Every two years, the Ohio General Assembly is tasked with determining Ohio’s budget that will apply for the following two-year period. The Biennial Budget Bill (House Bill 166) contains extensive and substantive statutory changes, many of which impact school districts. Governor Mike DeWine signed the bill on July 18, 2019, after vetoing several provisions. The relevant changes are:
School Finance: As expected in the budget bill, there are numerous funding changes.
The bill suspends the use of the current foundation aid funding formula for FY 2020 and FY 2021. Instead, every district will receive the same amount of foundation funding it received in FY 2019. The FY 2019 state share will now be used to calculate any other payments that use the district’s state share index or state share percentage. For open enrollment, College Credit Plus, and other payments for which the formula amount is used, the FY 2019 formula amount ($6,020) is the amount for FY 2020 and FY 2021.
ODE is now required to make an additional payment for FY 2020 and FY 2021 to each school district, with at least 50 enrolled students, that experiences an average annual percentage change in its enrollment between FY 2016 and FY 2019 that is greater than zero.
The bill requires ODE to provide new funding for “student wellness and success.” The funds will go to all districts on a per pupil basis, to be spent on particular wellness initiates:
Mental health services
Services for homeless youth and child welfare involved youth
Community liaisons
Physical health care services
Mentoring programs
Family engagement and support services
City connects programming
Professional development regarding the provision of trauma informed care and cultural competence
Student services provided prior to or after the regularly scheduled school day or any time school is not in session
For FY 2020 and FY 2021, the bill also creates a School Climate Grants program to implement positive behavior intervention and support frameworks, and social and emotional learning initiatives in school buildings that serve any of grades K-3. A maximum grant amount of $5,000 may be awarded in each fiscal year for each eligible school building in an applicant’s grant proposal, for up to ten schools per proposal.
For STEM schools operated from multiple facilities located in one or more school districts that are directed by a single governing body, the bill now requires ODE to pay all funds for each STEM school to the governing body of the group, rather than directly to each school as under current law. The governing body must then distribute the funds to the school districts. ODE will also be issuing a separate building identification number to each STEM school within the group.
The Governor vetoed a provision that would have guaranteed school districts at least as much funding per pupil as the statewide per pupil amount paid to chartered nonpublic schools in Auxiliary Services funds and for administrative costs reimbursements, beginning in 2022.
Graduation Requirements: The bill creates a new set of high school graduation requirements for students graduating in 2023 or after. Students in the classes of 2018 through 2022 (students who entered 9th grade on or after July 1, 2014, but before July 1, 2017) can use these requirements if they so choose.
To graduate, a student must:
Attain a “competency score” on the English language arts II and Algebra I end-of-course exams; and
Earn two state diploma seals from a system of state diploma seals (schools must now create a school-defined seal).
If a student fails to attain a competency score on one or both of the required end-of-course exams, the student still may meet the requirements through the following alternative demonstrations of competency (available after the district provides required remedial support and the student attempts the end-of-course exams again):
Earning credit through College Credit Plus in the failed subject area
Enlisting in the US armed forces
Completing additional testing options in work-based programs
The IEP of a student receiving special education must specify the manner in which the student will participate in assessments related to the new graduation requirements.
By June 30, 2020, each school district must adopt a policy regarding students who are at risk of not qualifying for a high school diploma that includes elements like the criteria and procedure for identifying at-risk students, a requirement that the district assist the at-risk students with additional instruction and support services, and the development of a graduation plan. The district can use the IEP in lieu of developing a graduation plan if the IEP contains academic goals substantively similar to a graduation plan.
Changes to end-of-course exams: Starting with the class of 2023, students will only be required to complete the following end-of-course exams:
English language arts II;
Science;
Algebra I;
American history; and
American government.
Previously, students were also required to take English language arts I and geometry end-of-course exams. The bill notes that ODE must seek a federal waiver to eliminate the geometry end-of-course exam, and that if such a waiver cannot be obtained, geometry will still be required.
The bill notes that the English language arts II and Algebra I end-of-course exams will be required for graduation. Students also cannot be required to retake the Algebra I or English language arts II end-of-course exams in 9th through 12th grade if the student received a proficient or higher score, or attained a competency score, prior to 9th grade.
State Report Card: The bill also makes some notable changes to the state report cards. The bill changes the way letter grades are determined for the value-added progress dimension through the “gain index”:
A score of 1 or greater is designated as an “A” (previously was 2 or greater);
A score that is less than 1 but not greater than -1 (previously was at least 1 but less than 2) is designated as a “B”;
A score that is less than or equal to -1 but greater than -2 is designated as a “C”;
A score that is less than or equal to -2 but greater than -3 is designated as a “D”; and
A score that is less than -3 or below is designated as a “F”.
Districts may not get an “A” on the value-added progress dimension unless district/building subgroups (gifted students, students with disabilities, and students whose performance is in the lowest quintile for achievement) get a “C” or higher (previously, subgroups had to get a “B”).
State assessments for student with disabilities educated at chartered nonpublic schools: The bill permits a chartered nonpublic school to develop a written plan to excuse a student with a disability from taking state assessments if the school and the parents agree the assessment (or alternative assessment) does not accurately assess the student’s academic performance and the plan includes an academic profile of the student’s process and is reviewed annually.
EdChoice Scholarship Program: Some notable changes were made to the EdChoice Scholarship Program. First, if the number of applicants for an EdChoice scholarship for a school year exceeds 90% of the maximum number prescribed by statute (currently 60,000), ODE must increase the limit by 5% for the next year.
One major change that will have a substantial effect on some districts is the provision that now qualifies students already enrolled in grades 8-11 in a chartered nonpublic school without a state scholarship or students who are currently homeschooled without a state scholarship in the school year prior, and the school in which the student would be assigned has a “D” or “F” cohort graduation rate in two of the three most recent report cards. Currently, a student already enrolled in a chartered nonpublic school or homeschooled is not eligible for an EdChoice scholarship, although it has become a grey area given a change in ODE interpretation of prior law.
The bill expands eligibility for income-based EdChoice scholarships (“EdChoice Expansion”) to all students entering grades K-12 for the first time, beginning with the 2020-2021 school year. Prior to this, the EdChoice Expansion scholarships were only available to one new grade level each year (starting with kindergarten in the 2013-14 school year). As of the 2018-19 school year, such scholarships were only available to grades K-5. The bill also states that a student’s EdChoice scholarship must be computed prior to the application of any other sources of financial aid received by the student.
Beginning with the 2020-2021 school year, ODE must also conduct a priority application period between January 1 and May 1 to award EdChoice scholarships, and award priority scholarships no later than May 31 prior to the first day of July of the school year for which a scholarship is sought. Under prior law, there are two application windows, February 1 to July 1 for a period of at least 75 days and a period beginning July 1 to last at least 30 days. ODE must continue awarding EdChoice scholarships after the priority application period ends, prorating the amount if the student receives a scholarship after the school year begins, and in the case of income-based scholarships, award them only if the appropriated funds remain available.
Educational service centers: ESCs can now apply for state/federal grants on behalf of a school district, and can also contract on behalf of school districts to purchase supplies, materials, equipment, and services on their behalf. The bill expressly provides that a school district that has a service agreement with an ESC is exempt from competitive bidding requirements for personnel-based services (provided certain requirements are met).
School breakfast programs: Qualifying higher poverty public schools must now offer breakfast that complies with federal and state nutritional standards and meal patterns to students before or during the school day. The district can charge students for meals to cover all or part of the cost, in accordance with federal requirements. The program phases in over the next three years, gradually lowering the threshold under which schools qualify for the program based on the percentage of students that qualify for free or reduced-price meals. Schools can choose not to establish a school breakfast program for financial reasons or if the school already has a successful breakfast program or partnership in place.
Student transportation: If a school district is providing transportation to a student it is not required to provide under ORC 3327.01, it cannot reduce that transportation after the first day of the school year.
School bus purchase assistance: ODE is now required to partner with the Department of Public Safety to develop a program to provide school bus purchase assistance. ODE must determine how the program will operate by January 31, 2020.
Involuntary lease or sale of school district property: A school district with real property that has been unused for school operations for one year (rather than two years as under prior law) must offer to lease or sell that property to community schools, STEM schools, and college-preparatory boarding schools located in the district.
Changes regarding teachers: A few notable changes were made to teacher salaries and licensure.
The minimum base salary for beginning teachers with a bachelor’s degree has been increased from $20,000 to $30,000 and the bill also increases proportionally the minimum salaries for teachers with different levels of education and experience.
Applicants for an alternative resident educator license now must have either a cumulative undergraduate GPA of 2.5 or a cumulative graduate school GPA of 3.0. Prior law required applicants to have an undergraduate GPA of 2.5. Such applicants may now meet training requirements not only by a summer institute but also through pre-service training approved by the Chancellor of Higher Education.
For the 2019-2020 and 2020-2021 school years, an individual with a 7-12 educator license who has completed a professional development program approved by the superintendent/principal may teach computer science. The superintendent must approve the College Board courses appropriate for the course the individual will teach. This individual may teach computer science only in the district that approved the professional development program.
The Ohio State University Fisher College of Business and College of Education and Human Ecology now administers the Bright New Leaders Program, which now requires the State Board to issue a professional administrator license for grades pre-K through 12 to individuals who complete the program, instead of an alternative principal or administrator license as under current law.
The Governor vetoed a provision that would have repealed the prohibition against school districts employing teachers in a core subject area unless they are “properly certified or licensed teachers.”
Excessively absent students: Now when a student’s combined nonmedical excused absences and unexcused absences exceed 38 or more hours in one school month or 65 or more hours in a school year, that student is considered “excessively absent from school.” This differs from prior law, which specifies that a school district must consider all excused and unexcused absences (including medical excusals) when determining whether a student is excessively absent from school. The steps districts must take once a student meets the threshold for “excessively absent from school” are not changed by this bill. Additionally, the law regarding identifying a student as “habitually truant” remains unchanged.
School child day-care programs: The bill clarifies that day-care centers that serve preschool children and child daycare centers that serve school-age children must meet or exceed the standards adopted by the Director of Job and Family Services.
Behavioral prevention initiatives: Every public school must now report to ODE on an annual basis the types of prevention-focused programs, services, and supports it uses to promote healthy behavior and decision-making by students and their understanding of the consequences of risky behaviors, such as substance abuse and bullying.
Storm shelter requirement: The Board of Building Standards cannot require the installation of a storm shelter in a public school building prior to September 15, 2021 (rather than September 15, 2019 under prior law), if the building has undergone a construction, alteration, repair, or maintenance project that received state financial assistance.
Consolidated school mandate report: The bill eliminates training on crisis prevention intervention and the establishment of a wellness committee from the consolidated school mandate report that each district annually must file with ODE.
Athletics: School districts must now have the same transfer rules for public and nonpublic schools and cannot create rules, bylaws, or other regulations to the contrary.
The bill also permits any international student who attends an Ohio elementary or secondary school to participate in interscholastic athletics at that school on the same basis as students who are Ohio residents if the student holds an F-1 U.S. visa (even if the student’s parent does not reside in the state).
English learners: The bill changes all references of “limited English proficient student” in the Revised Code to “English learner” to align with recent amendments to federal law.
Please contact your legal counsel regarding the implementation of these changes in your district.