Breaking Down the State Budget Bill :

1. BreakingDowntheStateBudgetBill: What Charter Leaders Need to Know Substitute HB 153 | 129th General Assembly PowerPoint @ www.oapcs.org/update/364 April 12, 2011

2. TOPICS • Sponsor and Operator Accountability • Foundation Funding and Special Education Funding CAT II • E-School Moratorium and Charter School Caps • Facilities • Transparency: Rankings |Teacher Incentive Fund Effective & Efficient Schools • Classroom and E-School Expenditures • Teacher Certification and Licensure • Teacher Contributions to Deferred Compensation and Retirement • Parent Trigger and Board Action • Innovation Schools

3. Sponsor and Operator Provision 3314.016 • A) If a community schools is under an academic watch or in a state of academic emergency…both apply: 1) the school’s sponsor shall not be permitted to enter into a contract [to sponsor any more schools]; 2) The school’s operator, if any, shall not be permitted to enter into a contract with the governing authorities of any additional community schools for the operation of those schools . • B) (1) [explains if school is not yet opened then its contract with prohibited sponsor is void]

4. Foundation Funding 3314.088 • (A) The base formula amount for community schools for fiscal years 2012 and is $5,653 – From $5,703 – Equals = ($50) • (B) The base funding supplements under section 3317.012 of the Revised Code shall be deemed in each year to be the amounts specified in that section for fiscal year 2009

5. Special Education Funding • Under current law… (special education additional weighted funding shall be calculated by multiplying the applicable weight specified in section 3317.013 of the Revised Code, as it existed for that fiscal year, times $5,732 ) … which HB 153 will continue, charters will be funding on SPED weights as they existed in 2009.  (Those weights were unchanged thorough FY 10 and FY 11.)  However, the proposed Category II weight is being doubled for FY 12 and FY 13, from 0.3691 to 0.7374 (see line 46031).  Cat. II includes most basic learning disabilities and includes more students than all the other weights combined

6. The E-School Moratorium and Charter School Caps • E-School Moratorium Repealed (Repealed ORC 3314.013[A][6]) LSC - The bill repeals the outright moratorium on establishing new Internet or computer-based community schools (e-schools) that has been in place since May 1, 2005. (However) the existing moratorium is in effect until the General Assembly enacts standards governing the operation of e-schools. • No Lifting of Geographic Caps in Current Legislation LSC - While the bill eliminates the statutory moratoriums on new start-up community schools, it retains the following two stipulations of law: (1)  The limitation that start-up community schools may open only in "challenged" school districts (ORC 3314.02 A3and C1), which are:  (a) the Big Eight school districts (Akron, Canton, Cincinnati, Cleveland, Columbus, Dayton, Toledo, and Youngstown), (b) school districts located in Lucas County, which is the former community school pilot project area, and (c) districts designated as being under an academic watch or academic emergency;[63] and (2)  The limit on the total number of schools that an entity may sponsor.  This limit is based on the number of schools sponsored as of May 1, 2005.  An entity that sponsored 50 or fewer schools on that date may not sponsor more than 50 schools.  Other entities may sponsor up to 75 schools.  But a sponsor's limit is automatically reduced by one for each community school it sponsors that permanently closes.[64]

7. Facilities 1 • Lease of School District Property LSC - If, on or after the bill's effective date, a school district board of education decides to lease property that it owns that is suitable for classroom space or other educational purposes for one school year at a time or longer, the bill requires the district board first to offer to lease that property to the governing authorities of the community schools located within the school district.  The lease price cannot be set higher than the fair market value for the leasehold.  If multiple community schools accept the offer, the district board must award the lease to the first school to accept the offer.  However, district boards must give highest priority to conversion community schools sponsored by the school district.  If no community school governing authority accepts the offer to lease the property within 60 days after the offer is made, the district board may offer the property for lease to any other entity. LSC - The bill specifies that a district board may renew any agreement already in existence with a non-community school entity, and that nothing in the bill is meant to affect leasehold arrangements already entered into between the district board and the other entity.

8. Facilities 2 • Sub. HB 153 Does Not: Have provisions for tightening the law or rules regarding district avoidance of its responsibility to offer unused properties to charters. For example, the new provision that requires the district board to first offer to lease to the governing authorities of charter schools within the school district, does nothing to keep districts (like the Warren School District did) from demolishing the school building before the 12 month window expires, in effect demolishing the purchase (lease) opportunity for the prospective charter school.

9. Teacher Incentive Fund (R.C. 3302.23 and 3302.24) • Establishes the Teacher Incentive Payment Program to provide stipends of $50 per student to English and math teachers in grades 4 to 8, when students gain more than one year of academic growth. • Begins the 2011-2012 school year • Paid by the Department of Education • Only $50 per student, so shared if student counts for both English and math or with same subject team teaching • Questions: Will this be based on performance of class as a whole or on individual students? ODE is working to expand eligible teachers, but will still need sufficient sample size.

10. Transparency This topic includes several provisions: • Efficient and Effective Schools • Student data performance rankings • Classroom expenditures rankings

11. Efficient and Effective Schools (R.C. 3302.22) • Creates the Governor's Effective and Efficient Schools Recognition program, to annually recognize the top 10% of all public and chartered nonpublic schools in the state.  • Directs the Dept of Education to establish standards that must include (1) student performance, measured with factors including performance indicators required under current law, report cards issued by the Department, and any other statewide or national assessment or student performance recognition program the Department selects to use and (2) fiscal performance, including cost-effective measures taken by the school.

12. Data on student performance tied to expenditures (3302.22) Requires the Dept of Education to develop a system to rank order schools according to each of the following measures: (1)  Performance index score (2)  Student performance growth from year to year  (3)  Performance measures required for career-tech  (4)  Current operating expenditures per pupil; and (5)  Percentage of total current operating expenditures spent for classroom instruction The Department must issue an annual report for each school district, community school, and STEM school showing its rank on each of the five measures.

13. E-school Expenditures (repeals 3314.08) • Repeals statute (R.C. 3314. 08) that both established a minimum amount e-schools had to spend on instruction and assigned fees for failure to comply The law being repealed listed the following as qualified expenditures: 1) teachers; 2) curriculum; 3) academic materials; 4) computers; 5) software, including filtering software; and 6)other purposes designated by State Superintendent

14. Classroom Expenditures 3302.20 • Requires ODE to develop (by Jan. 1, 2012) and for State Board to adopt (by July 1, 2012) standards from existing data reported under EMIS for determining the amount of operating expenditures for classroom instruction and for non-classroom purposes spent by a school district, community school, or STEM school • Standards must be ones used by professional organizations, research organizations, and other state governments

15. Alternative and Out-of-State Licensure 3319.26, 3319.227 • Changes the qualifications for obtaining and holding an alternative resident educator licensure by 1) eliminating the requirement for applicants to complete pedagogical training institute; 2) prohibits any requirement that applicants have a college major in teaching area; and 3) allows TFA • Requires State Board to approve list of states by 7-1-13 that have inadequate licensure standards to ensure that one with 5 yrs of licensure and experience is qualified for a professional educator license in Ohio • Directs state board to automatically issue a licenses to those not on the list

16. Teacher Contributions to Retirement • Decreases by 2 percent employer contribution and increases employee contribution rates by 2 percent • Employer contribution • Employee contribution

17. Parent Trigger 3302.042 • Allows parents to petition a school district to make reforms in a school that has been ranked in lowest 5 percent of all district operated schools statewide for three or more consecutive years • Parents of at least 50 percent of school’s students must sign petition; alternatively, can be signed by at least 50 percent of total number of students in that school and feeder schools whose students matriculate typically to that school • Gives parents five choices in terms of restructuring

18. Innovation Schools • Under the bill, a school district may designate a single school as an "innovation school," or a group of similar schools as an "innovation school zone," for the purpose of implementing an innovation plan designed to improve student academic performance. 

19. PowerPoint URL This PowerPoint can be accessed on line at: www.oapcs.org/update/364