July 1, 1994 Decision of the Perry County Common
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IN THE COMMON PLEAS COURT, PERRY COUNTY, OHIO DALE R. DeROLPH, Parent and Next Friend of NATHAN DeROLPH RANDY MISKELL NORTHERN LOCAL SCHOOL DISTRICT FINDINGS OF FACT, BOARD OF EDUCATION CONCLUSIONS OF LAW, ORDER AND MEMORANDUM J. KENNETH MILLER, a Member of CASE NO. 22043 the Northern Local School District Board of Education STEVEN JOHNSON, Superintendent of the Northern Local School District KEELY THOMPSON, Parent and Next Friend of CHRISTOPHER THOMPSON, a Minor JOSEPH WINNENBERG SOUTHERN LOCAL SCHOOL DISTRICT BOARD OF EDUCATION LOUIS ALTIER, a Member of the Southern Local School District Board of Education CAROL SPANGLER, Superintendent of the Southern Local School District DONNA BLANKENSHIP, Parent and Next Friend of JAMI BLANKENSHIP MARK SEMANCO DAWSON-BRYANT LOCAL SCHOOL DISTRICT BOARD OF EDUCATION CARL SWARTZWELDER, a Member of the Dawson-Bryant Local School District Board of Education WAYNE WHITE, Superintendent of the Dawson-Bryant Local School District DAVID BOWERS, Parent and Next Friend of ANDREW BOWERS, a Minor CHRISTOPHER BOWERS, a Minor JON CARVER LIMA CITY SCHOOL DISTRICT BOARD OF EDUCATION JAMES EATON, a Member of the Lima City School District Board of Education CHARLES BUROKER, Superintendent of the Lima City School District Board of Education MARION GARY SOUTHERS, Parent and Next Friend of SHERRI SOUTHERS, a Minor BRIAN SOUTHERS. a Minor ROBERT RIOS YOUNGSTOWN CITY SCHOOL DISTRICT BOARD OF EDUCATION SOCRATES KOLITSOS, a Member of the Youngstown City School District Board of Education and EMANUAL CATSOULES, Superintendent of the Youngstown City School District Board of Education PLAINTIFFS VS . STATE OF OHIO c/o Attorney General of Ohio STATE BOARD OF EDUCATION OF OHIO TED SANDERS, Superintendent of Public Instruction and OHIO DEPARTMENT OF EDUCATION This action at bar was heard by the undersigned Judge of the Court of Common Pleas for Perry County at New Lexington, Ohio commencing October 25, 1993 and concluding December 8, 1993. Nicholas A. Pittner, John F. Birath, Jr., Sue Wyskiver Yount and Michael D. Smith appeared on behalf of the Plaintiffs. Attorney General Lee Fisher, Assistant Attorney General Christopher Culley, Mark A. Vander Laan, Joel S. Taylor, William M. Mattes and David K. Mullen represented the Defendants. A Brief of Amici Curiae was filed by Kimball H. Carey on behalf of the Buckeye Association of School Administrators and Ohio School Boards Association. TABLE OF CONTENTS FINDINGS OF FACT I. STIPULATIONS II. BIOGRAPHIES OF WITNESSES III. THE ENTITLEMENT TO ELEMENTARY AND SECONDARY PUBLIC EDUCATION IN OHIO AND THE ADMITTED INEQUITIES IN THE PROVISION OF ENTITLED EDUCATIONAL SERVICES IV. THE HISTORY OF SCHOOL FUNDING IN OHIO A. HISTORY OF OHIO'S PUBLIC SCHOOL FUNDING SYSTEM B. EDUCATION APPROPRIATIONS AS A FUNCTION OF THE STATE BUDGET C. THE IMPACT OF STATE BUDGET REDUCTIONS ON PUBLIC EDUCATION D. BUDGET AND POLICY RECOMMENDATIONS OF THE STATE BOARD OF EDUCATION V. OPERATION OF THE SCHOOL FOUNDATION PROGRAM A. THE FOUNDATION FORMULA B. STATE BASIC AID C. THE RELIABILITY OF STATE FUNDING AND FORM SF-12 D. GUARANTEE PROVISIONS E. CATEGORICAL FUNDING F. SPECIAL EDUCATION UNIT FUNDING. G. VOCATIONAL UNIT FUNDING H. DPIA I. LOCAL REVENUE 1. PROPERTY CLASSIFICATIONS AND TAX ASSESSMENT 2. HOUSE BILL 920 AND TAX REDUCTION FACTORS 3. OPERATION OF THE TWENTY MILL FLOOR OF TAX RATE REDUCTION 4. OTHER TYPES OF TAX LEVIES AVAILABLE TO SCHOOL DISTRICTS 5. SCHOOL DISTRICT INCOME AND ITS EFFECT ON LOCAL REVENUE 6. LOCAL TAX LEVIES 7. LOCAL TAX EFFORT 8. THE EFFECT OF LOCAL TAX ABATEMENTS AND EXEMPTIONS, ZONING LAWS AND ECONOMIC CLIMATE J. REVENUE AND EXPENDITURE DISPARITIES THROUGHOUT K. FEDERAL FUNDS L. EQUITY FUNDS M. STUDY PERFORMED BY HOWARD FLEETER N. LEGISLATIVE TESTIMONY PRESENTED ON BEHALF OF THE OHIO DEPARTMENT OF EDUCATION AND STATE BOARD OF EDUCATION BY ASSISTANT SUPERINTENDENT OF PUBLIC INSTRUCTION WILLIAM PHILLIS O. EQUITY STATISTICS AS RELATED TO ANALYSES OF PUBLIC SCHOOL FUNDING IN OHIO VI. FINANCIAL DISTRESS: THE RESULT OF OHIO'S SCHOOL FUNDING SYSTEM A. SCHOOL CLOSINGS FOR LACK OF FUNDS PROHIBITED B. FINANCIAL DISTRESS IN THE PLAINTIFF SCHOOL DISTRICTS VII. SCHOOL DISTRICT BORROWING A. THE OFFICE OF SCHOOL MANAGEMENT ASSISTANCE B. SPENDING RESERVE LOANS C. THE OPERATION OF THE EMERGENCY SCHOOL ASSISTANCE LOAN PROGRAM D. MANDATORY REDUCTIONS IN SCHOOL DISTRICT EXPENDITURES E. THE MAGNITUDE OF BORROWING UNDER THE EMERGENCY SCHOOL ADVANCEMENT LOAN PROGRAM F. TRENDS IN BORROWING G. SPECIFIC LOAN DISTRICTS, INCLUDING PLAINTIFFS H. RECEIVERSHIP VIII. FACILITIES A. GENERAL B. CLASSROOM FACILITIES ACT, OHIO REVISED CODE CHAPTER 3318 C. EMERGENCY SCHOOL REPAIRS PROGRAM D. 1990 OHIO PUBLIC SCHOOLS FACILITIES SURVEY E. ARCHITECTURAL BARRIER ABATEMENT F. ASBESTOS ABATEMENT G. FACILITIES IN PLAINTIFF SCHOOL DISTRICTS H. FACILITIES IN SCHOOL DISTRICTS COMPARED TO PLAINTIFFS I. STATE INACTION IX. EDUCATIONAL INPUTS A. CLASS SIZE AND STAFFING RATIOS OVERVIEW CLASS SIZE AND STAFFING RATIOS IN PLAINTIFF SCHOOL DISTRICTS B. PAY SCALES AND RECRUITING OF STAFF OVERVIEW PAY SCALES AND RECRUITING OF STAFF IN PLAINTIFF DISTRICTS C. COLLECTIVE BARGAINING D. TEACHER CERTIFICATION AND TRAINING E. CURRICULA MODEL CURRICULA CURRICULA IN PLAINTIFF SCHOOL DISTRICTS COMPARISONS OF THE SCIENCE CURRICULA IN PLAINTIFF SCHOOL DISTRICTS TO OTHER SCHOOL DISTRICTS F. GUIDANCE SERVICES OVERVIEW GUIDANCE SERVICES IN PLAINTIFF SCHOOL DISTRICTS G. EXTRACURRICULAR OFFERINGS IN PLAINTIFF SCHOOL DISTRICTS OVERVIEW H. BOOKS, EQUIPMENT, AND SUPPLIES IN PLAINTIFF SCHOOL DISTRICTS OVERVIEW I. VOCATIONAL EDUCATION J. TECHNOLOGY OVERVIEW TECHNOLOGY IN PLAINTIFF SCHOOL DISTRICTS X. MINIMUM STANDARDS A. MINIMUM STANDARDS EVALUATIONS THROUGHOUT OHIO PRE-1983 STANDARDS B. MINIMUM STANDARDS IN PLAINTIFF DISTRICTS XI. EDUCATIONAL OUTPUTS A. OUTCOMES-BASED EDUCATION B. PROFICIENCY TESTS C. THE RELATIONSHIP BETWEEN SCHOOL DISTRICT EXPENDITURES AND PERFORMANCE ON PROFICIENCY TESTS AND ACHIEVEMENT TESTS D. TESTING IN PLAINTIFF SCHOOL DISTRICTS E. DROPOUT RATES, GRADUATION RATES, AND NON- ATTENDANCE F. EXCELLENT AND DEFICIENT SCHOOLS G. EFFECTIVE SCHOOLS PROGRAM H. PARTICIPATION IN HIGHER EDUCATION I. EDUCATION 2000 GOALS XII. SPECIAL EDUCATION A. STATE AND FEDERAL REQUIREMENTS REGARDING SERVICES FOR SPECIAL EDUCATION PUPILS B. FUNDING FOR SPECIAL EDUCATION C. FEDERAL GOVERNMENT EVALUATION OF OHIO (OSEP REPORT) D. STATE REVIEW OF SCHOOL DISTRICTS E. SERVICES TO SPECIAL EDUCATION PUPILS IN THE SEOSERRC REGION F. SERVICES TO AND FUNDING FOR SPECIAL EDUCATION PUPILS IN PLAINTIFF SCHOOL DISTRICTS G. SERVICES TO SPECIAL EDUCATION PUPILS IN HIGH AND LOW CAPACITY DISTRICTS AND COMPARISONS TO PLAINTIFF SCHOOL DISTRICTS H. PRESCHOOL SPECIAL EDUCATION I. SECTION 504 OF THE REHABILITATIVE MANDATES XIII. UNSERVED PUPILS A. CHAPTER PROGRAMS B. PRESCHOOL EDUCATION C. HEAD START D. SCHOOL-AGE CHILD CARE E. KINDERGARTEN F. GIFTED EDUCATION G. CHILDREN FROM LOW INCOME FAMILIES AND PUPILS ON ADC H. FREE AND REDUCED PRICE LUNCH I. AT RISK CHILDREN J. THE SPECIAL NEEDS OF THE INNER DISTRICTS K. RACIAL AND ETHNIC CONSIDERATIONS XIV. TRANSPORTATION A. OPERATION B. BUS PURCHASES C. TRANSPORTATION OF HANDICAPPED PUPILS XV. LOCAL CONTROL A. UNFUNDED MANDATES B. THE EDUCATIONAL MANAGEMENT INFORMATION SYSTEM C. LOAN PROGRAM AND RECEIVERSHIP DISTRICTS D. PLAINTIFF SCHOOL DISTRICTS DO NOT HAVE LOCAL CONTROL XVI. THOROUGH AND EFFICIENT CLAUSE XVII. EQUALITY OF EDUCATIONAL OPPORTUNITY A. EDUCATIONAL OPPORTUNITIES ARE NOT EQUITABLY DISTRIBUTED IN OHIO B. DR. ALEXANDER'S CURRICULUM STUDY C. PLAINTIFF DAWSON-BRYANT COMPARED WITH THE BEACHWOOD CITY SCHOOL DISTRICT D. PLAINTIFF NORTHERN LOCAL SCHOOL DISTRICT COMPARED WITH GRANVILLE CITY SCHOOL DISTRICT E. PLAINTIFF SOUTHERN LOCAL COMPARED TO RICHMOND HEIGHTS LOCAL SCHOOL DISTRICT AND WORTHINGTON CITY SCHOOL DISTRICT F. PLAINTIFF YOUNGSTOWN COMPARED WITH THE MAYFIELD HEIGHTS CITY SCHOOL DISTRICT XIII. FUNDAMENTALITY CONCLUSIONS OF LAW I. THE PARTIES II. THE FOLLOWING PROVISIONS OF THE OHIO CONSTITUTION ARE APPLICABLE TO THE CLAIMS ASSERTED BY THE PLAINTIFFS IN THIS CASE III. THE FOLLOWING PROVISIONS OF THE OHIO REVISED CODE AND THE EFFECTS THEREOF ARE APPLICABLE TO THE CLAIMS OF PLAINTIFFS IN THIS CASE IV. HARM TO THE PLAINTIFFS V. THE COURT HEREBY ORDERS AND DECLARES MEMORANDUM FINDINGS OF FACT I. STIPULATIONS The parties filed final Joint Stipulations of Fact with the Court on October 1, 1993. During the course of trial on November 29, 1993, the parties supplemented those Stipulations. This Court hereby incorporates the Final Joint Stipulations of Fact, including the Exhibits thereto, into these Proposed Findings of Fact and Conclusions of Law. II. BIOGRAPHIES OF WITNESSES 1. Kern Alexander Dr. Alexander is a Distinguished Professor at Virginia Tech in Blacksburg, Virginia, and he has held that position since 1988. Previous to that, he served as president of Western Kentucky University, an institution of approximately 15,000 pupils where he served for a period of three years. Dr. Alexander was a full professor at the University of Florida where he taught school finance for approximately 18 years. During that time, he also served as Associate Director of the National Education Finance Project, and while on leave from the University, coordinated the education budget for the State of Florida from 1982 to 1985. Dr. Alexander holds a Bachelor of Arts Degree from Center College in Danville, Kentucky; a Master of Arts Degree from Western Kentucky University; a Doctor of Education Degree from Indiana University; and a Diploma in Educational