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ODE Fiscal Update Aaron Rausch, Director Office of Budget and School Funding • September 2015

FY15 Foundation Funding FY15 foundation funding will not be finalized until all districts review and revise any EMIS data reporting.

Includes Career-Technical Education data. Data reporting extended through November.

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Foundation Program – FY16

HB 64 adds four new

components

HB 64 maintains

nine primary aid

categories

Centered on needs of students

Previous Funding Formula Elements

Traditional Districts Opportunity  grant   Economically  

Disadvantaged  Transporta=on    

Targeted  Assistance    

Limited  English  Proficiency    

Special  Educa=on  

K-­‐3  Literacy    

GiHed  Educa=on   Career  Technical  Educa=on    

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Third Grade Reading

Proficiency Bonus

Capacity Aid Transportation Supplement

High School Grad Rate

Bonus

New FY16 Components

FY16 Foundation Funding HB64 per pupil amounts and new formula components will first be included in the October #1 payment.

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Updated FY16 Student Enrollment Data

Will occur by December and update in every following payment based on the district’s most current data submission.

High School Grad Rate and Third Grade Reading Guarantee Bonuses will be paid in a onetime payment following the release of the report card. First time student level academic performance will be used in the funding formula.

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Transitional Aid

Previous biennium: Guarantee prevented a district’s foundation funding

from falling below FY 2013 levels.

HB 64: Guarantees school districts at FY 2015 foundation funding levels

Cap

FY 2014 cap amount was 6.25 percent and FY 2015 cap amount was 10.5 percent. HB 64 limits growth to 7.5 percent each fiscal year.

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Cap Exempt from the Cap: Capacity Aid, Transportation Supplement, Graduation Bonus and Third Grade Reading Bonus Career-Technical Education funding removed from the guarantee base and exempt from the cap in FY 2017.

Phase-Out

HB 64 Restarts Phase-out Tangible Personal Property and Public Utility Tangible Property taxes No more than 2% of state and local resources.

TPP PUTP

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Phase-Out Schedule  

PUTP  (Dereg,  SB  3) TPP H.B.  64Schools Enacted

Inside  millage  debtLast  payment  is  Febuary  

2017

Last  payment  is  May  2018

Voted  debt

Operating  fixed-­‐rate  levies  (including  inside  

millage)

Reliance  based  phase-­‐down

Fixed-­‐rate  non-­‐operating

50%  reduction  in  FY  16,  no  

reimbursement  in  FY  17  &  thereafter

Fixed-­‐sum  operatingLast  payment  is  August  2016

Last  payment  is  Nov  2017

Phased-­‐out  by  annual  reductions  of  20%  over  5  years

Reimbursed  as  long  as  levy  remains  charged  &  

payable

Prior  Law

No  change  to  payment  amounts,  distributions  are  

combined

FY 2016

Amount of foundation funding and TPP

reimbursement is less than the foundation

funding and TPP reimbursement levels in

FY 2015 – TPP Supplement holds harmless districts.

FY 2017

Foundation funding guarantee

and the TPP reimbursement

phase-out continues without

TPP Supplent.

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Deductions/Transfers

Open Enrollment Paid via deduction/transfer

– $5,900 in FY 2016 / $6,000 in FY 2017 – Career Technical Education Supplemental

Amount – Preschool Special Education (new for FY

2016)

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Community and STEM Schools

Facilities and academic

performance bonus paid directly by

state.

Review of community

school records to begin late

September.

Deductions will update

when enrollment updates.

Increases the amount of the EdChoice Scholarship from $4,250 to $4,650 for K-8 students.

Increases the amount of the EdChoice Scholarship from $5,000 in FY 2015 to $5,900 in FY 2016 and $6,000 in FY 2017 for high school students.

EdChoice

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Autism Scholarship and Jon Peterson Scholarships

Increases the maximum amount of scholarships awarded to $27,000.

Joint Vocational School Districts

Increase to per pupil amounts Establishes 5 percent state share minimum.

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Educational Service Centers

Establishes $33 per pupil funding for each year of the biennium (subject to appropriation – estimated at $25 per pupil). Establishes $35 per pupil funding for “high performing ESC” in FY 2017.

Early Childhood Education and Early Literacy

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$40 million in NEW funding for economically disadvantaged preschool students

Increases funded half-day preschool slots from 11,000 to more than 17,000 in FY 2017.

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Collaboration - Alignment of Early Childhood Education and Publicly Funded Childcare

Student Support and Education Options

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Competency Based Pilot Project Creates a pilot for up to five schools and districts Pilot sites will receive up to $200,000 each year

College Credit Plus $10 million in FY 2016 to credential teachers in economically disadvantaged high schools to teach College Credit Plus courses Allows a student to take College Credit Plus classes in the summer.

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Adult Diploma Program Establishes a funding formula for the current five pilot programs and provides $2.5 million in FY 2016 and $5 million in FY 2017. Creates a second round of planning grants for up to five new pilot sites at community colleges or technical centers.

Career Tech Reimbursements Requires school districts to offer credentials to students that enroll in in-demand credential careers Provides $1 million in each year to reimburse the cost of providing access to credentials for economically disadvantaged students.

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Other Budget Initiatives

Straight A Fund

Continues through the next biennium

$15 million in each fiscal year

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Community Connectors

Maintains program

$10 million in each fiscal year

Partnership with Opportunities for Ohioans with Disabilities

Transition services and coordination of services for students with disabilities $5 million in each fiscal year Transition from school to work

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Regulatory Relief

Permits a school to contract with a hospital or licensed health care provider to provide authorized health care services to students.

Federal Programs Update

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2015 ESEA Waiver Approved August 21, 2015 http://education.ohio.gov/Topics/School-Improvement/Federal-Programs/No-Child-Left-Behind/ESEA-Flexibility-Waiver

Districts and Schools Supports http://education.ohio.gov/Topics/School-Improvement/Federal-Programs/No-Child-Left-Behind/ESEA-Support-Schools-and-Districts

CCIP is updated to display

• District Support Status –  Planning Tool

• School Label and School Gap Closing – Title I Building Eligibility Page – Title I School Improvement Sub A

School Allocations Page

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Funding

Title I-A 20% ESEA Set aside

Title I School Improvement Sub A Grant

School Improvement Grant – SIG

Title I Budget Details Page Modifications have been made to the Title I Budget Details page with regards to the ESEA 20% Set Aside.

This was previously asked

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Title I Budget Details Page The new content

Title I Budget Details Page The new content

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Transferability The transferability authority under ESEA

allows districts to transfer funds from II-A into Title I

9/30 Reporting Districts are to report expenditures and obligations between:

•  July 1 to Sept. 30 (not reported on FER)

•  Carryover from 2015 is to be expended/obligated by this coming Sept. 30 for the district to fully utilize program funds.

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9/30 Reporting Districts are to report expenditures and obligations between:

•  July 1 to Sept. 30 (not reported on FER)

•  Carryover from 2015 is to be expended/obligated by this coming Sept. 30 for the district to fully utilize program funds.

Maintenance of Effort (MOE) Access through CCIP Funding – MOE Home

Two types of MOE: ESEA & IDEA

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What is IDEA Maintenance of Effort?

MOE Exceptions

Voluntary departure Decrease in enrollment of SWD Termination of an obligation/long-term Errors in reporting expenditures/ADM

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Finding the variance for MOE

Step 1 = Calculate GFE variance Step 2 = Review detailed expenditures Step 3 = Determine the variance in ADM Step 4 = High cost student changes Step 5 = Examine payroll for staff changes

Step 6 = Look for data errors.

Failure to Meet MOE

Repayment of Variance to Federal Govt. Must be State and Local Funds Failure in one year does not reduce MOE

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ESEA MOE Examines the amount the district expends on providing an education to students compared to previous year. District is required to spend at least 90% of what it spent last year, either by Per Pupil Expenditure (PPE) or by General Fund Expenditure (GFE).

•  Did the district maintain financial support for students from one year to the next?

Two Ways to Pass ESEA MOE • General Fund Expenditure (GFE): Expend at least 90% of last year from State and Local funds.

• Per Pupil Expenditure (PPE): Expend at least 90% of last year based on per pupil amounts from State and Local funds.

• Only takes one Pass to meet MOE • Takes two Fails to fail MOE

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Failure to Meet the Requirement The Ohio Department of Education must reduce the amount of funds under the covered programs in any fiscal year in the exact proportion* by which the district fails to maintain effort by falling below 90 percent of either the combined fiscal effort per student or aggregate expenditures. *The department uses the measure most favorable to the district.

Waiver to Maintenance of Effort

WAIVER – U.S. Department of Education Secretary may waive the requirement if it is determined a waiver is equitable due to:

v Exceptional or uncontrollable circumstances v Precipitous decline in financial resources

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How can I prevent my district from failing the ESEA Maintenance of Effort

requirement?

Monitor current year expenditures (aggregate and per pupil) against 90% of the previous year expenditures (aggregate or per pupil).

Comparability Timeline (tentative)

Oct. 1 EMIS Comparability Reporting Period

Dec. 1 Website activation date

Jan. 29 Comparability closing date for EMIS Data

Feb. 17 Requested Submission Date: On or before

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Data Reporting Reminders

5 Year Forecast

Submit October 1-31 via EMIS

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Transportation T-2 expenditure reports past due. October Count Week Submit T-1 forms by end of October.

Financial Data Submission

September 30th

Deadline

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Questions?

education.ohio.gov

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Social Media

@OHEducation

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