Ohio HB 96 worries educators

FINDLAY — If the current version of Ohio House Bill 96 were to pass, school districts in Hancock County could face significant financial cuts, with millions in carryover funds distributed back to taxpayers. The Republican-backed bill passed in the House and is currently under review by the Ohio Senate. School officials and education associations across the state have criticized the proposal. If enacted, HB 96 would cap K-12 school districts' cash reserves at 30% of their carryover budget. Any remaining funds would be distributed back to taxpayers through a property tax reduction. According to the language of the bill, this process would result in $4 billion in property tax relief statewide. However, local educators, along with the members of the Ohio Education Association, worry that returning those funds could jeopardize a school district's financial stability and eliminate a community's local control. Liberty-Benton Superintendent Bruce Otley said the plan would have serious consequences for not only his district, but all school districts in Ohio. According to the district's calculations, L-B would lose $2.2 million in revenue in Fiscal Year 2026, $1.2 million in Fiscal Year 2027, and up to $5.7 million over the next four years. "Carryovers are not rainy day funds, they're an essential part of every school district budget," Otley said. "Districts like Liberty-Benton and other school districts across the state have their own unique needs, so this one-size-fits-all approach being suggested by the legislature toward putting a 30% cap on carryover just simply doesn't work with every school district's budget and budgetary needs. It's unique to each district." During a recent Hancock County Republican Party luncheon, Ohio House Speaker Matt Huffman, R-Lima, expressed support for HB 96, saying many school districts are accumulating more money than they can spend. About 520 school districts of the 606 in Ohio had a carryover balance exceeding 25% of their annual operating budget last year, he said. "We're not doing anything other than saying, 'At least give back the money you're not spending.' That's all. We're not telling you to spend less, or telling you what you need to spend the money on," Huffman said at the luncheon. "'But if you're not spending it, give it back to the real estate property owners." Additionally, HB 96 proposes a $555.2 million increase in state aid to public schools over the next two years compared to Fiscal Year 2025. This includes $207.6 million in Fiscal Year 2026 and $347.6 million in Fiscal Year 2027. But though the bill would increase overall funding to public schools, school officials argue that it falls short of fully implementing the Fair School Funding Plan. The bipartisan funding plan, adopted in 2021, uses a student-centered formula based on the costs of educating a child and how much a local community can afford to contribute. According to the Ohio Education Association, HB 96 suggests abandoning Fair School Funding altogether and instead creates a "bridge formula" for Fiscal Years 2026 and 2027. The OEA has stated this move would ignore rising education costs and deny schools funding of around $2.75 billion by not updating components of the Fair School Funding Plan. Columbus-based policy research nonprofit Policy Matters Ohio estimates that school districts in House District 83, which includes Hancock, Hardin and part of Logan counties, would lose over $41 million in funding over the next two years if HB 96 replaces the Fair School Funding formula. Instead of receiving an additional $46.2 million under the Fair School Funding Plan, districts would be getting $5.2 million over the next two years with HB 96, it has stated. "We need to be fully-funded," Otley said. "In fact, the Fair School Funding Formula that was in place did fund school districts across the state of Ohio in a fair and equitable way because it took into account each individual district's unique needs. The current version of this house bill, which is now in the Senate, doesn't do that." Otley also raised concerns over the bill's proposed increase in funding for voucher programs. The Statehouse News Bureau reports the proposed budget outlines $2.4 billion in voucher funding over the next two years, an increase of 16.5% from current funding totals. The bill is proposing additional public spending on vouchers, totaling $432 million on private school tuition in Ohio over two years. "I think it's unfair to fund the private, parochial, and charter schools at a higher rate than public," Otley said. "The majority of the schools that the students in the state of Ohio attend are public schools. "We can compete with anyone. For example, Liberty-Benton offers one of the lowest costs per pupil in the state of Ohio: $11,040.97, while the state average is $16,310.87," Otley said. "We're typically in the top 15% of all school districts in the state of Ohio annually, we have been for the last 20 years. We offer the taxpayer a tremendous value for their investment and I think it's unfair that public schools aren't being funded at the same rate as private schools through the voucher program." In House District 83, 468 students use vouchers to attend three private schools, and 18,401 students attend 52 public schools. Throughout the state, more than 1.8 million students attend public schools. "The local voters have the ability to determine what they feel is appropriate for each school district," Otley said. "It's important to note that the majority of students across the state of Ohio attend successful schools. It's a false narrative to state that schools are failing in the state of Ohio. Most students attend local schools, just like Liberty-Benton, and people love their local schools and want to see them fully-funded."