To: School board members, superintendents, treasurers and other school business officials
From: Will Schwartz, OSBA — (614) 540-4000
Barbara Shaner, OASBO — (614) 325-9562
Kevin Miller, BASA — (614) 846-4080
RE: Additional details about education funding reductions & CARES funding information
As a follow up to our communication yesterday that included detailed spreadsheets showing $300 million in district-by-district funding reductions for the remainder of fiscal year (FY) 2020, we wanted to share some additional information.
State Funding Reductions:
• The reductions will be applied proportionally to districts’ final three payments of the fiscal year (the second May payment and both payments in June). The first payment in May will NOT be affected.
• We are aware there are some districts whose reductions will exceed the sum of their three final payments. It is our understanding the balance will be settled during FY 2021 in some fashion; however, we do not have those details yet.
• The reductions were made in an “equalized” manner; lower capacity school districts receive a smaller per-pupil reduction than higher capacity districts. However, details of the formula used to make district per-pupil reductions are not yet available.
• Click here for a table showing the reductions by quintile and typology.
• Charter schools will also see reductions, but the details have not yet been released.
• Career centers’ funding will not be reduced because of federal maintenance of effort requirements.
• There will also be an additional $55 million in education budget reductions for things like student assessments, report cards and unspent voucher funds; however, the specific details of these “line item” cuts have not yet been released.
• Gov. DeWine has indicated there will be a budget shortfall in FY 2021 but there is no data yet to indicate to what extent. In public comments, he shared that the state’s rainy day fund will need to be tapped during FY 2021, but provided no assurances that further funding reductions could be avoided.
• Members are asked to join our organizations in urging Congress to provide additional federal dollars to offset state and school district budget shortfalls.
There was legislation passed at the federal level through the Coronavirus Aid, Relief, and Economic Security (CARES) Act establishing the Education Stabilization Fund ($13.5 billion nationwide). These funds will be distributed proportionately among states in the same manner as Title I - Part A. Ohio is receiving $489 million, 90% of which will go to local education agencies in the same proportions under which they receive Title I funds. Allocations appear to be about 86% of FY 20 Title I - Part A funds. The funding, which is in addition to annual Title I federal payments, is available through September 30, 2022.
Districts will access the CARES funds through Comprehensive Continuous Improvement Plan (CCIP), the same as with Title I funding. According to ODE, the allocations are now in CCIP. Qualifying reimbursements will be granted retroactively to March 13, 2020. Click here for a list of allowable uses for these funds.
Ohio also will receive $105 million through the Governor’s Emergency Education Relief Fund as part of the CARES Act. The funds are to be used by Gov. DeWine for both K-12 and higher education, and ODE is working closely with the governor’s office as they make decisions on how these funds will be disbursed.
We will continue working to gather additional information on these cuts and the federal efforts toward receiving additional federal assistance and share that information as it becomes available. Please do not hesitate to reach out if you have additional questions.