendations:
Revising existing Category 2 participants to include all El students who have been enrolled in an organized EL program for more than 180 school days until they successfully achieve proficiency on mandatory assessments.
Revise Category 3 participants to include all EL students who have achieved proficiency and monitor them for two years.
will complement federal. progress monitoring requirement.

15. Funding Outside Base Costs Open Enrollment, Community Schools and Vouchers
Fund all students where educated.
Students participating in school choice programs from
K-12 will not be included resident district student count.
Eliminates friction associated with outgoing students and local public funds lost.
Creates conditions for community school and voucher funding to stand on its own.
Maintain fiscal impacts of open enrollment at its present levels.
Jenni

16. Funding Outside Base Costs Career Tech, STEM, & Educational Service Center
Create an input method based funding model similar to the recommended K-12 base cost funding model and create an exploration/awareness program for all students within a given Career Technical Planning District.
Fund STEM schools directly and in the same manner as charter/community schools.
Conduct a study of all Educational Service Centers in order to prepare for the crafting of a funding methodology and implement interim funding program for FY2020 and FY2021.
Jenni

17. Base Cost Distribution Add-ons
Poverty, Preschool, Special Education, Gifted, English Learners, Career Tech Education, STEM, Open Enrollment, Charter/Community Schools, Vouchers, Transportation, Educational Service Centers
Distribution
Jenni to introduce Mike and highlight the three again

18. Fair Base Funding Distribution Principles
The Fair Funding Plan is based on students’ and operating needs as outlined earlier.
Key Question: How much district funding is provided by the state? How much by local taxpayers? Today, that’s a mystery because each district’s funding can change relative to the state’s average. That’s a formula for instability.
With the Fair Funding Plan: State/local shares are calculated using resident’s income and each district’s property value and won’t shift unless that district’s income or property values change--eliminates one district’s change impacting another district’s relative wealth.
Mike S

19. Fair Base Funding Distribution
Unlike the current formula, which is too dependent on property values, the new plan uses both property values and resident income to identify each community’s capacity to pay their fair share.
A district’s state and local share will be determined by its capacity to generate local dollars.
Only a change in a district’s resident income, property value or enrollment would cause a change in that district’s local capacity.
Mike S

20. The Challenge - Distribution
Current Local Share of Funding
60% to 100% - PROPERTY VALUES
0 to 40% - BASED ON RESIDENT INCOME
Mike -

21. Distribution 60% BASED ON PROPERTY VALUES 40% BASED ON RESIDENT INCOME
With New Fair Funding Plan
DISTRIBUTION
Distribution
Determination of Local Share of Funding
60% BASED ON PROPERTY VALUES
40% BASED ON RESIDENT INCOME
Mike -

22. funded at their calculated formula amounts The Formula Doesn’t Work
18% of Districts
Current
funded at their calculated formula amounts
The Formula Doesn’t Work
Mike S

23. funded at their calculated formula amounts
With New Fair Funding Plan
84% of Districts
New Plan
funded at their calculated formula amounts
Mike S
Total districts 610
136 districts in 2020 on guarantee
100 district in 2021 on guarantee
New Plan: 84% of Districts on Formula by 2021

24. Base Cost Distribution Add-ons In Summary
Poverty, Preschool, Special Education, Gifted, English Learners, Career Tech Education, STEM, Open Enrollment, Charter/Community Schools, Vouchers, Transportation, Educational Service Centers
Distribution
Mike S

25. Ohio Needs Comprehensive, Fair School Funding Now
Unfortunately, Ohio’s school funding system is not tied to any type of determination of what it takes for students to succeed in the 21st century – diminishing our future workforce and economy.
The Fair School Funding Plan will allocate base costs tied to the actual needs of students, resident’s income, and its property values.
It will help students with special needs and mental health concerns, make all students more safe and secure, update technology, provide essential services for high poverty districts, provide expanded quality preschool, and reflect the real cost of operating public schools.
Fair School Funding will prepare our state and local workforce for the challenges ahead.

26. Fair School Funding
We ask our legislators and all Ohioans to consider our plan in its entirety, as an essential roadmap to guide school funding decisions Together, we strive to ensure that Ohio’s children will have the quality educational opportunities. And together, we can adopt a comprehensive, fair school funding plan that meets the needs of Ohio’s children, future workforce, and economy.
Thank You for Your Interest and Action for Ohio’s Future

27. SUBGROUPS Chairs and Co-Chairs
ESC, CTE & STEM
Jerome (Jerry) R. Brockway, Ph.D.
Superintendent
Ashtabula County Career Technical
Center
Carrie Herringshaw
Treasurer
PENTA Career Center, Wood County
TECHNICAL SUPPORT
Jim Betts
Coordinator
Mike Sobul
Treasurer/Consultant
Granville Schools
Howard Fleeter
School Finance Consultant
Pete Japikse
Ohio School Boards Association
Geoffrey Andrews
Executive Director
MCOECN
POVERTY & PRESCHOOL
Claudia Zaler
Treasurer/CFO
Waverly Local Schools
Doug Ute
Superintendent
Newark City Schools
BASE COST
Ryan Pendleton
Treasurer/CFO
Akron Public Schools
Tom Hosler
Superintendent
Perrysburg Exempted Village Schools
TECHNOLOGY
Michael Tefs
Superintendent
Wooster City Schools
Cajon Keeton
Treasurer
Benton-Carroll-Salem Local Schools
SPED, GIFTED, EL
Jenni Logan
Treasurer/CFO
Lakota Local Schools
Michael J. Barnes, Ed.D
Superintendent
Lakewood City Schools
DISTRIBUTION
Jared Bunting
Treasurer
Trimble Local Schools
Mike P. Hanlon, Jr., Ph.D.
Superintendent
Chardon Local Schools
COMMUNICATIONS
Ellen McWilliams-Woods, Ph.D.
Assistant Superintendent
Akron Public Schools
OPEN ENROLLMENT, CHARTERS, VOUCHERS
Steve McAfee
Treasurer
Whitehall City Schools
Scot Prebles
Superintendent
Forest Hills Local Schools
TRANSPORTATION
Kevin Lillie
Treasurer/CFO
Geneva Area City Schools
Dalton Summers
Superintendent
River View Local Schools

28. Fair Funding Plan Resources
Website:
Twitter: @OHschoolfunding