Ohio’s education officials say the state’s share of the base cost calculated under the public school funding formula is set to decline to roughly 32% for fiscal year 2027. That figure represents the lowest percentage since the formula’s inception in the late 1990s and could shift more of the funding burden onto local school districts.
How the formula works
The state‑wide average share is derived from a formula that splits the calculated cost of educating a typical student between state support and local contributions. The formula’s base‑cost inputs—teacher salaries, benefits, and other operating expenses—are still based on fiscal‑year 2022 data, according to Howard Fleeter, a research consultant with the Ohio Education Policy Institute. Meanwhile, local‑share inputs such as property values and household income continue to be updated, creating an imbalance.
Recent trends
Data from the Ohio Department of Education and Workforce, cited by NBC4, show the state share fell from about 35% in fiscal year 2026 to the projected 32% in fiscal year 2027. Historically, the state’s share never dropped below 40% before the three‑year decline that began in 2024, when it stood at roughly 43%.
Fleeter explained, “If the cost stays the same, the local share of that goes up, the state share of the cost will go down.” He traced the progression from 43.3% in 2024 to the projected 32.2% in 2027 as a result of the differing updates to cost and local‑share inputs.
Background of the Fair School Funding Plan
The Fair School Funding Plan, a six‑year phase‑in that began with the 2020 Ohio House approval, was designed to modernize how the state calculates education costs and allocates funding. The plan originated in 2017 work by former Republican House Speaker Bob Cupp and former Democratic state Representative John Patterson, together with superintendents and treasurers.
Patterson noted that the plan assumed periodic updates to cost data—salaries, insurance, and other operating expenses—but the law does not specifically require those updates. Without them, the formula’s calculated base cost can lag behind actual school expenses.
Unfunded components
Both Patterson and Fleeter identified additional categories in the formula that remain incomplete, including funding for students with disabilities, economically disadvantaged students, English learners, and transportation. Studies now exist to quantify those costs, and the experts argue they should be implemented promptly.
Implications for local districts
While Ohio lawmakers have continued to increase overall education spending, the distinction between total spending and the formula’s base‑cost share is crucial. A lower state percentage does not necessarily mean less money overall, but it does indicate that a larger portion of the calculated cost is expected from local sources.
For districts already coping with rising salaries, insurance premiums, and transportation costs, the timing of the next biennial budget will be critical. Updating the base‑cost inputs before the budget is written would require additional state appropriations; otherwise, districts may face higher local tax levies or reduced services.
Looking ahead
As the Fair School Funding Plan reaches its final phase‑in year in FY 2027, Ohio legislators must decide whether to revise the underlying data and increase state support or allow the current calculations to stand. Education policy experts say the projected 32% state share highlights a broader issue: the formula is being applied with outdated cost data, potentially undermining the plan’s original intent to provide a more equitable funding system.
The debate is expected to intensify as the next state budget cycle approaches, with parents, school officials, and community leaders watching closely to ensure that Ohio’s public schools receive sufficient resources without overburdening local taxpayers.
Original reporting: WOWO News/Talk (Fort Wayne) — read the source article.
