OHIO UNIVERSITY LEADERSHIP PROGRAM TREASURER’S COHORT SEMINAR

1. OHIO UNIVERSITY LEADERSHIP PROGRAMTREASURER’S COHORT SEMINAR OHIO STATE UNIVERSITY ENDEAVOR CENTER SHYVILLE ROAD – PIKETON, OHIO OCTOBER 28, 2010

2. Topics to Cover • Ed Jobs Funding Bill • Tuition – District Residence Change • Assessed Valuation Adjustment Related to State Tax Exempt Property • Next Biennial Budget

3. Ed Jobs Funding - Allocations • $10B nationally for FY11 • $361M to Ohio school districts and community schools • 98% distributed to districts and community schools • Allotment based on state’s funding formula as identified under the SFSF program or Part A of Title I of the Elementary-Secondary Act of 1965 • Funding formula produced the larger amount of funds • (See handout) Region 15 “Estimated Allocation”

4. Ed Jobs – Allowable Costs • Limited to Compensation and Benefits • Retain existing employees • Rehire former employees • Hire new employees • Must be school level educational related services activities – not district level personnel • Health Insurance, Incentives for Early Retirement, Pension Fund Contributions

5. Ed Jobs - Personnel • Types of allowable personnel: • Teachers and Classroom Aides • Principals and Assistant Principals • Academic and Athletic Coaches • Counselors, Librarians, Nurses • Custodians, Bus Drivers, Cafeteria Workers • Furloughs or Cost Savings Days Elimination

6. Ed Jobs – Personnel (cont.) • Contracted personnel may be paid with Ed Jobs funds if: • School districts contracting with each other for services. Ex. District purchases services from ESC • Billing for the services clearly identifies the salaries and benefits of the employees of the LEA providing the services

7. Ed Jobs – Personnel Not Allowable • Types of personnel unallowable: • Superintendents and Assistant Superintendents • Treasurers and Assistant Treasurers • Central Office Staff • Finance Staff • Program & Curriculum Personnel • Non Building Level Personnel • Not allowed to establish or restore a rainy-day fund

8. Ed Jobs – Personnel Not Allowable (cont.) • Contracted personnel with non-school districts or non LEA’s • Transportation providers other than school districts for student transportation • Food Services provided by private contractors – not school districts

9. Ed Jobs – Key Regulations • Period of availability is applicable • 1st date to obligate funds – August 10, 2010 • Last date to obligate funds – September 30, 2012 • Time and effort is applicable • No limitations on carryover from 2011 to 2012 • 1512 quarterly reporting already required by ARRA • FER each FY on CCIP • Accounting Fund 504 • Five Year Forecast Line 1.045

10. Questions???

11. Tuition • ORC 2151.362(A)(1) “Determining School District to bear cost of educating a child when removed from his or her home.”

12. Determination for a Child with Special Needs • 3313.64(C)(1) – Tuition to be paid by district of residence in accordance with Sections 3323.091, 3323.13, or 3323.14 ORC

13. Child with Special Needs (cont.) • School District of Residence Defined • 3323.01(M) • District in which natural parent or adoptive parents reside; • If #1 cannot be determined, the last school district in which the child’s parents are known to have resided if parents’ whereabouts are unknown.

14. Determining School District to Bear the Cost for a Child without Special Needs • Section 3313.64(C)(2) • District in which child’s parent resided at the time the child was removed from his or her home and the court vested custody to a government agency or another person • If parents residence at the time was unknown, tuition is to be paid by the district in which the child resided at the time the child was removed from home or placed in a legal or permanent custody

15. TuitionDistrict of Residence Change • ORC 2151.362(2) • Allows ODE to change the initial court order as to the tuition responsibility when parent has moved to another district • Applies to both special needs students and non special needs students

16. DOR Change (cont.) • School Districts named in the court order shall complete Form SF-DRC • District shall provide documentation and evidence that the parent has moved to another district since the court order

17. DOR Change (cont.) • Documentation and evidence includes: • Court order with a named district • Department of Taxation or County Auditor proof that address is in a particular school district • Two different types of proof as outlined on the Form SF-DRC

18. DOR Change (cont.) • Two types of proof includes: • Voter registration • Utility bill (electric, gas, water/sewer, phone, cable) • Real Estate Tax Bill • Bank receipt • Rent receipt • Documented affirmation of parents address from DOR where parent(s) currently reside • Notarized affirmation from parents of current address • USPS return receipt from certified letter sent to parent by DOR filing SF-DRC • Written confirmation from Dept of Job & Family Services of the parents current address • Written confirmation from a local enforcement agency of the parents current address

19. Ohio Department of Education-Review- • Upon receipt of Form SF-DRC, the ODE committee will review and decide if proof submitted is adequate for modifying the court order • Committee is comprised of 4 school finance personnel and one ODE attorney • Upon approval; a letter is sent to the following: • District originally named in court order • District currently responsible for tuition

20. Form SF-DRC • Form can be downloaded from ODE home page: www.ode.state.oh.us • Finance • Finance Resources and Tools • Finance Program Information/Forms • Forms and Program Information for Traditional Public Schools • The form is listed under Tuition toward the bottom of the page

21. Questions???

22. EXAMPLE – Line 33A Line 33A – Adjusted Assessed Valuation A. Potential Valuation Tax Exempted Valuation $36,708,620 Assessed Valuation $39,222,450 $75,931,070 $75,931,070 B. Assessed valuation adjustment, amount must be less than tax exempted valuation $75,931,070 x 25% = $18,982,777 $18,982,777 C. Determine the amount of adjustment Tax exempted valuation $36,708,620 Minus adjustment (25%) $18,982,777 $17,725,843 $17,725,843 D. Adjusting the assessed valuation Assessed valuation $39,222,450 Adjustment $17,725,843 $21,496,607 $21,496,607 E. Adjusted Assessed Valuation $21,496,607

23. FY12 & FY13 Biennial Budget • State Superintendent EBM Parameters • State Board Considerations • See Handout as Presented by Kelly Weir, ODE Budget Analyst

25. Budget (cont.) • $8B next biennial budget hole • May be less considering $400M RTTT and $361M Ed Jobs Funding • Kasich and Strickland’s debates relative to school funding

26. Next Biennial Budget (cont.) • Kasich to scrap EBM • Do away with state income tax which provides 44% of money spent on schools • More dollars to classroom and less for administration – One superintendent for a county of 6 school districts • Do away with unfunded mandates

27. Next Biennial Budget (cont.) • Strickland – Keep EBM • Would cost $10B to fund @ 100% currently phase in over ten year period of time • Gave $1.8B increase in current biennial budget primarily by the one-time stimulus money • States the EBM funding method makes Ohio’s school funding constitutional • Reduced property taxes for Seniors, disabled, and deceased spouse. ($400 per eligible household)

30. Questions???

31. 2009 – 2010 ACCOMPLISHMENTS

32. 2009 – 2010 ACCOMPLISHMENTS • All schools offering community service programs should have a board approved policy in place. • A new PASS report was developed and is available on the ODE web site by putting pass report in the ODE search box and then clicking on ODE – district payment reports

33. 2009 – 2010 ACCOMPLISHMENTS • Community School Accountability Issues Resolved: • JVSD Board can start a conversion school • Closing schools must send student records to resident schools • Automatic closing for those who do not meet performance standards

34. 2009 – 2010 ACCOMPLISHMENTS • Prohibited corporal punishment • All school districts now have a family and civic engagement team appointed • Gifted student funding maintained from previous year • Students below grade nine (9) taking advanced work are given high school credit for that work

35. 2009 – 2010 ACCOMPLISHMENTS • Updated and improved many teacher licensure requirements and BCI checks • Maintained minimum funding guarantee • Established a cap on funding increases • PBA funds eliminated as a single funding source and combined with other academic improvement funds

36. 2009 – 2010 ACCOMPLISHMENTS • All day kindergarten funding • State assessments required for students receiving scholarships under Cleveland Scholarship Program • ARRA stimulus funds utilized

37. HB1 ACCOMPLISHMENTS AND CHALLENGES • Open Enrollment bridges both years • 2009 – 2010 Accomplishment, now electronic submission • 2010 – 2011 Challenge, to monitor and double check

38. OPEN ENROLLMENT • How it works: EMIS Year end “N” report • How to prepare • Notify resident district • Monitor Flow report • Review EMIS reports • Double Check • Review year end report and communicate with other district • OE Payment • Adjustment in #2 August • Follows business rules

39. IMPROVEMENTS UNDERWAY FOR NEW OPEN ENROLLMENT SYSTEM • As with most new payment adjustment systems, the true test comes when a payment is processed. The new open enrollment system (which adjusts for those students who are attending schools other than their regularly assigned buildings) was no exception. We have received numerous calls and emails indicating there are errors in the calculation of the adjustment and we have been drilling down and digging into the data to understand what has happened. As we continue that process, we will not be updating the FY2011 open enrollment adjustments until we are comfortable with the results.

40. COMMON ISSUES: • The career-technical education (CTE) adjustments were not included in the August #2 payment. Open enrollment CTE adjustments have always been done separately from the regular education adjustments • The student FTE is calculated based on the number of reported session days for the building the student attended. A number of districts did not correctly report session days which has resulted in a reduced FTE

41. COMMON ISSUES (cont’d) • The process of using the building profile information for the number of days in session was in error. This resulted in the days in session defaulting to 178 days for a number of buildings, which led to calculated FTEs appearing lower than they should have been. • It appears that the percent of time a student spent in a postsecondary enrollment option (PSEO) program was not incorporated into the FTE calculation, resulting in a reduced FTE for students attending PSEO programs. • It also appears there may be issues with the concurrent enrollment checks that incorrectly eliminated some students from the payment calculations

42. CHANGES IN 2010-2011

43. 2010 – 2011 CHANGES • ADM amount for community schools/stem school will be $5703 (from $5718) • Open Enrollment FTE paid at $5732+ building blocks ($50.91) • JVSD another ¾ of 1% increase • ESC funding remains the same • Ed choice deduction remains at $5200 • Bus Purchase funds remain eliminated • CTE funds accountability

44. 2010 – 2011 CHANGES • Two (2) calamity days eliminated and three (3) will be permitted • Early childhood education is flat funded • New operating standards will be finalized • Spending and reporting standards will be finalized and effective July 1, 2011

45. 2010 – 2011 CHANGES • Academic content standards (math, science, social studies, reading/language) are being revised and will be effective April 1, 2011 • Regular classroom teachers who become licensed for the first time after January 1, 2011 are eligible for tenure after 7 years of service

46. 2010 – 2011 CHANGES • Four hours of in-service training in the prevention of child abuse, violence, and substance abuse for all middle and high school teachers must be completed prior to October 16, 2011 • Ed Jobs funds (see handout)

47. Questions???