A wake-up call for the business community

Over the past several months, districts across the state have been forced into crisis mode—not because of mismanagement, but because of a fundamental shift in the state’s school funding formula. Hamilton City Schools, long known for responsible financial stewardship, found itself pushed into deficit spending immediately after the state altered the foundational formula it began implementing four years ago.

This wasn’t a small tweak. It was a structural change that destabilized districts that had been financially healthy for years.

At the same time, the real costs of running a public school system—healthcare, special education, English‑language learning, transportation, utilities—continue to rise. Revenues, however, have not kept pace. Districts have been stretching every dollar, delaying purchases, consolidating services, and doing more with less for as long as they can.

That runway is now gone.

And let’s be clear: like any business, schools can always improve. They can always look for efficiencies, eliminate redundancies, and operate with fiscal discipline. Hamilton City Schools has done exactly that for years. But no business—no matter how well run—can absorb a sudden, drastic, and immediate change in its revenue structure without consequences.

If the state imposed this kind of shock on private industry, the business community would be sounding alarms. Public schools deserve the same level of concern.

At the same time these funding formula changes were introduced, Ohio dramatically expanded school‑choice options, including universal vouchers. Supporters often argue that voucher expansion did not directly “take” money from public schools, and technically that may be true in a narrow budgetary sense.

But the larger question remains: If we truly believe in our children’s future, how do we justify rapidly increasing school‑choice spending while simultaneously creating conditions that increase the probability of failure for public education?

Vouchers were originally designed as a lifeline for students in failing schools — an escape hatch when a district could not meet a child’s needs. They were never intended to create a two‑tiered system where some schools are elevated while others are left to struggle.

Yet that is exactly the risk we face when the state dramatically expands school choice at the same time it alters the public‑school funding formula in ways that destabilize districts that have been financially responsible for years.

This is not about public versus private. It is about failing schools versus stellar schools, and whether we are unintentionally increasing the number of failing schools by weakening the very system that educates the vast majority of Ohio’s children.

A lack of respect for public education doesn’t just harm struggling districts — it threatens those that are improving, innovating, and preparing students for the workforce. If we continue down this path, we will see fewer schools performing at high levels and more schools unable to meet the needs of students or employers.

Layered on top of this is a growing movement to eliminate property taxes — one of the last stable funding sources for public schools. If that effort succeeds, the collapse of public education in Ohio will not be a hypothetical risk. It will be a certainty. And once a public education system collapses, it does not come back.

The best opportunities will be limited to the few who qualify for a voucher or have the means to afford private schools. Everyone else — especially the children of working‑class families — will be left with fewer resources, fewer programs, and fewer pathways to success.

This is not just a school issue. It is a workforce issue.

In Hamilton, 75% of graduates go directly into the workforce or skilled trades. That means our public schools are the primary talent pipeline for local employers, manufacturers, healthcare providers, and small businesses. Over the last three years, Hamilton City Schools has invested heavily in pre‑apprenticeships, industry‑recognized credentialing, and partnerships with local businesses.

These programs are exactly what Ohio’s business community says it needs: graduates who are educated, skilled, adaptable, and ready to contribute on day one.

What makes this moment even more concerning is that Hamilton City Schools is not a district in decline. In fact, the opposite is true. Over the past several years, HCSD has seen dramatic, measurable improvements in student achievement, graduation pathways, and career readiness.

The district is now competitive with other districts across the region, proving that strategic investment, strong leadership, and community support can move the needle in powerful ways. These gains are real. They are hard‑won. And they are now at risk.

This moment should not be political. It should, however, demand honesty about the direction we are heading. Public education is not a special interest — it is the foundation of our economic future. And if Ohio truly wants to become the business capital of the United States, it must stop treating public schools as an afterthought and start recognizing them as the essential workforce engine they are.

The future of Ohio’s economy is being shaped today. The question is whether we will recognize the warning signs in time to act.

Greater Hamilton Chamber of Commerce President and CEO Dan Bates may be emailed at dan@hamilton-ohio.com.