Financial Update: State Funding Explanation
As a school district we are often asked about school funding and how it is distributed. The Ohio Department of Education has written the following concise language to explain.
How School Funding is Distributed
Public school districts use a combination of state funds, local sources such as property taxes (and in some cases income taxes) and federal funds.
The amount of state funds that a district receives is based on a formula that takes into account the student enrollment and the property wealth of the district.
About School Funding
The Department of Education’s General Revenue Fund budget represents the largest component of primary and secondary education.
These funds, along with profits from the Ohio Lottery are used to fund Ohio’s 612 public school districts, 49 joint vocational school districts, and approximately 370 public community schools. They also fund the activities of the Ohio Department of Education, including funding for early childhood education, pre-school special education, assessments, and the A-F report card.
In addition to state aid through the foundation program, many school districts receive reimbursements payments for lost property tax revenue caused by the phase out of the general business tangible personal property tax (TPP) and the reduction of property tax assessments rates on utility property (KwH). Finally, the state pays 10% of locally levied property taxes for residential and agricultural real property owners and an additional 2.5% for homeowners and represents property tax relief to individual property taxpayers in Ohio.
By Mrs. Debra Schock