Wed July 18, 2012
Analysts Study Ohio School Funding
Legislative analysts say Ohio could replace all the property tax money that's going to school districts through a hike in the state sales tax.
But to raise the more than $9.9 billion that's needed, policymakers would need to more than double the sales tax rate - from 5.5 cents on the dollar to 13.2 cents. That's in part because the higher the tax goes the less consumers like to spend.
The Ohio Legislative Service Commission provided the estimate Wednesday to an Ohio House subcommittee that's studying school funding ideas.
The hearings come as Gov. John Kasich works on a new strategy for doling out education dollars. The current formula has been repeatedly declared unconstitutional for relying too heavily on property taxes, which are disproportionate in wealthy and poorer districts.