ALL IN FOR OHIO KIDS: Expansion of Unaccountable Vouchers Undercuts Progress on School Funding
Ohio Organizing Collaborative Co-Executive Director Molly Shack, Policy Matters Ohio Executive Director Hannah Halbert, Ohio Federation of Teachers President Melissa Cropper, and Ohio Education Association President Scott DiMauro released the following joint statement:
“Ohio students deserve fully funded, high quality, local public schools that help them reach their fullest potential, and it is the responsibility of our state legislators to enact a system that achieves this.
Legislators in the Ohio House took this responsibility seriously by passing a budget that increases state funding to public schools by nearly $1 billion and continues Ohio’s progress toward a full phase in of the Fair School Funding Plan – a funding formula based on what it actually costs school districts to educate their students. They also ensured that the data being used in that funding formula is current and accounts for the additional costs of educating students with disabilities and students who are learning the English language.
It is a monumental step forward that the House’s school funding commitment will be enacted in this budget, despite attempts by the Senate majority to cut more than $500 million from our schools. After decades of non-compliance with Ohio Supreme Court rulings, the legislature is on the brink of finally meeting its constitutional responsibility to fairly fund Ohio’s public schools.
Despite these gains, we have serious concerns with the General Assembly’s expansion of unaccountable private school vouchers. The legislature’s new universal private school voucher scheme will ensure that state support for our public schools will be diminished to pay for tuition for private school students, no matter how wealthy their family is or how their school performs. Priority should be given to fully implementing the Fair School Funding Plan so that our public schools, where 90 percent of students attend school, receive the resources they need instead of expanding unaccountable private school vouchers. As educators, parents, students, and taxpayers we will be unwavering in reminding Ohio’s elected officials where their responsibility lies.
We are also deeply concerned by the inclusion of SB 1 in this budget. This radical policy change puts more power in the hands of an appointed partisan official while taking away the ability to make important decisions that impact schools in Ohio from non-partisan, elected State Board of Education members. Ultimately, the changes in SB1 will silence the voice of educators and voters when making rules and policies that impact education policy in Ohio. When education issues become divisive partisan battles, Ohio students suffer the consequences.”
All in for Ohio Kids represents a broad group of concerned organizations and individuals who are working together to fully and fairly fund our schools.
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Bad for students. Bad for higher education. Bad for Ohio.
Your Voice is Critical
Urge Your State Representative to Oppose Substitute Senate Bill 83
Substitute Senate Bill 83, sponsored by Senator Jerry Cirino (R-Kirtland), is a sweeping piece of legislation that is currently under consideration in the Ohio House Higher Education Committee. Currently, the committee is debating the eleventh version of the bill. SB 83 was narrowly passed with a vote of 8 to 7 by the Ohio House Higher Education Committee at its meeting on December 6, 2023.
While the current version removed the prohibition of faculty and employees to strike, the bill still contains provisions that cause serious concerns as it pertains to labor rights, job security, and academic freedom which have to potential to negatively impact the quality of higher education in Ohio.
In its current version, SB 83 eliminates the collective bargaining rights of higher education faculty members to bargain over certain working conditions. This includes prohibiting bargaining over faculty evaluations, tenure, and retrenchment (the process for reduction of force). This bill represents the largest attack on collective bargaining rights since Senate Bill 5 in 2011.
Additionally, SB 83 contains language that micromanages higher education classrooms and threatens academic freedoms on Ohio’s public university and college campuses. OEA believes that these policies are best developed locally by faculty and administration determining the systems that work best for their campuses, and not top-down state mandates.
We must stop Substitute Senate Bill 83! Email your Ohio House member and urge them to oppose this bill.
We must stop Substitute Senate Bill 83! Email your Ohio House member and urge them to oppose this bill.
Ohio Education Association deeply troubled with the Senate’s anti-public education substitute version of House Bill 33
The Senate’s budget includes provisions that will have a negative impact for Ohio’s public schools when compared to the budget passed by the Ohio House—including a school funding plan that will shift responsibility of funding our schools to local communities, the lack of a comprehensive plan to address the educator staffing crisis and pay gap, universal expansion of vouchers, allowing a test score to dictate when a student is retained under the Third Grade Reading Guarantee, eroding educator and community input on K-12 Education Governance, rolling back gains made in childhood nutrition, and issues related to licensure for educators.”
“We are also highly dismayed with the Senate’s inclusion of Senate Bill 83, the Higher Education “Destruction” Act. OEA is opposed to the addition of HB 83 into the Senate’s version of the budget as it represents the largest attack on collective bargaining rights since Senate Bill 5 in 2011. It will censor honest and truthful education in our institutions of higher learning.”
The following are OEA’s positions on some of the public policy proposals contained in the Senate’s amended substitute version of the bill:
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- Schools Funding– OEA continues to support the Fair School Funding as passed by the Ohio House. While we are still analyzing the Senate school funding changes, OEA has serious concerns with the Senate’s adjustment to the methodology in calculating the state/local share formula.
- Voucher Expansion– OEA is opposed to the expansion of the EdChoice voucher program to universal eligibility for K-12 students. OEA recommends returning to current law with eligibility for income-based EdChoice vouchers at 250% of poverty. Expansion of vouchers should only be considered once the legislature has fully implemented the Fair School Funding Plan.
- Educator Staffing Issues– Reinstate the state minimum teacher salary from $30,000 to $40,000 and provisions from HB 9 that created a “Grow your Own Teacher Program” and Ohio Teacher Loan Repayment program.
- Mandatory Student Retention– OEA opposes removing language in the House-passed budget that would eliminate mandatory student retention under the Third Grade Reading Guarantee. OEA firmly believes that high-stakes decisions about students should not be based on standardized test scores.
- School Meals– OEA opposes removing language in the House-passed budget to make school breakfast and lunch accessible to more children by having the state cover the cost between free and reduced-priced meals.
- Licensure– Reinstate teacher apprenticeship program leading to professional licensure, remove the provision allowing unlicensed military veterans to teach core subjects (ELA, Math, Science, Social Studies, Foreign Languages, Fine Arts), and remove the modification of teacher licensure grade bands to preK-8 and 6-12 and maintain current licensure bands (preK-5, 4-9, and 7-12).
- Graduation Requirements– Social Studies and Financial Literacy- The substitute bill could reduce student exposure to social studies. OEA requests the removal of the provisions that permit a student to substitute one-half unit of financial literacy instruction for a one-half unit of social studies instruction to meet the financial literacy requirement for graduation.
- K12 Education Governance– OEA opposes the inclusion of Senate Bill 1 into the budget bill. The language in the bill would neuter the role of the State Board of Education by shifting the vast majority of its powers and duties to a cabinet agency. There is not broad consensus or buy-in among key educational stakeholders about this change.
- Higher Education– OEA opposes inclusion of SB 83 into the Senate’s version of the State Budget. SB 83 will only serve to drive students, faculty, and staff away from Ohio’s institutions of higher learning, while ultimately harming the economic future of our state. Additionally, SB 83 represents the single largest attack on collective bargaining rights in Ohio since Senate Bill 5 in 2011. OEA urges the Ohio General Assembly to remove all provisions of SB 83 from the budget.
Finally, OEA urges the Ohio House to vote against concurrence with the changes proposed by the Ohio Senate to HB 33. We call on members of the General Assembly to work across party lines to craft a final budget that supports the needs of public schools that serve 90 percent of Ohio’s students.
June-July 2023 Ohio Schools
- COVER STORY: Celebrating Schools: 25th Annual Create a Cover contest highlights award-winning artwork by Ohio students.
- FEATURE: East Palestine members serve as constant caring support for students following Norfolk Southern train derailment.
- LEGISLATIVE UPDATE
- SJR2 heads to the August 8, 2023 special election as Issue 1
- Bill to restrict the voice of higher education employees passes in the Ohio Senate
- ASSOCIATION
- Delegates to the 2023 OEA Spring Representative Assembly take action to protect, defend, and strengthen public education in Ohio
- OEA Board of Director actions
- In memorium
Moved recently? Contact the OEA Member Hotline to update the address on file at 1-844-OEA-Info (1-844-632-4636) or email, membership@ohea.org. Representatives are available Monday-Friday, from 8:30 a.m. to 6 p.m. | OhioSchools — Past Issues
June 2023 OEA Retirement Systems Update
STRS to Continue Retirement Eligibility at 34 Years, Provide 1% COLA in FY ‘24
At its May meeting, the STRS Board approved two benefit changes—one impacting active teachers, and one for current retirees. The change for active teachers deals with retirement eligibility. The Board’s action extends the ability to retire after 34 years of service at any age and receive unreduced benefits. The years of service needed was scheduled to increase to 35 in August of this year. Eligibility at 34 years of service was extended for five years and will now be in effect until July 31, 2028.
On the retiree side, the Board approved a 1% cost-of-living adjustment (COLA) for fiscal year 2024. Eligible retirees will receive an increase of 1% to their base retirement benefit on the anniversary of their retirement date. Retirees are eligible for COLA if they have been retired for five years or more.
By state law, the Board is constrained in making benefit adjustments to the extent they do not materially impair the fiscal integrity of the pension plan. The actuarial consultant for STRS, Cheiron, determined that, based on the funding status of the plan, only smaller scale changes could be considered at this time. This was determined to be changes that have a de minimus funding impact—not to exceed 1% of the actuarial assets of the plan ($830 million). The total cost of the changes approved is estimated to be $825 million.
STRS Board Weighs Possible Benefit Enhancement
At the April STRS Board meeting, the board’s actuarial consultant, Cheiron, provided information on the potential of a benefit enhancement “budget.” The intent is to provide the STRS Board with options to enhance benefits without impairing the fiscal integrity of the pension plan. According to the actuaries, STRS funding is not strong enough to allow for a budget based on three fiscal integrity tests. However, they did indicate that the Board could consider making smaller scale changes of a de minimis amount—not to exceed 1% of the fund’s actuarial determined assets. Based on the most recent valuation, that amount is $830 million.
The Board was provided estimated costs of a range of benefit enhancements. A one-time, permanent Cost of Living adjustment of 2% for eligible retirees ($910 million); a reduction of one year of service (34 years) for retirement eligibility with full benefits ($1.14 billion); and a permanent 1% reduction in employee contributions ($1.32 billion) all exceeded the 1% of assets threshold. Further, the actuaries provided costs of more significant benefit enhancements. A reduction in retirement eligibility to 30 years of service costs $4.44 billion. An ongoing annual COLA of 2% costs $13.96 billion. The STRS Board is expected to further explore the options available and potentially act at its May meeting.
OEA believes that maintaining the long-term solvency of the pension plan is the top priority. All educators deserve a secure pension they cannot outlive. However, as the funding of the plan allows, benefit enhancements should be realized by both active and retired members. Providing inflation protection for retirees through a cost-of-living and reducing age and service requirements for active teachers should be pursued as long as they do not put future benefits at risk.
OPERS Funding Status Holding Steady
At its May meeting, the OPERS Board received a presentation on the 2022 actuarial valuation of the pension plan. Actuarial firm Gabriel, Roeder, Smith & Co. reported that the funding ratio of the defined benefit pension plan was 84%. The time needed to pay off the unfunded liabilities of the plan based on current assumptions (amortization period) was 16 years. State law requires this period to be no greater than 30 years.
Both the funding ratio and the amortization period were largely unchanged from the 2021 valuation despite heavy investment losses during calendar year 2022. This is because investment gains and losses are recognized over a four-year period to reduce volatility. OPERS recognized $5 billion of the 2022 loss, which was offset by unrecognized gains from previous years. In total, the unrealized loss is $9.7 billion. Over the next several years, the funding period will tend to decrease, and the amortization period will increase absent future investment gains greater than the assumed rate of return.
Based on modeling by the actuary, OPERS could exceed an amortization period of 30 years with an investment loss of greater than 4.5% in 2023. Conversely, an investment return of 19.1% or greater would offset the unrealized losses.
Click here to download a copy of this June 2023 Report to the OEA Board of Directors. Previous Retirement Systems Updates can be viewed under the Affiliate Resources tab on the OEA website.