DAYTON DAILY NEWS
Copyright (c) 1997, Dayton Newspapers Inc.
DATE: Tuesday, March 25, 1997

THE SCHOOL FUNDING PROCESS

   The Ohio Constitution requires the General Assembly to provide a `thoroughand efficient system of common schools.' State law makes local taxpayers thefoundation of school funding. Local taxpayers provide on average 51 percent ofdistrict revenues annually through property taxes on real estate, businessequipment, supplies and inventory and through income taxes. The state providesabout 43 percent of school funds and the federal government contributes about6 percent on average. Those percentages can fluctuate widely based on thevalue of local property, the number of disadvantaged or special-needs childrenin a district and other factors.
   Here's how the process works:

Local

   1. The district school board votes to place a tax levy or bond issue on theballot for voter consideration.
   2. If the tax or bond issue is approved, property owners are taxed on 35percent of real estate market value. The tangible personal property tax isassessed against 25 percent of the value of business furniture, fixtures andequipment. Utility companies pay on 88 percent of the value of their property.
   3. The county treasurer collects the money and the county auditordistributes the money to schools twice annually.
   4. The schools use the money for salaries and benefits, transportation,supplies, equipment, utility bills, and building repairs, renovations orconstruction.

State

   1. The Ohio Legislature approves a two-year budget allocating money for theOhio Department of Education. That money is distributed twice monthly to localschool districts.
   2. The current state foundation formula provides $3,500 per pupil of basicaid to each district.
   3. State Lottery money pays an estimated 6 percent to 8 percent of atypical Ohio school's expenses. Lottery revenues help fund the basic aidamount.
   4. Schools receive additional state funds for transportation, vocationaleducation, gifted or special-education programs and other extra programs.Funding also is influenced by a community's total property valuation and thecost of doing business there.
   5. The state offers funding for building repair and renovation, computersand wiring, and pilot programs.
   6. The state distributes federal education funds to pay for the Title Ireading and math programs, special education, vocational education, help forlow-income children and subsidized school lunches and breakfast.
   7. Statewide, the average revenue per pupil is $5,691. The averageexpenditure per pupil is $5,545.
Source: The Ohio School Finance Handbook by Robert G. Stabile and the OhioDept. of Education

LENGTH: 65 linesILLUSTRATION: Graphic: by Steve Spencer CATEG: EDUCATION & SCHOOLSSUBJ: SCHOOL FUNDING NA: GEOG: OHIO AT: ENHANCER: jesse