What we know now about Trump’s executive order on Education Department
Now that President Trump has signed an executive order to dismantle the Education Department, what happens next? Here is what we know now.
- Ohio House Republicans want to increase school funding but deviate from a bipartisan plan made four years prior.
- The new proposal cuts costs that critics argue are needed to support key programs and keep up with inflation.
- House Republicans also want to require counties to reduce property taxes if districts carry over more than 25% of their previous budget.
- School officials argue those excess funds help them weather economic downturns and maintain their bond ratings.
Four years ago, Republicans and Democrats agreed on a new way to pay for educating Ohio’s public school students. They knew it would be costly, rolling out the new formula over six years, but they appeared united.
Now, House Republicans are ditching that plan, saying it’s too expensive and could lead to tax hikes.
Instead, they want to spend $231 million more on traditional public schools over two years, making sure that no district sees a cut. That’s more than Gov. Mike DeWine’s proposal to cut $103.4 million across hundreds of school districts over two years.
But school treasurers, teachers and parents aren’t happy. They say lawmakers broke their promise to fund schools adequately, and the House’s increased spending doesn’t keep up with inflation. They also oppose a new House GOP plan to limit districts’ savings to provide property tax relief for homeowners.
“Seeing the Legislature being unwilling to meet that price tag, to provide what’s essential, is a clear message that their priorities are elsewhere,” said Scott DiMauro, president of the Ohio Education Association, a statewide teachers union. “Especially when you see $600 million committed for a stadium to reward a major donor.”
Exactly how much Republicans are shortchanging the “Fair School Funding Plan” depends on whom you ask and how you calculate its cost. House Finance Chairman Brian Stewart, R-Ashville, said the plan would cost $1.8 billion that the state doesn’t have. A more conservative Legislative Service Commission estimate put the gap closer to $1 billion for traditional public schools.
But the price tag might be even higher. Policy Matters Ohio, a left-leaning think tank, estimated the House plan is $2.75 billion short of what kids were promised − if you update the cost of special education and courses for children whose primary language isn’t English.
“We’ve just been underfunding schools for so long that that’s become the goalpost,” said Ali Smith, a researcher with Policy Matters Ohio. “This is not pie in the sky, progressive dream, teachers get $100,000 salaries. This is real middle of the road.”
Stewart said House Republicans adjusted the formula, championed by former Reps. Bob Cupp and John Patterson, to help fast-growing districts and those experiencing large spikes in home valuations. Currently, districts that look wealthier − such as those with high property values − get less aid from the state.
“Cupp-Patterson is still kind of the bedrock, but it’s the Ohio Revised Code,” Stewart said. “Every two years, we need to be able to respond to the situation on the ground. This, I think, accounts for those imbalances that we saw.”
Would House plan provide property tax relief?
The funding formula isn’t the only House proposal that sits poorly with schools.
As of Tuesday morning, the plan would require counties to reduce property taxes if districts carry over more than 25% of their previous budget. It would work like this: Counties would either cut the tax rate or money raised through levies by the amount of cash districts have in excess of that 25% threshold.
Backers say this would help homeowners who have struggled with high tax bills since property values soared in 2023. But Rep. Bride Rose Sweeney, D-Westlake, believes there are better reforms out there, such as focusing state aid on homeowners who spend more of their income on property taxes.
“If we’re talking about really wanting property tax relief, there are real bipartisan ways to do it,” Sweeney said.
Ohio school districts had $10.5 billion left over from the 2024 fiscal year, and 86% had reserves above 25%, according to data from the Ohio Department of Education and Workforce. The amount varied by district: Some ended the year with more money than they spent, while others barely had anything in the bank.
That means property tax relief would differ from district to district, and some homeowners wouldn’t see tax cuts at all. Instead of helping Ohioans, critics say, the plan would force schools to ask for more money to balance out the decline in savings.
“I don’t think they’re just hoarding money because they’re all rich,” Sen. Bill Blessing, R-Colerain Township, said. “They’re being good fiscal stewards by doing that.”
School officials say the extra cash can help them navigate economic downturns. Credit rating agencies also look at reserves to determine a district’s bond rating, and 25% is considered the bare minimum, Worthington Schools Treasurer TJ Cusick told a House committee.
The House GOP proposal comes as President Donald Trump dismantles the U.S. Department of Education, injecting uncertainty into how schools operate and are paid.
Lawmakers in the Ohio House will make more changes to the state’s two-year budget on Tuesday morning before approving it Wednesday. Then, the Ohio Senate will decide how much money schools should receive. Any differences must be hashed out before the bill reaches DeWine’s desk.
The Republican governor, who is navigating his fourth and final budget, says the final product is far from settled.
“I’ve never found that schools are bashful about mentioning the need for money, and I don’t blame them. That’s what they should be doing,” DeWine told reporters Friday. “The thing that I would tell the schools and tell anyone else with concerns about anything in the budget: we still have a long way to go.”
State government reporter Haley BeMiller can be reached at hbemiller@gannett.com or @haleybemiller on X and Bluesky.
State government reporter Jessie Balmert can be reached at jbalmert@gannett.com or @jbalmert on X.