Funding changes could impact Orrville City Schools

If a parent has a student enrolled in the Orrville City School District, there is a strong likelihood changes to school funding have been discussed. These changes are not limited to Orrville, as many originate at the state level. However, the Orrville City School District is facing a unique set of circumstances, and the district wants the community to be aware of what it may be facing.

The changes to school funding are coming from the state level, as the Ohio Legislature is wrestling with how property taxes are utilized for school funding.

“The primary source of school funding is and has historically been a combination of local property taxes and funding from the state," said Joe Shumar, Orrville City Schools treasurer and CFO. "Orrville’s state funding is projected to decrease in part due to the state’s calculation to allocate funding using cost information from 2022. According to the new formula, Orrville will be allocated less money as the formula takes into account lower enrollment and increasing property values, as meaning the district needs less money from the state because it can rely more heavily on local funds.”

However, recent property tax legislation has removed projected growth for those local funds, ultimately leading to decreased state funding and no increase in local tax revenue.

This unique circumstance poses a challenge.

“The 2022 numbers are now four, almost five years old," said Dr. David Toth, superintendent of the Orrville City Schools. "Those numbers haven’t been re-examined nor adjusted for inflation. Moreover, Orrville schools have historically been able to rely on growth in local property tax revenues. Orrville has been very proactive, and the community has been supportive of school funding locally.”

Local levies that have been passed have allowed the district to rely on revenue from increases in property appraisals, but now these new laws no longer allow that type of funding and have essentially stripped previously approved levy funds from the district.

With a handful of new property tax laws being implemented, Ohio school districts are having a hard time planning what future funding may look like. Right now county auditors across the state are waiting for the Ohio Department of Taxation to provide guidance on how the new laws and formula will be implemented. Planning for the next school year and beyond is challenging given the current unknowns.

Pat Lorson, Orrville City Schools board president, said these funding issues are not just an Orrville issue.

“Ninety-three percent of students in Wayne County are educated in our public school system," Lorson said. "Statewide, 80% of students are in the public school system. Two-hundred-eleven of the school districts in the state are rural districts like Orrville and are being hit especially hard by these changes.”