State Board of Education Budget Update July 13 th, 2015

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1 Jhn R. Kasich, Gvernr Dr. Richard A. Rss, Superintendent f Public Instructin State Bard f Educatin Budget Update July 13 th, 2015 Aarn Rausch Directr, Office f Budget and Schl Funding Jessica Vltlini Directr, Office f Plicy and Legislative Affairs Primary and Secndary Educatin Funding Last fiscal year (FY 2015), the State f Ohi spent mre n primary and secndary educatin than at any pint in state histry. FY 2015 State General Revenue Fund and Lttery Prfit spending fr primary and secndary educatin exceeded FY 2010 funding levels by nearly $1.3 billin, r 17.8 percent. Even including ne time federal-stimulus funding, TPP/KwH reimbursements, and prperty tax relief, FY 2015 funding levels exceeded FY 2010 funding levels by $322.5 millin, r 3.4 percent. Am. Sub. Huse Bill 64 (HB64) cntinues t invest additinal funds fr primary and secndary educatin in the state f Ohi. Fiscal Year 2017 State General Revenue Fund and Lttery Prfit spending fr primary and secndary educatin will exceed FY 2015 funding levels by mre than $725 millin, r 8.8 percent. Even including TPP/KwH reimbursements and prperty tax relief, FY 2017 prpsed funding levels will exceed FY 2015 funding levels by mre than $500 millin, r 5.2 percent.

2 Fundatin Prgram The largest parts f the department s budget are the apprpriatins related t the schl fundatin prgram. In the As Intrduced versin, the wrk surrunding schl funding was guided by the fllwing gals: Wrk within the existing framewrk f the frmula enacted under Huse Bill 59; Make apprpriate adjustments t the per-pupil amunts based n the needs f students; Direct additinal resurces t districts with the lwest capacity; and Make prgress at eliminating the shrt circuits in the frmula funding caps and guarantees. Ohi s schl funding frmula is centered n needs f students. If a student is ecnmically disadvantaged, additinal funding is prvided. If a student requires special educatin services r rides the bus t schl, additinal funding is prvided. This funding fllws the student if he r she chses t leave a traditinal public schl and attend a cmmunity schl r STEM schl. HB 64 maintains bth this structure and the nine primary aid categries used in the existing frmula: the cre pprtunity grant, targeted assistance, K-3 literacy funding, ecnmically disadvantaged aid, limited English prficiency funding, gifted funding, transprtatin aid, special educatin aid, and career-technical educatin funding. While many f the cmpnents are left unchanged, I wuld like t highlight six f the enacted changes: Opprtunity Grant per-pupil funding will increase frm $5,800 in FY 2015 t $5,900 in FY 2016 t $6,000 in FY 2017; Tier Tw Targeted Assistance prvides additinal funds t districts with mre than 10% f their real prperty value in agricultural land. Frmula: Agricultural prperty percentage 10% X 40% f frmula amunt ($2,360 in FY 2016; $2,400 in FY 2017); Special educatin per-pupil categrical amunts will increase 2 percent in each fiscal year. The Ohi Calitin fr Students with Disabilities cmpleted cst studies that estimated the cst f prviding services by disability categry. These cst studies frmed the basis fr defining the funding in the current frmula; K-3 literacy per-pupil funding will increase 5 percent in each fiscal year. This increase is in line with the Gvernr s and Dr. Rss s gal that every by and girl in Ohi can read at grade level by the end f the third grade; Career-technical educatin per-pupil funding will increase by 4 percent in each fiscal year, which is reflective f the fcus f making sure students are cllege and career ready and further supprts the new pathways t graduatin. The previus budget expanded the number f career-technical educatin categries frm tw t five in rder t priritize the career-technical educatin prgrams that encmpass Ohi s in-demand career fields; and Transprtatin funding wuld still be calculated n a per-rider r per-mile basis, but the minimum state share percentage fr transprtatin funding wuld be reduced frm 60 percent t 50 percent. State Share Index The State Share Index is the mechanism by which the frmula wrks t distinguish between higher and lwer wealth districts and allcate resurces accrdingly. It is applied t the per pupil amunts fr the pprtunity grant, special educatin, career-technical educatin, limited English prficiency, a prtin f K-3 literacy funds and transprtatin funding. 2

3 HB 64 largely maintains current law with a change t the incme index and which districts receive the adjustment. Valuatin Index - three-year average valuatin was used t calculate a valuatin per pupil by district. That valuatin per pupil was then cmpared t the statewide average valuatin per pupil t create an index. Incme Index - Median incme frm the Ohi Department f Taxatin was used alng with grss federal adjusted grss incme by district per pupil in rder t create an incme index. Wealth Index - Cmpares the incme index t the valuatin index. Only when a district s incme index is less than the district s valuatin index and less than 1.5 is an adjustment made. This adjustment weights the valuatin index at 60% value and the incme index at 40% and has the effect f lwering the wealth f the district. State Share Index - The translatin f the wealth index between 5-90 percent. New Cmpnents Capacity Aid: Prvides additinal funding fr schl districts where the incme generated fr ne mill f prperty tax is belw the state median fr what is generated. Transprtatin Supplement: Prvides additinal funding fr schl districts with rider density (riders per square mile) less than 35 students in FY 2016 and 50 students in FY Prvides additinal funding based n rider density and the number f miles driven by schl buses. Third Grade Reading Prficiency Bnus: Prvides a bnus t schls based n third grade reading guarantee results. Frmula: Third grade reading prficiency percentage X number f students wh are prficient in reading in the third grade X 7.5% f the pprtunity grant amunt X state share index. Up t apprximately $450 per pupil. High Schl Graduatin Rate Bnus: Prvides a bnus t schls based n high schl graduatin rates. Frmula: 4-year high schl graduatin rate X number f high schl graduates in the prir year X 7.5% f the pprtunity grant amunt X state share index. Up t apprximately $450 per pupil. Transitinal Aid Transitinal aid (r the guarantee ) is nt a recent additin t the schl funding frmula. In the previus biennium, the guarantee prevents a district s fundatin funding frm falling belw FY 2013 levels. HB 64 guarantees schl districts at FY 2015 fundatin funding levels. Cap Withhlds calculated aid abve a certain grwth rate. Like a guarantee, the cap shrt circuits the frmula. FY 2014 cap amunt was 6.25 percent and FY 2015 cap amunt was 10.5 percent. HB 64 limits grwth t 7.5 percent each fiscal year. Capacity Aid, Transprtatin Supplement, Graduatin Bnus and Third Grade Reading Bnus are exempt frm the cap. Career-Technical Educatin funding remved frm the guarantee base and exempt frm the cap in FY

4 Tangible Persnal Prperty/Public Utility Tangible Prperty Phase-Out HB 64 restarts the phase-ut f the Tangible Persnal Prperty (TPP) and Public Utility Tangible Prperty (PUTP) reimbursement first put in law after cmprehensive tax refrm in 2005 and utility deregulatin refrm in Simplifies the reimbursement prcess by cmbining the TPP and PUTP (kwh) reimbursements. 260 districts received the reimbursement in FY districts are prjected t receive the reimbursement in FY A schl district s TPP/PUTP phase-ut percentage is dependent n that district s capacity measure quintile placement. Districts in the lwest capacity quintile (Quintile 1) will receive a 1% phase-ut; districts in Quintile 2 will receive a 1.25% phase-ut; districts in Quintile 3 will receive a 1.5% phase-ut; districts in Quintile 4 will receive a 1.75% phase-ut; districts in the highest capacity quintile (Quintile 5) will receive a 2% phase-ut. TPP Supplement In FY 2016, if the amunt f fundatin funding and TPP reimbursement is less than the fundatin funding and TPP reimbursement levels in FY 2015, the TPP supplement will make up the difference. In FY 2017, funding is eliminated but the fundatin funding guarantee and the TPP reimbursement phase-ut cntinues. The maximum lss a schl district wuld experience wuld be 2% annually f state and lcal resurces (4% ttal). What factrs influence if a specific district will see increased r decreased aid? There are numerus cmpnents and variables that make up the calculatin f fundatin funding in Ohi. As a result, there are numerus reasns why an individual schl district will experience changes in fundatin funding acrss fiscal years r why ne district receives mre state funds than anther. Student Ppulatin and Demgraphics: Ohi s student-centered funding frmula prvides resurces based n a schl district s Average Daily Membership (ADM). Changes in ADM, whether increases r decreases, can have an impact n a schl district s fundatin funding. Similarly, changes in the numbers f students and their needs, frm special educatin t thse wh are ecnmically disadvantaged, als impact the amunt f funding each district receives. Prperty Valuatin: Changes in prperty valuatin, whether increases r decreases in ttal r in relatinship t the statewide average, can have a significant impact n a schl district s fundatin funding. Incme: Changes in incme, whether increases r decreases, als have an impact n a schl district s fundatin funding. Histrical funding and previus funding levels: The interactin f frmula changes, changing characteristics f a district, and the effects f caps/guarantees can cause unexpected results. When caps and guarantees are used, the utcmes f any frmula are suppressed. Because guarantees have been in place withut interruptin fr many years, the guarantee is nt necessarily t last year s amunt, but perhaps t a frmula calculatin frm a number f years prir. This means that guaranteed/capped funding amunts are ften based upn district factrs, such as student ppulatin and/r prperty values, which are dramatically different 4

5 frm what currently exist. Therefre, funding levels fr a district relative t a prir year might be due t the impact f lessening thse cnstraints that shrt-circuit frmulas. Cmmunity Schls and STEM Schls There are apprximately 380 cmmunity schls and STEM schls in the state. Changes in the previus perating budget (HB 59) established parity between traditinal district funding and cmmunity schl funding. Students are funded based n their district f residence. If a student chses t leave the traditinal public schl district in which he r she resides fr a cmmunity schl r STEM schl, the funding fllws that student. Cmmunity schls have a 100% State Share Index. Students wuld generate increased per-pupil funding in the categries discussed abve fr traditinal districts. Cmmunity schls wuld receive new funding fr third grade reading bnus and graduatin bnus (paid directly by the state nt thrugh a deductin and transfer). Nt eligible fr capacity aid r transprtatin supplement. Facilities funding, paid directly by the state and nt thrugh a deductin frm traditinal districts, will increase frm $100 per pupil in FY 2015 ($87) t $150 in FY 2016 and $200 in FY E-schls will receive $25 per pupil each fiscal year. Jint Vcatinal Schl Districts There are 49 jint vcatinal schl districts in Ohi. JVSDs receive many f the same funding categries as traditinal public schls. HB 64 increases the per-pupil amunts and applies transitinal aid in the same manner as traditinal schl districts. Establishes a 5% state share minimum. JVSDs are eligible fr new graduatin bnus. The frmula funds career-technical educatin funding utside the cap and guarantee base in FY Educatinal Service Centers 52 Educatinal Service Centers represent excellent examples f shared services. Used by ODE t deply and crdinate prfessinal develpment, and prvide interventin and supprt t lcal schl districts. Schl districts with 16,000 students r less must enter int an agreement with an educatinal service center. (Tled CSD nly schl nt affiliated with an ESC). State Operating Subsidy: Apprximately $27 per pupil in FY Establishes $33 per pupil funding fr each year f the biennium (subject t apprpriatin estimated at $25 per pupil). Establishes $35 per pupil funding fr high perfrming ESC in FY State Bard f Educatin required t establish rules determining criteria fr high perfrming ESC by December 31 st, Nnpublic Student Funding Auxiliary services funding - used t purchase secular textbks, educatinal materials, equipment, health and cunseling services, special educatin, and testing. Includes a set-aside fr chartered nnpublic students t participate in Cllege Credit Plus. 5

6 Increased t $2.6 millin in each fiscal year t eliminate the lttery that exists. Nnpublic administrative cst reimbursement helps defray the csts f mandated administrative and clerical tasks. Prpsed increases in line with percent increases fr GRF fundatin funding. 4.4 percent in FY percent in FY 2017 Cmbined funding f apprximately $209 millin in FY 2016 and $217 millin in FY 2017 EdChice and Other Schl Chice Prgrams Increases the amunt f the EdChice Schlarship frm $4,250 t $4,650 fr K-8 students. Increases the amunt f the EdChice Schlarship frm $5,000 in FY 2015 t $5,900 in FY 2016 and $6,000 in FY 2017 fr high schl students. This increase mirrrs increases t the pprtunity grant amunt fr traditinal districts and cmmunity schls. Clarifies the bttm ten percent rankings t mre accurately reflect the buildings eligible fr the EdChice Schlarship. Prvides $23.5 millin in FY 2016 and $31.5 millin in FY 2017 t cntinue the incme-based EdChice expansin t students at r belw 200% f the federal pverty line in secnd and third grade. Cleveland Schlarship Prgram - Remves the prhibitin against awarding mre than 50% f available schlarships t students wh were enrlled in a nnpublic schl during the year they applied fr the prgram. Increases the maximum amunt f schlarships awarded under Autism Schlarship and Jn Petersn Schlarships t $27,000. Early Childhd Educatin and Early Literacy Prvides $500,000 in each fiscal year fr ODE t wrk with Educatinal Service Centers t establish reginal literacy prfessinal develpment teams. Additinal $40 millin in funding t create additinal pprtunities fr ecnmically disadvantaged preschl students. Apprpriatin f $70.3 millin in FY Increases the number f funded slts frm apprximately 11,000 in FY 2015 t mre than 17,000 in FY In FY 2016, the cpay systems between percent f federal pverty line will be aligned between ODJFS and ODE. In FY 2017, ODE will cllabrate with ODJFS t develp a jint prcess fr early childhd educatin prgram eligibility determinatin, applicatins, attendance tracking and alignment f c-pays. Allws cmmunity schls t ffer preschl pprtunities if the schl has an "exemplary" spnsr, a grade f C r better fr verall value-added and the perfrmance index scre r. If the schl desn't g beynd grade 3, has a C r better n the K-3 literacy prgress measure. Testing Remves fur legislative recmmendatins regarding testing reductin: Did nt limit the amunt f time students spend taking state and district tests t 2% f the schl year and practicing fr tests t 1% f the schl year Did nt eliminate the use f student learning bjectives (SLOs) as part f the teacher evaluatin system fr teachers in grades prek-3 and fr teachers teaching in nn-cre subject areas in grades

7 Did nt shift the administratin f mandatry fall third grade English language arts test t a summer administratin f the test fr students wh need it. Did nt make ptinal the state s required diagnstic tests in math and writing fr students in grades 1-3. Partially restres Student Assessments line item. Prhibits ODE frm using general revenue funds t purchase PARCC assessments Includes Senate Testing Advisry Cmmittee recmmendatins: State Superintendent shall certify within 30 days that the state tests administered in the schl year will be administered nce each year and in a single testing windw in the secnd half f the year Exceptin fr end-f-curse exams fr curses cmpleted during the first semester and the third grade English language arts test State Superintendent shall verify that the length f the tests will be reduced as cmpared t thse administered during the schl year. Preference fr a single technlgy platfrm fr purpses f nline test administratin Extends t the schl year the ptin t administer tests nline. Requires test scres be returned within 45 days after the administratin f the tests with verall deadline f June 30 Third grade English language arts test scres must be returned n later than June 15 Exceptin t 45-day deadline fr writing cmpnent f English language arts tests except fr third grade English language arts test Safe Harbr ODE shall nt assign an verall letter grade n the reprt card fr the , , and schl years SBOE has the discretin t nt assign certain individual cmpnent grades n the reprt card fr the , , and schl years ODE shall nt rank schl districts, cmmunity schls, r STEM schls fr the , , and schl years Reprt card ratings issued fr the , , and schls years shall nt be cnsidered, and districts and schls are exempt frm the fllwing: Any restructuring prvisins established by state law, unless therwise required pursuant t Ohi s ESEA waiver Clumbus City Schl parent trigger prvisins Academic distress cmmissin prvisins (Nte: HB 70) Prvisins prescribing new buildings where students are eligible fr EdChice schlarships Prvisins defining challenged schl districts in which new start-up cmmunity schls may be lcated Prvisins prescribing cmmunity schl autmatic clsure requirements Prhibits districts and schls frm using student scres n state tests administered during the , , and schl years as a factr in any decisin t prmte r retain a student This prhibitin des nt apply t the third grade English language arts test Prhibits the release f individual student scre reprts fr state tests administered in the , , and schls years except t a student s district, schl r parent/guardian 7

8 Prhibits the use f the value-added prgress dimensin rating based n the results f state tests administered in the and schl years fr purpses f assessing student academic grwth fr teacher and principal evaluatins r when making decisins regarding the dismissal, retentin, tenure, r cmpensatin f a teacher r principal A district r schl may enter int an MOU cllectively with its teachers r principals stipulating that the value-added prgress dimensin rating may be used t assess student academic grwth when making emplyment decisins In the event a teacher fr which the value-added prgress dimensin is applicable des nt have any ther measure t determine student academic grwth, the teacher s evaluatin shall be based slely n teacher perfrmance. Within 30 days, ODE shall apply t the United States Secretary f Educatin fr a waiver frm prvisins f the N Child Left Behind Act f 2001, t accunt fr the prhibitin n using the value-added prgress dimensin t calculate student academic grwth fr purpses f teacher and principal evaluatins fr the and schl years that are based n results f state tests administered in the and schl years. Student Supprt and Educatin Optins Cmpetency Based Pilt Prject Creates a pilt fr up t five schls and districts t transitin t a system that advances students when they master their material. Pilt sites will receive up t $200,000 each year t help transitin t cmpetency-based educatin. Cllege Credit Plus Incentives - Prvides $10 millin t the Ohi Department f Educatin and Department f Higher Educatin in FY 2016 t credential teachers in ecnmically disadvantaged high schls and thse schls with limited r n credentialed teachers t teach Cllege Credit Plus curses. Funds will als be distributed t clleges and universities that can credential teachers fr little r n cst. Allws a student t take Cllege Credit Plus classes in the summer. Adult Diplma Prgram Establishes a funding frmula fr the current five pilt prgrams and prvides $2.5 millin in FY 2016 and $5 millin in FY Pairs a high schl diplma awarded by the State Bard f Educatin with an industry recgnized credential. Frmula based n academic skill, credential, and cmpetency/cmpletin. Creates a secnd rund f planning grants (up t $250,000) fr up t five new pilt sites at cmmunity clleges r technical centers. Career Tech Reimbursements: Requires schl districts t ffer credentials t students that enrll in in-demand credential careers and prvides $1 millin in each year t reimburse the schl district t cver the cst f getting thse credentials fr ecnmically disadvantaged students. Establishes Ohi Career Cunseling Pilt Prgram. Fur career centers and three cmprehensive high schls/cmpacts will receive apprximately $1 millin t participate in a pilt prgram t prvide additinal career cunseling t students and reprt findings t ODE and the General Assembly. 22+ Diplma Prgram Maintains prgram, and transfers rule making authrity frm State Bard f Educatin t ODE. 8

9 Allws Superintendent t develp guidelines identifying circumstances in which ODE may, after cnsulting with a lead district, apprve r disapprve a new career-technical educatin prgram that has been apprved r disapprved by the lead district after the nrmal May 15 deadline. Allws fr STEM schls t enrll ut-f-state students and charge tuitin. Prhibits ODE frm paying state funds t the schls fr ut-f-state students. Graduatin Requirements fr Chartered Nnpublic Schls Prvides exemptin fr students enrlled in chartered nnpublic schls accredited by Independent Schl Assciatin f the Central States (ISACS) frm the requirement t take high schl end-f-curse exams unless the student is attending the schl as part f the state schlarship prgram Prvides an exemptin frm end-f-curse exams fr students enrlled in nn-isacs chartered nnpublic schls if the schl administers t all f students, including students attending as part f a state schlarship prgram, an alternative assessment apprved by ODE r if the schl publishes the results f the cllege and career readiness assessments Curriculum and Assessment Allws students entering the ninth grade fr the first time n r after July 1, 2015, wh are pursuing a career-technical instructin track the ptin f cmpleting a career-based pathway mathematics curse as an alternative t Algebra II Reinstates September 30 deadline fr reading skills assessments fr students in grades 1-3 but maintains Nvember 1 as the deadline fr the reading skills assessment fr kindergarten students Changes GED requirements fr students ages 16 and 17 Requires each applicatin t include written apprval frm a persn s parent/guardian if the applicant is under 18 and the persn s fficial high schl transcript, including the previus year f enrllment in a diplma granting prgram Permits ODE t apprve applicatins nly if a persn has bth been cntinuusly enrlled in a diplma granting prgram fr at least ne semester and attained an attendance rate f 75% r higher during the semester and shws gd cause Requires SBOE t adpt rules t determine what qualifies as gd cause Permits a parent/guardian f a hmeschled student t grant a diplma t a student wh cmpleted the final year f hme instructin and successfully fulfilled the applicable high schl curriculum A diplma granted t a hmeschled student shall cntain either a certificatin signed by the superintendent f the student s district f residence r the fficial letter f excuse frm attendance fr the student s final year f hme educatin issued by the superintendent f the student s district f residence Diplma shall serve as prf f the successful cmpletin f the student s applicable high schl curriculum and satisfactry t fulfill any legal requirement t shw such prf Permits a nnchartered nnpublic schl t grant a diplma t a student wh graduated frm the schl after successfully fulfilling the schl s high schl curriculum Extends innvative waiver pilt prgram and permits the State Superintendent t grant up t an additinal 10 waivers Clarifies that all schl districts, cmmunity schls, and STEM schls are eligible t apply fr a waiver during the schl year 9

10 Defines innvative educatinal prgram r strategy as a prgram r strategy using a new idea r methd aimed at increasing student engagement and preparing students t be cllege r career ready. Accuntability and Cntinuus Imprvement Requires State Bard t establish prficiency percentages fr perfrmance indicatrs by the fllwing dates: Nt later than December 31, 2015, fr the tests administered in the schl year Nt later than July 1, 2016, fr the tests administered in the schl year Nt later than July 1, 2017, fr the tests administered in the schl year and fr each schl year thereafter Permits, rather than requires, State Bard t develp a high schl value-added measure based n English language arts and mathematics end-f-curse exams Teaching Prfessin Requires the Educatr Standards Bard t develp standards fr schl cunselrs that include standards reflecting Ohi-specific knwledge f career cunseling The standards shall align with the American Schl Cunselr Assciatin s prfessinal standards and perating standards Requires the SBOE t develp a standards-based state framewrk fr the evaluatin f schl cunselrs nt later than May 31, 2016 Districts and schls shall adpt standards-based schl cunselr evaluatin plicies that cnfrm with the SBOE-develped state framewrk n r befre September 30, 2016 Lcal bard plicy shall becme perative at the expiratin f any cllective bargaining agreement cvering schl cunselrs that is in effect n the effective date f the sectin and shall be included in any renewal r extensin f such an agreement. Changes the alternative teacher evaluatin framewrk fr the schl year and any year thereafter 50% teacher perfrmance 35% student academic grwth 15% ne, r any cmbinatin, f the fllwing cmpnents: student surveys, teacher self-evaluatins, peer review evaluatins, student prtflis, r any ther cmpnent determined apprpriate by the bard f educatin ODE shall cmpile a list f apprved instruments that a district r schl may use fr the 15% ther cmpnents Exempts cnsistently high-perfrming teachers frm the requirement t cmplete additinal cursewrk fr purpses f license renewal SBOE shall adpt rules defining cnsistently high-perfrming teacher nt later than July 1, 2016 Prvides fr changes t the fur-year Resident Educatr prgram Reduces mentring requirements t the first tw years f the prgram Cunseling and prfessinal develpment needs t be determined lcally by the district r schl Exempts career-technical teachers teaching under an alternative resident educatr license frm the mentring requirements 10

11 Requires the SBOE, in cnsultatin with the Bard f Directrs f the Bright New Leaders fr Ohi Schls prgram, t adpt rules prescribing requirements fr graduates f the prgram t btain an alternative principal r alternative administratr license and requires the SBOE t issue an alternative principal r alternative administratr license t graduates f the prgram that meet the SBOE requirements Prhibits the SBOE frm charging a fee fr a license t teach in a JROTC prgram. Cmmunity Schls Remves all As-Intrduced cmmunity schl spnsr refrms (Nte: Sub. HB 2) Requires ODE t submit a plan t the General Assembly that prpses the expansin f ODE s Office f Schl Spnsrship and a ratings rubric fr cmmunity schl spnsr evaluatins by July 1, 2016 Requires ODE t wrk with ESCs and the Ohi Assciatin f Gifted Educatin t study the establishment f 16 reginal cmmunity schls fr gifted educatin Allws eligible cmmunity schls t ffer general educatin preschl and participate in ODE s early childhd educatin prgram Eligible cmmunity schls include: A cmmunity schl spnsred by an exemplary spnsrs A cmmunity schl ffering any f grades 4-12 that received a C r better fr verall value-added and fr perfrmance index n the mst recent reprt card A cmmunity schl that des nt ffer a grade level higher than three that receives a C r better fr the K-3 literacy measure n the mst recent reprt card A cmmunity schl must btain an ODE-issued license and must cmply with SBOE rules establishing the minimum standards fr preschl prgrams Creates a $25M cmmunity schl classrm facilities grant prgram t be administered by the Schl Facilities Cmmissin (SFC) Eligibility criteria based n cmmunity schl perfrmance and demnstratin that funds will be used t increase supply f seats in effective schls, service specific unmet student needs, and shw innvatin in design and ptential as a successful, replicable schl mdel Requires at least a fifty percent match Grants may be used fr the purchase, cnstructin, recnstructin, renvatin, remdeling, r additin t classrm facilities Grant requirements and applicatin prcess t be develped by the Schl Facilities Cmmissin in cnsultatin with the State Superintendent Grant awards t be apprved by the Executive Directr f SFC and the State Superintendent Prvides an pprtunity fr a cmmunity schl spnsred by an exemplary spnsr t access lcal levy dllars if advanced by a lcal schl bard and apprved by vters Offers the right f first refusal t high perfrming cmmunity schls when a traditinal district sells schl prperty Revises definitin f an internet- r cmputer-based cmmunity schl t clarify that an e- schl maintains its status as an e-schl if it prvides career-technical educatin Requires ESCs that spnsr cmmunity schls t be apprved by and enter int a written agreement with ODE 11

12 Other Prvisins Straight A Fund - Cntinues the Straight A Fund thrugh the next biennium, prviding $15 millin in each fiscal year fr sustainable prpsals t imprve student achievement, reduce the cst f running a schl r district, r drive mre dllars t the classrm. Cmmunity Cnnectrs Maintains the Cmmunity Cnnectrs prgram with $10 millin in each fiscal year t bring tgether families, cmmunity rganizatins, faith-based rganizatins, businesses and thers in supprt f ur schls and t mentr students. Partnership with Opprtunities fr Ohians with Disabilities - Prvides $5 millin in each fiscal year fr transitin services and crdinatin f services fr students with disabilities t increase the number f students receiving services and help them transitin frm schl t wrk. Regulatry Relief Remves the requirement fr the SBOE t adpt rules allwing schl districts t cntract with public r private prviders f academic remediatin and interventin. Permits a schl t cntract with a hspital r an apprpriately licensed health care prvider fr the purpse f prviding health care services (that are specifically authrized by the Revised Cde) t students. Credit Flexibility Extends the ability fr students t use credit flexibility t the 7th and 8th grades. Requires the Superintendent t engage with the business cmmunity, including the Ohi Business Rundtable, t develp business relatinships t prvide students with credit flexibility pprtunities, increasing student engagement and jb readiness. Directs ODE t rebrand credit flexibility and reduce barriers t participatin fr students, schls and businesses. Allws the State Bard f Educatin t establish an annual Teacher f the Year recgnitin prgram fr utstanding teachers. A persn r entity may vluntarily cntribute t the recgnitin prgram, and a Teacher f the Year may accept gifts and privileges as part f the prgram, withut vilating ethics laws. Creates the Schl Transprtatin Jint Task Frce cmprised f members appinted by the Speaker f the Huse and the Senate President t make recmmendatins by n changes t the transprtatin funding frmula. Establishes the Jint Educatin Oversight Cmmittee (JEO), a jint cmmittee f the General Assembly, which cnsists f five members f the Senate and five members f the Huse f Representatives. Requires JEO t select, fr review and evaluatin, educatin prgrams at schl districts, ther public schls, and state institutins f higher educatin that receive state financial assistance in any frm. 12

REFERENCE ACTION ANALYST STAFF DIRECTOR or BUDGET/POLICY CHIEF

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