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

HB 153:HB 153:2012-2013 State Budget 2012-2013 State Budget

(as passed by the GA & signed by the Gov.)(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?