Ohio schools expecting more funding from record lottery profits may want to hold off.
Last week, it was reported that the Ohio Department of Education had hit the jackpot with a record $771 million in lottery profits. By state law, lottery profits are supposed to go to the Lottery Profits Education Fund, which funds schools in Ohio. At first, it seemed like a great opportunity to increase education funding.
Maybe not. In a joint statement this morning, the Ohio School Boards Association, the Buckeye Association of School Administrators and the Ohio Association of School Business Officials explained the money does not mean more money for schools.
“While it is true that all Ohio Lottery profits are used by the state to fund education, the profit from increased sales was simply used to free up other state funds that had previously been set aside for schools, allowing more money to be transferred into the state’s rainy day fund,” OSBA Executive Director Richard Lewis said in the statement.
Despite the lottery profits, funding for Ohio’s school foundation payment program remains at $7.2 billion — exactly as established by Gov. John Kasich’s 2011 budget plan.
In other words, no gain for schools, but some gain for the state’s rainy day fund.
The news comes as a bit of a buzz-kill to schools that are already feeling cuts from the two-year state budget plan passed by the Republican-controlled legislature and signed by Kasich.
For the 2012 fiscal year, Kasich’s budget cut funding to the Department of Education down to $10.3 billion, a 4.9 percent reduction from the year before, largely due to the loss of federal stimulus dollars. But another 4.9 percent cut is planned for the 2013 fiscal year, lowering funding to $9.8 billion, which is even lower than the amount of funding the Department of Education received in 2008 and 2009 — before the state received federal stimulus dollars.