HB 153:
2012-2013 State Budget
(as passed by the GA & signed by the Gov.)
July 2011
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
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
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
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.
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
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
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
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
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 21st Century Skills to
study how this would be implemented
Report from study due on January 1, 2012 for
implementation on July 1, 2012
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
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
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
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
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
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
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
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 21st 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)
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
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
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
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
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
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.org
Questions?