Feb 26 2020

SB 89 Could Prevent Disaster For Ohio Public Schools

Without legislative action, Ohio public schools face a funding crisis as expanded eligibility for private school vouchers could drain local school districts of state funding necessary to operate.

The latest data from the Ohio Legislative Service Commission clearly shows that House-passed changes to the EdChoice voucher program (contained in amendments to Senate Bill 89) would offer a needed reprieve to children in public school districts across the state when compared to the status quo if nothing changes.

Lawmakers are currently debating two solutions to the voucher crisis, but the House plan, contained in Senate Bill 89, is preferred by most education groups.

That’s because Senate Bill 89 eliminates the performance-based EdChoice voucher which awards students a private school voucher if their local school building fails on even a single state report card measure. Recent changes to state report cards have driven a huge increase in the number of districts slated to lose students and funding as early as next year.

If left unchecked, 1,227 buildings – more than 1/3 of all Ohio public school buildings – would qualify for a voucher next year, potentially increasing the amount of money spent on the state’s 5 voucher programs to $500 million or more a year.

A bar graph that shows the drastic increase in spending on Ohio's 5 school voucher programs that siphon tax dollars from public schools to find private schools. — Bar graph illustrating how the historical cost of Ohio’s voucher programs has skyrocketed.

Senate Bill 89 would reduce that expansion in buildings losing funding and students to vouchers by significantly limiting eligibility for any new vouchers based on school building “performance” (as measured by state report cards).

Senate Bill 89 retains the state’s other, income-based version of the EdChoice voucher, which would be limited to families earning up to 300 percent of poverty. Under the plan, the state would begin directly funding vouchers, eliminating the transfer of taxpayer dollars meant for kids in local public schools to private schools.

Here is how it plays out for a few key State Senators who would need to vote to agree to House changes to Senate Bill 89 for it to become law:

Buildings At Risk of Voucher Funding Losses: Status Quo vs Senate Bill 89

The Problem			The Proposal
Senator	2019-20 school year	2020-21, if nothing changes (current law)	If SB89 passes, 2020-21
Dolan	8	24	3
Hottinger	12	59	0
Kunze	4	32	2
Obhof	7	31	3
Peterson	18	62	6

*Please note that a school district is counted as part of the Senate District if the Senator represents 10% or more of the school district.

Click to view complete data

The impacts on many vulnerable lawmakers in an election year are stark.

If Senate Bill 89 were to become law, Franklin County Senator Stephanie Kunze would see the number of voucher-eligible buildings set to lose students and funding to private schools in the 2020-2021 school year go from 32 to just two. Similarly, Cuyahoga County’s Sen. Matt Dolan would see eligible buildings plunge from 24 to 3.

Even members of Senate leadership would see major benefits from the passage of Senate Bill 89.

State Sen. Jay Hottinger, in line to have 59 voucher-designated buildings in his senate district next year, would see that number drop to zero under Senate Bill 89, while State Sen. Bob Peterson would see his district’s 62 voucher-eligible buildings drop to 6. Even Senate President Larry Obhof would see his buildings drop from 31 to 3.

Statewide, under Senate Bill 89, the number of eligible buildings would drop from potentially 1,227 next school year to just 343.

An attached spreadsheet shows how Senate Bill 89 would address the voucher explosion in all Senate districts.

The analysis is clear: Senate Bill 89 is needed to address the immediate voucher crisis facing Ohio public school districts

Feb 14 2020

10 Senators With A Voucher Problem: Where the impact of the voucher crisis will be hardest felt

The Ohio House and Senate are advancing two competing plans to address Ohio’s private school voucher explosion, but without a fix, some lawmakers will feel acute pain as their local schools see funding losses skyrocket.

Without action, the impacts on local school districts could be catastrophic.

Thanks to years of policy changes expanding eligibility for vouchers, the scope of the problem continues to grow, with local public schools set to lose $62 million more to private school vouchers this year alone. As the two plans to address the crisis are debated at the statehouse, it’s important to understand just how much of an issue this could become for lawmakers considering these changes.

Without action, the impacts on local school districts could be catastrophic. Next year the number of local school buildings where students would be eligible to take a voucher to attend private schools is set to skyrocket:

	2019-2020	2020-2021
Public school buildings affected by voucher losses	483	1,221

Districts statewide will be affected, but some lawmakers see more impacts than others.

For example, State Sen. Tim Schaffer, R-Lancaster, would see the number of public school buildings in his district eligible to lose students to private school vouchers rise next school year by 53 from 11 to 64.

Likewise, state Sen. Jay Hottinger, R-Newark, would see the number of buildings losing students (and funding) to vouchers jump from 9 to 58.

Top Ten Senate Districts Impacted By Rise In Voucher Eligibility:

Senator	2019-2020: Buildings eligible	2020-2021: Buildings eligible	Change in number of eligible buildings
Tim Schaffer	11	64	+53
Andrew Brenner	90	142	+52
Tina Maharath	97	148	+51
Jay Hottinger	9	58	+49
Bob Peterson	14	62	+48
Frank Hoagland	9	56	+47
Terry Johnson	5	49	+44
Dave Burke	18	59	+41
Rob McColley	5	45	+40
Theresa Gavarone	40	78	+38

These exponential increases are thanks to a recent change in how the state assigns report card grades to school buildings that even the legislature’s top voucher proponent, State Sen. Matt Huffman, R-Lima, has called “arbitrary.” In 2011, Huffman wanted to turn the entire EdChoice voucher program into an income-based voucher program, not unlike what House Speaker Larry Householder passed last week in House Bill 89.

“It should be based on need and ability to pay, not some arbitrary standard,” he said during his 2011 press conference about his House Bill 136 that would have created the statewide, income-based voucher program.

If nothing is done to fix this crisis over the next few weeks, Huffman’s Senate colleagues – many of whom represent rural districts – will have to explain to their constituents why they approved increasing the number of buildings eligible to lose state funding to private school vouchers by as much as 800 percent.

Huffman is also in line to be the next Senate President.

Jan 16 2020

Ohio’s School Voucher Explosion and 5 Potential Solutions

Well, that was fast.

In late November, we at Innovation Ohio noticed there was a startling increase in the amount of taxpayer money being transferred from school districts to private, mostly religious schools.

In fact, it was an explosion — $47 million since the end of last school year and $57 million between November 2018 and November 2019 – a more than 20%, November-to-November increase.

We also noticed that many school districts losing sometimes hundreds of thousands of dollars to private schools this school year lost zero dollars to them only two years ago.

Our post led to a series of newspaper and other media reports demonstrating the issue throughout the state. It even forced Ohio House Speaker Larry Householder to say that his top legislative priority this year is to fix the voucher issue.

But what is this voucher issue, and why has it exploded so recently?

The answer is simple: the state report card and money.

Let’s take each issue in turn.

Problem 1 – The State’s Report Card

While there are several voucher programs in Ohio (for more detail on them, check out our report from a couple of years ago), the one that’s exploded is the EdChoice voucher transfer program. This program has been around since 2005 and it takes state money originally designated for a traditional, public school district and instead transfers that money to a private, most often religious school.

Which Ohio school districts are eligible for the EdChoice voucher program? Well, it’s complicated.

Generally, the worst-performing districts in the state on the report card, as well as any child who would attend a building that has received bad marks on the state report card would be eligible for the EdChoice voucher program. Thus, a student who would otherwise attend a poor-performing school building in a well-performing school district would be eligible to receive a public subsidy to attend a private, most often religious school.

Ten years ago, the group of schools and districts eligible for EdChoice were mostly concentrated in Ohio’s urban areas, with only about 30 or so of Ohio’s 613 districts losing at least some of their state funding to private, parochial schools.

But then the state started to use Common Core tests — tests that ended up being changed several times over the course of a few years.

Common Core tests were changed several times over the course of only a few years, prompting the legislature to provide a “safe harbor” period allowing school districts to adjust to the evolving changes.

The “safe harbor” was implemented to prevent mass exodus via the voucher program of students headed to private schools on taxpayer subsidies meant for public school districts due to test changes and not actual student performance.

That safe harbor provision ended last school year, yet district and building grades in Ohio have remained artificially low.

A bar chart illustrating how letter grades per school district have declined erratically during the period of time where Common Core was being changed year-to-year (2012-2019) — Letter grades per district have declined erratically during the period of time where Common Core was being changed year-to-year.

As the data trends suggest, poor letter grades on the state’s report card are much more likely today than they were under previous report card iterations.

In addition, as of the 2019 state budget, if districts received failing grades in only one of several report card categories, they’re eligible to lose state funding to vouchers.

The grades earned need only be failing in one of the categories for 2 of 3 years between the 2014-2015, 2017-2018, and 2018-2019 school years.

Yes, you read that correctly.

The years in question are nonconsecutive. That is the state’s policy.

Under the new measurements, there are now more than 1,200 school buildings that will qualify for vouchers next year, and 512 of 613 Ohio school districts will lose state funding to the EdChoice voucher.

As the data trends suggest, poor letter grades on the state’s report card are much more likely today than they were under previous report card iterations.

In addition, as of the 2019 state budget, if districts received failing grades in only one of several report card categories, they’re eligible to lose state funding to vouchers.

The grades earned need only be failing in one of the categories for 2 of 3 years between the 2014-2015, 2017-2018, and 2018-2019 school years.

Yes, you read that correctly. The years in question are nonconsecutive.

That is the state’s policy.

Problem #2 – Way more money diverted to vouchers

In addition to expanding the universe of eligible voucher students, state lawmakers have steadily increased the amount of taxpayer money diverted into the voucher program, away from public schools for each voucher recipient.

Today, for high school students, it is the same amount of money per pupil as the base aid amount the state’s school funding formula provides for a public school student. That amount used to be far less – a key point for why the U.S. Supreme Court determined Ohio’s voucher system to be constitutional in 2002.

Now that voucher funding per pupil is on par with public school funding for high schools (it’s about $1,500 less for elementary school students), more private schools are opening their doors to these public subsidies, further draining funds from our public school districts.

It used to be that, generally, the dollar amount of vouchers were worth less than those students would have received to attend the local public school district.

Now that the voucher transfer is so much more, in many more instances, the amount going to the voucher is actually greater than the amount of funding the state would have sent the district for the same student. Thus, significantly more local revenue is subsidizing the state funding loss – along the lines of what has been happening with charter schools for years.

These changes are forcing districts to go to the ballot for new money levies more frequently and at higher levels.

Through state policymaking, pro-voucher proponents have significantly expanded the universe of potential voucher recipients to encompass nearly 1/3 of all school buildings in the state.

By increasing the funding that follows students who opt to take advantage of the voucher program, the state has hugely expanded the universe of potential schools willing to accept vouchers for these students.

The result? Vouchers have exploded.

A bar chart showing the drastic increase in voucher-eligible school buildings in Ohio over the 2018-19, 2019-20, and 2020-21 school years. The number has increased from around 200 in 18-19 to around 1200 in 20-21. — The number of school buildings in Ohio whose students are eligible for the EdChoice voucher program has exploded this year.

Now what?

Many public school advocates are effectively pushing back against the expansion of vouchers.

One event will be held next week in Toledo. I will participate in this event as Innovation Ohio’s Education Policy Fellow.

These and other events have forced the Speaker’s hand.

There are many ways to fix this. Here are a few:

Limit the vouchers to only students who have been enrolled in the school building or district that’s eligible for the voucher for more than 180 days. It’s tough to “fail” a student if that student never attends the district or building
In order to be designated a voucher-eligible school or district, you have to receive failing grades in at least 2 (rather than 1) report card categories for three consecutive years. Additionally, limit it to buildings in districts with overall report card grades of C or below. This is the standard for charter school closure. It shouldn’t be easier to get a voucher than it is to close ECOT.
Reduce the amount of funding for the vouchers to something approaching the ratio of the original program considered by the U.S. Supreme Court. Ohio is inviting legal challenges by granting private, mostly religious schools essentially the same base aid amount as a public school student, especially given that the state already pays to bus many of these students to the private school.
Add financial accountability to the taxpayer dollars going to the private, mostly religious schools. One of the real issues with now more than $330 million going to private schools is none of that money is audited. We have no idea how it’s being spent. One of the checks we had on the privately run, publicly funded charter school sector was the public auditing of the money they received, which led to the uncovering of many incidents of taxpayer money being misspent.
Directly fund all EdChoice voucher students from the state. The state already does this through the EdChoice expansion program (where any family of 4 making about $100,000 or less can receive a voucher, regardless of school performance, but that’s another story). Eliminating the deduction will also all but eliminate the local revenue-subsidizing-vouchers problem, and it will reduce the angst many district leaders have when they see on their state funding reports that they are slated to receive a certain level of funding, but get much less because the vouchers take a bunch off the top.

These are just a few of the ways to respond to this crisis that’s hammering many districts.

Feb 06 2013

Who is really served by latest Kasich budget?

If Gov. John Kasich’s latest two-year state budget proposal proves one thing, it is this: Most Ohioans don’t have a friend in Columbus. If you’re a high income earner, the governor is on your side. If you’re a bigwig at a Big Oil & Gas firm, the governor is your humble servant. If you are a charter school cheat, looting public education – John Kasich is your wheelman. If you’re looking for relief or a leveling of the playing field – you’re out of luck. There are still bills to be dropped, hearings to be held and a months-long political process to watch and to participate in on Capitol Square. Innovation Ohio will be unpacking the issues below in greater detail in the coming days and weeks. The state budget is about taxing and spending, but it’s also a huge collection of public policy changes. It’s a document that can be forward looking and which offers a plan to put public money into to the public’s interest. What we’re seeing so far is ideological dogma, little that speaks to the future and lots of your money flowing in the wrong directions. [Read more…]

Oct 18 2012

Charter Schools Still Outperformed by Public Schools

The Ohio Department of Education put out their full report card data yesterday, without the bells and whistles, pending an ongoing, and increasingly suspect, investigation of data manipulation being done by the Ohio Auditor. The information release yesterday reveals that once again, charter schools are outperformed by their public school counterparts. Significantly. Just a few highlights:

On the state’s performance index score, charter schools score an average of 78. That is a lower score than 92% of Ohio’s 3,070 traditional public school buildings that receive a performance index score. So the average charter school would rate in the bottom 8% of traditional school buildings and only 5, not 5%, 5 (or .8%) of school districts.
Ohio’s traditional public schools graduate nearly 90% of their students, on average. Charter Schools graduate barely 30% on average.
The average proficiency rate in an Ohio school district on the 24 subjects tested is 85% while only in 4 of the 24 subjects does the average School District have a proficiency rate below 80%. Meanwhile, charter schools score above 70% proficient in exactly 2 of the 24 tested subjects (they score exactly 70% on one).The average proficiency rate in a Charter School is about 60%.
The average building in the Big 8 Urban districts (Akron, Canton, Cincinnati, Cleveland, Columbus, Dayton, Toledo and Youngstown) has a higher performance index score than the average charter. Again, proficiencies are linked almost perfectly with poverty, as demonstrated here and here. Yet the Big 8 is able to outperform charters, even though buildings in the Big 8 have significantly higher poverty rates.

[Read more…]