Ohio Budget Sets Moratorium on New State Takeovers of School Districts, Fails to Resolve Lorain Crisis

State budgets outline what sort of public investment is possible within the revenue constraints of any state government. They also outline the spending priorities of the majority.  Sometimes, despite laws that prohibit logrolling, they also contain a lot of stuff that has nothing to do with fiscal matters.

Ohio’s new biennial budget reflects a priority for tax cutting.  Ohio’s legislators—despite the 17 day extension required because even the huge Republican majorities in both chambers couldn’t agree on a lot of things—reached consensus that taxes should be further reduced instead of investing in services needed by the must vulnerable Ohioans.  For example, the Legislature did not raise basic formula funding for 3 school districts already designated in Academic Distress or for the ten additional public school districts teetering on the edge of that categorization.

The Ohio budget conference committee, mercifully, did not insert into the state budget the Senate Education Committee’s long and detailed amendment prescribing a new state takeover plan for the 10 districts threatened with state takeover in the next two years. The Columbus Dispatch‘s Catherine Candisky reports that Senate President Larry Obhof, “said the conference committee… agreed to a one-year moratorium on a controversial law allowing state takeover of academically failing school districts while lawmakers continue work on a solution in separate legislation.”

The Ohio House had repealed the state takeovers of school districts in its version of the budget. The Senate Education Committee had inserted into the Senate’s budget a cumbersome plan that featured a new state School Transformation Board, private takeover consultants approved by the state to conduct “root-cause” analyses, state-approved school district “improvement director czars,” and if insufficient improvement did not follow, the old top-down state takeovers. It is a very good thing that the conference committee left the Senate’s plan out of the budget.

Let’s remind ourselves about the serious, unresolved issues that the new one-year moratorium on state school district takeovers fails to address:

  • A one-year moratorium on new state takeovers grants at least a temporary reprieve from state takeover to Columbus, Dayton, Toledo, Canton, Ashtabula, Lima, Mansfield, Painesville, Euclid, and North College Hill. These school districts have been branded as failures by Ohio for their low aggregate standardized test scores, and their fate remains unresolved. These school districts serve concentrations of very poor children, many of them children of color.
  • The moratorium on new state school district takeovers does nothing about the current disastrous state takeovers in Youngstown and Lorain, and the newest takeover in East Cleveland. Two months ago, by an extraordinary, bipartisan margin of 83-12, the Ohio House passed HB 154 to repeal HB 70 (the state school district takeover law fast-tracked through the Ohio Legislature in 2015). The Senate has refused to consider HB 154.  The overwhelming bipartisan House support for eliminating state takeovers reflects the seriousness with which members of the Ohio House view the chaos into which state takeover has pushed Lorain and the dysfunction in Youngstown.

In the new budget, the Legislature not only neglected to address the state school takeover disaster, but also neglected to support the state’s poorest school districts threatened by state takeover—big cities with concentrated family poverty, towns where manufacturing has collapsed, and inner-ring suburbs— with additional operating funds. The Legislature did, however, adopt and expand Governor Mike DeWine’s proposal to add funding for wraparound social and medical services to help school districts better serve the needs of students and their families. The funding is weighted to provide extra dollars for districts serving the largest numbers of poor children. The Plain Dealer‘s Patrick O’Donnell explains: “The governor had proposed giving schools across the state $550 million over the next two school years for so-called wraparound services, like medical and mental health care, family supports and mentoring.  The ‘student wellness and success’ plan, as it is called, is aimed at helping students in every school in Ohio with issues that interfere with learning and with helping them succeed in school and in life. The version passed by legislators added $125 million more than DeWine proposed based on poverty levels of districts. In 2020-21, for example, DeWine had proposed giving the poorest 20 percent of school districts $300 per student, while giving the richest 20 percent of districts $25 per student.  The new plan, which came out of the House, raises all payments for 2020-21.  That means $460 per student for the poorest districts and $30 for the richest… The minimum that any district could receive also was raised from $25,000 to $30,000.”

Governor DeWine vetoed one section of the education budget. The Columbus Dispatch reports that about three dozen Ohio school districts have so much property wealth that they receive less from the state than private schools in their districts receive for auxiliary services.  In a later article Catherine Candisky, and Randy Ludlow explain that DeWine vetoed a provision of the budget to ensure that wealthy school districts would not receive less state aid than private schools in their districts receive.  DeWine explains his veto (see p. 10, Item 16): “This item would guarantee a base amount of per-pupil funding to all public school districts. Ohio’s school funding system was designed to offer the most support to the districts that are least able to provide adequate services to their students. The districts that would benefit the most from this item are among the wealthiest in Ohio. Carving out a special exemption to provide additional resources to the districts most capable of providing resources for their students is not a responsible use of the limited funding available to Ohio’s school districts. Therefore, this veto is in the public interest.”

However, the Dispatch confirms that the Legislature also passed a budget provision to allocate a $38 million funding increase for Ohio’s quickest growing school districts, which, due to their local property taxing capacity, have had their state funding capped for several years.  DeWine chose not to veto this provision, which will reward the same wealthy districts—the rapidly expanding exurban school districts surrounding the state’s big cities.

Even though budgets are supposed to deal with fiscal matters, folded into this budget are new high school graduation requirements. Unfortunately, the new graduation requirements that appear in the budget are the ones that originated from a lobbying group, Ohio Excels, representing business interests.  Educators have complained that the plan they designed, which was eventually approved and presented by the Ohio State Board of Education, was ignored.  And just this week a member of the State Board of Education raised serious questions about whether the cut scores designating students as “accelerated” or “proficient” are set unreasonably high so that the state denies many students who really are proficient enough points to graduate from high school.

Now that Ohio has a FY 20-21 biennial budget, much of education policy remains unresolved, including the urgently important crisis in Lorain due to its current state takeover chaos and the fate of 10 districts the state has threatened to take over.  Surely there will be further debate about the graduation requirements logrolled into the state budget without sufficient debate.  And left out completely is the matter of the new Cupp-Patterson school funding plan which was not addressed in the budget. It has now been formally introduced as HB 305, and will likely be extensively debated in upcoming months.

This article was updated on 7/19/19.

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