A Strategic Regional Approach to Economic Development and School Funding in Ohio

Abstract

In recent years the economy in Ohio has faced major problems in two critical areas: local economic development and local school funding. Decreasing tax revenues from the state, such as Local Government Funds, along with unfunded mandates, have strained the financing of local public education and heightened attention on the current approach to and use of local economic development. Examining the relationship between local economic development and local school funding at this time may not only contribute to our understanding the underlying issues creating the problems but also lead to possible solutions. This article argues that economic development and public education funding are interrelated and are negatively affected by the current Ohio tax structure and recommends an integrated, strategic regional approach to local economic development and local school funding to provide long-term economic stability, as well as solid school funding. Although regionalism is not a new concept, it may be a realistic and workable solution for Ohio's economic development and school funding problems. However, a strategic regional approach to both economic development and school funding requires that both areas be addressed simultaneously through the tax structure. The study finds that Ohio may be ready for a strategic regional approach at this time, because many individual communities and their schools are failing economically and see little hope of reversing their situation using current, traditional strategies.

Keywords:

• economic development
• school funding
• fiscal regionalism

Notes