Highlights
State Board of Education of Ohio Continues to Search for Options Amid Dismal Funding Outlook
Source: https://ohiocapitaljournal.com/
The State Board of Education of Ohio is facing financial challenges despite efforts to make cuts. At a recent meeting led by Superintendent Paul Craft, discussions focused on the board’s $17 million operating budget. Following legislative changes separating the board from the Ohio Department of Education and Workforce, the board now relies solely on funds from teacher licensure fees for operational expenses.
Key Highlight:
- The Ohio Senate recently passed a bill transferring $4.7 million from the state’s general revenue fund to the State Board of Education’s licensure fund (Fund 4L20), supported by fees from teachers and school staff licenses. This fund covers the board’s operational costs including educator credentials, misconduct investigations, disciplinary actions, and background checks. The bill awaits concurrence on changes made by the House, expected no earlier than November when the legislature reconvenes after summer break.
- Superintendent Paul Craft informed the committee that the State Board of Education previously relied on general revenue funds to cover expenses beyond those funded by the licensure fees. However, with those funds no longer available starting in fiscal years 2024 and 2025, the board faced deficits in its licensure fund. This change occurred when the board became an independent agency, significantly increasing its expenditure needs.
- The State Board of Education now uses Fund 4L20 to cover office rent, support costs, and IT expenses, which were previously covered under the Ohio Department of Education’s general expenses. Superintendent Paul Craft noted these expenses were never previously drawn from the teacher licensure fund. Revenue projections for fiscal year 2025 are $2 million lower than expected and below historical averages, partly due to lingering impacts from the COVID-19 pandemic, which slowed teacher license renewals and hiring processes in fiscal year 2020.
- Due to difficulties accessing college courses and arranging renewals during the pandemic, Ohio allowed teachers a one-year extension on their five-year licenses. This delay in licensure fee collection is now impacting the State Board of Education’s revenue, as fees are now set to be renewed in fiscal year 2026 with the extensions. Additionally, the board faces a $1.3 million bill for the Resident Educator Summative Assessment (RESA), a mandatory program under state law for teachers seeking professional teaching licenses.
- The State Board of Education anticipates increased expenses due to expanded background check processes mandated by the RAPBACK system. These costs add to the challenge of covering salaries for 11 board employees from a licensure fund that fluctuates based on the number of teacher, coach, and administrator applications. Superintendent Paul Craft emphasized the need to maintain balances to navigate lean fall months until revenue typically increases in spring. To manage finances, the board has implemented a hiring freeze and restricted travel expenses for both staff and board members, discussing further reductions in meetings to accommodate distant attendees at their July session.
- Superintendent Paul Craft highlighted that significant portions—approximately $6.3 million—of the State Board of Education’s operating budget are obligated by contracts or mandated by Ohio Revised Code, limiting options for cuts. Board members expressed concerns over the austere budget, with Amy Fugate noting reductions in travel and administrative support, and anticipating potential cuts in basic supplies like paper. Diana Fessler acknowledged the necessity of expanded background checks through RAPBACK but suggested legislative support to cover these costs. Walter Davis emphasized the board’s elected mandate and the need for independence from legislative influence in managing financial challenges.
Image Source: https://ohiocapitaljournal.com/
