What's the effect of governor's line-item vetoes on Ohio public school funding?

COLUMBUS, Ohio (WCMH) -- After months of discourse about public school funding and property tax relief, the state has settled on its funding plan.

Public school funding in Ohio has been a major talking point this budget cycle, but the state has finally determined how districts will be funded over the next two years. Gov. Mike DeWine vetoed some of the more controversial changes to public school funding, but some public school advocates still say the budget will underfund districts. See previous coverage of the budget in the video player above.

"In signing this budget, I line-item vetoed several provisions related to property taxes. I felt that these ideas were thoughtful, but I was also concerned that imposing them now, all of them at once on our local schools, would create a huge, huge problem," DeWine said.

“Regardless of these vetoes, Governor DeWine failed, through multiple steps in this process, to propose and fight for full and fair funding for Ohio’s schools," Melissa Cropper, Ohio Federation of Teachers president, said.

How are schools funded in Ohio?

Ohio schools are funded through state, local and minimal federal sources, with state funding allocated in the budget and local funding typically coming from property tax levies. State shares for public schools are determined through the Fair School Funding formula, a bipartisan plan introduced in 2022.

The formula calculates state funding based on each district's circumstances to try to more equitably fund public schools. Under this formula, a district with more demonstrated financial need should get more state funding. For example, Columbus City Schools, the state's largest district, received $350.1 million in its last state formula payment where the much smaller Bexley City Schools, which benefits from substantial property tax support, received just $20.5 million.

Where did funding end up in the 2026-2027 budget?

In the final budget, the Fair School Funding formula is mostly implemented. Public school advocates said this is a big improvement from the House version of the budget, which scrapped the plan entirely, but it still falls short of the formula's promise to public school districts.

Advocates say the plan underfunds districts because the formula inputs will be out of sync. Under the budget, school districts will update the formula using 2025 financial data, but the state will estimate costs using 2022 pricing. By only adjusting school districts' inputs, the formula will calculate schools as demonstrating less financial need, resulting in less state money.

Ohio Education Association President Scott DiMauro called the final version a "knockoff version of the Fair School Funding Plan." DeWine said it was the largest investment into public schools in the state's history.

The final draft allocated $8.15 billion in Fiscal Year 2026 and $8.26 billion in FY 2027 to traditional school funding, making DeWine's claim accurate, although advocates say it lacks key context. The Ohio Education Association, which represents nearly 120,000 Ohio educators, said the bill still underfunds public schools by $2 billion.

What didn't make the cut?

Although advocates are still concerned about public school funding, DeWine's vetoes eliminated provisions that troubled many districts, including property tax relief proposals. DeWine said property tax relief is a major concern, but the budget items did not guarantee long-term tax relief and would have created significant barriers for districts.

“We must address these legitimate concerns that Ohio voters are talking to us about," DeWine said. "Accordingly, I will be convening a working group, to be formalized and announced in the coming weeks, which will make recommendations to the General Assembly and to me about how we can provide meaningful property tax relief to Ohioans and still fund our schools.”

DeWine vetoed a limit on how much money school districts could carry over from school year to school year, easing the fears of many districts that rely on long-term financial planning. The budget would have stopped districts from carrying over more than 40% of their general fund expenses, returning the remaining funds to residents as property tax relief.

"I think the short answer here is that while the legislature tried to spin the property tax changes as 'tax relief;' in reality, they (particularly the 40% cash balance cap) would have been extremely destabilizing for schools and very confusing for taxpayers," Howard Fleeter, a well-established research consultant with the Ohio Education Policy Institute, said in an email.

DeWine also removed a 20-mill floor calculation provision, which affects how much property tax revenue schools can collect as home prices rise. Without the veto, State Rep. Allison Russo (D-Upper Arlington) said the 20-mill floor change would have cost districts millions of dollars.

DeWine also removed restrictions the budget would have placed on school property tax levies. Before the veto, districts would no longer have the authority to enact several emergency and fixed-sum levies. DeWine said these levies allow for important funding for districts, hence the veto.