FINANCE - Important Concepts

The following items have a major impact on the finances of The Midview Schools.

Per Pupil Evaluation
Local revenue for schools is property tax generated. One measure of a district’s wealth is the total value of all property within the district. To compare different districts’ wealth, legislators and educators use the per pupil evaluation statistic. This statistic divides total property value by the number of students. Relative wealth is the amount of property value behind each student. Generally speaking, the higher property wealth behind each student the lower the state’s contribution to the total cost of educating students.

State Foundation Formula
Ohio public education is funded by both the state and local district.  The state contribution is based on an "adequate" per pupil cost factor.  With that starting point, Ohio adjusts their contribution based on relative wealth, special students, cost of doing business, teachers' degrees, amount of millage and other factors.  

What is House Bill  920?
In 1976, HB 920 prohibited the aggregate property taxes collected by a school district from increasing due to rising property value.  To offset rising real estate values, the county auditor makes corresponding decreases in voted tax millage.  Total homeowner real estate taxes and school district real estate revenue from levies passed after 1976, on existing homes, do not increase with rising real estate values.  If an individual home appreciates more or less than the district average, its share of that constant tax levy can vary up or down, but the schools receive the same amount.  School funding increases with new homes and businesses and decreases when business leaves the district.  We work to attract new business, but this and new homes provide little new revenue.  Funding to cover permanent improvements and rising operating costs comes primarily through new levies.

Unfunded or Partially Funded Mandates
The state and federal government pass laws creating new requirements for school districts.  These requirements are costly, ranging from transportation of students to private schools to gifted student initiatives to special education programs.  Mariemont is required to fund these mandates with or without funding from the state or federal government.  Here are some other examples of partially or unfunded mandates:

• Proficiency testing and required remediation
• Americans with Disabilities Act
• Criminal Records check
• Family Medical Leave Act.
• OSHA requirements.
• Yearly audit costs
• County auditors’ fees
• Personnel needed to facilitate state testing and data collection