ODE ODE School Finance and Funding 1 — Questions and Answers
Question 1: What is the primary state funding formula used in Ohio to distribute education funds to school districts?
- Ohio Foundation Formula
- Fair School Funding Plan (FSFP) (Correct answer)
- Ohio Weighted Student Funding Model
- Ohio Education Block Grant Formula
Correct answer: Fair School Funding Plan (FSFP)
Ohio's Fair School Funding Plan (FSFP), enacted in 2021, is the primary formula used to distribute state education funds to districts based on cost-based calculations.
Question 2: Which local revenue source provides the largest share of school district funding in most Ohio districts?
- Local income taxes
- Property taxes (real estate and public utility) (Correct answer)
- School district sales taxes
- Casino revenue distributions
Correct answer: Property taxes (real estate and public utility)
Property taxes, including real estate and public utility taxes, are the primary source of local revenue for most Ohio school districts.
Question 3: What is an Ohio school district 'levy' in the context of school finance?
- A state fine imposed on a district for failing to meet academic standards
- A voter-approved local tax to generate additional revenue for school operations or capital needs (Correct answer)
- A federal grant awarded to high-need districts
- A transfer of funds from a wealthier district to a poorer one
Correct answer: A voter-approved local tax to generate additional revenue for school operations or capital needs
A school levy is a voter-approved local property tax that generates additional revenue for a district's operating expenses or capital improvements.
Question 4: Under the Fair School Funding Plan, what does the 'base cost' represent?
- The minimum amount required to fund a student's special education services
- The calculated per-pupil cost of providing an adequate education, based on resource modeling (Correct answer)
- The average state expenditure per student across all Ohio districts
- The fixed dollar amount the state contributes per pupil regardless of district wealth
Correct answer: The calculated per-pupil cost of providing an adequate education, based on resource modeling
The base cost under Ohio's FSFP represents the per-pupil cost of an adequate education, calculated through a resource-based cost model.
Question 5: What is the purpose of Ohio's 'charge-off' provision in school funding?
- It removes funding from districts that fail state audits
- It reduces state aid to wealthier districts that can generate more local revenue (Correct answer)
- It penalizes districts with low attendance rates
- It withholds funds from districts not meeting graduation benchmarks
Correct answer: It reduces state aid to wealthier districts that can generate more local revenue
The charge-off provision reduces state aid to property-wealthy districts because they are expected to generate more local revenue to fund their schools.
Question 6: Which state agency is responsible for auditing Ohio school district finances?
- Ohio Department of Education (ODE)
- Ohio Department of Taxation
- Ohio Auditor of State (Correct answer)
- Ohio Office of Budget and Management
Correct answer: Ohio Auditor of State
The Ohio Auditor of State is responsible for auditing the financial records of Ohio school districts to ensure proper use of public funds.
ODE ODE School Finance and Funding 1
What is the primary state funding formula used in Ohio to distribute education funds to school districts?