Court awards DPS $23.6M following ODE’s failure to fund district according to law

DAYTON — The Dayton Public School District was awarded more than $23.6 million after a judge issued a decision to award three Ohio public school districts $42 million plus interest due to the Ohio Department of Education’s unlawful reduction of school funding for fiscal years 2005-2007, according to a release from the district.

Judge Gina R. Russo of the Franklin County Court of Common Pleas issued this decision Sept. 10. However, that decision could be appealed, the district said. At this time, none of the three school districts have received the money.

>> Back to School: Students in Troy city district return for 2020-21 academic year

The Dayton, Cleveland and Toledo city school districts each sought the recovery of funds it said it was entitled to receive according to state law. The court ruled that all three districts were found to have been unlawfully deprived of funding by ODE, a statement from the district read.

“Our students who lost educational opportunities because of the Ohio Department of Education’s failure to follow the funding formula, are likely long gone from our district,” said Dr. Elizabeth Lolli, Superintendent of Dayton Public Schools. “But the funding that flows from the court’s decision will provide an opportunity for students filling their seats today. We take comfort in knowing that our current students, parents, and staff will be the beneficiaries of the money awarded by the court.”

The district said the underpayment to these districts was the direct result of ODE’s decision in 2005 to substitute an unlawful funding methodology for the methodology established by the legislature and specified by law. Prior to the litigation resulting in the recent award to these three urban school districts, a fourth district, the Cincinnati City School District, filed a lawsuit in 2006, securing a $6 million judgment in its favor based on the same unlawful underfunding by ODE.

>> DPS approves temporary work, pay stoppage for 207 employees, layoffs for 25 others

In the litigation recently decided, Dayton sued for the unsettled portion of its claims. Together with Cleveland and Toledo, Dayton challenged the legislation as unconstitutional, in violation of the Ohio Constitution’s prohibition on retroactive legislation and other provisions of the Ohio Constitution.

The amount awarded Dayton is significantly greater than the amounts awarded the other two districts primarily because Dayton had a significantly greater number of resident district students who elected to attend a community school in 2005 for whom ODE did not properly credit the district for funding purposes, the district said.

ODE’s intention to pay the judgment and stop the rapidly accruing interest on the judgment or file an appeal is unknown at this time.

“The financial implications of continuing the litigation cannot be overestimated,” said Jim Hughes, an attorney with Bricker & Eckler representing the plaintiffs. “Post-judgment interest awarded by the court on the entire award is accruing from the date of the decision at a rate of over $100,000 per month. And, yet, while $42 million is a significant sum, it represents less than 1% of the state’s appropriations for Basic Public School Support education budget.”

Cox Media Group