OSBA & OASBO Treasurer Clinics 2015

Legislative Update: Damon Asbury, OSBA Jennifer Hogue, OSBA Barbara Shaner, OASBO Jay Smith, OSBA David Varda, OASBO

Statehouse Update !  The Legislature back in session in late September !  Limited sessions scheduled through first two

weeks in December !  Issues at the forefront: ◦  HB 2 (passed) ◦  TPP? ◦  Technical corrections on budget bill tax changes

!  Other issues??

TPP Confusion •  HB 64 Contains a Planned Phase-out of TPP & PUTPP

Replacement Payments •  The Executive budget proposed (and conference

committee maintained) the further reduction in TPP and PUTPP replacement payments

•  TPP and PUTPP payments are now combined •  Rate of phase-out depends on the bill's determination of

wealth; districts divided by wealth quintiles •  Governor's "Capacity Measure" used to determine

quintiles •  With TPP Supplement, ODE Communication about TPP

reductions caused confusion

TPP Replacement Payments !  The Capacity Measure uses the SSI’s Valuation Index and

Median Income Index ◦  Combines them in a different manner than in the SSI ◦  Based on whether a district's median income is more or less than

half a standard deviation from the mean income. !  “Total Resources” is defined as:

FY15 state aid + FY15 TPP replacement payments

+ FY15 School District Income Tax Revenues + TY14 property taxes

+ School district share of FY15 casino tax revenues

•  Note: ODE and ODT have not yet released final calculations for “total resources” or “quintiles” ~ may be different than projected

TPP Replacement Payments !  The Executive budget proposed (and conference

committee maintained) further reductions in TPP replacement payments according to the following formula: ◦  Districts in Wealth Quintile 1 (poorest) will see TPP replacement payments

reduced by a maximum of 1% of total resources

◦  Districts in Quintile 2 ( next poorest) will see TPP replacement payments reduced by a maximum of 1.25% of total resources

◦  Districts in Quintile 3 will see TPP replacement payments reduced by a maximum of 1.5% of total resources

◦  Districts in Quintile 4 will see TPP replacement payments reduced by a maximum of 1.75% of total resources

◦  Districts in Quintile 5 (richest) will see TPP replacement payments reduced by a maximum of 2% of total resources

TPP Supplement !  This provision was added by the House, retained by

the Senate and Conference Committee and then vetoed for FY17 only by the Governor.

!  The TPP Supplement is essentially a guarantee intended to ensure that no district receive less total state funding (Formula Aid + TPP replacement payments) in FY16 and FY17 than they received in FY15.

!  LSC estimates that 120 districts will receive $52.9 million in TTP supplement funds in FY16.

!  LSC estimates that 116 districts would have received $84.2 million in TTP supplement funds in FY17 had it not been vetoed.

Senate Bill 3

! Deregulation of certain requirements for all school districts and of additional requirements for “qualified school districts.”

! Passed by Senate on March 25, 2015 and currently in the House Education Committee ◦ No hearings so far this fall

Senate Bill 3 !  Would remove requirement that the State Board

adopt a measure for the amount of extracurricular services offered to students

!  Would increase the competitive bidding threshold from $25,000 to $50,000 for all districts

!  Would create definition of “qualified school district” ◦  At least 85% of total possible points on performance index

score ◦  Grade of “A” for performance indicators met ◦  Four-year adjusted cohort graduation rate of at least 93% ◦  Five-year adjusted cohort graduation rate of at least 95% ◦  Estimate is that approximately 120 districts would qualify

Senate Bill 3 !  Exemptions for “qualified school districts” ◦  Providing an experienced teacher with specific

qualifications for students retained under the third grade reading guarantee ◦  Requirement for teachers to be licensed in grade levels

they are teaching (although teacher must have valid license in grade level determined “appropriate” by local board and subject area to be taught) ◦  Requirement for teacher to be licensed if individual

otherwise qualified based on experience and successful background check (but district must provide mentoring and professional development) ◦  Ohio Teacher Residency Program (if local induction

program for new teachers) ◦  Maximum and minimum class size requirements

Senate Bill 3 ! Other provisions affecting all districts ◦ Would qualify an individual for alternative

resident educator license even if person has not completed coursework in subject area to be taught (but teacher must complete requirements for renewal of license) ◦ Would require School Facilities Commission by

12/31/15 to submit to legislature a proposal whereby school districts that have not received CFAP funding could, upon becoming eligible for assistance, apply for and receive funds “for technology, building expansion, and physical alterations to improve school safety and security”

House Bill 212 !  Assessment ◦  Prohibits the State Board from using any assessment

developed by PARCC, the Smarter Balanced assessment or any other assessment related to or based on the Common Core State Standards ◦  Eliminates the kindergarten readiness assessment ◦  Directs each district or school to select either Iowa’s state

assessments prior to 2010 or Massachusetts’ state assessments prior to 2010 beginning in the 15-16 school year ◦  Requires ODE to create a method to compare the two

assessments to calculate report cards, teacher evaluations and the third grade reading guarantee ◦  Prohibits state assessments from being given any earlier

than the last week in April

House Bill 212

! Assessments (continued) ◦ Creates new graduation assessment

requirement consisting of three exams (ELA, mathematics and science). These assessments are to be selected by the district and be either norm-referenced or standards-based. ◦ Requires ODE to develop a method to

compare scores on the exams for report card ratings, teacher evaluations and determining eligibility for graduation

House Bill 212 !  Personally Identifiable Information ◦  Allows the state to report only aggregate student

data ◦  Prohibits releasing student personally identifiable

information without parental or teacher consent ◦  Restricts access of student and staff information

to fulfilling contractual obligations to process data on behalf of a school district. Each district contact must state that the information will not be shared with a third party.

House Bill 212 !  Teacher Licensure and Evaluation ◦  Eliminates the Ohio Teacher Evaluation System and

the Ohio Principal Evaluation System ◦  Eliminates the Resident Educator Assessment

!  Miscellaneous ◦  Limits the scope of the State Board’s authority to

adopt minimum operating standards ◦  Prohibits the state from joining any consortium,

association, etc. when membership requires ceding any measure of control over education ◦  Prohibits the State Board from adopting model

curriculum ◦  Makes the requirement for districts to have career

advising policies optional

Dueling State-wide Ballot Issues Issue 2 -- “Anti-monopoly” •  To prevent citizen-initiated

amendments that favor private interests •  Generated by the OCMC and General

Assembly

Dueling State-wide Ballot Issues Issue 3 -- Legalization of Marijuana (For medicinal and recreational use (Age 21+)

•  Proponents – Responsible Ohio – over 800,000 petitions collected. Claim that 80% of Ohioans favor use for medicinal purposes and 57% for recreational use.

•  Opponents – Many organizations -- The Ohio State Medical Association; Ohio Manufacturers' Association; Ohio Farm Bureau; Ohio Prosecutors Association; Ohio Coroners Association; Ohio Chamber of Commerce; Ohio Council of Retail Merchants; and Drug Free Action Alliance. –

•  OSBA, OASBO and BASA issued joint press release opposing the issue

Dueling State-wide Ballot Issues Issue 3 -- Legalization of Marijuana •  Arguments For: provides better oversight,

transparency, and use; removes/reduces role of drug dealers; $500 million est. tax revenues yearly

•  Arguments Against: creates a cartel or

monopoly; issues for employers re: employee absenteeism, productivity, safety, insurance; added accessibility for young people

HB 2 - Charter School Reform

! Charter school accountability reform pulled out of budget and dealt with in HB2/SB148 ◦  HB 2 Passed Senate on June 25, strengthened by

amendments from SB 148 prior to passage and supported by HB 2 sponsor Rep. Kristina Roegner (R-Hudson). ◦  House voted not to concur with Senate ◦  Conference Committee prepared compromise report ◦  House and Senate supported Conf Committee

recommendations

House Bill 2 (as passed by the Senate) ! New limitations on switching sponsors ◦ HB 2 seeks to prevent sponsor “hopping” by

prohibiting poor performing schools from switching sponsors within 5 years unless certain conditions are met.

! New requirements to be included in contracts between Charter Sponsors and the Governing Authority of the school.

! New requirements for Governing Authority Members

House Bill 2 !  Increased oversight of governing authority

members ◦  Requires each governing authority member to

annually file a disclosure report ◦  Requires community school to disclose the name of

each governing authority member on website ◦  Limits the compensation from $425 to $125 per

meeting "  Final version added a maximum $5000 annual for

traditional district boards of education ◦  Requires the adoption of an annual budget (10/31)

with specific criteria to be included

House Bill 2

! Requirements for employment of a designated fiscal officer ◦ Must be employed by the governing authority

unless an annual resolution is adopted and approved by the sponsor "  If waived, the fiscal officer is required to annually

meet with governing authority "  If the school closes, all financial & enrollment

records need delivered to the school sponsor within 30 days

House Bill 2 !  Increased sponsor oversight to include

“monitoring, oversight, and tech assistance”: ◦  Compliance with all laws ◦  Monitoring and evaluating the academic and fiscal

performance and the organization and operation of the school on at least an annual basis ◦  Reporting the results of the sponsor evaluation to

ODE and parents annually ◦  Provide technical assistance in complying with

applicable laws ◦  Taking steps to intervene in the school’s operation to

correct problems ◦  Having a plan in place in case of closure or financial

issues

House Bill 2 !  Sponsor oversight ◦  Requires that the sponsor, members of governing

authority, and fiscal officer receive copies of financial and enrollment records monthly ◦  Requires the sponsor to communicate with the

Auditor of State with regards to audits and financial and enrollment records ◦  Auditor required to communicate with sponsor

on any action taken or assistance in compliance ◦  Requires the sponsor of an internet or e-school

to monitor and ensure compliance with online learning standards and provide general reporting of compliance to ODE

House Bill 2

!  Sponsors are prohibited from selling any goods or services to a school they sponsor ◦ Not required for any contracts entered into

prior to the bill’s effective date until the expiration of the contract ◦  Permits a school district that sponsors a

school as long as there is no profit involved

House Bill 2

! A sponsor is required to notify the school when terminating a contract by Dec. 1 prior to the next school year

!  Sponsor evaluation system ◦ Requires ODE to annually rate all sponsors

based on compliance with laws, administrative rules, and academic performance

House Bill 2

!  Sponsor evaluation continued.. ◦ Requires ODE to rate a sponsor’s adherence

to quality practices every 3rd year ◦  Evaluations will include an overall rating and

ratings for each component

!  Sponsor incentives for those rated as “exemplary” for 2 or more years ◦  Including no limits on number of schools

sponsored and no territorial restrictions

House Bill 2

! New restrictions for sponsors ◦  Prohibits a sponsor with an overall rating of

“ineffective” from sponsoring any new or additional schools ◦  Establishes a new rating of “poor” "  Revocation of authority "  ODE Office of School Sponsorship takeover

House Bill 2

!  School operator requirements ◦ Requires contracts between governing

authority and operators to contain criteria to be used for early termination, required notification procedures and a stipulation of which entity owns facilities and property ◦ Requires ODE to maintain directory and

publish names of operators as well as publish an annual report on operator performance (July 1, 2016)

House Bill 2 ! Account of operator expenses ◦  Requires an operator that receives more than

20% of the gross annual revenues from a school to provide a detailed accounting report

!  State report card data for drop out recovery

schools ◦  Prohibits ODE from combining data from a

conversion school a district sponsors if a majority of students are enrolled in a dropout recovery program operated by the school

House Bill 2 ! ODE authorization of community schools ◦ Allows ODE to establish a format and

deadlines for direct authorization "  Requires all new or renewed agreements to be for

a time not to exceed 2 years and prohibits further renewals

"  Eliminates requirement for automatic approval by ODE

"  Allows ODE to approve up to 20 applications (only 5 can be new schools)

"  Requires the department to publish on its website the criteria used to approve or deny an application

House Bill 2 ! ODE approval of sponsors ◦  Requires any ESC that sponsors a school to be

approved and enter into an agreement with the department "  Allows ODE to intervene or revoke sponsorship

authority "  Agreements must provide for an annual evaluation

process "  Decreases length of time for initial agreement from 7 to

5 years "  Removes current provision allowing a continuous 1 year

extension "  Establishes new renewal process for up to 12 years

Other Legislation of Interest •  Inhalers [HB 39 Duffey/Stinziano] (Passed)

•  School Medicaid Payments. [HB 89, DeVitis SB 94, Bacon/Lehner] (Pending)

•  CPR Training [HB 113, Grossman/Manning] (waiting

for substitute bill)

•  Cursive Writing [HB 146, Grossman/Brenner] (Pending)

Other Legislation of Interest •  Academic Standards/Common Core [SB 163,

Jordan] (Pending)

•  School Discipline Policies [SB 34 and SB 136, Tavares] (Pending)

•  Property Tax Complaints [SB 85, Coley] (Hearings have begun in Senate Ways & Means)

  •  School Restructuring/Youngstown Plan [HB

70, Driehaus/Brenner](Passed) •  License Plates [HB 323, Anielski]

QUESTIONS??