1. HB 153: 2012-2013 State Budget (as passed by the GA & signed by the Gov.) July 2011

2. HB 153 – School Operation Support  Ohio Educational Computer Network (OECN) cut by 10% and EMIS cut by almost 43%  EMIS funding “redirected” through basic aid  School District Solvency Assistance increased by almost 39%  Educational service center funding reduced for FY12 to 90% of FY11; reduced further in FY13 to 85% of FY12 amount  State aid per pupil = actual state aid divided by district’s recalculated FY11 ADM

3. School Funding Formula  Ohio Evidence Based Model Eliminated  Career Tech funding flat-lined in both years  Reductions to account for loss of SFSF accomplished through a “bridge” formula  Cap on loss of state aid  Performance Incentive of $17 per pupil for Excellent with Distinction and Excellent Districts (Senate provision)  Includes Community Schools

4. Bridge Formula  Distribution to account for loss of Federal SFSF is bridge formula based on a per pupil amount weighted for wealth  For the step-by-step Bridge Formula, see handout  Special Ed Preschool Units and Transportation not included in calculation, but flat lined for budget.  Bridge formula language enacted in law – calculation for the reduction amounts, including loss caps for state aid will occur each year using updated data

5. Bridge Formula (cont.)  Districts cannot receive less than FY11 state aid guarantee in either Fiscal Year (not including SFSF)  The state aid guarantee is based on: lines “TOTAL STATE SUPPORT” less [“PRESCHOOL UNITS” and “SPECIAL ED TRANSPORTATION”] from the statement of settlement.

6. New Funding Model  Could be in place July 1, 2012  Governor’s office beginning outreach to gather information related to the underlying principles that a model should have  May be based on work of Hanushek and/or “cost per student success” used in Butler Career Tech School District  Hanushek model is a performance based system  Budget language allows bridge formula to determine FY13 allocations if funding model not ready to be implemented

7. TPP & PUPP Tax Reimbursements  Tangible Personal Property (TPP) and Public Utility Personal Property (PUPP) Tax Reimbursements  Phase-down of payments over the biennium (same as in governor’s original proposal)  Loss in each year capped at 2% of FY10 Total Resources: Sum of lines 1.01 through 1.05 on five year forecast, plus revenue (not net) for open enrollment  Districts under the 2% cap lose all replacement payments

8. TPP & PUPP Tax Reimbursements (cont.)  Phase-out of payments stops June 30, 2013  Payments for TPP Reimbursement ends in FY26  Payments for PUPP Reimbursement ends in FY30  Subject to change in any biennial budget  Fixed Sum Levies Phase-out same as current law  PI levies phase out 25 % per year beginning FY12

9. Gifted Education Funding  Is eliminated, except for $8.1 million for educational service centers.  Included in Basic Aid Line Item  Districts must spend 2009 level of state funding  Identified Gifted Students and their performance is to be considered by ODE in the ratings of School Districts  It is undefined how that is to occur

10. Expenditure Reduction Tools  Removed language changing the Contribution levels for the five state retirement systems to 12% for both employees and employers contained in governor’s original proposal.  Language for regional service centers to facilitate sharing of services maintained  Governor’s Director of Office of 21 st Century Skills to study how this would be implemented  Report from study due on January 1, 2012 for implementation on July 1, 2012

11. Expenditure Reduction Tools (cont.)  Language similar to Senate Bill 5 for Teachers only  New system of evaluations must be done for all teachers  State Board to develop framework for evaluations  Categories for evaluation results also developed: accomplished, proficient, developing and ineffective

12. Expenditure Reduction Tools (cont.)  Reductions in Force for teachers must utilize evaluation  Race to the Top Districts must utilize new salary schedule and performance pay systems  State Board to develop framework  Other districts not receiving RttT funds may use the new system It is unclear how these provisions will interact with SB 5 if not repealed

13. Expenditure Reduction Tools (cont.)  Exempts from current law the requirement that 15 days sick leave be provided to:  Substitutes;  Adult Ed instructors who work the FTE of less than 120 days per school day; and  Persons employed on an as-needed, seasonal or intermittent basis  However, sick leave at a rate of 4.6 hours must be provided for:  Regular part-time, employees  Per diem; or  Hourly service be granted of sick leave for 80 hours of service

14. Expenditure Reduction Tools (cont.)  Health Care Pooling plan to be developed by Department of Administrative Services (DAS) and in place 7-1-12 if approved by General Assembly  School Employees Health Care Board (SEHCB) eliminated  New Public Employees Health Care advisory group established  Study to be authorized to develop plan  Voluntary Participation (if already in a pool or self-insured) – must follow best practices  Statewide vs. Regional Pooling  Plan Structure

15. Expansion of Choice – Voucher Program  Maintains executive-proposed expansion of EdChoice Scholarship program  Number of vouchers increases from 14,000 in FY 11 to 30,000 in FY12 and to 60,000 in FY13  Expands eligibility to school district buildings in bottom 10% of Performance index rankings for 2 of the last 3 years

16. Expansion of Choice – New Voucher Program  Creates the “Jon Peterson Special Needs Scholarship (Voucher) Program”  Begins in 2012-2013 School Year, up to $20,000 for each voucher  Students can use the voucher for a private provider or another public school  Limits number of vouchers to no more than 5% of special education population (equals about 14,000)  Districts must provide transportation for voucher students  Scholarship amount deducted from resident school district

17. Expansion of Choice – Community Schools  Community School funding – $5,653 per pupil, use FY 09 formula amount of $5,732 when computing supplements  Re-defines the “challenged school district” definition to include bottom 5% in performance  Establishes new system for ODE to act as Sponsor  ODE to develop a program that allows schools to apply through them  Current Community Schools that lose sponsors can apply through ODE  Limits ODE to approving 20 applications each year

18. Expansion of Choice – Community Schools (cont.)  Removes caps on community schools other than E- Schools  Allows current sponsors to sponsor additional community schools if not ranked in bottom 20%  Allows sponsor to sponsor up to 100 schools  Eliminates moratorium on E-Schools after Jan. 2013  Requires State Superintendent & Governor’s Director of Office of 21 st Century Skills to develop E-School standards and submit by July 2012  Requires E-Schools to comply with standards by Jan. 2013 (new schools) or July 2013 (existing schools)

19. Expansion of Choice – Community Schools (cont.)  Reinstates language requiring immunization of students in E Schools  House had inserted language exempting E School students from immunization laws  Establishes new restructuring provisions for failing schools (bottom 5%); one option – conversion school  Buildings not used for classrooms at least two years must be offered for lease or sale to a community school  Market value  If more than one community school interested, district must conduct auction/lottery for them

20. HB 153 – The 50,000 Foot View  Budget reductions consider total district resources rather than just state subsidy  Overall budget doesn’t look at only what was GRF money for basic state services  No real school funding formula  A distribution formula  Does not appear to be anti-equity

21. HB 153 Clarifications  BMI screenings repealed  Governor’s veto  Waiting on ODE clarification  Blizzard Bags/Calamity Days  Online lesson plans  Paper copies  Requires written consent of teachers’ union

22. HB 153 Association Progress  Repeal of restriction on sale of milk sold a la carte  Transfer of unused textbook set-aside money to General Fund  Revision to public records law  Creation of new combination levy  Authorization for an alternative 412 certificate  JVS participation in tax abatement process  Eliminate TPP/TUPP phase-out after FY13  Prohibited State Board from requiring Bachelor’s degree for career-tech teachers

23. HB 153 Association Progress  Eliminated ban on collecting career-tech fees from students eligible for free lunch  Removed Senate proposed requirement for districts to allow home-school students to participate in extracurricular activities  Delinquent Tax and Collection (DTAC) Fund Changes  DTAC fund is split into two funds – County Treasurer & County Prosecutor funds  If either fund exceeds three times the amount deposited in the previous year, the County Auditor can be asked to stop deposits  Once fund(s) get below the threshold, deposits would resume

24. Budget Analysis & Discussion (BAD) Seminar  Wednesday, August 17  Hyatt Regency, Columbus  Comprehensive Budget Workshop  This workshop is $185 per person for OSBA, OASBO and BASA member school district representatives. The fee covers workshop registration, materials, lunch and refreshments.  Register online at www.ohioschoolboards.orgwww.ohioschoolboards.org

25. Questions?