Public Dollars, Public Schools | Board Update on Ohio Funding, Tax Fairness

At the same time state funding has decreased, Ohio has dramatically expanded its K-12 voucher system, which uses tax dollars to pay for private school tuition:

• The Ed Choice Scholarship provides up to $6,166 per K-8 student and $8,408 per high school student.

• Hillsdale Local receives approximately $5,266 per student, which is less than the students using the voucher system.

• In 2023-24, Ohio spent approximately $970 million of state tax money on private-school vouchers.

• The state’s next two-year budget sets aside $2.44 billion for voucher programs; nearly $1 billion per year.

• By comparison, the state’s total public K-12 funding was about $11.6 billion in FY 2023 and $13 billion in FY 2024. That means 6–10% of Ohio’s K-12 state education dollars now fund private education.

• These schools receive a portion of our community’s tax dollars but are not held to the same accountability standards as public schools. Their teachers are not required to hold state certification, they are not subject to the same financial transparency and public oversight, and they are not required to implement state learning mandates such as the Science of Reading, among other regulatory differences.

• Each dollar that funds a private school scholarship is a dollar not available to the public schools that serve 90% of Ohio’s children, including Hillsdale’s students. These programs expand without the same accountability or transparency required of public districts, and without local voter approval.

“Each dollar that funds a private school scholarship is a dollar not available
to the public schools that serve 90% of Ohio’s children, including Hillsdale’s students.”
Hillsdale Board of Education

The result is a funding system increasingly out of balance:

• Local property owners, farmers, families, and small businesses carry a greater share than ever.
• As the state diverts more money to private education, public districts must rely on levies to maintain essential programs. 
• Property taxes are funding not only education, but also police, fire, EMS, infrastructure, and parks, services that hold our community together.

While Hillsdale has used Rover pipeline revenue to invest in new facilities, we continue to streamline operations, share services, and prioritize student safety and strong course offerings. These efforts reflect our ongoing commitment to efficiency, excellence, and fiscal responsibility. Without stable state support, however, maintaining these standards will become increasingly difficult. 

“As the state diverts more money to private education, public districts must rely on levies to maintain essential programs. ”

Hillsdale Board of Education

Hillsdale Local Schools is now operating at what's called the "20-mill floor."

This means the district's residential and agricultural taxpayers are already paying the lowest amount possible allowed by Ohio law for school operations.

Here's what that means for each property class:

•       Class I - Residential & Agricultural:

The district's effective tax rate is now 20 mills, which is the minimum amount any school district can collect from homeowners and farmers. When a district reaches this level, tax rates can no longer be reduced; it is the lowest rate taxpayers can pay for school funding.

•       Class II - Commercial & Industrial:

This rate is still above the 20-mill floor, so it can continue to be adjusted downward (or "rolled back") when property values rise. This ensures no additional revenue is collected beyond the original voted amount.

•       Class Ill - Public Utilities:

Public utility property- such as pipelines and electric transmission is always taxed at the full voted millage rate, not the reduced "effective" rate.

For Hillsdale, this is currently 47 mills, and collections are based on the reported values from the district's largest public utility taxpayer, the Rover pipeline.

“The district's residential and agricultural taxpayers are already paying the lowest amount possible allowed by Ohio law for school operations.”

Hillsdale Board of Education

We believe in Hillsdale's future. Our students deserve the same opportunities we had with strong teachers, safe schools, and programs that prepare them for success. Public schools are the heart of strong communities, and they must remain publicly funded and locally governed.

We invite you to stay engaged, ask questions, and join us in advocating for real, lasting solutions. The path forward requires collaboration between residents, educators, and lawmakers to restore balance and fairness in Ohio's school funding system.

“Public schools are the heart of strong communities, and they must remain publicly funded and locally governed.”

Hillsdale Board of Education