Ohio legislator proposes school finance system without local levies, EdChoice

COLUMBUS, Ohio (WCMH) -- A new bill that would get rid of school levies and Ohio's EdChoice program had its first hearing this week.

Sen. Andrew Brenner (R-Delaware) introduced Senate Bill 93, which would establish a school funding system without vouchers or levies. Instead, Brenner proposes establishing a financing system supported by statewide taxes. See previous coverage of school funding in the video player above.

Under S.B. 93, school districts would no longer be able to levy property or income tax levies. Instead, Brenner proposes a statewide 20-mill property tax, to be distributed across public and charter schools. He also suggests raising the state sales tax by 1.75%, bringing the total tax to 7.5%. All of the additional sales tax revenue would go directly to education funding.

"This shift is designed to distribute the tax burden more evenly and stabilize how schools are funded across Ohio," Brenner said.

The plan would fund schools on a per-pupil basis, and Brenner expects to allocate about $11,535 per student. He said the funding would "follow" the student to their public or charter school of choice, eliminating the need for some education voucher programs.

Ohio's current funding program also operates per pupil but includes a complex formula that generates a per-pupil base cost tailored to each district, not a statewide figure. Brenner hopes his changes would address concerns with Ohio's school funding that have been ongoing for more than 30 years.

In the 1990s, Ohio's school funding system was declared unconstitutional. In part, the Ohio Supreme Court took issue with an overreliance on property taxes, still a sore subject in school funding. Ohio legislators largely agree that property tax reform is necessary, but there are concerns about how reform could gut school funding.

Brenner said about 50% of all school funding currently comes from local property or income taxes, with the state contributing about 40% and remaining funds coming from federal programs. In central Ohio, local tax revenue often makes up a higher percentage than Brenner's average.

Columbus City Schools, the state's largest district, said 68.6% of its funding comes from local taxes. In districts like Dublin and Bexley, which receive less state support, local taxes contribute about 85% of district revenue, according to district financial estimates.

He said the system would be based on student enrollment and would adjust for additional factors like special education or English learners. Brenner's suggestion also allows voluntary consolidation of two or more school districts.

Brenner also proposes shifting the responsibility of busing students from public schools to regional Educational Service Centers (ESCs). Brenner said relying on ESCs could require districts to synchronize their bell schedules.

"Many ESCs already coordinate regional services and are better equipped to manage transportation efficiently across districts in their regions," Brenner said. "This change would help relieve local schools of a significant logistical and financial burden."

Brenner said S.B. 93 would need a companion piece, Senate Joint Resolution 4, which is also pending in the Finance Committee. If approved, it would amend the state constitution to allow Ohio to assume all outstanding public school debt, removing the burden from local schools. The resolution requires approval from the House, Senate and Ohio voters.

"With more than 600 school districts in Ohio, this voluntary option would promote efficiency while respecting local control," Brenner said.

Brenner is a proponent of school choice programs like EdChoice, and even hosted the first joint caucus on school choice earlier this month. Under S.B. 93, Brenner said two of Ohio's five state scholarship programs would no longer be necessary: EdChoice and EdChoice-Exp.

Brenner plans for funding to "follow the student to the school of their choice," allocating the same amount per student to public and charter schools. EdChoice offers $8,408 for high schoolers and $6,166 for grades K-8, so Brenner's plan would allocate more funding per student to nonpublic schools.

Ohio's school funding is set for the next two years, but legislators are enacting property tax relief changes that could reduce funding before the next biennial budget. Legislators already successfully eliminated several types of school levies this fall.

On Wednesday, the Ohio House passed two bills seeking to relieve property tax burdens. House Bills 186 and 335 would limit property tax increases and inside millage levies to below the rate of inflation. Local schools worry these bills, if approved, would cost them; Canal Winchester estimates H.B. 186 alone would cut $3.3 million from its budget annually.

S.B. 93 had its first hearing on Tuesday and is awaiting further hearings in the Senate Finance Committee.