Public schools in Ohio receive about $18,300 per student annually, according to the Ohio Legislative Service Commission for FY2025. The figure combines funding from local taxes, state aid, federal programs, and smaller revenue sources.
Ohio sits in the middle of the pack nationally. Neighboring states per-student spending for 2025: Indiana: $13,000; Kentucky: $14,600; Michigan: $16,500; Pennsylvania: $20,000; West Virginia: $15,000.
Ohio’s school funding system relies on a combination of local taxes, state funding, federal programs, and lottery proceeds.
The Ohio Per-Student Funding Breakdown for 2025: local property taxes: 43.6% of funding ($8,000 per student); state funding: 40.1% ($7,300 per student); federal programs: 8.8% ($1,600 per student); other revenue: 7 to 8% ($1,300 per student).
The largest share of school funding still comes from local taxpayers.
Districts with higher property values can raise far more money than districts with lower property values using the same tax rate. The disparity has been the subject of political debate and Ohio Supreme Court rulings about whether the system is equitable.
In 1997, in DeRolph ruling by the Ohio Supreme Court determined the method of funding public schools was unconstitutional because it relied too heavily on local property taxes and created large disparities between wealthy and poorer districts.
The court said the system failed to meet the Ohio Constitution’s requirement that the state provide a “thorough and efficient” system of common schools.
The court revisited the issue three more times in DeRolph, issuing additional rulings in 2000, 2001 and 2002. The high court determined the funding structure still relied too heavily on local property wealth and was not adequately fixed by the Ohio General Assembly.
Despite those rulings, the legal fight eventually ended without a final enforcement order, leaving lawmakers to continue adjusting the funding formula. Recently, the Ohio General Assembly adopted the Fair School Funding Plan, which attempts to estimate the real cost of educating a student.
The second largest funding source is the State of Ohio. State aid flows primarily through the school funding formula, which distributes money based on student enrollment and a district’s ability to generate revenue locally. On average, the state contributes about $7,300 per student.
A portion of funding comes from the Ohio Lottery, whose profits are deposited into the Lottery Profits Education Fund and contribute roughly $1.4 billion to $1.5 billion annually.
Spread across Ohio’s roughly 1.6 million public school students, $900 per student each year.
The final source is the federal government. Federal education dollars are Title I funding for schools with low-income students, special education and school meal programs. Federal funds average $1,600 per student, making overall funding $18,300 per student annually.
There are various differences between districts. In FY2025, some high-poverty urban districts averaged more than $22,000 per student, while many smaller rural or suburban districts operated closer to $14,000 to $16,000 per student.
The Buckeye Institute, a Columbus-based think tank, has argued education funding should follow students rather than be tied primarily to school districts. Supporters believe expanding education choice programs could make spending more efficient and give families greater control over where their education dollars go.
Others argue the state should assume a larger share of education funding to reduce reliance on local property taxes and narrow funding gaps between wealthy and struggling districts.
As long as education remains one of the largest expenditures in the state budget, the argument on how much we spend on schools and who should pay for it will continue to appear on ballots.
Rob Scott, a Republican, is the Kettering Clerk of Court, attorney, and small business owner. Contact him at rob@robscott.us.