Update from Treasurer on State Budget

Ohio’s K-12 school funding system is guided by the Fair School Funding Plan (FSFP), implemented in 2021 to create a more equitable and transparent funding formula. This plan is tailored to each district’s specific needs through a unique base cost calculation that considers staffing levels, operational expenses, and other essential factors. Full implementation of the FSFP was originally scheduled for fiscal year 2027 to ensure districts received adequate resources over time.

Financial Implications

However, the House budget proposal seeks to replace the phased-in funding increases under the FSFP with temporary bridge funding. Thus eliminating the FSFP and the work of the FSFP committee.  The Ohio Fair School Funding Plan is an inputs-based funding model developed by Ohio educators using district spending data, research, best practices and thoroughly vetted professional judgement to determine the true cost of educating a child in Ohio, ensuring all students receive a high-quality, equitable education.  The FSFP is:

·         Objective - Built on the needs of students and schools

·         Justifiable - Based on research, best practices, demonstrable success

·         Transparent - Every dollar allocated reflects an identifiable component

·         Amendable - The Plan’s components can be modified if their substance or costs change

·         Fair to All - The same basic educational components apply to students and school in the same educational category, providing high quality educational opportunities for all

An additional provision in the House proposal introduces a cap on the amount school districts can carry over in their operating budgets, limiting reserves to 30% of annual revenues. This revision would drastically reduce the financial support Lakewood City Schools was projected to receive. Specifically, the District faces a loss of $7 million annually in FY 2026 and FY 2027, totaling $14 million over the two years.  This restriction would significantly impact the District’s financial flexibility, making it more challenging to manage unexpected costs, plan for future needs, and sustain educational services. If enacted, this provision could also result in districts needing to seek additional local taxpayer support through ballot initiatives (levies) more frequently, adding financial strain on the community.

How You Can Help

Funding decisions at the state level directly affect our ability to meet the academic and operational needs of our students. We encourage all community members to consider reaching out to their Senate and House representatives to advocate for maintaining the full implementation of the Fair School Funding Plan and removing proposed caps on cash balances. Contact information for your legislators is listed below:

●     Senator Nickie J. Antonio
(614) 466-5123

●     Representative Tristan Rader
(614) 466-5921

As a district, we remain committed to responsible financial planning and to keeping the community informed throughout this process. We value the strong partnership we share with our community and are dedicated to advocating for the resources needed to continue delivering high-quality education to all our students.

We will continue to closely monitor the state budget process and provide updates as developments occur. If you have any questions or wish to learn more about the budget process and its implications for our schools, please contact me directly at kent.zeman@lakewoodcityschools.org. In addition, you can watch my finance update presented at the May 2 Board of Education meeting at the following ling:

View Treasurer’s Presentation

Thank you for your continued support of Lakewood City Schools.