Auditor of State’s Financial Health Indicators for School Districts
Nine years ago, the Auditor of State’s Office (ASO) launched Financial Health Indicators (FHI) for counties and cities to help identify and monitor signs of fiscal stress. On May 1, 2025, AOS will be making the same tools available to the traditional and joint vocational school districts in Ohio. These FHIs will provide early warning signs of fiscal distress so that potential issues can be addressed before they develop into major problems.
The FHI are data driven indicators formulated from audited financial information submitted to AOS by the district. AOS has identified 16 different FHI that use data derived from fund balances, tax collections, debt payment, and other financial data. Each indicator will be categorized as “positive”, “cautionary” or “critical” to help districts highlight financial areas that may require attention.
The Auditor of State’s Office will host live webinars to discuss the FHIs in more detail. Please click one of the links below to register for a webinar.
At the Statehouse
This week, the Ohio House passed the FY26-27 state operating budget to the Senate, having made their amendments to the bill’s spending proposals, detailed below. Before the Senate begins crafting their version of the budget bill, both chambers are taking a spring break, recessing the weeks of 4/14 and 4/21. Without sessions or committees, legislative activity on Capital Square will slow significantly before picking up again the week of 4/28. Facts in a Flash may be sparse over the break but note that Senate budget deliberations and public testimony opportunities will resume the last week of April.
The House passed House Bill (HB) 96, the FY26-27 state operating budget, with a vote of 60-39. An omnibus version of the bill passed out of the House Finance Committee earlier in the week along party lines, after hearing public testimony from:
- Angie Hamburg, superintendent, Westerville City Schools
- Mark Ingles, treasurer, Jonathan Adler Local Schools
- Karen A. Mayfield, Washington Local Schools
The omnibus bill included multiple changes to education provisions. The bill now goes to the Senate for formal consideration.
The Senate passed Senate Bill (SB) 7, sponsored by Sen. Terry Johnson (R-McDermott), with a vote of 33-0. The bill would require all types of school districts to provide annual instruction to students in grades K-12 on the effects of short-term and chronic substance use in a manner determined by the local school board. The bill, which passed out of the Senate Education Committee earlier in the week, now heads to the House for consideration.
The Senate also passed SB 50, sponsored by Sen. Tim Schaffer (R-Lancaster), with a vote of 24-9. This bill would make changes regarding age and schooling certificate requirements and work hours for a person under sixteen years of age. The bill now heads to the House for consideration.
The committee held sponsor testimony on HB 191, sponsored by Reps. Joseph A. Miller (D-Amherst) and Michele Grim (D-Toledo). This bill would require that all school district and educational service center teachers be paid a salary of at least $50,000.
The committee held its third hearing on HB 57, sponsored by Reps. Dontavius Jarrells (D-Columbus) and Josh Williams (R- Sylvania Twp.). HB 57 would require any public or nonpublic school that elects to keep a supply of an overdose reversal drug for emergency use to adopt and implement a policy regarding the supply’s maintenance and the drug’s use. The bill also permits a school to accept monetary donations for the purchase of overdose reversal drugs and requires a school superintendent to report any use of an overdose reversal drug to the Department of Education and Workforce, the school’s governing body and the parent or guardian of the student to whom the drug was administered. No opponent witnesses were present to testify on the bill.
Finally, the committee amended HB 62, sponsored by Reps. Justin Pizzulli (R-Scioto County) and Adam C. Bird (R-New Richmond). This bill makes changes to the College Credit Plus program, including requiring notice to school districts when a student drops a college course, transitioning to open-source textbooks and lowering the cost of certain online CCP courses. The amendment would make the following changes:
- Require a public or participating private college to pay at least 50% of the cost of a purchase-only textbook it's using in a College Credit Plus (CCP) course because there are no open source materials that may be used in lieu of that textbook and requires the CCP participant's secondary school to pay the remainder of the textbook's cost,
- Require the Chancellor of Higher Education and the Director of Education and Workforce to establish a committee to review CCP programs and to make recommendations.
The committee adopted a substitute version of SB 34, sponsored by Sen. Johnson. This bill would require public school boards to select at least four of the bill's listed historical educational documents to display in each 4-12 social studies classroom by July 1, 2026. The sub bill:
- Clarifies that the bill requires the display of “founding” documents rather than historical documents;
- Renames the bill to be the “Displaying of Founding Documents of Historical Significance Act”;
- Clarifies state funds are not required for compliance and that districts are only required to comply with the bill’s provisions via donated funds or document displays.
The committee also heard sponsor testimony on SB 158 from Sen. Jane M. Timken (R-Canton). This bill would generally prohibit cell phone use in public schools. Earlier in the day, Gov. DeWine, Sen. Timken, Sen. Andrew Brenner (R-Delaware), former second lady Tina Husted and Superintendent John Marschhausen of Dublin City Schools held a press conference in support of the legislation.
Senate Finance Committee
On Tuesday, the committee heard invited testimony on HB 96, the FY26-27 state operating budget, from Mike Duffey, chancellor, Ohio Department of Higher Education and Steve Dackin, director, Ohio Department of Education and Workforce.
On Wednesday, the committee continued its informal hearings on HB 96, including invited testimony from Kara Wente, director, Ohio Department of Children and Youth.
The committee held its first hearing on HB 15, sponsored by Representative Roy Klopfenstein (R-Haviland). This bill makes changes to the competitive retail electric service law and makes changes regarding electric company property taxation.
Senate Ways and Means Committee
The committee heard sponsor testimony on HB 28 from Reps. Adam Mathews (R-Lebanon) and Thomas Hall (R-Middletown). The bill would eliminate the authority of political subdivisions, including school districts, to levy replacement property tax levies, beginning with elections held on or after October 1, 2025.
House Transportation Committee
The committee amended HB 3, sponsored by Reps. Bernard Willis (R-Springfield) and Cecil Thomas (D-Cincinnati). HB 3, the “School Bus Safety Act”, would appropriate $25 million to create a School Bus Safety Grant Fund at ODEW to assist districts with the cost of installing safety features on new and existing school buses. The bill would also increase the penalties for illegally passing a stopped school bus and designate August as “School Bus Safety Month”. The amendment changes the funding source for the $25 million appropriation to the Ohio Lottery fund instead of the General Revenue fund. Additionally, the amendment removes school bus safety education for the public as an eligible use of the appropriation.
House Local Government Committee
The committee held its second hearing on HB 124, sponsored by Reps. David Thomas (R-Jefferson) and Thomas Hall (R-Madison Township). This bill would modify the process for property tax sales-assessment ratio studies. The committee heard proponent testimony on the bill.
House Ways and Means Committee
The committee heard sponsor testimony on HB 129 from Rep. Thomas. This bill would limit the ability of school districts to reallocate unvoted property tax millage and include certain property and school district income taxes in the calculation of a school district's effective millage floor.
The committee held its second hearing on HB 186, sponsored by Reps. James M. Hoops (R-Napoleon) and Thomas. This bill would authorize a reduction in school district property taxes affected by a millage floor, limiting increases in such taxes according to inflation, and would require a corresponding adjustment in the school funding formula. The committee heard proponent testimony on the bill.
Recently introduced bills
- SB 173 -- Sponsored by Sen. Brenner and Schaffer, this bill would make changes to the law regarding school district territory annexations.
Rules activity
The Department of Education and Workforce has the following rules open for public comment:
- Chapter 3301-101: Jon Peterson Special Needs Scholarship Program
- OAC 3301-101-01: Definitions
- OAC 3301-101-02: Jon Peterson special needs scholarship program established
- OAC 3301-101-03: Eligibility to receive a scholarship
- OAC 3301-101-04: Application for a scholarship
- OAC 3301-101-06: Awarding scholarships
- OAC 3301-101-07: Transfer of scholarship
- OAC 3301-101-08: Termination of eligibility
- OAC 3301-101-09: Participation by providers
- OAC 3301-101-10: Payment of scholarship amounts
- OAC 3301-101-11: Entities designated to file applications
- OAC 3301-101-12: Dispute resolution and due process requests
- OAC 3301-101-13: Program administration
- Chapter 3301-103: Autism Scholarship Program
- OAC 3301-103-01: Definitions
- OAC 3301-103-02: Autism scholarship program established
- OAC 3301-103-03: Procedures and deadlines for parents to apply for scholarship
- OAC 3301-103-04: Responsibilities of a school district of residence
- OAC 3301-103-05: Program participation
- OAC 3301-103-06: Application and participation of providers
- OAC 3301-103-07: Payment under the autism scholarship program
Click here to view the ODEW rules open for public comment.
The State Board of Education does not have any rules open for public comment at this time.
Federal update
Please click here to read the most recent Federal Advocacy Report which includes up-to-date information on federal education efforts. Click here to read the most recent Federal Court Report.