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    Ohio Legislative Service CommissionBill Analysis Hannah K. Wann

    H.B. 136129th General Assembly

    (As Introduced)

    Reps. Huffman, Goodwin, Roegner, J. Adams, Thompson, McClain, Amstutz, Anielski,Brenner, Young, Derickson, Blessing, Slaby, Mecklenborg, Butler, Wachtmann,Stautberg, Blair, Maag, Uecker, Newbold, Sears, Patmon, Buchy, Combs, Hall,Gonzales, Martin, Landis, Batchelder, Stinziano, Beck, Henne, Bubp, Hollington,Boose, Hottinger, Burke

    BILL SUMMARY

    Replaces the Educational Choice Scholarship Pilot Program and the Cleveland

    Scholarship and Tutoring Pilot Program with a new, incomebased scholarship

    program,entitled theParentalChoiceandTaxpayerSavingsScholarshipProgram

    (PACT),providingstudentswithscholarshipstoattendnonpublicschools.

    Requires the Treasurer of State to establish and maintain an education savings

    accountforeachPACTscholarshipstudentwhosescholarshipamountexceedsthe

    studentstuitionandfees.

    Permitsastudentorparenttousemoneyinthestudentseducationsavingsaccount

    forspecifiedfutureprimary,secondary,andpostsecondaryeducationexpenses.

    Creates the ParentalChoice and Taxpayer Savings Scholarship Program Support

    Fund,madeupofinterestonandleftovermoneyfromindividualstudenteducation

    savingsaccounts,tobeusedtoadministerthePACTscholarshipprogram.

    Creates the Special Education Scholarship Program to provide scholarships for

    disabled children in gradesK through 12 to attend alternative public or private

    specialeducationprograms.

    RequirestheDepartmentofEducationtodevelopadocumentthatcomparesrightsunder state and federal special education law and rights under the Special

    Education Scholarship Program, and requires school districts to distribute that

    documenttotheparentsofallspecialeducationstudents.

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    Requires theDepartment ofEducation to conduct a formative evaluation of the

    SpecialEducationScholarshipProgrambyDecember31,2014.

    Entitlestheact,the ParentalChoiceandTaxpayerSavingsScholarshipAct.

    TABLE OF CONTENTS

    PACT scholarship ......................................................................................................................... 3Introduction ............................................................................................................................... 3Eligibility .................................................................................................................................... 3Amount of scholarship .............................................................................................................. 4

    Income thresholds ................................................................................................................. 4Scholarship amount .............................................................................................................. 5Financing and payment ......................................................................................................... 6Disclosure to school districts ................................................................................................. 6

    Eligible nonpublic schools ......................................................................................................... 6Duties of nonpublic schools ...................................................................................................... 7Tuition and fees for scholarship students.................................................................................. 8

    Assessments and data .............................................................................................................. 8Ed Choice and Cleveland requirements carried over to PACT ............................................. 8Additional requirements ........................................................................................................ 9

    Purpose statement .................................................................................................................. 10Rule-making ............................................................................................................................ 10

    Education savings accounts ....................................................................................................... 10Support Fund .......................................................................................................................... 11

    Report ................................................................................................................................. 12Special Education Scholarship Program ..................................................................................... 12

    Background on IDEA .............................................................................................................. 12The bill .................................................................................................................................... 12Eligibility .................................................................................................................................. 13

    "Qualified special education child" ...................................................................................... 13"Eligible applicant" ............................................................................................................... 14

    Annual limit on the number of scholarships ............................................................................ 15Alternative providers of special education programs .............................................................. 15

    Alternative public providers ................................................................................................. 15Registered private providers ............................................................................................... 15

    Scholarship amount ................................................................................................................ 16Payment of scholarships ......................................................................................................... 17Application deadlines .............................................................................................................. 18Continuation of some school district services ......................................................................... 18Written notice of rights and informed consent ......................................................................... 18

    Background ......................................................................................................................... 19

    Provider profile ........................................................................................................................ 19State Board rules .................................................................................................................... 20Formative evaluation ............................................................................................................... 20

    Transportation for all scholarship students ................................................................................. 20Access to data verification codes; privacy of records ................................................................. 21

    Confidentiality of Ed Choice and Cleveland scholarship participants ..................................... 22Prohibition on using more than one scholarship program at a time ............................................ 22Background on current scholarship programs ............................................................................ 22

    Cleveland Scholarship and Tutoring program ......................................................................... 22Cleveland Scholarship program .......................................................................................... 23

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    Cleveland Tutoring program ................................................................................................ 23Ed Choice ............................................................................................................................... 23Autism Scholarship Program................................................................................................... 25

    CONTENT AND OPERATION

    PACT scholarship

    Introduction

    ThebillrepealstheEducationalChoiceScholarshipPilotProgram(EdChoice)

    and theClevelandScholarshipandTutoringPilotProgram (ClevelandScholarship)

    and establishes a scholarship programbased on family income entitled theParental

    ChoiceandTaxpayerSavingsScholarshipProgram(PACT). (Forbriefdescriptionsof

    the states current scholarship programs, see Background on current scholarship

    programs attheendofthisanalysis.)

    ThePACTscholarship isabroader,statewideprogram forqualifyingstudents.

    AswithEdChoice,theamountofthescholarshipisdeductedfromastudentsresident

    schooldistrict. ThePACTprogramalso includesan educational savingsaccount for

    fundsnotusedtopayforschooltuition(seebelow). Thereisnolimitonthenumberof

    PACTscholarshipsthatcanbeawarded,andscholarshipsmaybeusedatanyeligible

    nonpublicschool (seebelow). Thebill grandfathers current recipientsofEdChoice

    andClevelandscholarshipsbyqualifying them forPACTscholarships,andphases in

    studentsalreadyenrolledinnonpublicschoolsindependently,notthrougheitherofthe

    existingstatescholarshipprograms.1

    Eligibility

    ToqualifyforaPACTscholarship,astudent(1)mustbeentitledtoattendschool

    inanOhioschooldistrictand (2)musteither(a)havea familyfederaladjustedgross

    incomefortheprecedingtaxyearlessthanorequalto2.5timestheincomestandardfor

    areducedpricelunchor(b)havereceivedanEdChoiceorClevelandscholarshipinthe

    school year immediately prior to the school year in which the PACT scholarship

    programbeginsoperating.2

    ForstudentswhoalreadyattendanonpublicschoolinOhioimmediatelypriorto

    theschoolyearforwhichaPACTscholarshipissought,butnotundertheEdChoiceor

    Clevelandscholarshipprograms,thebillphasesineligibilityasfollows:

    1R.C.3310.02.

    2R.C.3310.02(A).

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    School year for which student isapplying for a scholarship

    Eligible grades

    2011-2012 Kindergarten

    2012-2013 Kindergarten through 4th

    2013-2014 Kindergarten through 8th

    2014-2015 and thereafter Kindergarten through 12th

    A student who did not attend a nonpublic school in Ohio during the

    immediatelyprecedingschoolyeariseligibleforascholarshipinanygrade,Kthrough

    12,beginninginthe20112012schoolyear.3

    AstudentremainseligibleforaPACTscholarshipandmaycontinuetoreceive

    scholarships in subsequent school years until the student completes the high school

    curriculum, so long as the student (1) remains entitled to attend school in anOhio

    school district (which essentially means that the student and the students parent

    remain Ohio residents), (2) the students family income continues to meet income

    eligibility requirements (unless that student is a grandfathered Ed Choice or

    Cleveland scholarship recipient), (3) the student takes each state achievement

    assessmentprescribedforthestudentsgradelevel,and(4)thestudentisnotabsentfor

    more than 20 days that the school is open for instruction, not including excused

    absencesasdefinedbytheStateBoardofEducation.4

    IfastudentwhohasreceivedaPACTscholarshipbecomesineligible,thestudent

    nevertheless may continue to use money accumulated in the students education

    savingsaccount(seebelow).5

    Amount of scholarship

    Income thresholds

    Thescholarshipamountawardedtoaneligiblestudentisbasedonthestudents

    familyincomefortheprecedingtaxyear,asmeasuredbythefamilysfederaladjusted

    grossincome. Thebillusesthestandardforreducedpriceluncheligibilityasabasefor

    awardingscholarships. Currently,reducedprice lunch is185%of thefederalpoverty

    line. According to theU.S.DepartmentofAgriculturesFoodandNutritionwebsite,

    theDepartmentadvised stateagenciesadministering foodandnutritionprograms touse the 20092010 school year guidelines to determine eligibility for the 20102011

    3R.C.3310.03(B).

    4R.C.3310.03(C)and(E).

    5R.C.3310.03(d).

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    schoolyear.6 Using those standards, the federalpoverty levelused for the20102011

    schoolyearforafamilyoffouris$22,050. Toqualifyforreducedpricelunch,afamily

    offourmusthaveanannualincomelessthanorequalto$40,793.7 Asusedinthechart

    below, that income standard for a reducedprice lunch shallbe referred to as the

    standard.

    Scholarship amount

    Theamountof the scholarship isbasedon thesumof the formulaamount for

    each studentplus the per pupil amount ofbase funding supplements, as calculated

    undertheformerBuildingBlocksmodelschoolfundingsystem. Theformulaamount

    forFY 2011 is $5,732.8 (Current lawdoesnot specify a formula amountbeyond FY

    2011.) ThebasefundingsupplementamountforFY2009was$50.90.9 Thus,usingthe

    most recent and available amounts, thebase amount for the scholarshipwouldbe

    $5,732+$50.90,or$5,782.90.

    Students receive a percentage of thebase amount, depending on the familys

    federaladjustedgrossincomefortheprecedingtaxyear,asfollows:10

    Family income Amount of scholarshipEstimated dollar amount of

    scholarship using mostrecent available amounts

    Less than or equal to 1.5 times thestandard

    80% of the base amount $4,626

    Less than or equal to 1.75 times thestandard

    70% of the base amount $4,048

    Less than or equal to 2 times the

    standard

    60% of the base amount $3,470

    Less than or equal to 2.25 times thestandard

    50% of the base amount $2,891

    Less than or equal to 2.5 times thestandard

    40% of the base amount $2,313

    Greater than 2.5 times the standard,but received either Ed Choice orCleveland Scholarship in the yearpreceding the implementation of thePACT scholarship

    40% of the base amount $2,313

    6http://www.fns.usda.gov/cnd/governance/notices/iegs/IEGs1011.htm,lastvisited3/6/11.

    7http://www.fns.usda.gov/cnd/governance/notices/iegs/IEGs0910.pdf,lastvisited3/6/11.

    8R.C.3317.02(B),notinthebill.

    9R.C.3317.012(C),notinthebill.

    10R.C.3310.05.

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    Financing and payment

    PACT scholarships are to be financed in a manner similar to Ed Choice

    scholarships. PACT studentswouldbe counted in the enrollments of their resident

    schooldistricts forpurposesof school funding,and then those students scholarships

    wouldbedeductedfromtheirschooldistricts statepayments.11

    TheDepartmentofEducationmustpaythescholarshipamounttoeachstudents

    parent,ortothestudentifthestudentisatleast18yearsold. Paymentsmustbemade

    on a periodic basis over the course of the school year. The Department must

    proportionatelyreduceorterminatepaymentsforanystudentwhowithdrawsfroman

    eligiblenonpublic schoolbefore theendof the schoolyear. If the student leaves the

    nonpublicschoolandenrollsinthestudentsresidentdistrictorinacommunityschool,

    theDepartmentmustpartially restore theamountdeducted from theschooldistricts

    statefunds.

    Ifthescholarshipamountexceedsthetuitionandfeesofthestudentsnonpublicschool,andifthestudentremainsenrolledintheschoolthroughtheendoftheschool

    year, the Department must deposit the excess amount into the students education

    savingsaccount(seebelow).12

    Disclosure to school districts

    The bill requires the Department to disclose, on each school districts state

    fundingcomputationform,thetotalamountofstateand localfundingcreditedtothe

    district for its PACT scholarship students minus the total amount of scholarships

    deducted

    for

    those

    students.

    The

    bill

    specifies

    a

    formula

    for

    the

    Department

    to

    use

    in

    determiningtheamounttodisclose. Essentiallythatformulameansthefollowing:

    [(Thedistrictstotalstateoperatingaidperpupil+itslocaloperatingtaxrevenue

    perpupil)xthedistrictsnumberofPACTscholarshipstudents]thetotal

    deductedfromthedistrictsaccountforPACTscholarshipstudents

    The resultwouldbe the amount of state and local funds remaining after the

    scholarshipsarededucted.13

    Eligible nonpublic schools

    APACTscholarshipmaybeusedtopaytuitionandfeesataneligiblenonpublic

    school. An eligible nonpublic school is either a chartered nonpublic school, or an

    11R.C.3310.08(C)and3317.03.

    12R.C.3310.08(A),(B),and(C).

    13R.C.3310.08(D).

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    approved nonpublic school, that has registered with the Superintendent of Public

    Instruction its intent toacceptscholarshipstudentsand itsagreement tocomplywith

    therequirementsoftheprogram. Acharterednonpublicschoolisaprivateschoolthat

    hasreceivedastatecharterfromtheStateBoardofEducationbecauseitmeetstheState

    Boardsminimumoperating standards for schools.14 An approvednonpublic school,

    underthebill,isaprivateschoolthat:

    (1) Isintheprocessofbecomingacharterednonpublicschoolandhasreceiveda

    preliminaryapprovaltooperatefromtheStateBoardwithinthepastthreeyears;and

    (2) FileswiththestateSuperintendentpriortothestartoftheschoolyeareither:

    (a) A suretybond payable to the state, or a letter of creditwith the state as

    beneficiary,inanamountequaltoonehalfofthePACTscholarshipfundsexpectedto

    bereceivedduringtheschoolyear,asdeterminedbytheSuperintendent;or

    (b)A

    guarantee

    in

    the

    amount

    of

    $1

    million

    from

    aperson

    or

    organization

    with

    a

    networthofatleast$5million,demonstratedtothesatisfactionoftheSuperintendent.15

    Duties of nonpublic schools

    Thebillrequiresnonpublicschools todoallof thefollowing toremaineligible

    fortheprogram:

    (1) Communicate to theDepartmentofEducation the tuition structure for the

    school,includingalldiscountsandothertuitionadjustmentstowhichastudentmaybe

    entitled;

    (2) Presenttotheparentofeachstudentawardedascholarship,orthestudentif

    atleast18yearsofage,astatementdetailingthetuitionandrequiredstudentfeesthat

    willbesubjecttopaymentfromthestudentsscholarshipamount;

    (3) Administerthestateachievementassessments(seebelow);

    (4)Withdrawfrom theschoolanyscholarshipstudentassoonas itdetermines

    thatthestudentwillnolongerattendtheschool. Thestudentswithdrawaldateisthe

    lastdatethatthestudentattendedclasses.

    (5) Obtain criminal records checksof its employeesand contractors,anddeny

    employment to those who committed disqualifying offenses, in the same manner

    requiredbycurrentlawforcharterednonpublicschools.16

    14SeeR.C.3301.16,notinthebill.

    15R.C.3310.09(A).

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    Tuition and fees for scholarship students

    Eligiblenonpublicschoolsmaynotchargeascholarshipstudenttuitionandfees

    thatexceedthecostofprovidingeducationtothestudent. Indeterminingtuitionfora

    PACT scholarship student, an eligible nonpublic school must apply any tuition

    discountsorratesforwhichthestudentqualifies, includingbutnot limited to,sibling

    discountsorchildofemployeediscounts. Further,pursuant to the schoolspolicy, ifoneexists,thebillpermitsaneligiblenonpublicschooltotreattheamountofthePACT

    scholarship as a parental resource thatmaybe considered as a factor in awarding

    institutionalfinancialaid.17

    The bill also authorizes eligible nonpublic schools to file PACT scholarship

    applicationsonbehalfofeligiblestudentsandtheirparentsifsodesignatedinwriting

    byaparentor student, if18orolder. However, theschoolmaynotchargea fee for

    doingso.18

    Assessments and data

    Ed Choice and Cleveland requirements carried over to PACT

    As is thecaseundercurrent law for theEdChoiceandCleveland scholarship

    programs,thebillrequires(1)eligiblenonpublicschoolsthatenrollstudentswithPACT

    scholarships to administer the state achievement assessments to the scholarship

    students and to report their scores to the Department of Education, and (2) the

    Department to report performance data derived from the achievement assessments

    takenby thePACTstudents. TheDepartmentmustpost theperformancedataon its

    web site anddistribute it to the parent of each student eligible to participate in the

    scholarshipprogram.19

    The Department must group the data by school district (including all

    participants intheprogramfromthatdistrict),byeligiblenonpublicschool(including

    all participants enrolled in that school), and by state (including all participants

    statewide). Thedataalsomustbedisaggregatedwithineachgroupby(1)age,(2)race

    andethnicity,(3)gender,(4)studentswhohaveparticipatedinthescholarshipprogram

    for three ormore years, (5) studentswho have participatedbetween one and three

    16R.C.109.572and3310.09(B)and(C). SeeR.C.3319.39,3319.391,and3319.392,noneinthebill.

    17R.C.3310.13(B)and(C).

    18R.C.3310.13(A).

    19R.C.3310.14and3310.15(A).

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    years, (6) studentswho have participated for one year or less, and (7) economically

    disadvantagedstudents.20

    Inreportingperformancedataforscholarshipstudents,theDepartmentmaynot

    report data that is statistically unreliable or that could result in the identification of

    individual students. Thebill prohibits theDepartment from reporting data for any

    group that contains less than ten scholarship students. Therefore, for example, if anonpublic school enrolls 20 scholarship students across several grade levels, the

    Departmentcouldreporttheschoolwideassessmentresults,buttheremaybetoofew

    students in a particular grade or racial group to report the resultsby grade level

    withoutendangeringastudentsprivacy.21

    TheDepartmentmust provide the parent of each scholarship studentwith a

    comparisonof thestudentsachievementassessmentscoreswith theaveragescoresof

    similar students enrolled in the school districtoperated building the scholarship

    studentwould otherwise attend. For thispurpose, the scholarship studentmustbe

    compared to students of similar age, grade, race or ethnicity, gender, and

    socioeconomicstatus.22

    Additional requirements

    Incomputingstudentperformancedata,thebillrequirestheDepartment, tothe

    greatestextentpossible, toincludestudentperformancegrowthusingthevalueadded

    progressdimension.23

    Moreover, thebill requires theDepartment, to extentpermittedunder federal

    law, to releasestudentassessment scoresandperformancedata relating to thePACTscholarshipprogramtoindependentresearchorganizationsthatarepartof,orformally

    affiliatedwith,accreditedpublicorprivateuniversities. Thedatareleasemustbe for

    thepurpose of conducting longitudinal analysis ofPACT studentperformance. The

    releaseddatamaynotbeusedtodisclosetheacademiclevelofindividualstudents.24

    Normally, under the federal Family EducationalRights and PrivacyAct (and

    undertheimplementingstatelaw),theDepartmentandpublicandprivateschoolsare

    not permitted to release student personally identifiable datawithout a students or

    parents consent. However, the lawprovides a number of specific exceptions. One

    20R.C.3310.15(B).

    21R.C.3310.15(D).

    22R.C.3310.15(E).

    23R.C.3310.15(C). SeeR.C.3302.021,notinthebill.

    24R.C.3310.15(F).

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    exceptionpermits the release of data to organizations to conduct studies for, or on

    behalfof, theeducationalagency to develop,validate,oradministerpredictivetests;

    administerstudentaidprograms;or improve instruction. Inapplyingthisexception,

    the state or a school must ensure that the information (1) is used only by the

    organization requesting thedataand (2) isdestroyedwhenno longerneededby the

    organization.25 ItisthisexceptionthattheDepartmentlikelywouldinvokeinorderto

    lawfullyreleasestudentdatatooutsideresearchers.

    Purpose statement

    Similar toastatement incurrent law for theEdChoiceprogram, thebillstates

    that it is the policy adopted by the General Assembly that the PACT scholarship

    program is one of severaloptions available for eligible students. It states that those

    students may choose to enroll in the schools of the students resident district, in

    community schools, in the schools of another school district pursuant to an open

    enrollmentpolicy,innonpublicschoolswithorwithoutaPACTscholarship,orinother

    schoolsasthelawmayprovide.26

    Rule-making

    Thebill requires the State Board of Education to adopt rules that prescribe

    procedures for the administration of the PACT scholarship program. As stated in

    currentlawforEdChoice,thebillalsostatesthattheStateBoardandtheDepartment

    maynotrequireeligiblenonpublicschoolstocomplywithanyeducationlaws,rules,or

    otherrequirements thatarenotspecifiedunder thebillsprovisions, if theyotherwise

    wouldnotapplytoeligiblenonpublicschools.27

    Education savings accounts

    IftheamountofaPACTscholarshipawardedtoastudentexceedstheamountof

    tuitionandfeeschargedbythestudentseligiblenonpublicschool,theexcessmustbe

    paidintoan educationsavingsaccount establisheduniquelyforthatstudent. Unlike

    thescholarshippaymentsthemselves,whicharepaidperiodicallythroughoutaschool

    year,theexcess,ifthereisany,maynotbepaidintothestudentsaccountuntiltheend

    oftheschoolyear;andthenonlyifthestudentisstillenrolledinaparticipatingeligible

    nonpublicschool.28 Eachstudentsaccount is in thecustodyof theTreasurerofState,

    but notheld in the state treasury. TheTreasurer of State is required to adopt rules

    2520UnitedStatesCode(U.S.C.)1232g(b)(1)(F)and34CodeofFederalRegulations99.31(a)(6).

    26R.C.3310.06.

    27R.C.3310.17.

    28R.C.3310.08(A).

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    under theAdministrativeProcedureAct for the establishment and administration of

    studenteducationsavingsaccounts.29

    Onceanaccountisestablishedforastudent,money intheaccountcanbeused

    bythestudentorstudentsparentsforanyofthefollowing:

    Tuitionand

    fees

    at

    an

    eligible

    nonpublic

    school

    under

    the

    PACT

    scholarshipprogramforfutureschoolyears;

    Textbooks requiredby an eligible nonpublic school or an institution of

    highereducationinOhio;

    Tuitionand fees forenrollment inany institutionofhighereducation in

    Ohio;and

    Fees for national normreferenced examinations, advanced placement

    exams,andanyexamsforadmissiontoaninstitutionofhighereducation

    inOhio.30

    (Ohio higher education institutionswhere themoney in the accounts canbe

    spent include state and private colleges and universities and forprofit proprietary

    collegesandschools.31)

    A students accountmustbemaintained as long as there ismoney in it,until

    either(1)thestudentreaches25yearsofageor(2)diesbeforereachingthatage. Any

    money left in the account at that timemustbe paid into the Parental Choice and

    Taxpayer Savings Scholarship Program Support Fund,which is createdby thebill.

    Similarly,allinvestmentearningsonmoneyineachstudentsaccountmustbepaidinto

    thatseparatesupportfund.32

    Support Fund

    Thebillcreates in thestate treasury theParentalChoiceandTaxpayerSavings

    Scholarship Program Support Fund. That fund is made up of interest earned on

    individual student education savings accounts and any unused money left in a

    studentsaccountwhen thestudent reaches theageof25ordiesbefore reaching that

    29R.C.3310.10(A).

    30R.C.3310.10(B).

    31R.C.3310.01(B). SeeR.C.3365.01(A),notinthebill.

    32R.C.3310.10(A)and(C).

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    age. Money in the fundmustbe usedby theDepartment of Education to support

    administrationofthePACTscholarshipprogram.33

    Report

    The Treasurer of Statemust issue an annual report to theGovernor and the

    GeneralAssemblyon the totalamountpaid into theSupportFund from interestand

    leftovermoneysinindividualstudenteducationsavingsaccounts.34

    Special Education Scholarship Program

    Background on IDEA

    Under the federal IndividualswithDisabilitiesEducationAct (IDEA),children

    identifiedasdisabledareentitledtoa freeappropriatepubliceducation thatprovides

    special education and related services to enable them to benefit from educational

    instruction.35 Related services include transportation and support services such as

    speechlanguage pathology and audiology services, psychological services, physicalandoccupationaltherapy,counselingservices,anddiagnosticmedicalservices. Under

    both the IDEA and state law, an individualized education program (IEP)mustbe

    developedforeachchildidentifiedasdisabled. TheIEPspecifiestheservicestowhich

    the child is entitledandare thereforeguaranteedby law. It isdevelopedby a team

    includingrepresentativesofthechildsresidentschooldistrict(orcommunityschoolor

    STEMschool)andthechildsparentortheparentscounsel.36 Achildsschooldistrictor

    schoolmayprovidetheservicesspecifiedintheIEP,oritmayenterintoanagreement

    withanotherpublicorprivateentitytoprovidethoseservices.

    The bill

    The bill establishes the Special Education Scholarship Program to provide

    scholarships for disabled children to attend special education programs other than

    thoseofferedbytheirschooldistricts. Theprogramappliestoany identifieddisabled

    child in gradesK through 12. A scholarshipmaybeused topay the expenses of a

    public or private provider of special education programs for implementation of the

    childsIEPandotherservicesthatarenotintheIEPbutareassociatedwitheducating

    33R.C.3310.18.

    34R.C.3310.10(D).

    35See20U.S.C.1400etseq.

    36See20U.S.C.1414andR.C.3323.011,notinthebill.

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    thechild. Thebillalsopermitsthe eligibleapplicant (generallythechildsparent,see

    below)andtheprovidertoagreetoaltertheservicesprovidedtothechild.37

    Whileachildisusingascholarship,theschooldistrictinwhichthechildwould

    otherwisebe enrolledhasnoobligation toprovide the childwith a free appropriate

    publiceducation. But thebillalsospecifies that if thatdistricthasagreed toprovide

    someservicesforthechild,orifthedistrictisrequiredbyseparatelawtoprovidesomeservices, including transportation services, the district may not discontinue them

    pendingcompletionofanyadministrativeproceedingsregarding thoseservices. (See

    Continuation of some school district services below.) The district also has a

    continuingobligationtodevelopthechildsIEP.38

    Eligibility

    "Qualified special education child"

    Under the bill, a child is eligible, or qualified, for a special education

    scholarshipifthechildisfrom5to21yearsoldandthechildsresidentschooldistrict

    hasidentifiedthechildasdisabledanddevelopedanIEPforthechild. Inaddition,the

    childmusteither(1)havebeenenrolled inthedistrictinwhichthechild isentitledto

    attend school inanygrade fromK through12 in theschoolyearprior to theyear in

    whichthescholarshipwouldfirstbeusedor(2)beeligible toenrollforservicesfrom

    thatdistrict in theschoolyear inwhich thescholarshipwould firstbeused. Thebill

    explicitlyspecifies thatachildattendingapublicspecialeducationprogramunderan

    agreementbetween the childs school district and the program provider, or a child

    attendingacommunityschool,mayapplyforascholarship.39

    But,underthebill,acommunityschoolisnotconsideredachildsschooldistrict

    of residence.40 Therefore, any IEP developedby the community schoolwould not

    qualify the child to receive a scholarship. It is not clear under thebillwhether a

    community school studentwouldneed to enroll inadistrict school to receiveanew

    districtdevelopedIEPpriortoreceivingascholarship.

    37R.C.3310.52.

    38R.C.3310.53and3310.62(C).

    39R.C.3310.51(F)and3310.61.

    40R.C.3310.51(I).

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    Moreover,achildisnoteligibleforascholarshipinanyschoolyearinwhichthe

    child hasbeen awarded a scholarship under the Autism Scholarship Program (see

    COMMENT)orthebillsnewPACTscholarshipprogram.41

    Thebill also specifies that a childmust remain in compliancewith the states

    CompulsoryAttendanceLaw. Underthatlaw,theparentofachildwhoresidesinthe

    statewhoisbetween6and18yearsofagemustattendapublicorprivateschoolthatmeets theminimum education standards of the StateBoard ofEducationunless the

    student is excused from attendance for home instruction. A child can facejuvenile

    sanctionsandachildsparentcanfacecriminalsanctionsviolationsofthatlaw.42

    AchildisnoteligibleforascholarshipforthefirsttimewhilethechildsIEP is

    being developed orwhile any administrative orjudicial proceedings regarding the

    contentof that IEParepending. On theotherhand, thebillalsospecifies that, in the

    case of a child forwhom a scholarship already hasbeen awarded, development of

    subsequent IEPs and the prosecuting of administrative or judicial mediation or

    proceedings with respect to any of those subsequent IEPs do not affect continued

    eligibilityforscholarshippayments. Inotherwords,ascholarshipwillnotbeawarded

    andpaiduntil thechildsIEP is inplaceand it isclear that therearenochallenges to

    that IEP. Butfuture challenges to subsequent IEPswill notdisqualify the child for a

    scholarship.43

    "Eligible applicant"

    Thebillpermitsthefollowing individualstoapplyforandacceptascholarship

    foraqualifiedspecialeducationchild:

    (1) The childs custodial natural or adoptive parent or parents. The bill

    specificallyexcludesaparentwhosecustodialrightshavebeenterminated.

    (2) Thechildsguardian;

    (3) Thechildscustodianotherthantheparent;

    (4) The childs grandparent if the grandparent is an attorneyinfact under a

    powerofattorneyorifthegrandparenthasexecutedacaregiveraffidavit(bothunder

    continuing

    law);

    41R.C.3310.51(F)(5).

    42R.C.3310.51(F)(6). SeeR.C.Chapter3321.,notinthebill.

    43R.C.3310.62.

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    (5) The childs surrogate parent appointed under state and federal special

    educationlaw;or

    (6) Thechild,ifthechilddoesnothaveacustodianorguardianandisatleast18

    yearsold.44

    Annual limit on the number of scholarships

    Thebilllimitsthenumberofscholarshipsthatmaybeawardedeachyearunder

    the Special Education Scholarship Program to notmore than 5% of the number of

    identifieddisabledstudentsresidinginthestateduringthepreviousfiscalyear.45

    Alternative providers of special education programs

    Scholarshipsmaybeused topay for special educationprogramsprovidedby

    alternativepublicprovidersorbyprivateentitiesregisteredwiththeSuperintendentof

    PublicInstruction.

    Alternative public providers

    Analternativepublicprovidermustbeeither(1)aschooldistrictotherthanthe

    districtobligatedtoeducatethedisabledchild(orthechildsresidentschooldistrict,if

    different)or(2)anotherpublicentitythatagreestoenrollthechildandimplementthe

    childsIEP. Inaddition,thealternativepublicprovidermustbeanentitytowhichthe

    eligibleapplicant,ratherthanaschooldistrictorotherpublicentity,owesfeesforthe

    services provided to the child. In otherwords, an eligible applicant cannot use a

    scholarship to enroll a child in a school district or other public entity towhich the

    childs schooldistrictwould send the child for special education servicesbecause, inthatcase,thechildsdistrictwouldberequiredtopaythereceivingdistrictorentityfor

    theservicesprovidedto thechild. Normayaneligibleapplicantuseascholarship to

    enroll the child in a community schoolbecause the community school, as a public

    school,would receive funds to educate the child evenwithout the scholarship. The

    eligible applicantmust use the scholarship to pay for special education and related

    servicesprovidedbyaschooldistrictorpublicentityfromwhichtheeligibleapplicant

    otherwisewouldnotreceivethoseservicesforthechildfreeofcharge.46

    Registered private providers

    Nonpublic schools and other private entitiesmay accept scholarship children

    underthebill,butfirsttheymustregisterwiththeSuperintendentofPublicInstruction.

    44R.C.3310.51(C).

    45R.C.3310.52(B).

    46R.C.3310.51(A).

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    Tobe registeredby the Superintendent, the private school or entitymustmeet the

    followingrequirements:

    (1) Itmust complywith the antidiscrimination provisions of the federalCivil

    RightsActof1964,47whichprohibitsdiscriminationonthebasisofrace,color,ornational

    origin in theadministrationofbenefitsassistedwith federal funds. Thebill specifies

    thatthisantidiscriminationstatementappliestoaregisteredprivateproviderregardlessofwhether theprovider receives federal financialassistance. A studentsscholarship

    undertheprogramisnotfundedwithfederalmoney.

    (2) It agrees to conduct criminal records checks of applicants for employment

    andcontractors,ifitisnotalreadyrequiredtodosopursuanttolaw;48

    (3) Itmeetsapplicablehealthandsafetystandards;

    (4) It agrees to retain any documentation required by the Department of

    Education;

    (5) It agrees to provide to the childs resident school district a record of the

    implementationofthechildsIEP,includingevaluationofthechildsprogress;and

    (6) Itagrees that if itdeclines toenrollaparticularchildunder theprogram, it

    willnotify the eligible applicant inwriting of its reasons fordeclining to enroll that

    child.49

    If theSuperintendentofPublic Instructiondetermines thataprivate schoolor

    entityno longermeets thesecriteria, theSuperintendentmust revoke its registration.

    Theschoolorentitymustbeallowedahearingpriortorevocation.50

    Scholarship amount

    EachSpecialEducationscholarshipisworththesmallerof:

    (1) Thetotalfeeschargedbytheprovider;or

    (2) Amaximumamountbasedon theperpupilamount thatwouldhavebeen

    computed forpayment toa schooldistrict for the studentunder the formerBuilding

    BlocksModelschoolfundingsystem. Thatamountisthesumof:

    47 42U.S.C.2000d.

    48R.C.109.57,109.572,3319.39,3319.391,and3319.392(lastthreenotinthebill).

    49R.C.3310.58.

    50R.C.3310.59.

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    (a) The formulaamount,whichforFY2011is$5,732;plus

    (b) TheperpupilbasefundingsupplementsastheywerecalculatedforFY2009

    ($50.90);plus

    (c) A weighted special education amount, equal to the formula amount

    multipliedby

    one

    of

    the

    following

    weights:

    0.2892,forastudentwithacategoryonedisability(speechand language

    disabledonly);

    0.3691, for a student with a category two disability (specific learning

    disabled,developmentallydisabled,orotherhealthimpairedminor);

    1.7695, for a studentwith a category three disability (vision impaired,

    hearingdisabled,orseverebehaviordisabled);

    2.3646, for a student with a category four disability (orthopedicallydisabledorotherhealthimpairedmajor);

    3.1129,forastudentwithacategoryfivedisability(multipledisabilities);

    or

    4.7342,forastudentwithacategorysixdisability(autism,traumaticbrain

    injuries,orbothvisuallyandhearingimpaired).

    Beforeapplyingthesemultiples,thebillspecifiesthattheymustbeadjustedby

    multiplyingthemby0.80(inotherwords,80%oftheprescribedweight).51

    Theprescribedweightsandcategoriesarethesameonesusedundertheformer

    BuildingBlocksModel.52 Theyareslightlydifferentfromtheonesprescribedunderthe

    currentsystemforfundingschooldistricts(unofficiallyknownasthe EvidenceBased

    Model (orEBM)).53 Under current law, theEBMweights (like the formerBuilding

    Blocksweights)aremultipliedby90%,insteadof80%.

    Payment of scholarships

    Likeother

    current

    scholarship

    programs

    and

    the

    bill

    snew

    PACT

    scholarship

    program, theDepartmentofEducationmustmakeperiodicpayments throughout the

    school year to the eligible applicant for services provided to a qualified special

    51R.C.3310.56.

    52R.C.3317.013,notinthebill.

    53R.C.3306.02(D)and3306.11,neitherinthebill.

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    educationchild,untilthefullamountofthescholarshiphasbeenpaid. Theamountof

    thescholarshipisdeductedfromthestateaidaccountoftheschooldistrictinwhichthe

    child is entitled toattend school. Thatdistrict isauthorized to count the child in its

    formulaADMandspecialeducationADM. Ifthechild isnotincludedintheformula

    ADM of thatdistrict, theDepartmentmust adjust thedistrictsADM to include the

    child and recalculate the districts state aid payments for the entire fiscal year

    accordingly.

    Thescholarshipmaybeusedonlytopayfeeschargedbythealternativespecial

    educationprogram for implementationof thechildsIEPandotherservicesagreed to

    bytheproviderandtheeligibleapplicantthatarenotintheIEPbutareassociatedwith

    educatingthechild. TheDepartmentmustprorateachildsscholarshipamount ifthe

    childwithdrawsfromthealternativeprogrambeforetheendoftheschoolyear.54

    Application deadlines

    In order to qualify for a scholarship, either for the first time or to renew ascholarshipaneligibleapplicantmustsubmitanapplication inthemannerprescribed

    by the Department of Education and notify the childs school district. The bill

    prescribesApril15as theapplicationdeadlineforacademic terms thatbeginbetween

    July1andDecember31(thefirsthalfofaschoolyear),andNovember15foracademic

    termsthatbeginbetweenJanuary1andJune30(thesecondhalfofaschoolyear).55

    Continuation of some school district services

    The bill provides that, if the resident school district of a child awarded a

    scholarshiphas

    agreed

    to

    provide

    some

    services

    for

    the

    child

    or,

    if

    the

    district

    is

    required by law to provide some services for the child, including transportation

    services, the district may not discontinue the services pending completion of any

    administrative proceedings regarding those services. It also specifies that the

    prosecuting, by the eligible applicant on behalf of the child, of administrative

    proceedings regarding those services does not affect the applicants and the childs

    continuedeligibilityforscholarshippayments.56

    Written notice of rights and informed consent

    The

    bill

    requires

    the

    Department

    of

    Education

    to

    develop,

    within

    60

    days

    after

    the bills effective date, and subsequently to revise as necessary, a document that

    compares aparents and childs rightsunder state and federal special education law

    54R.C.3310.52,3310.54,3310.55,3310.57,and3317.03(A),(B),and(F)(5).

    55R.C.3310.52(C).

    56R.C.3310.60and3310.62(C).

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    with their rights under the Special Education Scholarship Program, including the

    scholarshipprogramsstatutoryapplicationdeadlines(seeabove). Italsorequires the

    Departmentandeachschooldistricttodistributethedocument toparentsofdisabled

    childrenas apartof, appended to,or in conjunctionwith theprocedural safeguards

    noticerequiredunderfederallaw. Itthenspecifiesthataneligibleapplicantsreceiptof

    thecomparisondocument,asacknowledgedinaformatprescribedbytheDepartment,

    constitutesnoticethattheeligibleapplicanthasbeeninformedofthoserights. Itfurtherprovides thatacceptanceofascholarshipconstitutes theeligibleapplicants informed

    consenttotheprovisionsoftheSpecialEducationScholarshipProgram.57

    Background

    Federal specialeducation law requires that theparentsofdisabledchildrenbe

    givennoticeof theproceduralsafeguardsavailable to them regarding theirchildrens

    special education and related services. Specifically,both the state and each school

    districtareobligatedtoprovidea fullexplanation ofthosesafeguards writteninthe

    native languageoftheparents(unlessitclearlyisnotfeasibletodoso)andwritten inaneasilyunderstandablemanner.58 Thatdocumentmustbeprovidedonceeachyear

    and upon referral or request for the childs evaluation, upon the first filing of an

    administrative complaint, or upon parental request. The federal statute and rules

    provideanextensivelistofitemsthatmustbeincludedinthedocument.

    Incompliancewiththisfederalrequirement,theOhioDepartmentofEducation

    has developed a document entitled Whose IDEA is This? A Resource Guide for

    Parents, writteninEnglish,Spanish,andFrench. Schooldistrictsmustdistributeitto

    parents inaccordancewith the law,and italso isavailableon theDepartmentsweb

    site.59

    Provider profile

    Eachalternativepublicproviderandeachregisteredprivateproviderthatenrolls

    achildundertheprogrammustsubmitawritten profile oftheprovidersservicesto

    theeligibleapplicant. Theprofilemustbe inaformprescribedbytheDepartmentof

    Education andmust contain adescription of themethods of instruction thatwillbe

    used inproviding services to the childand thequalificationsof teachers, instructors,

    and other persons who will provide those services. As a condition of receiving

    57R.C.3310.53(C)and3323.052.

    5820U.S.C.1415(d)and34C.F.R.300.503and300.504.

    59OntheDepartmentshomepage(http://www.ode.state.oh.us),clickon LearningSupports, thenon

    StudentswithDisabilities, thenon ResourcesandSupport, andfinallyon WhoseIDEAisthis?

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    scholarshippaymentsunder theprogram,aneligibleapplicantmustattest, ina form

    andmannerprescribedbytheDepartment,tohavingreceivedtheprofile.60

    State Board rules

    The State Board of Education must adopt rules for the Special Education

    ScholarshipPrograminaccordancewiththeAdministrativeProcedureActsothatthey

    are in effect not later than 120 days after thebills effectivedate. Those rulesmust

    include application procedures and standards and procedures for the registration of

    privateprovidersofspecialeducationprograms.61

    Formative evaluation

    The bill requires the Department of Education to conduct a formative

    evaluation oftheSpecialEducationScholarshipProgramandtoreport itsfindingsto

    theGeneralAssemblybyDecember31,2014. Indoingso,theDepartmentisrequiredto

    the extent possible to gather comments from parents who have been awarded

    scholarshipsunder theprogram, schooldistrictofficials, representativesof registered

    private providers, educators, and representatives of educational organizations. The

    Departmentalsoisrequiredtousequantitativeandqualitativeanalysesinconducting

    itsevaluation. Thestudymust includeanassessmentof the levelof theparticipating

    studentsandparentssatisfactionwith theprogramand the fiscal impact to thestate

    andresidentschooldistricts. ThebillalsoauthorizestheDepartmenttocontractwith

    one ormore qualified researcherswho have previous experience evaluating school

    choice programs to conduct the study and to accept grants to assist in funding the

    study.62

    Transportation for all scholarship students

    Under thebill,PACTscholarshipstudentsareentitled to transportation toand

    fromthenonpublicschoolstheyattendinthemannerprescribedundercontinuinglaw.

    SpecialEducation scholarship children are entitled to transportation to and from the

    alternative special education programs they attend in the samemanner as disabled

    studentsattendingnonpublicschools.

    Continuing lawrequiresschooldistricts toprovide transportation tononpublic

    schoolstudents

    in

    grades

    K

    to

    8who

    reside

    in

    the

    district

    and

    who

    live

    more

    than

    two

    milesfromtheschooltheyattend. Districtsmay,butarenotrequiredto,transporthigh

    school students to and from their nonpublic schools. A district, however, is not

    60R.C.3310.521.

    61R.C.3310.64;Section3.

    62Section4.

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    required to transportstudentsofanyage toandfromanonpublicschool if thedirect

    traveltimebyschoolbus,fromthedistrictschoolthestudentwouldotherwiseattendto

    thenonpublicschool, ismore than30minutes. When transportationby thedistrict is

    impractical, thedistrictmayofferpayment toa studentsparent insteadofproviding

    thetransportation. Inthecaseofsomespecialeducationstudents,transportationmight

    bemandatedbytheirIEPs.63

    Access to data verification codes; privacy of records

    AsisthecaseundercurrentlawfortheEdChoiceandClevelandprograms,the

    bill permits the Department of Education to request the data verification codes of

    studentsapplyingforPACTandSpecialEducationscholarshipsfrom(1)thosestudents

    resident school districts, (2) a community school inwhich a student is enrolled, or

    (3)the independent contractor hiredby the Department to create andmaintain the

    codes. This authority,which is an exception to the general prohibition against the

    Departmentshavingaccesstodataverificationcodeswhentheycouldbematchedwith

    personally identifiablestudentdata, is limitedsolely toadministering thescholarshipprograms. School districts and community schools must provide a students data

    verificationcodetotheDepartmentorthestudentsparent,uponrequest,inamanner

    specifiedbytheDepartment. Ifastudentwillbeenteringkindergartenandhasnotyet

    beenassignedadataverificationcode,theresidentschooldistrictmustassignacodeto

    the student prior to submission. If the district does not assign the codeby a date

    specifiedby theDepartment, theDepartmentmust assign the code. Each year, the

    Departmentmustprovideschooldistrictswiththenameanddataverificationcodeof

    each scholarship student living in thedistrictwho hasbeen assigned a codeby the

    Department.

    The bill also requires the Department to provide each PACT scholarship

    studentsdataverificationcodetothecharterednonpublicschoolinwhichthestudent

    enrolls. Under current law, when a scholarship student takes the statewide

    achievementtests(whichisarequirementformaintainingeligibilityforthescholarship

    program)thecharterednonpublicschoolmustadministerthetestsinthesamemanner

    aspublicschools,includingplacingthestudentsdataverificationcodeoneachtest.64

    NeithertheDepartmentnoracharterednonpublicschoolmayreleaseastudents

    dataverificationcodetoanyperson,unlesssuchreleaseisotherwiseauthorizedbylaw.Thebill specifies thatmaterials containingbotha studentsnameorotherpersonally

    identifiabledataandthestudentsdataverificationcodearenotpublicrecords. Other

    documents relative to the scholarship program that are heldby theDepartment are

    63R.C.3310.04and3310.60. SeeR.C.3327.01,notinthebill.

    64R.C.3301.0711(A)(1)and(K),notinthebill,andR.C.3310.11.

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    publicrecords,butmaybereleasedonly inaccordancewithstateandfederalprivacy

    laws.65

    Confidentiality of Ed Choice and Cleveland scholarship participants

    ThebillstipulatesanydocumentintheDepartmentofEducationsfilesrelatedto

    theEdChoiceorClevelandscholarshipprograms thatcontainsbothastudentsname

    orotherpersonally identifiable informationand thestudentsdataverificationcode is

    notapublicrecord.66 Thisisacontinuationofcurrentlaw.

    Prohibition on using more than one scholarship program at a time

    The bill specifically prohibits a student from using more than one state

    scholarshipatatime. Inotherwords,inanyparticularschoolyear,astudentandthe

    studentsparentsmust choose touseonlyoneof the state scholarshipprograms,but

    fromoneyeartothenexttheywouldbefreetochooseadifferentprogram,assuming

    theywereeligibleforit.67

    Background on current scholarship programs

    ThePACT scholarshipprogramwould replace twoof the states three current

    scholarshipprograms: TheClevelandScholarshipandTutoringPilotProgramandthe

    Educational Choice Scholarship Pilot Program. While both the Cleveland and Ed

    Choiceprogramsprovide scholarships for students toattendnonpublic schools, they

    eachoperatesomewhatdifferently. Currentlawstatesthat thetwopilotprogramsare

    separateanddistinct, eachwithitsownprescribedscholarshipamountinrecognition

    ofitsuniqueeligibilitycriteria. TheClevelandprogram isadistrictwideprogramthat

    may award scholarships to students who do not attend district schools that face

    academicchallenges,whereastheEducationalChoiceScholarshipPilotProgram . . .is

    limited to students of individual district school buildings that [do] face academic

    challenges.68

    Cleveland Scholarship and Tutoring program

    The law authorizing the Cleveland Scholarship and Tutoring program was

    enacted in1995. Theprogramconsistsof twocomponents: scholarships forstudents

    living in the ClevelandMunicipal School District to attend nonpublic schools, and

    tutorialassistancegrantsforstudentswhoattendtheschoolsoftheClevelanddistrict.

    65R.C.3301.0714(D),3310.12,and3310.63.

    66R.C.3310.16.

    67R.C.3310.02and3310.51(F)(5).

    68CurrentR.C.3310.05.

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    Cleveland Scholarship program

    Initial scholarships to attend nonpublic schools are available to Cleveland

    students attending grades K through 8 only. High school students may receive

    scholarshipsonlyiftheyreceivedascholarshippriortohighschool.69 Thescholarship

    amountforanystudentattendinganalternativeschoolisbasedonthelesserof(1)the

    actualtuition

    charges

    of

    the

    school

    or

    (2)

    an

    amount

    established

    by

    the

    state

    Superintendent. Thisamountmaynotexceed$3,450.70 Butthestateactuallypaysonly

    75%or90%,accordingtothestudentsfamilyincome,ofthebasescholarshipamount.

    Theremainderisstatutorilyrequiredtobepaidbyathirdparty.

    While there are no income standards to participate, the law requires that

    preferencebegiventostudentsfromlowincomefamilies. The lowincome threshold

    is not established in statute; instead, the Superintendent of Public Instruction has

    establishedthisthresholdas200%ofthefederalpovertyguideline. TheSuperintendent

    must also determinewhether each selected student qualifies for 75% or 90% of the

    scholarshipamount. Studentswhosefamilyincomeisatorabove200%ofthefederalpoverty guideline qualify for 75% of the scholarship amount, and students whose

    familyincomeisbelowthat200%thresholdqualifyfor90%.71

    TheCleveland Scholarshipprogram is financedpartiallywith state funds and

    partiallywithanamountsetasidefromtheClevelanddistrictsstateaccount. Foreach

    ofFY2010and2011, thecurrentbudgetactsetsaside$11.9million fromClevelands

    account,ofwhichupto$1millionineachyearisforthetutoringcomponent.72

    Cleveland Tutoring program

    ThetutoringcomponentoftheClevelandprogramallowstheparentofastudent

    enrolled in the Cleveland districts schools to obtain tutoring from an approved

    provider. Itauthorizesgrants tocover the tutorialproviderscharges,up to$400per

    year.73

    Ed Choice

    The law authorizing the Educational Choice Scholarship Pilot Program was

    enactedin2005,andthefirstscholarshipswereawardedforthe20062007schoolyear.

    69R.C.3313.975,repealedbythebill.

    70R.C.3313.978(C)(1),repealedbythebill.

    71R.C.3313.978(A),repealedbythebill.

    72Section265.30.40ofAm.Sub.H.B.1ofthe128thGeneralAssembly.

    73R.C.3313.975,3313.976(D),3313.978,and3313.979,repealedbythebill.

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    Studentsmayuse thescholarships topay tuitionatcharterednonpublicschools. No

    morethan14,000scholarshipsmaybeawardedinanyyear. Therearenoincomelimits

    to participate,but prioritymustbe given to prior recipients and to new applicants

    whosefamilyincomesareatorbelow200%ofthefederalpovertyguideline.74

    The program provides scholarships for primary and secondary students of

    underperforming schools in districts other thanCleveland. Generally, a student iseligibletoapplyforanEdChoicescholarship if thestudent isattending,orotherwise

    wouldbeassignedto,aschoolbuildingoperatedbythestudentsresidentdistrictthat

    hasbeendeclared tobe inacademicwatchoracademicemergencyforat least twoof

    thelastthreeschoolyears,andwasnotratedexcellentoreffectiveinthemostrecentof

    thoseyears. AstudentwhoreceivesanEdChoicescholarshipmayreceivescholarships

    untilthestudentcompletesgrade12,solongas(1)thestudentsresidentdistrictstays

    thesameorthestudenttransferstoanewdistrictandwouldbeassigned inthatnew

    districttoaqualifyingbuilding,(2)thestudenttakeseachstateachievementassessment

    prescribedforthestudentsgradelevelwhileenrolledinacharterednonpublicschool,

    and(3)thestudentisnotabsentfromthatschoolformorethan20days(notincluding

    excusedabsences).75

    TheamountofeachannualEdChoicescholarship is the lesserof(1) the tuition

    chargedby the chartered nonpublic school inwhich the student is enrolled or (2) a

    maximum amount,whichis:

    (a) $4,250forgradesKthrough8;and

    (b) $5,000forgrades9through12.76

    The scholarships are financed through a deduct and transfer method. Each

    studentawardedanEdChoicescholarshipiscountedintheenrollmentofthestudents

    residentschooldistrict forschool fundingpurposes. TheDepartmentofEducation is

    thenrequiredtodeduct$5,200fromthedistrictsstatefundingaccountforeachofthe

    districts students awarded a scholarship. This deduction funds scholarships under

    boththeEdChoiceandtheClevelandprograms.77

    74CurrentR.C.3310.02.

    75CurrentR.C.3310.03(B).

    76CurrentR.C.3310.08(A)and3310.09.

    77CurrentR.C.3310.08(C)(1)and3317.03(A)(2)(g).

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    Autism Scholarship Program

    A third program, the Autism Scholarship Program, pays scholarships to the

    parentsofcertainautisticchildreningradesprekindergartento12.78 Thebillsproposed

    Special Education Scholarship Program containsmany of the same concepts of the

    smaller Autism Scholarship Program and applies those concepts to children of all

    categoriesofdisability. Thebills largerSpecialEducationprogramdoesnotapply toprekindergartenstudents.

    The bill does not affect the Autism Scholarship Program. In fact, neither

    programchangesorconflictswith theprovisionsof theother,and itappears that the

    twoprogramscouldcoexist. However,thebillexcludesastudentfromsimultaneously

    participatinginbothprograms. Nevertheless,childrenwithautismwhoareingrades

    K through 12wouldbe eligible for and theirparents could choose eitherof the two

    programs. Forexample, ifaparentofachildwithautismcouldnotparticipate inthe

    newprogrambecauseits5%caphadbeenreached,theparentlikelycouldturntothe

    AutismScholarshipProgram,whichhasnocap. On theotherhand, thedueprocessprovisionsbetween the two programs are somewhat different. Under the Autism

    Scholarship Program, a parent may not be awarded a scholarship if there is any

    pending dispute over the childs IEP. Under the Special Education Scholarship

    Program,theprohibitiononawardandpaymentofascholarshipappliesonlyuntilthe

    childsfirstIEPisdeveloped.

    HISTORY

    ACTION DATEIntroduced 03-01-11

    H0136I129.docx/jc

    78R.C.3310.41,notinthebill.