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Senate Unveils Budget Changes; Simulations Released

By Katie Johnson posted 06-07-2023 08:35 AM

  

The Senate Finance Committee made its first round of changes to the state’s biennial budget bill, House Bill (HB) 33.

 

The Senate’s budget proposes to increase voucher funding by $181.5 million more than the House version (for less than 10% of students in the state) while decreasing K-12 traditional school district funding (who serve more than 80% of students) by $245.6 million from the House proposal.

 

Please contact your Senate and House members to share your concerns regarding the following changes:

 

  • The Senate maintained the updated FY22 base cost inputs in the Fair School Funding Plan, but modified the capacity (state and local share) calculation by eliminating the per pupil median federal adjusted gross income (FAGI). This change has two effects. First, it will cause a reduction in the state share of funding while increasing the local share. Additionally, this change will create more volatility in the state share calculation. By removing this component from the calculation, the formula will no longer be predictable or equitable.
  • The Senate version eliminates two of the three guarantees, including the non-transportation temporary transitional aid (which guarantees that a district's funding in each fiscal year does not fall below its FY 2020 funding base) and the formula transition supplement (which guarantees that a district’s funding does not fall below base FY 2021 levels, including FY 2021 student wellness and success funds and the FY 2021 enrollment growth supplement). These two guarantees are replaced with a transitional aid guarantee that ensures a district's foundation aid in FY 2024 and FY 2025 does not fall below its FY 2023 foundation aid.
  • Additionally, the Senate version eliminates supplemental targeted assistance, which is currently received by districts that fall below a certain wealth threshold and whose enrollment has decreased by relatively large percentages due to changes in how students are counted in the current formula.
  • Removed the comprehensive cost study for economically disadvantaged students.
  • Added Senate Bill (SB) 1, which restructures the Ohio Department of Education (ODE) into a cabinet-level agency called the Ohio Department of Education and Workforce (DEW) and drastically changes the roles and responsibilities of the State Board of Education.
  • Restored the mandatory retention provisions under the Third Grade Reading Guarantee that had been eliminated in the House version.

The Senate Finance Committee will be taking testimony on Wednesday and Thursday before making another round of changes. The Senate has expressed that they will pass their version on Thursday, June 15.

 

It is important that your legislators hear from you about how the changes will impact your students. Please reach out to your legislator and/or testify at the hearing dates listed below. You may also submit written testimony to the committee if you are unable to attend in person.

  • Wednesday, June 7 at 3 p.m. or after the Senate session;
  • Thursday, June 8 at 9 a.m.;
  • Friday, June 9 at 9 a.m. This is an “if-needed” hearing and may ultimately be canceled.

 

The Senate’s substitute bill is over 7,000 pages. As we continue to review and analyze the substitute bill, we will update members with additional information. Please contact us with questions.

 

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