Appalachian Ohio’s public schools face tough choices with potential state, federal funding cuts

Public school leaders in Appalachian Ohio say that state and federal funding cuts would cause suffering for schools and the students they serve.

An analysis of the Ohio House Republican budget proposal shows it would result in more than $565 million in lost funds for Appalachian school districts over the next two years and a loss of $2.75 billion for public schools statewide, compared to the Fair School Funding Plan that’s been in place the past two budget cycles.

The Ohio Senate is currently working on a state operating budget draft that would spell out, among other things, how the chamber thinks public and private education should be funded by the state.

The big question right now is whether Ohio Republican lawmakers will keep to the Fair School Funding Plan that was passed with bipartisan support four years ago and included a six-year phase-in, or whether they will abandon it before the third and final phase. Republicans control supermajorities in both chambers of the Ohio Statehouse.

Support for the Fair School Funding Plan

Ohio House Republicans have already laid out their proposal. It does not include a continuation of the Fair School Funding Plan, which distributes support based on a funding formula that takes into account individual district needs, student demographics, and poverty rates, among other categories.

The House budget proposal gives schools an additional $226 million, which House Finance Chair Rep. Brian Stewart, R-Ashville, said would be an increase from 2025 funding.

Democrats and Fair School Funding Plan advocates say that with inflation schools need much more than that to be fully funded, based on the needs identified as part of the funding plan’s data. A fully-funded increase would be between $666 million and $800 million, they say.

School board members from across the state signed on to a letter organized by advocacy group All In for Ohio Kids, asking that the legislature go back to the Fair School Funding plan.

The members write that the funding formula “is working as intended,” and that it “provides an equitable and transparent foundation for a shared responsibility between the state and local communities to support public education for the nearly 90% of Ohio students attending public schools.”

“Alarmingly, provisions in the current state budget for (fiscal year) 2026-2027 threaten the integrity of the (fair funding plan), leaving many districts, especially those with limited local tax bases, struggling to meet rising costs and educational demands,” the letter stated. “These changes risk stalling progress, undermining the formula’s effectiveness and disrupting local school districts’ ability to plan responsibly for the long term.”

Appalachian Ohio

School districts from urban, suburban, and rural regions all stand to be impacted. But the Appalachian region’s districts could face cuts that would dramatically change the way education is provided in an area with limited resources as it is.

Tom Gibbs, Ph.D., superintendent of the Athens City School District, has spent two decades of his career in education working in Appalachian districts, and during that time, he’s seen several “funding mechanisms” put in place for public education, but he’s also seen the different challenges schools and districts face, specifically Appalachian schools.

“Obviously, two of the biggest challenges are, one, poverty … and the other is that you’re spread out, so everything is hindered by transportation (needs) and technology access,” Gibbs said.

He said Athens is unique with its location near and connection to Ohio University, but the district still has its share of needs. He’s in favor of the Fair School Funding Plan because it’s “research-based,” and based in the local-level facts of each school district, he said.

“I do have some concerns that we’re moving away from a formula again,” Gibbs said, adding that he’s worried about plans to reduce taxes that help school districts, and talks of requiring schools to return carryover funds after a cap.

An analysis by the Ohio River Valley Institute found that the Ohio House budget proposal would result in more than $565 million in lost funds over the next two years for Appalachian public schools, “yielding the lowest state share of school funding in Ohio’s history,” the institute said.

Because it “ignores inflation and eliminates targeted funding for districts with wealth disparities or districts that lose students to private schools,” the analysis found the Ohio House Republican plan would underfund public schools statewide by $2.75 billion.

“We’re risking putting our students and teachers even further behind other states,” said the study’s author, Nick Messenger, an economist and senior researcher for the Ohio River Valley Institute.

Messenger used state budget data and funding projections from think tank Policy Matters Ohio to focus his analysis on counties in Ohio served by the Appalachian Regional Commission.

The biggest change over fiscal years 2026 and 2027 would be seen in Mahoning County, according to Messenger’s research. Using the Fair School Funding Plan, schools there would receive $262.5 million. Under the House proposal, the district would only see $166.6 million.

Athens County would receive $72.45 million under the Fair School Funding Plan model, the analysis found. Under the House proposal, schools there would see $52.8 million.

Federal funding

In addition to state uncertainty, Gibbs also said any change in funding on the federal level to public education, for which Athens receives about $1 million from “various funding streams,” would impact their ability to provide tutoring and specialized programs, like special education.

Policy Matters Ohio said the state’s public schools receive $3 billion per year in federal funding, about 11.6% of public school revenue.

Much of the federal funding schools like Athens receive is based on their participation in the free and reduced-lunch programs, eligibility for which is based on the income level of a student’s household. Athens has higher levels of eligibility for the program than some other districts, therefore their funding can be used for “school-wide” programs, according to Gibbs.

“We have some flexibility to implement programs, which means reading intervention, math intervention,” Gibbs said. “Any reduction in that funding stream is going to have a negative impact on the additional tutoring support services we provide.”

Seeing decreases in state aid and federal aid, along with possible limits in how districts can raise local funding would be challenging, he said, “and we could be creating an environment where more schools have to go back to the ballot more often.”

Ohio Statehouse lawmakers have until the end of June to develop a final budget draft to send to the governor for his signature. The Ohio Senate’s Finance Committee, which leads the chamber’s budget development, is hearing from not only school districts, but Ohioans speaking on behalf of topics like public libraries, disability rights, parks and recreation, and food banks throughout the week, with hearings currently scheduled through Friday.

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