All Ohio CareerTechnical and Adult Education Conference Legislative Update

1
All Ohio Career-Technical and Adult Education
Conference Legislative Update

• Tuesday July 28 2008
• Willa J. Ebersole, Ohio Association of City
  Career-Technical Schools
• Dan Hilson, Ohio Association of Career -Technical
  Superintendents

2
HB 1 Biennial Budget Overview

• 3.2 Billion deficit FY 10-11
• 933 million from VLTS at racetracks
• 2.4 billion in cuts
• 5 billion federal stimulus (one time)
• Declining revenues income taxes, sales taxes
• Elimination of programs Early Learning
  Initiative, Ohio College Opportunity Grants

3
HB 1 cuts/assessments

• 3 reduction in all Medicaid Provider rates
• Approximately 50 million to public libraries
• Approximately 70 million in mental health
  services
• 170 million in public higher education
• 184 Million in nursing home reimbursement rates
• 145 Million in hospital franchise fee increase

4
HB 1 Biennial budget Education Reform

• Evidence-based model for school funding in Ohio
• The adequacy amount includes eight major
  components (1) instructional services, (2)
  additional support, (3) administrative services,
  (4) operations and maintenance, (5) gifted
  instruction and enrichment, (6) technology
  resources, (7) professional development, and (8)
  instructional materials.
• Certain components of the model are adjusted by
  the Educational Challenge Factor, which ranges
  from 0.75 to 1.65 depending on a districts
  educational attainment, wealth, and concentration
  of economically disadvantaged students.

5
OEBM

• Districts funded based on prior year enrollment
  unless the districts current year enrollment
  grows 2 or more. The required local share equals
  2.2 of a districts taxable or recognized
  property value depending on whether the
  districts Class I (residential and agricultural)
  real property current expense millage is at the
  H.B. 920 floor of 20 mills.
• Annual changes in a districts total state aid
  are subject to transitional aid (guarantee) and
  growth cap provisions. The guarantee levels are
  99 and 98 and the growth caps are 100.75 in
  each year.

6
OEBM

• Students attending schools other than their
  resident districts continue to be funded through
  transfers from deductions made to their resident
  districts state aid. The base per pupil funding
  for community and STEM school students equals
  5,718 in FY 2010 and 5,703 in FY 2011, a
  decrease of 0.24 per year.

7
OEBM

• A conversion levy allows school districts to
  reduce their Class I real property current
  expense millage to the H.B. 920 floor of 20
  mills. Once the millage reaches the floor, tax
  revenue from these 20 mills will fully grow with
  inflation.
• HB 1 reimburses school districts for their
  revenue losses from commercial and industrial
  real property and public utility tangible
  personal property.

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Ohio School Funding Advisory Council Membership

• (1) The governor, or the governor's designee
• (2) The superintendent of public instruction, or
  the superintendent's
• designee
• (3) The chancellor of the Ohio board of regents,
  or the chancellor's
• designee
• 4) Two school district teachers, appointed by the
  governor
• (5) Two nonteaching, non-administrative school
  district employees,
• appointed by the governor
• (6) One school district principal, appointed by
  the speaker of the house
• of representatives
• (7) One school district superintendent, appointed
  by the president of the
• senate
• (8) One school district treasurer, appointed by
  the speaker of the house
• of representatives
• (9) One member of a school district board,
  appointed by the president of
• the senate
• (10) One representative of a college of
  education, appointed by the

• (16) One parent of a student attending a school
  operated by a school
• district, appointed by the governor
• (17) One representative of community school
  sponsors, appointed by
• the governor
• (18) One representative of operators of community
  schools, appointed by Senate President
• (19) One community school fiscal officer,
  appointed by the speaker of
• the house of representatives
• (20) One parent of a student attending a
  community school, appointed
• by the president of the senate
• (21) One representative of early childhood
  education providers,
• appointed by the governor
• (22) One representative of chartered nonpublic
  schools, appointed by
• the speaker of the house of representatives
• (23) Two persons appointed by the president of
  the senate, one of whom
• shall be recommended by the minority leader of
  the senate
• (24) Two persons appointed by the speaker of the
  house of
• representatives, one of whom shall be
  recommended by the minority leader of the house
  of representatives.
• The members shall serve without compensation.
• (B) The superintendent of public instruction, or
  the superintendent's

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Ohio School Funding Advisory Council Mission

• Not later than December 1, 2010, and the first
  day of July of each even-numbered year
  thereafter, the council shall present to the
  state board of education, the general assembly,
  the recommendations for revisions to the
  educational adequacy components of the school
  funding model.
• Shall be based on current, high quality research,
  information provided by school districts, and
  best practices in operational efficiencies.
• The council's analyses shall include the
  adequacy of the model's financing for special
  education, gifted education services,
  career-technical education, arts education,
  services for limited English proficient students,
  and early college high schools. This analysis
  shall consider current educational need, current
  and best practices .

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Ohio School Funding Advisory Council Mission

• Requires Council, when preparing its first
  report, to analyze the adequacy of the models
  financing for career-technical education. 
• Must study the extent to which current funding
  for JVSD s and compact and comprehensive
  career-technical schools is responsive to state,
  regional, and local business and industry needs
  and make recommendations for revisions to
  career-technical education programming and
  funding.

11
Career-Technical Funding

• Calculates career-technical education funding in
  FY 2010 as 100.75 of the aggregate amount of
  vocational education weighted funding received in
  FY 2009, and in FY 2011 as 100.75 of the amount
  paid in FY 2010 
• Specifies that a career-technical teacher holds a
  valid license to provide specialized career and
  technical courses

12
Fiscal Impact

• Since career-technical education funding is
  outside of the adequacy amount, the state pays
  the entire calculated amount (there is no local
  share). 
• Overall, career-technical receives a .75
  increase over 2009 FY amount.
• Associated services in career tech  are a .75
  increase and they will be transferred to the Lead
  district in the compact.   

13
Career Technical Education Enhancements

• Career Technical Education Enhancements
• Up to 2,543,531 in FY 2010 Up to 2,563,568 in
  FY 2011 distributed thru unit funding, not grants
  as proposed.
• Fifth Quarter FY 10 up to 270,000 FY 11 up to
  300,000
• HSTW 2.8 m in each fiscal year
• Tech Prep Consortia 2,138,281 in each fiscal
  yr

14
Community School Funding

• HB 1 includes a provision that pays the per pupil
  amount computed in the manner prescribed under
  current law, using formula amounts of 5,718 in
  FY 2010 and 5,703 in FY 2011 for base cost
  funding only
• calculates weighted funding for special education
  and career-technical education using the weights
  prescribed under current law applied to the
  formula amount of 5,732 in FY 2010 and FY 2011. 
  
•  

15
Vocational Education Contracts

• This provision permits two local school districts
  to renew their contract for vocational education
  (career-technical) services for a term of less
  than five years, if the district receiving the
  services had been created out of the territory of
  the district providing the services and began
  operating in fiscal year 2005.

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Conclusion

• As introduced, Comprehensives and Compacts were
  not funded.
• Our voices were heard House restored funding
  with an increase
• Senate kept it
• Conference Committee retained as they crafted a
  combination of OEBM with current funding.
• Governor signed 7-17-09