**Item 1: Continuation of the Fair School Funding Plan**

Background:

In 2020 the Fair School Funding Plan (FSFP) was passed to address the unconstitutional overreliance of Ohio’s education funding system on local property taxes, which disadvantages students in low-income areas. The plan has progressed well, with school district funding expected to reach $8.3 billion by FY2025. However, legislators have only incrementally moved funding in 2-year intervals, creating uncertainty about the plan’s full success. While HB 33 updated funding formulas, disparities remain due to outdated salary inputs.

Stance:

Continue the FSFP through FY27 and enshrine a legal requirement to use the most current data in funding calculations to ensure the formula adapts to changing economic conditions.

The good news: The plan has been progressing on track as of September 2023. This will correct the unconstitutional spending formula, eliminate funding caps on districts, and establish better per-pupil cost estimates for a diverse student population. School district funding has increased significantly (up to $8.3 billion by FY2025, $881 million more than in FY2023), largely due to advocates, educators, parents, and students persuading legislators to boost spending. Budget increase allocated in part to early childhood education, free school meals, and make up declines in literacy since the pandemic.

The bad news: Legislators have only incrementally moved funding through the formula in 2-year intervals. Although looking good, the success of the plan is not certain.

House Bill 33 (as introduced) continued FSFP but used salary inputs from 2018 while using property and income values from current data, resulting in a disparity in support, with the local share of funding increasing and state responsibility decreasing.

H.B. 33 (as passed) revised this by updating cost inputs using FY 2022 data instead of FY 2018 data. This resulted in a 12.1% increase compared to the as introduced per-pupil amount and increased state funding of public schools by nearly $1 billion over FY24 and FY25.

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**Item 2: Continue to improve Ohio’s Career-Technical Education (CTE) programs**

Background:

CTE participation has been rising, and the July 2023 state budget included $250 million for program expansion. However, awareness remains low, and negative perceptions of CTE persist. Barriers such as transportation and limited understanding of child labor laws hinder work-based learning opportunities. Some districts struggle to access enough funds for CTE program expansion.

Stance:

Advocate for increased funding, particularly for rural and underserved areas. Launch a public awareness campaign to combat negative perceptions, emphasizing success stories and high-wage job opportunities for CTE graduates. Collaborate with industry partners to improve on-site learning and address logistical challenges such as transportation.

Students in Career-Technical Education (CTE) have been steadily increasing. State budget bill passed in July 2023 included over $250 million in new funding to expand the capacity of CTE providers, increase student participation in high-quality programs, and bolster initiatives including the Innovative Workforce Incentive Program which aims to increase the number of students getting credentialed in “priority” sectors.

Participation has increased since a 2014 state law requiring every public school to ensure students grades 7-12 have the opportunity to enroll in CTE programming in state-approved career fields. How schools access these opportunities and how many options they have depends primarily on where they live and what school they attend.

The program still needs work as it is uneven and complex, which leads to confusion and missed opportunities. The average student may not know what these programs are and what they can provide, and taxpayers may not realize the importance of what their taxes are going to.

A CTE program provider in Ohio said some parents also share this negative perception, and that both parents and students may not know that CTE programs can lead to high-wage jobs.

To overcome the negative perceptions associated with CTE, program providers in Georgia and Ohio said their schools have conducted outreach activities to inform parents about the benefits of CTE.

Barriers to work-based learning include transportation to work sites, limited understanding of allowable work under child labor laws by employers, and lack of opportunity when students and employers fail to work together.

A school district admin in Ohio used funding to hire a work-based learning coordinator to identify opportunities and help students find transportation.

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**Item 3: Increasing Teacher Compensation and Improving Pension**

Background:

The median teacher salary in Ohio is $56,672, but many teachers earn much less. HB 411 proposes increasing the base starting salary to $50,000. Ohio’s pension system also needs a comprehensive review to remain competitive.

Stance:

Increase the base salary for teachers from $35,000 to $50,000 and review the pension system to ensure it is competitive. Establish a task force to explore pension reform and reduce the financial burden on teachers while ensuring stable retirement options.

Current teacher salary information can be found at this link, Section 3317.13 of the Revised Code.

According to Salary.com, the median public school teacher salary in Ohio as of March 26, 2024, was $56,672, with the middle 50% falling between $47,315 and $69,135.

See link to House Bill 411 which lays out revised minimum salaries for teachers based on years of experience and level of degree they hold. The percentages of base starting salaries are unchanged, but the bill proposes increasing the base starting salary from $35,000 to $50,000.

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**Item 4: School Infrastructure Investment**

Background:

Ohio’s school infrastructure data is outdated, with the last comprehensive study conducted in 1997. Although $600 million was allocated over two years in 2019 for school improvements, this amount is insufficient to address aging facilities.

Stance:

Establish a governance structure to oversee and assess school infrastructure projects. Conduct a new statewide infrastructure study to identify needs and inform a multi-year funding plan. Modernize Ohio’s school facilities to ensure they are safe, sustainable, and conducive to learning.

Ohio lacks up-to-date data on school infrastructure needs, with the last comprehensive study conducted in 1997 revealing a $10.2 billion deficit for repair and reconstruction.

Since then, Ohio has spent between 5% and 11% above the national average on annual operations, maintenance, and total school-construction capital outlay.

Capacity is sufficient with Ohio student enrollment set to drop.

In 2019 Ohio legislature overhauled school allocation and sent an additional $600 million to schools over two years of implementation.

Ohio suffers from a lack of recent data on the quality of school infrastructure. According to the 2016 State of our Schools report, Ohio is near the national average of annual maintenance and operations spending and doing better than average in terms of long-term debt per student.

Sales tax, property tax, and the lottery are the main sources of school funding. The federal government provides a portion of funding for Ohio Schools.

Although the FSFP provided $660 million more in the first and second years of implementation, the Funding Need report published by the American Federation of Teachers in 2008 indicated a need for an additional $9.3 billion for school infrastructure.s growth. A structure that will stop them from wasting $1 BILLION of our hard-earned tax dollars on failed companies that bought them into the office and then bribed them for a bail-out while Ohioans footed the bill.

My plan focuses on increasing incentives, grants, and other resources to small business owners and startups to spur technological advancements, innovation, and job creation. A state sovereign fund managed by Ohio investment firms invested exclusively in Ohio companies. 

I spend enough time putting Bearcats to sleep in my economics class. I'll spare you my professor hat, but I encourage you to research an economic concept called the expenditure multiplier effect. The bottom line is that the government can stimulate disproportionately larger gains by investing in the economy. For example, suppose the Ohio government invests $100 million into the Ohio economy. In that case, it can create $400 million in economic growth to benefit all Ohioans. It would create high-paying career opportunities and higher wages, skyrocket our middle class, reduce poverty, improve our schools, result in more extraordinary healthcare, and enable us to deliver funding for countless local causes. 

At the risk of causing REM sleep, I'll throw out another economic term: virtuous economic cycle. A well-managed Ohio Sovereign Fund investing in Ohio is not only a force multiplier of good, but it would produce a positive feedback loop or a series of events reinforcing and contributing to Ohio's continued economic prosperity. The initial $100 million delivers a win, which leads to positive outcomes (more wins), creating conditions that further enhance Ohio's economic well-being (wins-on-wins-on-wins). It provides positive momentum that compounds. It leads to more people from Indiana deciding to cross the border and move to Ohio, more high-caliber students starting their careers in Cincinnati over New York City, and more companies relocating to Ohio over Texas. 

The issue is that the Ohio government cannot allocate capital as well as the private market. I am a capitalist to my core and have worked in the private, public, and non-profit sectors. Milton Friedman, legendary U.S. economist and Nobel Laureate, jokingly said, "If you put the federal government in charge of the Sahara Desert, in 5 years, there'd be a shortage of sand." It's funny and too harsh, but he's correct that the private sector is far more efficient and better suited to determine which small businesses and startups should receive the money. 

Ohio-based investment firms would compete to manage and allocate the capital. And Ohio-based small businesses and startups would compete to earn the money. Competition breeds results. The best money managers in Ohio competing to manage the portfolio and Ohio's best small businesses and startups competing to earn the funds would jumpstart Ohio's lackluster economy. I know it because I believe in Ohio.