May 28, 2025, Interested Party Testimony: Am. Sub. H.B. 96
Craig Burford, Executive Director, Ohio Educational Service Center Association
Introduction
Chair Cirino, Vice Chair Chavez, Ranking Minority Member Hicks-Hudson, and members of the Senate Finance Committee, thank you for the opportunity to testify before you today on Am. Sub. H.B. 96, the FY 2026-2027 biennial state operating budget.
Overview
Educational Service Centers (ESCs) are considered local education agencies (LEAs) and school districts under state and federal law and are the largest component of Ohio’s Educational Regional Service System (ERSS), which has the statutory mandate to support state and regional education initiatives and efforts to improve school effectiveness and student achievement.
The primary ESC consortia-based services provided to schools and districts are in the areas of: 1) curriculum and instruction, 2) school improvement, 3) professional development, 4) special education and related services, 5) early childhood education, 6) facilitation, networking, and coordination (BACs, CSTAG, Prevention Education, Emergency Services), 7) cooperative purchasing, and 8) implementation of any statewide initiatives charged to the ESCs by the Ohio General Assembly or Department of Education and Workforce (DEW).
ESCs provide these services in a cost-effective manner. Each year Ohio's ESCs are required under state law to compare the cost of their services to those of third-party providers and/or client districts providing the services themselves. In 2024 ESCs reported more than $100 Million in savings. Additionally, ESCs identified, pursued and procured over $317 Million in grants for their client districts. Total leveraged dollars were $417.388 Million. Meaning that for every $1 in state operating subsidy, ESCs generated $8.83 cents in cost savings and outside grants in return. ESCs do this utilizing itinerant staff, pooled administrators, and consortia-based services.
ESC state funding was at its highest level in FY 2007 at $52 Million per year, which equaled $37 per student. That $37 per student, adjusted for inflation, would be $58.17 in FY 2025. Since that time, the state required district alignment with ESCs, adding 33 districts and 55,562 students. Funding has not kept pace. In FY 2025, ESCs will receive $47.28 Million or $32.36 per student on average; this is $4.64 per student less than FY 2007 in real dollars or $25.81 per student less than that inflation adjusted number.
Funding Request
HB 96 as introduced includes years 5 and 6 of a phased-in funding formula for ESCs that was adopted in the FY 2022-2023 state budget. Unfortunately, this now outdated funding model is based on FY 2018-2020 data (3-year average). In the 135th General Assembly, the legislature increased funding for schools and school districts through the Fair School Funding Plan by updating the per pupil base cost inputs to reflect FY 2022 costs. However, this update did not include ESC funding.
We are urging the Ohio General Assembly to make the necessary changes to the ESC funding formula to update the base cost and per pupil funding components to reflect the most recent information available about the work of ESCs as outlined in my testimony and the attached resource documents. This includes the addition of a third tier to the funding model.
This approach accounts for economies of scale, based on the size of ESC, to ensure each receives adequate resources to serve their client schools and districts efficiently and effectively.
Key Factors to Consider
As you deliberate the outlined request, I ask that you consider the following key factors related to the increased operational costs of ESCs and how ESCs differ from other public education entities:
1. ESCs have significantly expanded their capacity and services to address state priorities resulting in a 10% increase in personnel from 2020 to 2023 and an increase in indirect costs and operational expenses.
2. ESC services to nonpublic schools have increased by 202% in the past 3 years, from 166 to 501 schools, alongside increased services to other educational options.
3. Unlike traditional public schools, JVSDs, or County Boards of DD, ESCs lack taxing authority and are ineligible for Ohio Facilities Construction Commission funding.
4. ESCs face challenges in sustaining expanded services and personnel beyond grant funding periods, particularly for state priorities.
Based on these factors and the increase in operational costs for services, particularly those delivered on behalf of the state, it is important to update the data used to fund ESCs, even if a phase-in of the formula is utilized.
Why is this Funding Support Important?
ESC state funding supports a regional deployment infrastructure. Why is this important? It provides ongoing support as well as rapid response to critical needs. Recent examples include but are not limited to the following:
▪ Threat assessment training (CSTAG) was set up and rolled out within 60 days (3,930 personnel in 1,164 schools across 422 districts received training in 8 months).
▪ A student readiness benchmark credential was designed and deployed in 90 days using ESCs across the statewide network.
▪ Deployment of over 50 million units of PPE and more than 225,000 test kits from 2020 – 2021.
Direct state funding of ESCs provides stability, continuity, and equal access to necessary support services that help all educators and students in their client districts succeed.
Other Priorities
• Funding for Updated School Bus Safety Training. OESCA supports increased funding for the preservice training program to support enhanced professional development for school bus drivers.
• ESC eligibility for school bus safety grants. OESCA supports Governor DeWine’s proposal to provide funding for school bus safety enhancements. We are requesting an amendment to add ESCs to the list of eligible applicants to receive funding under the grant program.
• Educational Regional Service System (ERSS). The bill, as introduced, proposed major changes to Ohio’s regional support system. These changes will have a direct impact on student services throughout the state. A shift of this magnitude requires careful consideration and deliberation. The House removed the language. We request that Senate support the House changes and that standalone legislation be introduced to properly consider the proposal and its impact on schools and students.
Closing
In closing, ESCs are implementers that can launch high-quality initiatives rapidly upon request but need the requisite operational support. This includes ensuring ESCs are positioned to carry out work in support of literacy initiatives and other key state level priorities including, importantly, those priorities identified in the 2-year budget. Thank you for your time and positive consideration and I would be happy to address any questions at this time.