Ross Local School District

No matter where you live in Ohio—whether or not you have children in public schools—you will likely be asked to vote on a school levy. This is not (always) because school districts are mismanaging funds, but because of how Ohio law structures public school funding, although we do not deny that has happened with some districts. At the heart of this issue is House Bill 920, passed in 1976 during a time of extreme inflation. Designed to protect homeowners from skyrocketing tax bills, the bill froze the dollar amount collected from voted levies, meaning schools receive the same amount of revenue year after year, regardless of inflation or rising property values.

How House Bill 920 Works

To understand the impact, imagine a home worth $100,000 with a 2% school tax. Over time, as the property value increases to $250,000, school districts still only collect taxes on the original amount, not the updated value. The effective tax rate is reduced, not the tax burden. This system means that while costs for schools rise—teacher salaries, supplies, transportation, and more—their income remains flat unless they return to voters with a new levy. Cities and counties, by contrast, are not subject to this restriction and can see their revenues increase with property values.

Understanding Ohio’s School Funding Sources

Ohio’s public schools are primarily funded through three sources: federal, state, and local dollars. Federal funds make up a small portion, often tied to specific grants or programs. State funding is based on a complex formula intended to consider a district’s capacity to raise funds locally and the per-pupil cost of education. However, this formula has changed frequently, and state mandates—many of which are unfunded—continue to grow. The largest portion of funding comes from local sources, primarily property taxes, which are subject to HB 920’s restrictions.

Mills, Rollbacks, and Property Tax Basics

Property taxes in Ohio are assessed in mills—each mill equals $1 of tax for every $1,000 of assessed value. The assessed value is 35% of a property’s market value. Inside mills (up to 10) do not require voter approval and can adjust with inflation; outside mills are voter-approved and subject to HB 920. Prior to 2013, taxpayers received rollback credits, and school districts were reimbursed by the state. However, recent laws have eliminated these reimbursements, shifting more of the tax burden to local property owners and limiting school revenue growth.

Additional Challenges to Local Funding

Ohio school districts face additional challenges beyond HB 920. Tax abatements, declining state support, and funding diversions to charter and private schools reduce the funds available to public districts. The Tangible Personal Property Tax, once a source of revenue for schools, has been phased out. Meanwhile, services like busing for private school students and compliance with state mandates are still required—often without full funding.

The Lottery Myth and Other Funding Gaps

Though the Ohio Lottery was created to support education, it only contributes about $50 per student annually. Much of the lottery revenue simply replaces, rather than adds to, general education funding. Grants and donations offer limited, one-time support and cannot be relied upon for consistent operations. While capital funds (from bond issues) may be used for buildings and infrastructure, they cannot support day-to-day operating costs.

Local Realities and the Need for Levies

For districts like Ross, which are largely residential with limited commercial tax base, the burden falls heavily on homeowners to fund local schools. Differences in community demographics, housing markets, and services expected by residents all contribute to varying school budgets. Because school revenue is frozen while costs rise, Ross—and every district in Ohio—must return to the ballot every few years just to maintain current programs and staffing. This is not wasteful spending—it’s a legal requirement of a funding system that has been declared unconstitutional and is still awaiting true reform.

Understanding property tax and school funding in Ohio is essential to understanding why levies appear so frequently on the ballot. The Ross Local School District is committed to using tax dollars responsibly and advocating for a fairer funding system that reflects the real cost of educating our students. Until the system is fully reformed, we remain dedicated to financial transparency and community partnership to sustain the excellence our students deserve.