Bill Text: OH SB12 | 2009-2010 | 128th General Assembly | Introduced

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Bill Title: To provide formula funding for all-day kindergarten for all school districts and community schools that offer it.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced - Dead) 2009-02-10 - To Finance & Financial Institutions [SB12 Detail]

Download: Ohio-2009-SB12-Introduced.html

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As Introduced

128th General Assembly Regular Session 2009-2010

S. B. No. 12

Senator Sawyer 

Cosponsors: Senators Roberts, Fedor, Miller, R., Turner, Schiavoni 

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A BILL

To amend sections 3314.08, 3314.084, 3314.26,

1

3317.016, 3317.017, 3317.02, 3317.029, 3317.03,

2

3321.01, and 5727.84 and to repeal section

3

3314.13 of the Revised Code to provide formula

4

funding for all-day kindergarten for all school

5

districts and community schools that offer it.

6

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 3314.08, 3314.084, 3314.26,	7
3317.016, 3317.017, 3317.02, 3317.029, 3317.03, 3321.01, and	8
5727.84 of the Revised Code be amended to read as follows:	9

Sec. 3314.08.  (A) As used in this section:

10

(1) "Base formula amount" means the amount specified as such	11
in a community school's financial plan for a school year pursuant	12
to division (A)(15) of section 3314.03 of the Revised Code.	13

(2) "IEP" has the same meaning as in section 3323.01 of the	14
Revised Code.	15

(3) "Applicable special education weight" means the multiple	16
specified in section 3317.013 of the Revised Code for a	17
disability described in that section.	18

(4) "Applicable vocational education weight" means:

19

(a) For a student enrolled in vocational education programs	20
or classes described in division (A) of section 3317.014 of the	21
Revised Code, the multiple specified in that division;	22

(b) For a student enrolled in vocational education programs	23
or classes described in division (B) of section 3317.014 of the	24
Revised Code, the multiple specified in that division.	25

(5) "Entitled to attend school" means entitled to attend	26
school in a district under section 3313.64 or 3313.65 of the	27
Revised Code.	28

(6) A community school student is "included in the poverty	29
student count" of a school district if the student is entitled to	30
attend school in the district and the student's family receives	31
assistance under the Ohio works first program.	32

(7) "Poverty-based assistance reduction factor" means the	33
percentage figure, if any, for reducing the per pupil amount of	34
poverty-based assistance a community school is entitled to receive	35
pursuant to divisions (D)(5) to (9) of this section in any year,	36
as specified in the school's financial plan for the year pursuant	37
to division (A)(15) of section 3314.03 of the Revised Code.	38

(8) "All-day kindergarten" has the same meaning as in section	39
3317.0293317.02 of the Revised Code.	40

(9) "State education aid" has the same meaning as in section	41
5751.20 of the Revised Code.	42

(B) The state board of education shall adopt rules requiring	43
both of the following:	44

(1) The board of education of each city, exempted village,	45
and local school district to annually report the number of	46
students entitled to attend school in the district who are	47
enrolled in grades one through twelve in a community school	48
established under this chapter, the number of students entitled to	49
attend school in the district who are enrolled in kindergarten in	50
a community school, the number of those kindergartners who are	51
enrolled in all-day kindergarten in their community school, and	52
for each child, the community school in which the child is	53
enrolled.	54

(2) The governing authority of each community school	55
established under this chapter to annually report all of the	56
following:	57

(a) The number of students enrolled in grades one through	58
twelve and the number of students enrolled in kindergarten in the	59
school who are not receiving special education and related	60
services pursuant to an IEP;	61

(b) The number of enrolled students in grades one through	62
twelve and the number of enrolled students in kindergarten, who	63
are receiving special education and related services pursuant to	64
an IEP;	65

(c) The number of students reported under division (B)(2)(b)	66
of this section receiving special education and related services	67
pursuant to an IEP for a disability described in each of	68
divisions (A) to (F) of section 3317.013 of the Revised Code;	69

(d) The number of students in kindergarten reported under	70
divisions (B)(2)(a) and (b) of this section who are enrolled in	71
all-day kindergarten;	72

(e) The full-time equivalent number of students reported	73
under divisions (B)(2)(a) and (b) of this section who are enrolled	74
in vocational education programs or classes described in each of	75
divisions (A) and (B) of section 3317.014 of the Revised Code that	76
are provided by the community school;	77

(e)(f) Twenty per cent of the number of students reported	78
under divisions (B)(2)(a) and (b) of this section who are not	79
reported under division (B)(2)(d)(e) of this section but who are	80
enrolled in vocational education programs or classes described in	81
each of divisions (A) and (B) of section 3317.014 of the Revised	82
Code at a joint vocational school district under a contract	83
between the community school and the joint vocational school	84
district and are entitled to attend school in a city, local, or	85
exempted village school district whose territory is part of the	86
territory of the joint vocational district;	87

(f)(g) The number of enrolled preschool children with	88
disabilities receiving special education services in a	89
state-funded unit;	90

(g)(h) The community school's base formula amount;

91

(h)(i) For each student, the city, exempted village, or local	92
school district in which the student is entitled to attend school;	93

(i)(j) Any poverty-based assistance reduction factor that	94
applies to a school year.	95

(C) From the state education aid calculated for a city,	96
exempted village, or local school district and, if necessary,	97
from the payment made to the district under sections 321.24 and	98
323.156 of the Revised Code, the department of education shall	99
annually subtract the sum of the amounts described in divisions	100
(C)(1) to (9) of this section. However, when deducting payments	101
on behalf of students enrolled in internet- or computer-based	102
community schools, the department shall deduct only those amounts	103
described in divisions (C)(1) and (2) of this section.	104
Furthermore, the aggregate amount deducted under this division	105
shall not exceed the sum of the district's state education aid	106
and its payment under sections 321.24 and 323.156 of the Revised	107
Code.	108

(1) An amount equal to the sum of the amounts obtained when,	109
for each community school where the district's students are	110
enrolled, the number of the district's students reported under	111
divisions (B)(2)(a), (b), and (e)(f) of this section who are	112
enrolled in all-day kindergarten and grades one through twelve,	113
and one-half the number of students reported under those divisions	114
who are enrolled in traditional half-day kindergarten, in that	115
community school is multiplied by the sum of the base formula	116
amount of that community school plus the per pupil amount of	117
the base funding supplements specified in divisions (C)(1) to	118
(4) of section 3317.012 of the Revised Code.	119

(2) The sum of the amounts calculated under divisions	120
(C)(2)(a) and (b) of this section:	121

(a) For each of the district's students reported under	122
division (B)(2)(c) of this section as enrolled in a community	123
school in all-day kindergarten and grades one through twelve and	124
receiving special education and related services pursuant to an	125
IEP for a disability described in section 3317.013 of the Revised	126
Code, the product of the applicable special education weight	127
times the community school's base formula amount;	128

(b) For each of the district's students reported under	129
division (B)(2)(c) of this section as enrolled in traditional	130
half-day kindergarten in a community school and receiving special	131
education and related services pursuant to an IEP for a disability	132
described in section 3317.013 of the Revised Code, one-half of	133
the amount calculated as prescribed in division (C)(2)(a) of	134
this section.	135

(3) For each of the district's students reported under	136
division (B)(2)(d)(e) of this section for whom payment is made	137
under division (D)(4) of this section, the amount of that payment;	138

(4) An amount equal to the sum of the amounts obtained when,	139
for each community school where the district's students are	140
enrolled, the number of the district's students enrolled in that	141
community school who are included in the district's poverty	142
student count is multiplied by the per pupil amount of	143
poverty-based assistance the school district receives that year	144
pursuant to division (C) of section 3317.029 of the Revised Code,	145
as adjusted by any poverty-based assistance reduction factor of	146
that community school. The per pupil amount of that aid for the	147
district shall be calculated by the department.	148

(5) An amount equal to the sum of the amounts obtained when,	149
for each community school where the district's students are	150
enrolled, the district's per pupil amount of aid received under	151
division (E) of section 3317.029 of the Revised Code, as adjusted	152
by any poverty-based assistance reduction factor of the community	153
school, is multiplied by the sum of the following:	154

(a) The number of the district's students reported under	155
division (B)(2)(a) of this section who are enrolled in all-day	156
kindergarten and grades one to three in that community school and	157
who are not receiving special education and related services	158
pursuant to an IEP;	159

(b) One-half of the district's students who are enrolled in	160
all-day or any othertraditional half-day kindergarten class in	161
that community school and who are not receiving special education	162
and related services pursuant to an IEP;	163

(c) One-half of the district's students who are enrolled in	164
all-day kindergarten in that community school and who are not	165
receiving special education and related services pursuant to an	166
IEP.	167

The district's per pupil amount of aid under division (E) of	168
section 3317.029 of the Revised Code is the quotient of the amount	169
the district received under that division divided by the	170
district's kindergarten through third grade ADM, as defined in	171
that section.	172

(6) An amount equal to the sum of the amounts obtained when,	173
for each community school where the district's students are	174
enrolled, the district's per pupil amount received under division	175
(F) of section 3317.029 of the Revised Code, as adjusted by any	176
poverty-based assistance reduction factor of that community	177
school, is multiplied by the number of the district's students	178
enrolled in the community school who are identified as	179
limited-English proficient.	180

(7) An amount equal to the sum of the amounts obtained when,	181
for each community school where the district's students are	182
enrolled, the district's per pupil amount received under division	183
(G) of section 3317.029 of the Revised Code, as adjusted by any	184
poverty-based assistance reduction factor of that community	185
school, is multiplied by the sum of the following:	186

(a) The number of the district's students enrolled in all-day	187
kindergarten and grades one through twelve in that community	188
school;	189

(b) One-half of the number of the district's students	190
enrolled in traditional half-day kindergarten in that community	191
school.	192

The district's per pupil amount under division (G) of section	193
3317.029 of the Revised Code is the district's amount per teacher	194
calculated under division (G)(1) or (2) of that section divided by	195
17.	196

(8) An amount equal to the sum of the amounts obtained when,	197
for each community school where the district's students are	198
enrolled, the district's per pupil amount received under divisions	199
(H) and (I) of section 3317.029 of the Revised Code, as adjusted	200
by any poverty-based assistance reduction factor of that community	201
school, is multiplied by the sum of the following:	202

(a) The number of the district's students enrolled in all-day	203
kindergarten and grades one through twelve in that community	204
school;	205

(b) One-half of the number of the district's students	206
enrolled in traditional half-day kindergarten in that community	207
school.	208

The district's per pupil amount under divisions (H) and (I)	209
of section 3317.029 of the Revised Code is the amount calculated	210
under each division divided by the district's formula ADM, as	211
defined in section 3317.02 of the Revised Code.	212

(9) An amount equal to the per pupil state parity aid funding	213
calculated for the school district under either division (C) or	214
(D) of section 3317.0217 of the Revised Code multiplied by the sum	215
of the number of students in all-day kindergarten and grades one	216
through twelve, and one-half of the number of students in	217
traditional half-day kindergarten, who are entitled to attend	218
school in the district and are enrolled in a community school as	219
reported under division (B)(1) of this section.	220

(D) The department shall annually pay to a community school	221
established under this chapter the sum of the amounts described in	222
divisions (D)(1) to (10) of this section. However, the department	223
shall calculate and pay to each internet- or computer-based	224
community school only the amounts described in divisions (D)(1) to	225
(3) of this section. Furthermore, the sum of the payments to all	226
community schools under divisions (D)(1), (2), and (4) to (10) of	227
this section for the students entitled to attend school in any	228
particular school district shall not exceed the sum of that	229
district's state education aid and its payment under sections	230
321.24 and 323.156 of the Revised Code. If the sum of the	231
payments calculated under those divisions for the students	232
entitled to attend school in a particular school district exceeds	233
the sum of that district's state education aid and its payment	234
under sections 321.24 and 323.156 of the Revised Code, the	235
department shall calculate and apply a proration factor to the	236
payments to all community schools under those divisions for the	237
students entitled to attend school in that district.	238

(1) Subject to section 3314.085 of the Revised Code, an	239
amount equal to the sum of the amounts obtained when the number of	240
students enrolled in all-day kindergarten and grades one through	241
twelve in the school, plus one-half of the number of students	242
enrolled in traditional half-day kindergarten students in the	243
school, reported under divisions (B)(2)(a), (b), and (e)(f) of	244
this section who are not receiving special education and related	245
services pursuant to an IEP for a disability described in	246
section 3317.013 of the Revised Code is multiplied by the sum of	247
the community school's base formula amount plus the per pupil	248
amount of the base funding supplements specified in divisions	249
(C)(1) to (4) of section 3317.012 of the Revised Code.	250

(2) Prior to fiscal year 2007, the greater of the amount	251
calculated under division (D)(2)(a) or (b) of this section, and in	252
fiscal year 2007 and thereafter, the amount calculated under	253
division (D)(2)(b) of this section:	254

(a) The aggregate amount that the department paid to the	255
community school in fiscal year 1999 for students receiving	256
special education and related services pursuant to IEPs, excluding	257
federal funds and state disadvantaged pupil impact aid funds;	258

(b) The sum of the amounts calculated under divisions	259
(D)(2)(b)(i)(a) and (ii)(b) of this section:	260

(i)(a) For each student reported under division (B)(2)(c) of	261
this section as enrolled in the school in all-day kindergarten and	262
grades one through twelve and receiving special education and	263
related services pursuant to an IEP for a disability described in	264
section 3317.013 of the Revised Code, the following amount:	265

(the school's base formula amount plus	266

the per pupil amount of the base funding supplements specified in	267

divisions (C)(1) to (4) of section 3317.012 of the Revised Code)	268

+ (the applicable special education weight X the	269

community school's base formula amount);	270

(ii)(b) For each student reported under division (B)(2)(c) of	271
this section as enrolled in traditional half-day kindergarten and	272
receiving special education and related services pursuant to an	273
IEP for a disability described in section 3317.013 of the Revised	274
Code, one-half of the amount calculated under the formula	275
prescribed in division (D)(2)(b)(i)(a) of this section.	276

(3) An amount received from federal funds to provide special	277
education and related services to students in the community	278
school, as determined by the superintendent of public instruction.	279

(4) For each student reported under division (B)(2)(d)(e) of	280
this section as enrolled in vocational education programs or	281
classes that are described in section 3317.014 of the Revised	282
Code, are provided by the community school, and are comparable as	283
determined by the superintendent of public instruction to school	284
district vocational education programs and classes eligible for	285
state weighted funding under section 3317.014 of the Revised Code,	286
an amount equal to the applicable vocational education weight	287
times the community school's base formula amount times the	288
percentage of time the student spends in the vocational education	289
programs or classes.	290

(5) An amount equal to the sum of the amounts obtained when,	291
for each school district where the community school's students are	292
entitled to attend school, the number of that district's students	293
enrolled in the community school who are included in the	294
district's poverty student count is multiplied by the per pupil	295
amount of poverty-based assistance that school district receives	296
that year pursuant to division (C) of section 3317.029 of the	297
Revised Code, as adjusted by any poverty-based assistance	298
reduction factor of the community school. The per pupil amount of	299
aid shall be determined as described in division (C)(4) of this	300
section.	301

(6) An amount equal to the sum of the amounts obtained when,	302
for each school district where the community school's students are	303
entitled to attend school, the district's per pupil amount of aid	304
received under division (E) of section 3317.029 of the Revised	305
Code, as adjusted by any poverty-based assistance reduction	306
factor of the community school, is multiplied by the sum of the	307
following:	308

(a) The number of the district's students reported under	309
division (B)(2)(a) of this section who are enrolled in all-day	310
kindergarten and grades one to three in that community school and	311
who are not receiving special education and related services	312
pursuant to an IEP;	313

(b) One-half of the district's students who are enrolled in	314
all-day or any othertraditional half-day kindergarten class in	315
that community school and who are not receiving special education	316
and related services pursuant to an IEP;	317

(c) One-half of the district's students who are enrolled in	318
all-day kindergarten in that community school and who are not	319
receiving special education and related services pursuant to an	320
IEP.	321

The district's per pupil amount of aid under division (E) of	322
section 3317.029 of the Revised Code shall be determined as	323
described in division (C)(5) of this section.	324

(7) An amount equal to the sum of the amounts obtained when,	325
for each school district where the community school's students are	326
entitled to attend school, the number of that district's students	327
enrolled in the community school who are identified as	328
limited-English proficient is multiplied by the district's per	329
pupil amount received under division (F) of section 3317.029 of	330
the Revised Code, as adjusted by any poverty-based assistance	331
reduction factor of the community school.	332

(8) An amount equal to the sum of the amounts obtained when,	333
for each school district where the community school's students are	334
entitled to attend school, the district's per pupil amount	335
received under division (G) of section 3317.029 of the Revised	336
Code, as adjusted by any poverty-based assistance reduction factor	337
of the community school, is multiplied by the sum of the	338
following:	339

(a) The number of the district's students enrolled in all-day	340
kindergarten and grades one through twelve in that community	341
school;	342

(b) One-half of the number of the district's students	343
enrolled in traditional half-day kindergarten in that community	344
school.	345

The district's per pupil amount under division (G) of section	346
3317.029 of the Revised Code shall be determined as described in	347
division (C)(7) of this section.	348

(9) An amount equal to the sum of the amounts obtained when,	349
for each school district where the community school's students are	350
entitled to attend school, the district's per pupil amount	351
received under divisions (H) and (I) of section 3317.029 of the	352
Revised Code, as adjusted by any poverty-based assistance	353
reduction factor of the community school, is multiplied by the sum	354
of the following:	355

(a) The number of the district's students enrolled in all-day	356
kindergarten and grades one through twelve in that community	357
school;	358

(b) One-half of the number of the district's students	359
enrolled in traditional half-day kindergarten in that community	360
school.	361

The district's per pupil amount under divisions (H) and (I)	362
of section 3317.029 of the Revised Code shall be determined as	363
described in division (C)(8) of this section.	364

(10) An amount equal to the sum of the amounts obtained when,	365
for each school district where the community school's students are	366
entitled to attend school, the district's per pupil amount of	367
state parity aid funding calculated under either division (C) or	368
(D) of section 3317.0217 of the Revised Code is multiplied by the	369
sum of the number of that district's students enrolled in all-day	370
kindergarten and grades one through twelve, and one-half of the	371
number of that district's students enrolled in traditional	372
half-day kindergarten, in the community school as reported under	373
division (B)(2)(a) and (b) of this section.	374

(E)(1) If a community school's costs for a fiscal year for a	375
student receiving special education and related services pursuant	376
to an IEP for a disability described in divisions (B) to (F) of	377
section 3317.013 of the Revised Code exceed the threshold	378
catastrophic cost for serving the student as specified in division	379
(C)(3)(b) of section 3317.022 of the Revised Code, the school may	380
submit to the superintendent of public instruction documentation,	381
as prescribed by the superintendent, of all its costs for that	382
student. Upon submission of documentation for a student of the	383
type and in the manner prescribed, the department shall pay to the	384
community school an amount equal to the school's costs for the	385
student in excess of the threshold catastrophic costs.	386

(2) The community school shall only report under division	387
(E)(1) of this section, and the department shall only pay for, the	388
costs of educational expenses and the related services provided to	389
the student in accordance with the student's individualized	390
education program. Any legal fees, court costs, or other costs	391
associated with any cause of action relating to the student may	392
not be included in the amount.	393

(F) A community school may apply to the department of	394
education for preschool children with disabilities or gifted unit	395
funding the school would receive if it were a school district.	396
Upon request of its governing authority, a community school that	397
received unit funding as a school district-operated school before	398
it became a community school shall retain any units awarded to it	399
as a school district-operated school provided the school	400
continues to meet eligibility standards for the unit.	401

A community school shall be considered a school district and	402
its governing authority shall be considered a board of education	403
for the purpose of applying to any state or federal agency for	404
grants that a school district may receive under federal or state	405
law or any appropriations act of the general assembly. The	406
governing authority of a community school may apply to any private	407
entity for additional funds.	408

(G) A board of education sponsoring a community school may	409
utilize local funds to make enhancement grants to the school or	410
may agree, either as part of the contract or separately, to	411
provide any specific services to the community school at no cost	412
to the school.	413

(H) A community school may not levy taxes or issue bonds	414
secured by tax revenues.	415

(I) No community school shall charge tuition for the	416
enrollment of any student.	417

(J)(1)(a) A community school may borrow money to pay any	418
necessary and actual expenses of the school in anticipation of the	419
receipt of any portion of the payments to be received by the	420
school pursuant to division (D) of this section. The school may	421
issue notes to evidence such borrowing. The proceeds of the notes	422
shall be used only for the purposes for which the anticipated	423
receipts may be lawfully expended by the school.	424

(b) A school may also borrow money for a term not to exceed	425
fifteen years for the purpose of acquiring facilities.	426

(2) Except for any amount guaranteed under section 3318.50 of	427
the Revised Code, the state is not liable for debt incurred by the	428
governing authority of a community school.	429

(K) For purposes of determining the number of students for	430
which divisions (D)(5) and (6) of this section applies in any	431
school year, a community school may submit to the department of	432
job and family services, no later than the first day of March, a	433
list of the students enrolled in the school. For each student on	434
the list, the community school shall indicate the student's name,	435
address, and date of birth and the school district where the	436
student is entitled to attend school. Upon receipt of a list under	437
this division, the department of job and family services shall	438
determine, for each school district where one or more students on	439
the list is entitled to attend school, the number of students	440
residing in that school district who were included in the	441
department's report under section 3317.10 of the Revised Code. The	442
department shall make this determination on the basis of	443
information readily available to it. Upon making this	444
determination and no later than ninety days after submission of	445
the list by the community school, the department shall report to	446
the state department of education the number of students on the	447
list who reside in each school district who were included in the	448
department's report under section 3317.10 of the Revised Code. In	449
complying with this division, the department of job and family	450
services shall not report to the state department of education any	451
personally identifiable information on any student.	452

(L) The department of education shall adjust the amounts	453
subtracted and paid under divisions (C) and (D) of this section to	454
reflect any enrollment of students in community schools for less	455
than the equivalent of a full school year. The state board of	456
education within ninety days after April 8, 2003, shall adopt in	457
accordance with Chapter 119. of the Revised Code rules governing	458
the payments to community schools under this section and section	459
3314.13 of the Revised Code, including initial payments in a	460
school year and adjustments and reductions made in subsequent	461
periodic payments to community schools and corresponding	462
deductions from school district accounts as provided under	463
divisions (C) and (D) of this section and section 3314.13 of the	464
Revised Code. For purposes of this section and section 3314.13 of	465
the Revised Code:	466

(1) A student shall be considered enrolled in the community	467
school for any portion of the school year the student is	468
participating at a college under Chapter 3365. of the Revised	469
Code.	470

(2) A student shall be considered to be enrolled in a	471
community school during a school year for the period of time	472
beginning on the later of the date on which the school both has	473
received documentation of the student's enrollment from a parent	474
and the student has commenced participation in learning	475
opportunities as defined in the contract with the sponsor, or	476
thirty days prior to the date on which the student is entered into	477
the education management information system established under	478
section 3301.0714 of the Revised Code. For purposes of applying	479
this division and division (L)(3) of this section to a community	480
school student, "learning opportunities" shall be defined in the	481
contract, which shall describe both classroom-based and	482
non-classroom-based learning opportunities and shall be in	483
compliance with criteria and documentation requirements for	484
student participation which shall be established by the	485
department. Any student's instruction time in non-classroom-based	486
learning opportunities shall be certified by an employee of the	487
community school. A student's enrollment shall be considered to	488
cease on the date on which any of the following occur:	489

(a) The community school receives documentation from a parent	490
terminating enrollment of the student.	491

(b) The community school is provided documentation of a	492
student's enrollment in another public or private school.	493

(c) The community school ceases to offer learning	494
opportunities to the student pursuant to the terms of the contract	495
with the sponsor or the operation of any provision of this	496
chapter.	497

(3) The department shall determine each community school	498
student's percentage of full-time equivalency based on the	499
percentage of learning opportunities offered by the community	500
school to that student, reported either as number of hours or	501
number of days, is of the total learning opportunities offered	502
by the community school to a student who attends for the school's	503
entire school year. However, no internet- or computer-based	504
community school shall be credited for any time a student spends	505
participating in learning opportunities beyond ten hours within	506
any period of twenty-four consecutive hours. Whether it reports	507
hours or days of learning opportunities, each community school	508
shall offer not less than nine hundred twenty hours of learning	509
opportunities during the school year.	510

(M) The department of education shall reduce the amounts paid	511
under division (D) of this section to reflect payments made to	512
colleges under division (B) of section 3365.07 of the Revised	513
Code.	514

(N)(1) No student shall be considered enrolled in any	515
internet- or computer-based community school or, if applicable to	516
the student, in any community school that is required to provide	517
the student with a computer pursuant to division (C) of section	518
3314.22 of the Revised Code, unless both of the following	519
conditions are satisfied:	520

(a) The student possesses or has been provided with all	521
required hardware and software materials and all such materials	522
are operational so that the student is capable of fully	523
participating in the learning opportunities specified in the	524
contract between the school and the school's sponsor as required	525
by division (A)(23) of section 3314.03 of the Revised Code;	526

(b) The school is in compliance with division (A) of section	527
3314.22 of the Revised Code, relative to such student.	528

(2) In accordance with policies adopted jointly by the	529
superintendent of public instruction and the auditor of state, the	530
department shall reduce the amounts otherwise payable under	531
division (D) of this section to any community school that includes	532
in its program the provision of computer hardware and software	533
materials to any student, if such hardware and software materials	534
have not been delivered, installed, and activated for each such	535
student in a timely manner or other educational materials or	536
services have not been provided according to the contract between	537
the individual community school and its sponsor.	538

The superintendent of public instruction and the auditor of	539
state shall jointly establish a method for auditing any community	540
school to which this division pertains to ensure compliance with	541
this section.	542

The superintendent, auditor of state, and the governor shall	543
jointly make recommendations to the general assembly for	544
legislative changes that may be required to assure fiscal and	545
academic accountability for such schools.	546

(O)(1) If the department determines that a review of a	547
community school's enrollment is necessary, such review shall be	548
completed and written notice of the findings shall be provided to	549
the governing authority of the community school and its sponsor	550
within ninety days of the end of the community school's fiscal	551
year, unless extended for a period not to exceed thirty additional	552
days for one of the following reasons:	553

(a) The department and the community school mutually agree to	554
the extension.	555

(b) Delays in data submission caused by either a community	556
school or its sponsor.	557

(2) If the review results in a finding that additional	558
funding is owed to the school, such payment shall be made within	559
thirty days of the written notice. If the review results in a	560
finding that the community school owes moneys to the state, the	561
following procedure shall apply:	562

(a) Within ten business days of the receipt of the notice of	563
findings, the community school may appeal the department's	564
determination to the state board of education or its designee.	565

(b) The board or its designee shall conduct an informal	566
hearing on the matter within thirty days of receipt of such an	567
appeal and shall issue a decision within fifteen days of the	568
conclusion of the hearing.	569

(c) If the board has enlisted a designee to conduct the	570
hearing, the designee shall certify its decision to the board. The	571
board may accept the decision of the designee or may reject the	572
decision of the designee and issue its own decision on the matter.	573

(d) Any decision made by the board under this division is	574
final.	575

(3) If it is decided that the community school owes moneys to	576
the state, the department shall deduct such amount from the	577
school's future payments in accordance with guidelines issued by	578
the superintendent of public instruction.	579

(Q)(P) The department shall not subtract from a school	580
district's state aid account under division (C) of this section	581
and shall not pay to a community school under division (D) of this	582
section any amount for any of the following:	583

(1) Any student who has graduated from the twelfth grade of a	584
public or nonpublic high school;	585

(2) Any student who is not a resident of the state;

586

(3) Any student who was enrolled in the community school	587
during the previous school year when tests were administered under	588
section 3301.0711 of the Revised Code but did not take one or more	589
of the tests required by that section and was not excused pursuant	590
to division (C)(1) or (3) of that section, unless the	591
superintendent of public instruction grants the student a waiver	592
from the requirement to take the test and a parent is not paying	593
tuition for the student pursuant to section 3314.26 of the Revised	594
Code. The superintendent may grant a waiver only for good cause in	595
accordance with rules adopted by the state board of education.	596

(4) Any student who has attained the age of twenty-two years,	597
except for veterans of the armed services whose attendance was	598
interrupted before completing the recognized twelve-year course of	599
the public schools by reason of induction or enlistment in the	600
armed forces and who apply for enrollment in a community school	601
not later than four years after termination of war or their	602
honorable discharge. If, however, any such veteran elects to	603
enroll in special courses organized for veterans for whom tuition	604
is paid under federal law, or otherwise, the department shall not	605
subtract from a school district's state aid account under division	606
(C) of this section and shall not pay to a community school under	607
division (D) of this section any amount for that veteran.	608

Sec. 3314.084.  (A) As used in this section:

609

(1) "Formula ADM" has the same meaning as in section 3317.03	610
of the Revised Code.	611

(2) "Home" has the same meaning as in section 3313.64 of the	612
Revised Code.	613

(3) "School district of residence" has the same meaning as in	614
section 3323.01 of the Revised Code; however, a community school	615
established under this chapter is not a "school district of	616
residence" for purposes of this section.	617

(B) Notwithstanding anything to the contrary in section	618
3314.08 or 3317.03 of the Revised Code, all of the following apply	619
in the case of a child who is enrolled in a community school and	620
is also living in a home:	621

(1) For purposes of the report required under division (B)(1)	622
of section 3314.08 of the Revised Code, the child's school	623
district of residence, and not the school district in which the	624
home that the child is living in is located, shall be considered	625
to be the school district in which the child is entitled to attend	626
school. That school district of residence, therefore, shall make	627
the report required under division (B)(1) of section 3314.08 of	628
the Revised Code with respect to the child.	629

(2) For purposes of the report required under division (B)(2)	630
of section 3314.08 of the Revised Code, the community school shall	631
report the name of the child's school district of residence.	632

(3) The child's school district of residence shall count the	633
child in that district's formula ADM.	634

(4) The school district in which the home that the child is	635
living in is located shall not count the child in that district's	636
formula ADM.	637

(5) The Departmentdepartment of Educationeducation shall	638
deduct the applicable amounts prescribed under division (C) of	639
section 3314.08 and division (D) of section 3314.13 of the Revised	640
Code from the child's school district of residence and shall not	641
deduct those amounts from the school district in which the home	642
that the child is living in is located.	643

(6) The Departmentdepartment shall make the payments	644
prescribed in divisions (D) and (E) of section 3314.08 and section	645
3314.13 of the Revised Code, as applicable, to the community	646
school.	647

Sec. 3314.26. (A) Each internet- or computer-based community	648
school shall withdraw from the school any student who, for two	649
consecutive school years, has failed to participate in the spring	650
administration of any test prescribed under section 3301.0710 or	651
3301.0712 of the Revised Code for the student's grade level and	652
was not excused from the test pursuant to division (C)(1) or (3)	653
of section 3301.0711 of the Revised Code, regardless of whether a	654
waiver was granted for the student under division (Q)(P)(3) of	655
section 3314.08 of the Revised Code. The school shall report any	656
such student's data verification code, as assigned pursuant to	657
section 3301.0714 of the Revised Code, to the department of	658
education. The department shall maintain a list of all data	659
verification codes reported under this division and section	660
3313.6410 of the Revised Code and provide that list to each	661
internet- or computer-based community school and to each school to	662
which section 3313.6410 of the Revised Code applies.	663

(B) No internet- or computer-based community school shall	664
receive any state funds under this chapter for any enrolled	665
student whose data verification code appears on the list	666
maintained by the department under division (A) of this section.	667

Notwithstanding any provision of the Revised Code to the	668
contrary, the parent of any such student shall pay tuition to the	669
internet- or computer-based community school in an amount equal to	670
the state funds the school otherwise would receive for that	671
student, as determined by the department. An internet- or	672
computer-based community school may withdraw any student for whom	673
the parent does not pay tuition as required by this division.	674

Sec. 3317.016. In addition to its form SF-3, or any successor	675
to that form, the department of education shall publish on its web	676
site a spreadsheet for each school district that specifies the	677
constituent components of the district's "building blocks" funds,	678
as follows:	679

(A) For compensation of base classroom teachers, as described	680
in division (B)(1) of section 3317.012 of the Revised Code, each	681
spreadsheet shall specify the district's aggregate and per pupil	682
amounts of state funds and of combined state and local funds, the	683
average compensation decided by the general assembly for base	684
classroom teachers, as specified in that division, and the number	685
of base classroom teachers attributable to the district based on	686
the student-teacher ratio decided by the general assembly, as	687
specified in that division.	688

(B) Each spreadsheet shall specify the district's aggregate	689
and per pupil amounts of state funds and of combined state and	690
local funds for each of the following:	691

(1) Other personnel support, as described in division (B)(2)	692
of section 3317.012 of the Revised Code;	693

(2) Nonpersonnel support, as described in division (B)(3) of	694
that section;	695

(3) Academic intervention services, as described in division	696
(C)(1) of that section;	697

(4) Professional development, as described in division (C)(2)	698
of that section;	699

(5) Data-based decision making, as described in division	700
(C)(3) of that section;	701

(6) Professional development for data-based decision making,	702
as described in division (C)(4) of that section.	703

(C) Each spreadsheet shall separately specify the district's	704
aggregate and per pupil state funds for each of the following	705
components of poverty-based assistance under section 3317.029 of	706
the Revised Code:	707

(1) Academic intervention funding under division (C) of that	708
section;	709

(2) All-day kindergarten under division (D) of that section;

710

(3) Increased classroom learning opportunities under	711
division (E) of that section;	712

(4)(3) Services to limited English proficient students under	713
division (F) of that section;	714

(5)(4) Professional development, under division (G) of that	715
section;	716

(6)(5) Dropout prevention under division (H) of that section;

717

(7)(6) Community outreach under division (I) of that section;

718

(8)(7) Assistance in closing the achievement gap under	719
division (K) of that section.	720

Sec. 3317.017.  (A) Not later than July 1, 2006, the	721
superintendent of public instruction shall adopt a rule under	722
which the superintendent may issue an order with respect to the	723
spending, by a school district declared to be under an academic	724
watch or in a state of academic emergency under section 3302.03 of	725
the Revised Code, of the following state building block funds	726
intended to pay instructional-related costs:	727

(1) State funds for compensation of base classroom teachers,	728
as described in division (B)(1) of section 3317.012 of the Revised	729
Code;	730

(2) State funds for academic intervention services under	731
division (C)(1) of section 3317.012 and division (C) of section	732
3317.029 of the Revised Code;	733

(3) State funds for professional development under divisions	734
(C)(2) and (4) of section 3317.012 and division (G) of section	735
3317.029 of the Revised Code;	736

(4) State funds for data based decision making under division	737
(C)(3) of section 3317.012 of the Revised Code;	738

(5) State funds for all-day kindergarten under division (D)	739
of section 3317.029 of the Revised Code;	740

(6) State funds for increased classroom learning	741
opportunities under division (E) of section 3317.029 of the	742
Revised Code;	743

(7)(6) State funds for services to limited English proficient	744
students under division (F) of section 3317.029 of the Revised	745
Code;	746

(8)(7) State funds for dropout prevention under division (H)	747
of section 3317.029 of the Revised Code;	748

(9)(8) State funds for community outreach under division (I)	749
of section 3317.029 of the Revised Code;	750

(10)(9) State funds for assistance in closing the achievement	751
gap under division (K) of section 3317.029 of the Revised Code.	752

(B) The rule shall authorize the superintendent of public	753
instruction to issue an order that does one or a combination of	754
the following:	755

(1) Requires the school district to periodically report to	756
the superintendent of public instruction on its spending of the	757
state funds paid for each building blocks component described in	758
divisions (A)(1) to (10)(9) of this section;	759

(2) Requires the district to establish a separate account for	760
each of the building blocks components described in divisions	761
(A)(1) to (10)(9) of this section to which the district shall	762
credit the state funds paid for each;	763

(3) Directs the district's spending of any or all of the	764
state funds paid for the components described in divisions (A)(1)	765
to (10)(9) of this section in accordance with the descriptions and	766
requirements of sections 3317.012 and 3317.029 of the Revised	767
Code.	768

(C) The rule shall specify situations in which the	769
superintendent may issue an order and the types of orders the	770
superintendent will issue for each of those situations. The rule,	771
however, shall authorize the superintendent to issue orders in	772
situations that are not enumerated or described in the rule.	773

(D) The board of education of each school district to which	774
the superintendent of public instruction issues an order pursuant	775
to the rule adopted under this section shall comply with that	776
order.	777

Sec. 3317.02.  As used in this chapter:

778

(A) Unless otherwise specified, "school district" means city,	779
local, and exempted village school districts.	780

(B) "Formula amount" means the base cost for the fiscal year	781
specified in division (B)(4) of section 3317.012 of the Revised	782
Code.	783

(C) "FTE basis" means a count of students based on full-time	784
equivalency, in accordance with rules adopted by the department of	785
education pursuant to section 3317.03 of the Revised Code. Each	786
student enrolled in traditional half-day kindergarten shall be	787
counted as one-half of one full-time equivalent student, and each	788
student enrolled in all-day kindergarten shall be counted as one	789
full-time equivalent student. In adopting its rules under this	790
division, the department shall provide for counting any student in	791
category one, two, three, four, five, or six special education ADM	792
or in category one or two vocational education ADM in the same	793
proportion the student is counted in formula ADM.	794

(D) "Formula ADM" means, for a city, local, or exempted	795
village school district, the final number verified by the	796
superintendent of public instruction, based on the number reported	797
pursuant to division (A) of section 3317.03 of the Revised Code,	798
as adjusted, if so ordered, under division (K) of that section.	799
"Formula ADM" means, for a joint vocational school district, the	800
final number verified by the superintendent of public	801
instruction, based on the number reported pursuant to division (D)	802
of section 3317.03 of the Revised Code, as adjusted, if so	803
ordered, under division (K) of that section. Beginning in fiscal	804
year 2007, for payments in which formula ADM is a factor, the	805
formula ADM for each school district for the fiscal year is the	806
sum of one-half of the number verified and adjusted for October	807
of that fiscal year plus one-half of the average of the numbers	808
verified and adjusted for October and February of that fiscal	809
year.	810

(E) "Three-year average formula ADM" means the average of	811
formula ADMs for the preceding three fiscal years.	812

(F)(1) "Category one special education ADM" means the average	813
daily membership of children with disabilities receiving special	814
education services for the disability specified in division (A)	815
of section 3317.013 of the Revised Code and reported under	816
division (B)(5) or (D)(2)(b) of section 3317.03 of the Revised	817
Code. Beginning in fiscal year 2007, the district's category one	818
special education ADM for a fiscal year is the sum of one-half of	819
the number reported for October of that fiscal year plus one-half	820
of the average of the numbers reported for October and February	821
of that fiscal year.	822

(2) "Category two special education ADM" means the average	823
daily membership of children with disabilities receiving special	824
education services for those disabilities specified in division	825
(B) of section 3317.013 of the Revised Code and reported under	826
division (B)(6) or (D)(2)(c) of section 3317.03 of the Revised	827
Code. Beginning in fiscal year 2007, the district's category two	828
special education ADM for a fiscal year is the sum of one-half of	829
the number reported for October of that fiscal year plus one-half	830
of the average of the numbers reported for October and February	831
of that fiscal year.	832

(3) "Category three special education ADM" means the average	833
daily membership of students receiving special education services	834
for those disabilities specified in division (C) of section	835
3317.013 of the Revised Code, and reported under division (B)(7)	836
or (D)(2)(d) of section 3317.03 of the Revised Code. Beginning in	837
fiscal year 2007, the district's category three special education	838
ADM for a fiscal year is the sum of one-half of the number	839
reported for October of that fiscal year plus one-half of the	840
average of the numbers reported for October and February of that	841
fiscal year.	842

(4) "Category four special education ADM" means the average	843
daily membership of students receiving special education services	844
for those disabilities specified in division (D) of section	845
3317.013 of the Revised Code and reported under division (B)(8)	846
or (D)(2)(e) of section 3317.03 of the Revised Code. Beginning in	847
fiscal year 2007, the district's category four special education	848
ADM for a fiscal year is the sum of one-half of the number	849
reported for October of that fiscal year plus one-half of the	850
average of the numbers reported for October and February of that	851
fiscal year.	852

(5) "Category five special education ADM" means the average	853
daily membership of students receiving special education services	854
for the disabilities specified in division (E) of section	855
3317.013 of the Revised Code and reported under division (B)(9) or	856
(D)(2)(f) of section 3317.03 of the Revised Code. Beginning in	857
fiscal year 2007, the district's category five special education	858
ADM for a fiscal year is the sum of one-half of the number	859
reported for October of that fiscal year plus one-half of the	860
average of the numbers reported for October and February of that	861
fiscal year.	862

(6) "Category six special education ADM" means the average	863
daily membership of students receiving special education services	864
for the disabilities specified in division (F) of section	865
3317.013 of the Revised Code and reported under division (B)(10)	866
or (D)(2)(g) of section 3317.03 of the Revised Code. Beginning in	867
fiscal year 2007, the district's category six special education	868
ADM for a fiscal year is the sum of one-half of the number	869
reported for October of that fiscal year plus one-half of the	870
average of the numbers reported for October and February of that	871
fiscal year.	872

(7) "Category one vocational education ADM" means the average	873
daily membership of students receiving vocational education	874
services described in division (A) of section 3317.014 of the	875
Revised Code and reported under division (B)(11) or (D)(2)(h) of	876
section 3317.03 of the Revised Code. Beginning in fiscal year	877
2007, the district's category one vocational education ADM for a	878
fiscal year is the sum of one-half of the number reported for	879
October of that fiscal year plus one-half of the average of the	880
numbers reported for October and February of that fiscal year.	881

(8) "Category two vocational education ADM" means the average	882
daily membership of students receiving vocational education	883
services described in division (B) of section 3317.014 of the	884
Revised Code and reported under division (B)(12) or (D)(2)(i) of	885
section 3317.03 of the Revised Code. Beginning in fiscal year	886
2007, the district's category two vocational education ADM for a	887
fiscal year is the sum of one-half of the number reported for	888
October of that fiscal year plus one-half of the average of the	889
numbers reported for October and February of that fiscal year.	890

(G) "Preschool child with a disability" means a child with	891
a disability, as defined in section 3323.01 of the Revised Code,	892
who is at least age three but is not of compulsory school age, as	893
defined in section 3321.01 of the Revised Code, and who is not	894
currently enrolled in kindergarten.	895

(H) "County MR/DD board" means a county board of mental	896
retardation and developmental disabilities.	897

(I) "Recognized valuation" means the amount calculated for a	898
school district pursuant to section 3317.015 of the Revised Code.	899

(J) "Transportation ADM" means the number of children	900
reported under division (B)(13) of section 3317.03 of the Revised	901
Code.	902

(K) "Average efficient transportation use cost per student"	903
means a statistical representation of transportation costs as	904
calculated under division (D)(2) of section 3317.022 of the	905
Revised Code.	906

(L) "Taxes charged and payable" means the taxes charged and	907
payable against real and public utility property after making the	908
reduction required by section 319.301 of the Revised Code, plus	909
the taxes levied against tangible personal property.	910

(M) "Total taxable value" means the sum of the amounts	911
certified for a city, local, exempted village, or joint vocational	912
school district under divisions (A)(1) and (2) of section 3317.021	913
of the Revised Code.	914

(N) "Tax exempt value" of a school district means the amount	915
certified for a school district under division (A)(4) of section	916
3317.021 of the Revised Code.	917

(O) "Potential value" of a school district means the	918
recognized valuation of a school district plus the tax exempt	919
value of the district.	920

(P) "District median income" means the median Ohio adjusted	921
gross income certified for a school district. On or before the	922
first day of July of each year, the tax commissioner shall	923
certify to the department of education and the office of budget	924
and management for each city, exempted village, and local school	925
district the median Ohio adjusted gross income of the residents	926
of the school district determined on the basis of tax returns	927
filed for the second preceding tax year by the residents of the	928
district.	929

(Q) "Statewide median income" means the median district	930
median income of all city, exempted village, and local school	931
districts in the state.	932

(R) "Income factor" for a city, exempted village, or local	933
school district means the quotient obtained by dividing that	934
district's median income by the statewide median income.	935

(S) "Medically fragile child" means a child to whom all of	936
the following apply:	937

(1) The child requires the services of a doctor of medicine	938
or osteopathic medicine at least once a week due to the	939
instability of the child's medical condition.	940

(2) The child requires the services of a registered nurse on	941
a daily basis.	942

(3) The child is at risk of institutionalization in a	943
hospital, skilled nursing facility, or intermediate care facility	944
for the mentally retarded.	945

(T) A child may be identified as having an "other health	946
impairment-major" if the child's condition meets the definition	947
of "other health impaired" established in rules adopted by the	948
state board of education prior to July 1, 2001, and if either of	949
the following apply:	950

(1) The child is identified as having a medical condition	951
that is among those listed by the superintendent of public	952
instruction as conditions where a substantial majority of cases	953
fall within the definition of "medically fragile child." The	954
superintendent of public instruction shall issue an initial list	955
no later than September 1, 2001.	956

(2) The child is determined by the superintendent of public	957
instruction to be a medically fragile child. A school district	958
superintendent may petition the superintendent of public	959
instruction for a determination that a child is a medically	960
fragile child.	961

(U) A child may be identified as having an "other health	962
impairment-minor" if the child's condition meets the definition	963
of "other health impaired" established in rules adopted by the	964
state board of education prior to July 1, 2001, but the child's	965
condition does not meet either of the conditions specified in	966
division (T)(1) or (2) of this section.	967

(V) "State education aid" has the same meaning as in section	968
5751.20 of the Revised Code.	969

(W) "Property exemption value" means zero in fiscal year	970
2006, and in fiscal year 2007 and each fiscal year thereafter, the	971
amount certified for a school district under divisions (A)(6) and	972
(7) of section 3317.021 of the Revised Code.	973

(X) "Internet- or computer-based community school" has the	974
same meaning as in section 3314.02 of the Revised Code.	975

(Y) "All-day kindergarten" means a kindergarten class that is	976
in session five days per week for not less than the same number of	977
clock hours each day as for pupils in grades one through six.	978

Sec. 3317.029.  (A) As used in this section:

979

(1) "Poverty percentage" means the quotient obtained by	980
dividing the average number of children ages five to seventeen	981
residing in the school district and living in a family receiving	982
assistance under the Ohio works first program or an antecedent	983
program known as TANF or ADC for the preceding five years, as	984
certified or adjusted under section 3317.10 of the Revised Code,	985
by the district's three-year average formula ADM.	986

(2) "Statewide poverty percentage" means the average of the	987
total number of children ages five to seventeen years residing in	988
the state and receiving assistance under the Ohio works first	989
program or an antecedent program known as TANF or ADC for the	990
preceding five years, divided by the sum of the three-year	991
average formula ADMs for all school districts in the state.	992

(3) "Poverty index" means the quotient obtained by dividing	993
the school district's poverty percentage by the statewide poverty	994
percentage.	995

(4) "Poverty student count" means the average number of	996
children ages five to seventeen residing in the school district	997
and living in a family receiving assistance under the Ohio works	998
first program or an antecedent program known as TANF or ADC for	999
the preceding five years, as certified under section 3317.10 of	1000
the Revised Code.	1001

(5) "Kindergarten ADM" means the number of students reported	1002
under section 3317.03 of the Revised Code as enrolled in	1003
kindergarten, excluding any kindergarten students reported under	1004
division (B)(3)(e), (f), or (g) of section 3317.03 of the Revised	1005
Code.	1006

(6) "Kindergarten through third grade ADM" means the amount	1007
calculated as follows:	1008

(a) Multiply the kindergarten ADM by the sum of one plus the	1009
all-day kindergarten percentage;	1010

(b) Add theThe number of students in grades onekindergarten	1011
through three;	1012

(c) Subtract from the sum calculated under division (A)(6)(b)	1013
of this section theminus	1014

(b) The number of special education students in grades	1015
kindergarten through three.	1016

"Kindergarten through third grade ADM" shall not include any	1017
students reported under division (B)(3)(e), (f), or (g) of section	1018
3317.03 of the Revised Code.	1019

(7) "All-day kindergarten" means a kindergarten class that is	1020
in session five days per week for not less than the same number of	1021
clock hours each day as for pupils in grades one through six.	1022

(8) "All-day kindergarten percentage" means the percentage of	1023
a district's actual total number of students enrolled in	1024
kindergarten who are enrolled in all-day kindergarten.	1025

(9)(6) "All-day kindergarten ADM" means the number of	1026
students reported under section 3317.03 of the Revised Code as	1027
enrolled in all-day kindergarten, excluding any kindergarten	1028
students reported under division (B)(3)(e), (f), or (g) of that	1029
section.	1030

(10)(7) "Academic distress percentage" means the quotient of	1031
the number of district-operated buildings in the school district	1032
designated under section 3302.03 of the Revised Code as in a state	1033
of academic watch or academic emergency, divided by the total	1034
number of buildings in the district that were open for instruction	1035
during the same school year to which the ratings apply.	1036

(11)(8) "Statewide academic distress percentage" means the	1037
quotient of the statewide number of school district buildings and	1038
community schools designated under section 3302.03 of the Revised	1039
Code as in a state of academic watch or academic emergency,	1040
divided by the statewide total number of school district buildings	1041
and community schools that were open for instruction during the	1042
same school year to which the ratings apply.	1043

(12)(9) "Academic distress index" means the quotient of the	1044
school district's academic distress percentage, divided by the	1045
statewide academic distress percentage.	1046

(13)(10) "Buildings with the highest concentration of need"	1047
means the school buildings in a district that meet either of the	1048
following criteria:	1049

(a) Are in school improvement status pursuant to the "No	1050
Child Left Behind Act of 2001," as defined in section 3302.01 of	1051
the Revised Code;	1052

(b) Have percentages of students receiving assistance under	1053
Ohio works first at least as high as the district-wide percentage	1054
of students receiving such assistance. However, the district shall	1055
give priority to any of those buildings that have been declared	1056
to be in a state of academic watch or academic emergency under	1057
section 3302.03 of the Revised Code.	1058

If, in any fiscal year, the information provided by the	1059
department of job and family services under section 3317.10 of the	1060
Revised Code is insufficient to determine the Ohio works first	1061
percentage in each building, "buildings with the highest	1062
concentration of need" has the meaning given in rules that the	1063
department of education shall adopt. The rules shall base the	1064
definition of "buildings with the highest concentration of need"	1065
on family income of students in a manner that, to the extent	1066
possible with available data, approximates the intent to designate	1067
buildings where the Ohio works first percentage equals or exceeds	1068
the district-wide Ohio works first percentage.	1069

(B) The department of education shall compute for each	1070
school district for poverty-based assistance the sum of the	1071
computations made under divisions (C) to (I) and (K) of this	1072
section and shall pay that sum to the district in accordance	1073
with division (A) of section 3317.022 of the Revised Code.	1074

(C) A payment for academic intervention programs, if the	1075
district's poverty index is greater than or equal to 0.25,	1076
calculated as follows:	1077

(1) If the district's poverty index is greater than or equal	1078
to 0.25, calculate the district's level one amount for large-group	1079
academic intervention for all students as follows:	1080

(a) If the district's poverty index is greater than or equal	1081
to 0.25 but less than 0.75:	1082

large-group intervention units X hourly rate X	1083

level one hours X [(poverty index – 0.25)/0.5]	1084

Where:

1085

(i) "Large-group intervention units" equals the district's	1086
formula ADM divided by 20;	1087

(ii) "Hourly rate" equals $21.01 in fiscal year 2008 and	1088
$21.64 in fiscal year 2009;	1089

(iii) "Level one hours" equals 25 hours.

1090

(b) If the district's poverty index is greater than or equal	1091
to 0.75:	1092

large-group intervention units X hourly rate X	1093

level one hours	1094

Where "large-group intervention units," "hourly rate," and	1095
"level one hours" have the same meanings as in division (C)(1)(a)	1096
of this section.	1097

(2) If the district's poverty index is greater than or equal	1098
to 0.75, calculate the district's level two amount for	1099
medium-group academic intervention for all students as follows:	1100

(a) If the district's poverty index is greater than or equal	1101
to 0.75 but less than 1.50:	1102

medium-group intervention units X hourly rate	1103

X {level one hours + [25 hours X ((poverty index – 0.75)/0.75)]}	1104

	1105

Where:

1106

(i) "Medium group intervention units" equals the district's	1107
formula ADM divided by 15;	1108

(ii) "Hourly rate" and "level one hours" have the same	1109
meanings as in division (C)(1)(a) of this section.	1110

(b) If the district's poverty index is greater than or equal	1111
to 1.50:	1112

medium-group intervention units X hourly rate X	1113

level two hours	1114

Where:

1115

(i) "Medium group intervention units" has the same meaning as	1116
in division (C)(2)(a)(i) of this section;	1117

(ii) "Hourly rate" has the same meaning as in division	1118
(C)(1)(a) of this section;	1119

(iii) "Level two hours" equals 50 hours.

1120

(3) If the district's poverty index is greater than or equal	1121
to 1.50, calculate the district's level three amount for	1122
small-group academic intervention for impoverished students as	1123
follows:	1124

(a) If the district's poverty index is greater than or equal	1125
to 1.50 but less than 2.50:	1126

small group intervention units X hourly rate X	1127

{level one hours + [level three hours X	1128

(poverty index – 1.50)]}	1129

Where:

1130

(i) "Small group intervention units" equals the quotient of	1131
(the district's poverty student count times 3) divided by 10;	1132

(ii) "Hourly rate" and "level one hours" have the same	1133
meanings as in division (C)(1)(a) of this section;	1134

(iii) "Level three hours" equals 135 hours.

1135

(b) If the district's poverty index is greater than or equal	1136
to 2.50:	1137

small group intervention units X hourly rate	1138

X level three hours	1139

Where:

1140

(i) "Small group intervention units" has the same meaning as	1141
in division (C)(3)(a)(i) of this section;	1142

(ii) "Hourly rate" has the same meaning as in division	1143
(C)(1)(a) of this section;	1144

(iii) "Level three hours" equals 160 hours.

1145

Any district that receives funds under division (C)(2) or (3)	1146
of this section annually shall submit to the department of	1147
education by a date established by the department a plan	1148
describing how the district will deploy those funds. The	1149
deployment measures described in that plan shall comply with any	1150
applicable spending requirements prescribed in division (J)(6)(5)	1151
of this section or with any order issued by the superintendent of	1152
public instruction under section 3317.017 of the Revised Code.	1153

(D) AThis division does not apply to fiscal years after	1154
fiscal year 2009.	1155

A payment for all-day kindergarten if the poverty index of	1156
the school district is greater than or equal to 1.0 or if the	1157
district's three-year average formula ADM exceeded seventeen	1158
thousand five hundred. In addition, the department shall make a	1159
payment under this division to any school district that, in a	1160
prior fiscal year, qualified for this payment and provided all-day	1161
kindergarten, regardless of changes to the district's poverty	1162
index. The department shall calculate the payment under this	1163
division by multiplying the all-day kindergarten ADM by the	1164
formula amount.	1165

(E) A payment for increased classroom learning opportunities	1166
based on calculating the number of new teachers necessary to	1167
achieve a lower student-teacher ratio, as follows:	1168

(1) Determine or calculate a formula number of teachers per	1169
one thousand students based on the poverty index of the school	1170
district as follows:	1171

(a) If the poverty index of the school district is less than	1172
1.0, the formula number of teachers is 50.0, which is the number	1173
of teachers per one thousand students at a student-teacher ratio	1174
of twenty to one;	1175

(b) If the poverty index of the school district is greater	1176
than or equal to 1.0, but less than 1.5, the formula number of	1177
teachers is calculated as follows:	1178

50.0 + {[(poverty index – 1.0)/0.5] X 16.667}	1179

Where 50.0 is the number of teachers per one thousand	1180
students at a student-teacher ratio of twenty to one; 0.5 is the	1181
interval from a poverty index of 1.0 to a poverty index of 1.5;	1182
and 16.667 is the difference in the number of teachers per one	1183
thousand students at a student-teacher ratio of fifteen to one and	1184
the number of teachers per one thousand students at a	1185
student-teacher ratio of twenty to one.	1186

(c) If the poverty index of the school district is greater	1187
than or equal to 1.5, the formula number of teachers is 66.667,	1188
which is the number of teachers per one thousand students at a	1189
student-teacher ratio of fifteen to one.	1190

(2) Multiply the formula number of teachers determined or	1191
calculated in division (E)(1) of this section by the kindergarten	1192
through third grade ADM for the district and divide that product	1193
by one thousand;	1194

(3) Calculate the number of new teachers as follows:

1195

(a) Multiply the kindergarten through third grade ADM by	1196
50.0, which is the number of teachers per one thousand students at	1197
a student-teacher ratio of twenty to one, and divide that product	1198
by one thousand;	1199

(b) Subtract the quotient obtained in division (E)(3)(a) of	1200
this section from the product in division (E)(2) of this section.	1201

(4) Multiply the greater of the difference obtained under	1202
division (E)(3) of this section or zero by the statewide average	1203
teachers compensation. For this purpose, the "statewide average	1204
teacher compensation" is $56,754 in fiscal year 2008 and $58,621	1205
in fiscal year 2009, which includes an amount for the value of	1206
fringe benefits.	1207

(F) A payment for services to limited English proficient	1208
students, if the district's poverty index is greater than or equal	1209
to 1.0 and the proportion of its students who are limited English	1210
proficient, as reported in 2003 on its school district report card	1211
issued under section 3302.03 of the Revised Code for the 2002-2003	1212
school year, is greater than or equal to 2.0%, calculated as	1213
follows:	1214

(1) If the district's poverty index is greater than or equal	1215
to 1.0, but less than 1.75, determine the amount per limited	1216
English proficient student as follows:	1217

{0.125 + [0.125 X ((poverty index - 1.0)/0.75)]}	1218

X formula amount	1219

(2) If the district's poverty index is greater than or equal	1220
to 1.75, the amount per limited English proficient student equals:	1221

0.25 X formula amount	1222

(3) Multiply the per student amount determined for the	1223
district under division (F)(1) or (2) of this section by the	1224
number of the district's limited English proficient students,	1225
times a phase-in percentage of 0.70 in fiscal years 2008 and	1226
2009. For purposes of this calculation, the number of limited	1227
English proficient students for each district shall be the number	1228
determined by the department when it calculated the district's	1229
percentage of limited English proficient students for its school	1230
district report card issued in 2003 for the 2002-2003 school	1231
year.	1232

(G) A payment for professional development of teachers, if	1233
the district's poverty index is greater than or equal to 1.0,	1234
calculated as follows:	1235

(1) If the district's poverty index is greater than or equal	1236
to 1.0, but less than 1.75, determine the amount per teacher as	1237
follows:	1238

[(poverty index – 1.0)/0.75] X 0.045 X formula amount	1239

(2) If the district's poverty index is greater than or equal	1240
to 1.75, the amount per teacher equals:	1241

0.045 X formula amount	1242

(3) Determine the number of teachers, as follows:

1243

(formula ADM/17)	1244

(4) Multiply the per teacher amount determined for the	1245
district under division (G)(1) or (2) of this section by the	1246
number of teachers determined under division (G)(3) of this	1247
section.	1248

(H) A payment for dropout prevention, if the district is a	1249
big eight school district as defined in section 3314.02 of the	1250
Revised Code, calculated as follows:	1251

0.005 X formula amount X poverty index	1252

X formula ADM	1253

(I) An amount for community outreach, if the district is an	1254
urban school district as defined in section 3314.02 of the Revised	1255
Code, calculated as follows:	1256

0.005 X formula amount X poverty index X	1257

formula ADM	1258

(J) This division applies only to school districts that	1259
receive more than ten thousand dollars under this section. Each	1260
such district shall use funds paid under this section only for	1261
one or more of the following purposes:	1262

(1) To provide all-day kindergarten to the children in the	1263
district's all-day kindergarten ADM;	1264

(2) To provide services to students with limited English	1265
proficiency through one or more of the following activities:	1266

(a) Hiring teachers for limited English proficient students	1267
or other personnel to provide intervention services for those	1268
students;	1269

(b) Contracting for intervention services for those	1270
students;	1271

(c) Providing other services to assist those students in	1272
passing the third-grade reading achievement test, and to provide	1273
for those students the intervention services required by section	1274
3313.608 of the Revised Code.	1275

(3)(2) To provide professional development of teachers or	1276
other licensed personnel providing educational services to	1277
students only in one or more of the following areas:	1278

(a) Data-based decision making;

1279

(b) Standards-based curriculum models;

1280

(c) High quality professional development activities that	1281
are research-based, as defined by state standards developed under	1282
section 3319.61 of the Revised Code;	1283

(d) Professional learning communities.

1284

In addition, each district that elects to use funds paid	1285
under this section for professional development shall only	1286
implement programs identified on a list of eligible professional	1287
development programs provided by the department of education. The	1288
department annually shall provide the list to each district	1289
receiving a payment under this section.	1290

(4)(3) For preventing at-risk students from dropping out of	1291
school. Not later than September 1, 2007, the department of	1292
education shall provide each school district receiving a payment	1293
under this section with a list of dropout prevention programs	1294
that it has determined are successful. The department	1295
subsequently may update the list. Each district that elects to	1296
use its payment under this section for dropout prevention shall	1297
use the payment only to implement a dropout prevention program	1298
specified on the department's list.	1299

(5)(4) For one or a combination of the following purposes:

1300

(a) To hire or contract for community liaison officers,	1301
attendance or truant officers, or safety and security personnel;	1302

(b) To implement programs designed to ensure that schools are	1303
free of drugs and violence and have a disciplined environment	1304
conducive to learning in accordance with safe school guidelines	1305
adopted by the state board of education;	1306

(c) To implement academic intervention services described in	1307
division (J)(6)(5) of this section.	1308

(6) Except as permitted under division (J)(1) of this	1309
section, each(5) Each school district with a poverty index	1310
greater than or equal to 1.0 shall use the amount of its payment	1311
under division (C) of this section for academic intervention	1312
services, designed in accordance with student intervention	1313
guidelines adopted by the state board, for students who have	1314
failed or are in danger of failing any of the tests administered	1315
pursuant to section 3301.0710 of the Revised Code, including	1316
intervention services required by section 3313.608 of the	1317
Revised Code. Except as permitted under division (J)(1) of this	1318
section, noNo district shall spend any portion of its payment	1319
under division (C) of this section for any other purpose.	1320
Notwithstanding any provision to the contrary in Chapter 4117.	1321
of the Revised Code, no collective bargaining agreement entered	1322
into after June 30, 2005, shall require use of the payment for	1323
any other purpose.	1324

(7)(6) For increased classroom learning opportunities by	1325
increasing the amount of instructional attention received per	1326
pupil in kindergarten through third grade, either by reducing the	1327
ratio of students to instructional personnel or by increasing the	1328
amount of instruction and curriculum-related activities by	1329
extending the length of the school day or the school year.	1330

School districts may implement a reduction of the ratio of	1331
students to instructional personnel through any or all of the	1332
following methods:	1333

(a) Reducing the number of students in a classroom taught by	1334
a single teacher;	1335

(b) Employing full-time educational aides or educational	1336
paraprofessionals, issued a permit or license under section	1337
3319.088 of the Revised Code, who are engaged in classroom support	1338
activities;	1339

(c) Instituting a team-teaching method that will result in a	1340
lower student-teacher ratio in a classroom.	1341

Districts may extend the school day either by increasing the	1342
amount of time allocated for each class, increasing the number of	1343
classes provided per day, offering optional academic-related	1344
after-school programs, providing curriculum-related extra	1345
curricular activities, or establishing tutoring or remedial	1346
services for students who have demonstrated an educational need.	1347
In accordance with section 3319.089 of the Revised Code, a	1348
district extending the school day pursuant to this division may	1349
utilize a participant of the work experience program who has a	1350
child enrolled in a public school in that district and who is	1351
fulfilling the work requirements of that program by volunteering	1352
or working in that public school. If the work experience program	1353
participant is compensated, the school district may use the funds	1354
distributed under this section for all or part of the	1355
compensation.	1356

Districts may extend the school year either through adding	1357
regular days of instruction to the school calendar or by providing	1358
summer programs.	1359

(8)(7) For early childhood programs or early learning	1360
programs, as defined by the department of education, for children	1361
age three or four who are not eligible for kindergarten;	1362

(9)(8) To furnish, free of charge, materials used in courses	1363
of instruction, except for the necessary textbooks or electronic	1364
textbooks required to be furnished without charge pursuant to	1365
section 3329.06 of the Revised Code, to pupils living in families	1366
participating in Ohio works first in accordance with section	1367
3313.642 of the Revised Code;	1368

(10)(9) For programs designed to reduce nonacademic barriers	1369
to learning, in accordance with guidelines developed by the	1370
department of education;	1371

(11)(10) For start-up costs associated with school breakfast	1372
programs provided pursuant to section 3313.813 of the Revised	1373
Code.	1374

A school district may apply to the department, in the form	1375
and manner prescribed by the department, for a waiver to spend	1376
funds paid under this section for programs not described in	1377
divisions (J)(1) to (11)(10) of this section. The waiver	1378
application shall specify the rationale for the alternative	1379
expenditure and the intended benefits for disadvantaged students.	1380
If the department grants the waiver, the district may use funds	1381
paid under this section to implement the alternative program.	1382

(K) A payment for assistance in closing the achievement gap,	1383
calculated as follows:	1384

(1) In fiscal year 2008 the department shall pay each school	1385
district that has both a poverty index that is greater than or	1386
equal to 1.0 and an academic distress index, as determined based	1387
on the most recent report card issued under section 3302.03 of the	1388
Revised Code, that is greater than or equal to 1.0, an amount	1389
calculated in accordance with the following formula:	1390

poverty index X academic distress index X	1391

(0.0015 X formula amount) X formula ADM	1392

(2) In fiscal year 2009:

1393

(a) If the district received a payment under division (K)(1)	1394
of this section for fiscal year 2008, and its academic distress	1395
percentage for fiscal year 2009, as determined based on the most	1396
recent report card issued under section 3302.03 of the Revised	1397
Code, is less than its academic distress percentage for fiscal	1398
year 2008, the department shall pay the district the product of	1399
its payment under division (K)(1) of this section for fiscal year	1400
2008 times 1.035.	1401

(b) If the district received a payment under division (K)(1)	1402
of this section for fiscal year 2008, and its academic distress	1403
percentage for fiscal year 2009, as determined based on the most	1404
recent report card issued under section 3302.03 of the Revised	1405
Code, is greater than or equal to its academic distress percentage	1406
for fiscal year 2008, the department shall pay the district the	1407
same amount as its payment under division (K)(1) of this section	1408
for fiscal year 2008.	1409

(c) If the district did not receive a payment under division	1410
(K)(1) of this section for fiscal year 2008, and it has both a	1411
poverty index that is greater than or equal to 1.0 and an academic	1412
distress index, as determined based on the most recent report card	1413
issued under section 3302.03 of the Revised Code, that is greater	1414
than or equal to 1.0 for fiscal year 2009, the department shall	1415
pay the district an amount calculated in accordance with the	1416
following formula:	1417

poverty index X academic distress index X	1418

(0.0015 X formula amount) X formula ADM	1419

(L) This division applies only to funds paid under division	1420
(K)(2)(b) of this section.	1421

(1) If applicable, each school district shall use the funds	1422
for any necessary expenses for the continued operation of a school	1423
district academic distress commission appointed under section	1424
3302.10 of the Revised Code.	1425

(2) After satisfying the requirement of division (L)(1) of	1426
this section, each district shall spend the remaining funds only	1427
for one or more of the following purposes and only in buildings	1428
with the highest concentration of need:	1429

(a) Assistance in improving student performance;

1430

(b) Professional development for teachers and administrators;

1431

(c) Assistance in recruiting and retaining teachers and	1432
administrators.	1433

(M)(1) Each school district wishing to receive any funds	1434
under division (D) of this section shall submit to the department	1435
of education the number of students attending all-day kindergarten	1436
when reporting formula ADM under section 3317.03 of the Revised	1437
Code.	1438

(2) Each school district that receives a payment under	1439
division (D) of this section shall first utilize funds received	1440
under that division to provide all-day kindergarten.	1441

(N) Except as permitted under division (M)(1) of this	1442
section, each school district with a poverty index less than 1.0	1443
that receives a payment under division (C) of this section shall	1444
use its payment under that division in accordance with all	1445
requirements of division (J)(6)(5) of this section.	1446

(O) If at any time the superintendent of public instruction	1447
determines that a school district receiving funds under division	1448
(D) of this section has enrolled fewer than the number of all-day	1449
kindergarten students reported for that fiscal year, the	1450
superintendent shall withhold from the funds otherwise due the	1451
district under this section a proportional amount as determined	1452
by the difference in the certified all-day kindergarten ADM and	1453
the actual all-day kindergarten ADM.	1454

(N) The superintendent of public instruction shall also	1455
withhold an appropriate amount of funds otherwise due a district	1456
for any other misuse of funds not in accordance with this section.	1457

(P)(1) A district may use a portion of the funds paid under	1458
this section to modify or purchase classroom space to provide	1459
all-day kindergarten, if both of the following conditions are	1460
met:	1461

(a) The district certifies to the department, in a manner	1462
acceptable to the department, that it has a shortage of space for	1463
providing all-day kindergarten.	1464

(b) The district provides all-day kindergarten to the number	1465
of children in the all-day kindergarten percentage it certified	1466
under this section.	1467

(2)(O) A district may use a portion of the funds paid under	1468
this section to modify or purchase classroom space to enable it	1469
to further reduce class size in grades kindergarten through two	1470
with a goal of attaining class sizes of fifteen students per	1471
licensed teacher. To do so, the district must certify its need	1472
for additional space to the department, in a manner satisfactory	1473
to the department.	1474

(Q)(P) Not later than the thirtieth day of September each	1475
year, each school district paid more than ten thousand dollars	1476
under this section shall report to the department, in the form	1477
and manner prescribed by the department, how the district	1478
deployed funds received under this section in the prior fiscal	1479
year. If a school district does not meet adequate progress	1480
standards as defined by the department, the department shall make	1481
recommendations to the district for deploying funds under this	1482
section in a more effective manner.	1483

Sec. 3317.03. Notwithstanding divisions (A)(1), (B)(1), and	1484
(C) of this section, except as provided in division (A)(2)(h) of	1485
this section, any student enrolled in kindergarten more than half	1486
time shall be reported as one-half student under this section.	1487

(A) The superintendent of each city and exempted village	1488
school district and of each educational service center shall, for	1489
the schools under the superintendent's supervision, certify to the	1490
state board of education on or before the fifteenth day of October	1491
in each year for the first full school week in October the formula	1492
ADM. Beginning in fiscal year 2007, each superintendent also shall	1493
certify to the state board, for the schools under the	1494
superintendent's supervision, the formula ADM for the first full	1495
week in February. If a school under the superintendent's	1496
supervision is closed for one or more days during that week due to	1497
hazardous weather conditions or other circumstances described in	1498
the first paragraph of division (B) of section 3317.01 of the	1499
Revised Code, the superintendent may apply to the superintendent	1500
of public instruction for a waiver, under which the superintendent	1501
of public instruction may exempt the district superintendent from	1502
certifying the formula ADM for that school for that week and	1503
specify an alternate week for certifying the formula ADM of that	1504
school.	1505

The formula ADM shall consist of the average daily membership	1506
during such week of the sum of the following:	1507

(1) On an FTE basis, the number of students in grades	1508
kindergarten through twelve receiving any educational services	1509
from the district, except that the following categories of	1510
students shall not be included in the determination:	1511

(a) Students enrolled in adult education classes;

1512

(b) Adjacent or other district students enrolled in the	1513
district under an open enrollment policy pursuant to section	1514
3313.98 of the Revised Code;	1515

(c) Students receiving services in the district pursuant to a	1516
compact, cooperative education agreement, or a contract, but who	1517
are entitled to attend school in another district pursuant to	1518
section 3313.64 or 3313.65 of the Revised Code;	1519

(d) Students for whom tuition is payable pursuant to sections	1520
3317.081 and 3323.141 of the Revised Code;	1521

(e) Students receiving services in the district through a	1522
scholarship awarded under section 3310.41 of the Revised Code.	1523

(2) On an FTE basis, except as provided in division (A)(2)(h)	1524
of this section, the number of students entitled to attend school	1525
in the district pursuant to section 3313.64 or 3313.65 of the	1526
Revised Code, but receiving educational services in grades	1527
kindergarten through twelve from one or more of the following	1528
entities:	1529

(a) A community school pursuant to Chapter 3314. of the	1530
Revised Code, including any participation in a college pursuant to	1531
Chapter 3365. of the Revised Code while enrolled in such community	1532
school;	1533

(b) An alternative school pursuant to sections 3313.974 to	1534
3313.979 of the Revised Code as described in division (I)(2)(a) or	1535
(b) of this section;	1536

(c) A college pursuant to Chapter 3365. of the Revised Code,	1537
except when the student is enrolled in the college while also	1538
enrolled in a community school pursuant to Chapter 3314. or a	1539
science, technology, engineering, and mathematics school	1540
established under Chapter 3326. of the Revised Code;	1541

(d) An adjacent or other school district under an open	1542
enrollment policy adopted pursuant to section 3313.98 of the	1543
Revised Code;	1544

(e) An educational service center or cooperative education	1545
district;	1546

(f) Another school district under a cooperative education	1547
agreement, compact, or contract;	1548

(g) A chartered nonpublic school with a scholarship paid	1549
under section 3310.08 of the Revised Code;	1550

(h) An alternative public provider or a registered private	1551
provider with a scholarship awarded under section 3310.41 of the	1552
Revised Code. Each such scholarship student who is enrolled in	1553
kindergarten shall be counted as one full-time-equivalent	1554
student.	1555

As used in this section, "alternative public provider" and	1556
"registered private provider" have the same meanings as in section	1557
3310.41 of the Revised Code,.	1558

(i) A science, technology, engineering, and mathematics	1559
school established under Chapter 3326. of the Revised Code,	1560
including any participation in a college pursuant to Chapter 3365.	1561
of the Revised Code while enrolled in the school.	1562

(3) Twenty per cent of the number of students enrolled in a	1563
joint vocational school district or under a vocational education	1564
compact, excluding any students entitled to attend school in the	1565
district under section 3313.64 or 3313.65 of the Revised Code who	1566
are enrolled in another school district through an open enrollment	1567
policy as reported under division (A)(2)(d) of this section and	1568
then enroll in a joint vocational school district or under a	1569
vocational education compact;	1570

(4) The number of children with disabilities, other than	1571
preschool children with disabilities, entitled to attend school	1572
in the district pursuant to section 3313.64 or 3313.65 of the	1573
Revised Code who are placed by the district with a county MR/DD	1574
board, minus the number of such children placed with a county	1575
MR/DD board in fiscal year 1998. If this calculation produces a	1576
negative number, the number reported under division (A)(4) of	1577
this section shall be zero.	1578

(5) Beginning in fiscal year 2007, in the case of the report	1579
submitted for the first full week in February, or the alternative	1580
week if specified by the superintendent of public instruction, the	1581
number of students reported under division (A)(1) or (2) of this	1582
section for the first full week of the preceding October but who	1583
since that week have received high school diplomas.	1584

(B) To enable the department of education to obtain the data	1585
needed to complete the calculation of payments pursuant to this	1586
chapter, in addition to the formula ADM, each superintendent shall	1587
report separately the following student counts for the same week	1588
for which formula ADM is certified:	1589

(1) The total average daily membership in regular day classes	1590
included in the report under division (A)(1) or (2) of this	1591
section for traditional half-day kindergarten, all-day	1592
kindergarten, and each of grades one through twelve in schools	1593
under the superintendent's supervision;	1594

(2) The number of all preschool children with disabilities	1595
enrolled as of the first day of December in classes in the	1596
district that are eligible for approval under division (B) of	1597
section 3317.05 of the Revised Code and the number of those	1598
classes, which shall be reported not later than the fifteenth day	1599
of December, in accordance with rules adopted under that section;	1600

(3) The number of children entitled to attend school in the	1601
district pursuant to section 3313.64 or 3313.65 of the Revised	1602
Code who are:	1603

(a) Participating in a pilot project scholarship program	1604
established under sections 3313.974 to 3313.979 of the Revised	1605
Code as described in division (I)(2)(a) or (b) of this section;	1606

(b) Enrolled in a college under Chapter 3365. of the Revised	1607
Code, except when the student is enrolled in the college while	1608
also enrolled in a community school pursuant to Chapter 3314. or a	1609
science, technology, engineering, and mathematics school	1610
established under Chapter 3326. of the Revised Code;	1611

(c) Enrolled in an adjacent or other school district under	1612
section 3313.98 of the Revised Code;	1613

(d) Enrolled in a community school established under Chapter	1614
3314. of the Revised Code that is not an internet- or	1615
computer-based community school as defined in section 3314.02 of	1616
the Revised Code, including any participation in a college	1617
pursuant to Chapter 3365. of the Revised Code while enrolled in	1618
such community school;	1619

(e) Enrolled in an internet- or computer-based community	1620
school, as defined in section 3314.02 of the Revised Code,	1621
including any participation in a college pursuant to Chapter 3365.	1622
of the Revised Code while enrolled in the school;	1623

(f) Enrolled in a chartered nonpublic school with a	1624
scholarship paid under section 3310.08 of the Revised Code;	1625

(g) Enrolled in kindergarten through grade twelve in an	1626
alternative public provider or a registered private provider with	1627
a scholarship awarded under section 3310.41 of the Revised Code;	1628

(h) Enrolled as a preschool child with a disability in an	1629
alternative public provider or a registered private provider with	1630
a scholarship awarded under section 3310.41 of the Revised Code;	1631

(i) Participating in a program operated by a county MR/DD	1632
board or a state institution;	1633

(j) Enrolled in a science, technology, engineering, and	1634
mathematics school established under Chapter 3326. of the Revised	1635
Code, including any participation in a college pursuant to Chapter	1636
3365. of the Revised Code while enrolled in the school.	1637

(4) The number of pupils enrolled in joint vocational	1638
schools;	1639

(5) The average daily membership of children with	1640
disabilities reported under division (A)(1) or (2) of this	1641
section receiving special education services for the category one	1642
disability described in division (A) of section 3317.013 of the	1643
Revised Code;	1644

(6) The average daily membership of children with	1645
disabilities reported under division (A)(1) or (2) of this	1646
section receiving special education services for category two	1647
disabilities described in division (B) of section 3317.013 of the	1648
Revised Code;	1649

(7) The average daily membership of children with	1650
disabilities reported under division (A)(1) or (2) of this	1651
section receiving special education services for category three	1652
disabilities described in division (C) of section 3317.013 of the	1653
Revised Code;	1654

(8) The average daily membership of children with	1655
disabilities reported under division (A)(1) or (2) of this	1656
section receiving special education services for category four	1657
disabilities described in division (D) of section 3317.013 of the	1658
Revised Code;	1659

(9) The average daily membership of children with	1660
disabilities reported under division (A)(1) or (2) of this	1661
section receiving special education services for the category	1662
five disabilities described in division (E) of section 3317.013	1663
of the Revised Code;	1664

(10) The combined average daily membership of children with	1665
disabilities reported under division (A)(1) or (2) and under	1666
division (B)(3)(h) of this section receiving special education	1667
services for category six disabilities described in division (F)	1668
of section 3317.013 of the Revised Code, including children	1669
attending a special education program operated by an alternative	1670
public provider or a registered private provider with a	1671
scholarship awarded under section 3310.41 of the Revised Code;	1672

(11) The average daily membership of pupils reported under	1673
division (A)(1) or (2) of this section enrolled in category one	1674
vocational education programs or classes, described in division	1675
(A) of section 3317.014 of the Revised Code, operated by the	1676
school district or by another district, other than a joint	1677
vocational school district, or by an educational service center,	1678
excluding any student reported under division (B)(3)(e) of this	1679
section as enrolled in an internet- or computer-based community	1680
school, notwithstanding division (C) of section 3317.02 of the	1681
Revised Code and division (C)(3) of this section;	1682

(12) The average daily membership of pupils reported under	1683
division (A)(1) or (2) of this section enrolled in category two	1684
vocational education programs or services, described in division	1685
(B) of section 3317.014 of the Revised Code, operated by the	1686
school district or another school district, other than a joint	1687
vocational school district, or by an educational service center,	1688
excluding any student reported under division (B)(3)(e) of this	1689
section as enrolled in an internet- or computer-based community	1690
school, notwithstanding division (C) of section 3317.02 of the	1691
Revised Code and division (C)(3) of this section;	1692

(13) The average number of children transported by the school	1693
district on board-owned or contractor-owned and -operated buses,	1694
reported in accordance with rules adopted by the department of	1695
education;	1696

(14)(a) The number of children, other than preschool children	1697
with disabilities, the district placed with a county MR/DD board	1698
in fiscal year 1998;	1699

(b) The number of children with disabilities, other than	1700
preschool children with disabilities, placed with a county MR/DD	1701
board in the current fiscal year to receive special education	1702
services for the category one disability described in division	1703
(A) of section 3317.013 of the Revised Code;	1704

(c) The number of children with disabilities, other than	1705
preschool children with disabilities, placed with a county MR/DD	1706
board in the current fiscal year to receive special education	1707
services for category two disabilities described in division (B)	1708
of section 3317.013 of the Revised Code;	1709

(d) The number of children with disabilities, other than	1710
preschool children with disabilities, placed with a county MR/DD	1711
board in the current fiscal year to receive special education	1712
services for category three disabilities described in division	1713
(C) of section 3317.013 of the Revised Code;	1714

(e) The number of children with disabilities, other than	1715
preschool children with disabilities, placed with a county MR/DD	1716
board in the current fiscal year to receive special education	1717
services for category four disabilities described in division (D)	1718
of section 3317.013 of the Revised Code;	1719

(f) The number of children with disabilities, other than	1720
preschool children with disabilities, placed with a county MR/DD	1721
board in the current fiscal year to receive special education	1722
services for the category five disabilities described in division	1723
(E) of section 3317.013 of the Revised Code;	1724

(g) The number of children with disabilities, other than	1725
preschool children with disabilities, placed with a county MR/DD	1726
board in the current fiscal year to receive special education	1727
services for category six disabilities described in division (F)	1728
of section 3317.013 of the Revised Code.	1729

(C)(1) Except as otherwise provided in this section for	1730
kindergarten students, theThe average daily membership in	1731
divisions (B)(1) to (12) of this section shall be based upon the	1732
number of full-time equivalent students. The state board of	1733
education shall adopt rules defining full-time equivalent students	1734
and for determining the average daily membership therefrom for the	1735
purposes of divisions (A), (B), and (D) of this section.	1736

(2) A student enrolled in a community school established	1737
under Chapter 3314. or a science, technology, engineering, and	1738
mathematics school established under Chapter 3326. of the Revised	1739
Code shall be counted in the formula ADM and, if applicable, the	1740
category one, two, three, four, five, or six special education ADM	1741
of the school district in which the student is entitled to attend	1742
school under section 3313.64 or 3313.65 of the Revised Code for	1743
the same proportion of the school year that the student is counted	1744
in the enrollment of the community school or the science,	1745
technology, engineering, and mathematics school for purposes of	1746
section 3314.08 or 3326.33 of the Revised Code. Notwithstanding	1747
the number of students reported pursuant to division (B)(3)(d),	1748
(e), or (j) of this section, the department may adjust the	1749
formula ADM of a school district to account for students entitled	1750
to attend school in the district under section 3313.64 or 3313.65	1751
of the Revised Code who are enrolled in a community school or a	1752
science, technology, engineering, and mathematics school for only	1753
a portion of the school year.	1754

(3) No child shall be counted as more than a total of one	1755
child in the sum of the average daily memberships of a school	1756
district under division (A), divisions (B)(1) to (12), or division	1757
(D) of this section, except as follows:	1758

(a) A child with a disability described in section 3317.013	1759
of the Revised Code may be counted both in formula ADM and in	1760
category one, two, three, four, five, or six special education	1761
ADM and, if applicable, in category one or two vocational	1762
education ADM. As provided in division (C) of section 3317.02 of	1763
the Revised Code, such a child shall be counted in category one,	1764
two, three, four, five, or six special education ADM in the same	1765
proportion that the child is counted in formula ADM.	1766

(b) A child enrolled in vocational education programs or	1767
classes described in section 3317.014 of the Revised Code may be	1768
counted both in formula ADM and category one or two vocational	1769
education ADM and, if applicable, in category one, two, three,	1770
four, five, or six special education ADM. Such a child shall be	1771
counted in category one or two vocational education ADM in the	1772
same proportion as the percentage of time that the child spends in	1773
the vocational education programs or classes.	1774

(4) Based on the information reported under this section, the	1775
department of education shall determine the total student count,	1776
as defined in section 3301.011 of the Revised Code, for each	1777
school district.	1778

(D)(1) The superintendent of each joint vocational school	1779
district shall certify to the superintendent of public instruction	1780
on or before the fifteenth day of October in each year for the	1781
first full school week in October the formula ADM. Beginning in	1782
fiscal year 2007, each superintendent also shall certify to the	1783
state superintendent the formula ADM for the first full week in	1784
February. If a school operated by the joint vocational school	1785
district is closed for one or more days during that week due to	1786
hazardous weather conditions or other circumstances described in	1787
the first paragraph of division (B) of section 3317.01 of the	1788
Revised Code, the superintendent may apply to the superintendent	1789
of public instruction for a waiver, under which the superintendent	1790
of public instruction may exempt the district superintendent from	1791
certifying the formula ADM for that school for that week and	1792
specify an alternate week for certifying the formula ADM of that	1793
school.	1794

The formula ADM, except as otherwise provided in this	1795
division, shall consist of the average daily membership during	1796
such week, on an FTE basis, of the number of students receiving	1797
any educational services from the district, including students	1798
enrolled in a community school established under Chapter 3314. or	1799
a science, technology, engineering, and mathematics school	1800
established under Chapter 3326. of the Revised Code who are	1801
attending the joint vocational district under an agreement	1802
between the district board of education and the governing	1803
authority of the community school or the science, technology,	1804
engineering, and mathematics school and are entitled to attend	1805
school in a city, local, or exempted village school district whose	1806
territory is part of the territory of the joint vocational	1807
district. Beginning in fiscal year 2007, in the case of the	1808
report submitted for the first week in February, or the	1809
alternative week if specified by the superintendent of public	1810
instruction, the superintendent of the joint vocational school	1811
district may include the number of students reported under	1812
division (D)(1) of this section for the first full week of the	1813
preceding October but who since that week have received high	1814
school diplomas.	1815

The following categories of students shall not be included in	1816
the determination made under division (D)(1) of this section:	1817

(a) Students enrolled in adult education classes;

1818

(b) Adjacent or other district joint vocational students	1819
enrolled in the district under an open enrollment policy pursuant	1820
to section 3313.98 of the Revised Code;	1821

(c) Students receiving services in the district pursuant to a	1822
compact, cooperative education agreement, or a contract, but who	1823
are entitled to attend school in a city, local, or exempted	1824
village school district whose territory is not part of the	1825
territory of the joint vocational district;	1826

(d) Students for whom tuition is payable pursuant to sections	1827
3317.081 and 3323.141 of the Revised Code.	1828

(2) To enable the department of education to obtain the data	1829
needed to complete the calculation of payments pursuant to this	1830
chapter, in addition to the formula ADM, each superintendent shall	1831
report separately the average daily membership included in the	1832
report under division (D)(1) of this section for each of the	1833
following categories of students for the same week for which	1834
formula ADM is certified:	1835

(a) Students enrolled in each grade included in the joint	1836
vocational district schools;	1837

(b) Children with disabilities receiving special education	1838
services for the category one disability described in division	1839
(A) of section 3317.013 of the Revised Code;	1840

(c) Children with disabilities receiving special education	1841
services for the category two disabilities described in division	1842
(B) of section 3317.013 of the Revised Code;	1843

(d) Children with disabilities receiving special education	1844
services for category three disabilities described in division (C)	1845
of section 3317.013 of the Revised Code;	1846

(e) Children with disabilities receiving special education	1847
services for category four disabilities described in division (D)	1848
of section 3317.013 of the Revised Code;	1849

(f) Children with disabilities receiving special education	1850
services for the category five disabilities described in division	1851
(E) of section 3317.013 of the Revised Code;	1852

(g) Children with disabilities receiving special education	1853
services for category six disabilities described in division (F)	1854
of section 3317.013 of the Revised Code;	1855

(h) Students receiving category one vocational education	1856
services, described in division (A) of section 3317.014 of the	1857
Revised Code;	1858

(i) Students receiving category two vocational education	1859
services, described in division (B) of section 3317.014 of the	1860
Revised Code.	1861

The superintendent of each joint vocational school district	1862
shall also indicate the city, local, or exempted village school	1863
district in which each joint vocational district pupil is entitled	1864
to attend school pursuant to section 3313.64 or 3313.65 of the	1865
Revised Code.	1866

(E) In each school of each city, local, exempted village,	1867
joint vocational, and cooperative education school district there	1868
shall be maintained a record of school membership, which record	1869
shall accurately show, for each day the school is in session, the	1870
actual membership enrolled in regular day classes. For the purpose	1871
of determining average daily membership, the membership figure of	1872
any school shall not include any pupils except those pupils	1873
described by division (A) of this section. The record of	1874
membership for each school shall be maintained in such manner that	1875
no pupil shall be counted as in membership prior to the actual	1876
date of entry in the school and also in such manner that where for	1877
any cause a pupil permanently withdraws from the school that pupil	1878
shall not be counted as in membership from and after the date of	1879
such withdrawal. There shall not be included in the membership of	1880
any school any of the following:	1881

(1) Any pupil who has graduated from the twelfth grade of a	1882
public or nonpublic high school;	1883

(2) Any pupil who is not a resident of the state;

1884

(3) Any pupil who was enrolled in the schools of the district	1885
during the previous school year when tests were administered under	1886
section 3301.0711 of the Revised Code but did not take one or more	1887
of the tests required by that section and was not excused pursuant	1888
to division (C)(1) or (3) of that section;	1889

(4) Any pupil who has attained the age of twenty-two years,	1890
except for veterans of the armed services whose attendance was	1891
interrupted before completing the recognized twelve-year course of	1892
the public schools by reason of induction or enlistment in the	1893
armed forces and who apply for reenrollment in the public school	1894
system of their residence not later than four years after	1895
termination of war or their honorable discharge.	1896

If, however, any veteran described by division (E)(4) of this	1897
section elects to enroll in special courses organized for veterans	1898
for whom tuition is paid under the provisions of federal laws, or	1899
otherwise, that veteran shall not be included in average daily	1900
membership.	1901

Notwithstanding division (E)(3) of this section, the	1902
membership of any school may include a pupil who did not take a	1903
test required by section 3301.0711 of the Revised Code if the	1904
superintendent of public instruction grants a waiver from the	1905
requirement to take the test to the specific pupil and a parent is	1906
not paying tuition for the pupil pursuant to section 3313.6410 of	1907
the Revised Code. The superintendent may grant such a waiver only	1908
for good cause in accordance with rules adopted by the state board	1909
of education.	1910

Except as provided in divisions (B)(2) and (F) of this	1911
section, the average daily membership figure of any local, city,	1912
exempted village, or joint vocational school district shall be	1913
determined by dividing the figure representing the sum of the	1914
number of pupils enrolled during each day the school of attendance	1915
is actually open for instruction during the week for which the	1916
formula ADM is being certified by the total number of days the	1917
school was actually open for instruction during that week. For	1918
purposes of state funding, "enrolled" persons are only those	1919
pupils who are attending school, those who have attended school	1920
during the current school year and are absent for authorized	1921
reasons, and those children with disabilities currently receiving	1922
home instruction.	1923

The average daily membership figure of any cooperative	1924
education school district shall be determined in accordance with	1925
rules adopted by the state board of education.	1926

(F)(1) If the formula ADM for the first full school week in	1927
February is at least three per cent greater than that certified	1928
for the first full school week in the preceding October, the	1929
superintendent of schools of any city, exempted village, or joint	1930
vocational school district or educational service center shall	1931
certify such increase to the superintendent of public instruction.	1932
Such certification shall be submitted no later than the fifteenth	1933
day of February. For the balance of the fiscal year, beginning	1934
with the February payments, the superintendent of public	1935
instruction shall use the increased formula ADM in calculating or	1936
recalculating the amounts to be allocated in accordance with	1937
section 3317.022 or 3317.16 of the Revised Code. In no event shall	1938
the superintendent use an increased membership certified to the	1939
superintendent after the fifteenth day of February. Division	1940
(F)(1) of this section does not apply after fiscal year 2006.	1941

(2) If on the first school day of April the total number of	1942
classes or units for preschool children with disabilities that	1943
are eligible for approval under division (B) of section 3317.05	1944
of the Revised Code exceeds the number of units that have been	1945
approved for the year under that division, the superintendent of	1946
schools of any city, exempted village, or cooperative education	1947
school district or educational service center shall make the	1948
certifications required by this section for that day. If the	1949
department determines additional units can be approved for the	1950
fiscal year within any limitations set forth in the acts	1951
appropriating moneys for the funding of such units, the	1952
department shall approve additional units for the fiscal year on	1953
the basis of such average daily membership. For each unit so	1954
approved, the department shall pay an amount computed in the	1955
manner prescribed in section 3317.052 or 3317.19 and section	1956
3317.053 of the Revised Code.	1957

(3) If a student attending a community school under Chapter	1958
3314. or a science, technology, engineering, and mathematics	1959
school established under Chapter 3326. of the Revised Code is not	1960
included in the formula ADM certified for the school district in	1961
which the student is entitled to attend school under section	1962
3313.64 or 3313.65 of the Revised Code, the department of	1963
education shall adjust the formula ADM of that school district to	1964
include the student in accordance with division (C)(2) of this	1965
section, and shall recalculate the school district's payments	1966
under this chapter for the entire fiscal year on the basis of	1967
that adjusted formula ADM. This requirement applies regardless of	1968
whether the student was enrolled, as defined in division (E) of	1969
this section, in the community school or the science,	1970
technology, engineering, and mathematics school during the week	1971
for which the formula ADM is being certified.	1972

(4) If a student awarded an educational choice scholarship is	1973
not included in the formula ADM of the school district from which	1974
the department deducts funds for the scholarship under section	1975
3310.08 of the Revised Code, the department shall adjust the	1976
formula ADM of that school district to include the student to the	1977
extent necessary to account for the deduction, and shall	1978
recalculate the school district's payments under this chapter for	1979
the entire fiscal year on the basis of that adjusted formula ADM.	1980
This requirement applies regardless of whether the student was	1981
enrolled, as defined in division (E) of this section, in the	1982
chartered nonpublic school, the school district, or a community	1983
school during the week for which the formula ADM is being	1984
certified.	1985

(G)(1)(a) The superintendent of an institution operating a	1986
special education program pursuant to section 3323.091 of the	1987
Revised Code shall, for the programs under such superintendent's	1988
supervision, certify to the state board of education, in the	1989
manner prescribed by the superintendent of public instruction,	1990
both of the following:	1991

(i) The average daily membership of all children with	1992
disabilities other than preschool children with disabilities	1993
receiving services at the institution for each category of	1994
disability described in divisions (A) to (F) of section 3317.013	1995
of the Revised Code;	1996

(ii) The average daily membership of all preschool children	1997
with disabilities in classes or programs approved annually by the	1998
department of education for unit funding under section 3317.05 of	1999
the Revised Code.	2000

(b) The superintendent of an institution with vocational	2001
education units approved under division (A) of section 3317.05 of	2002
the Revised Code shall, for the units under the superintendent's	2003
supervision, certify to the state board of education the average	2004
daily membership in those units, in the manner prescribed by the	2005
superintendent of public instruction.	2006

(2) The superintendent of each county MR/DD board that	2007
maintains special education classes under section 3317.20 of the	2008
Revised Code or units approved pursuant to section 3317.05 of the	2009
Revised Code shall do both of the following:	2010

(a) Certify to the state board, in the manner prescribed by	2011
the board, the average daily membership in classes under section	2012
3317.20 of the Revised Code for each school district that has	2013
placed children in the classes;	2014

(b) Certify to the state board, in the manner prescribed by	2015
the board, the number of all preschool children with disabilities	2016
enrolled as of the first day of December in classes eligible for	2017
approval under division (B) of section 3317.05 of the Revised	2018
Code, and the number of those classes.	2019

(3)(a) If on the first school day of April the number of	2020
classes or units maintained for preschool children with	2021
disabilities by the county MR/DD board that are eligible for	2022
approval under division (B) of section 3317.05 of the Revised Code	2023
is greater than the number of units approved for the year under	2024
that division, the superintendent shall make the certification	2025
required by this section for that day.	2026

(b) If the department determines that additional classes or	2027
units can be approved for the fiscal year within any limitations	2028
set forth in the acts appropriating moneys for the funding of the	2029
classes and units described in division (G)(3)(a) of this section,	2030
the department shall approve and fund additional units for the	2031
fiscal year on the basis of such average daily membership. For	2032
each unit so approved, the department shall pay an amount computed	2033
in the manner prescribed in sections 3317.052 and 3317.053 of the	2034
Revised Code.	2035

(H) Except as provided in division (I) of this section, when	2036
any city, local, or exempted village school district provides	2037
instruction for a nonresident pupil whose attendance is	2038
unauthorized attendance as defined in section 3327.06 of the	2039
Revised Code, that pupil's membership shall not be included in	2040
that district's membership figure used in the calculation of that	2041
district's formula ADM or included in the determination of any	2042
unit approved for the district under section 3317.05 of the	2043
Revised Code. The reporting official shall report separately the	2044
average daily membership of all pupils whose attendance in the	2045
district is unauthorized attendance, and the membership of each	2046
such pupil shall be credited to the school district in which the	2047
pupil is entitled to attend school under division (B) of section	2048
3313.64 or section 3313.65 of the Revised Code as determined by	2049
the department of education.	2050

(I)(1) A city, local, exempted village, or joint vocational	2051
school district admitting a scholarship student of a pilot project	2052
district pursuant to division (C) of section 3313.976 of the	2053
Revised Code may count such student in its average daily	2054
membership.	2055

(2) In any year for which funds are appropriated for pilot	2056
project scholarship programs, a school district implementing a	2057
state-sponsored pilot project scholarship program that year	2058
pursuant to sections 3313.974 to 3313.979 of the Revised Code may	2059
count in average daily membership:	2060

(a) All children residing in the district and utilizing a	2061
scholarship to attend kindergarten in any alternative school, as	2062
defined in section 3313.974 of the Revised Code;	2063

(b) All children who were enrolled in the district in the	2064
preceding year who are utilizing a scholarship to attend any such	2065
alternative school.	2066

(J) The superintendent of each cooperative education school	2067
district shall certify to the superintendent of public	2068
instruction, in a manner prescribed by the state board of	2069
education, the applicable average daily memberships for all	2070
students in the cooperative education district, also indicating	2071
the city, local, or exempted village district where each pupil is	2072
entitled to attend school under section 3313.64 or 3313.65 of the	2073
Revised Code.	2074

(K) If the superintendent of public instruction determines	2075
that a component of the formula ADM certified or reported by a	2076
district superintendent, or other reporting entity, is not	2077
correct, the superintendent of public instruction may order that	2078
the formula ADM used for the purposes of payments under any	2079
section of Title XXXIII of the Revised Code be adjusted in the	2080
amount of the error.	2081

Sec. 3321.01. (A)(1) As used in this chapter, "parent,"	2082
"guardian," or "other person having charge or care of a child"	2083
means either parent unless the parents are separated or divorced	2084
or their marriage has been dissolved or annulled, in which case	2085
"parent" means the parent who is the residential parent and legal	2086
custodian of the child. If the child is in the legal or permanent	2087
custody of a person or government agency, "parent" means that	2088
person or government agency. When a child is a resident of a home,	2089
as defined in section 3313.64 of the Revised Code, and the child's	2090
parent is not a resident of this state, "parent," "guardian," or	2091
"other person having charge or care of a child" means the head of	2092
the home.	2093

A child between six and eighteen years of age is "of	2094
compulsory school age" for the purpose of sections 3321.01 to	2095
3321.13 of the Revised Code. A child under six years of age who	2096
has been enrolled in kindergarten also shall be considered "of	2097
compulsory school age" for the purpose of sections 3321.01 to	2098
3321.13 of the Revised Code unless at any time the child's parent	2099
or guardian, at the parent's or guardian's discretion and in	2100
consultation with the child's teacher and principal, formally	2101
withdraws the child from kindergarten. The compulsory school age	2102
of a child shall not commence until the beginning of the term of	2103
such schools, or other time in the school year fixed by the rules	2104
of the board of the district in which the child resides.	2105

(2) No child shall be admitted to a kindergarten or a first	2106
grade of a public school in a district in which all children are	2107
admitted to kindergarten and the first grade in August or	2108
September unless the child is five or six years of age,	2109
respectively, by the thirtieth day of September of the year of	2110
admittance, or by the first day of a term or semester other than	2111
one beginning in August or September in school districts granting	2112
admittance at the beginning of such term or semester, except that	2113
in those school districts using or obtaining educationally	2114
accepted standardized testing programs for determining entrance,	2115
as approved by the board of education of such districts, the board	2116
shall admit a child to kindergarten or the first grade who fails	2117
to meet the age requirement, provided the child meets necessary	2118
standards as determined by such standardized testing programs. If	2119
the board of education has not established a standardized testing	2120
program, the board shall designate the necessary standards and a	2121
testing program it will accept for the purpose of admitting a	2122
child to kindergarten or first grade who fails to meet the age	2123
requirement. Each child who will be the proper age for entrance to	2124
kindergarten or first grade by the first day of January of the	2125
school year for which admission is requested shall be so tested	2126
upon the request of the child's parent.	2127

(3) Notwithstanding divisions (A)(2) and (D) of this section,	2128
beginning with the school year that starts in 2001 and continuing	2129
thereafter the board of education of any district may adopt a	2130
resolution establishing the first day of August in lieu of the	2131
thirtieth day of September as the required date by which students	2132
must have attained the age specified in those divisions.	2133

(B) As used in divisions (C) and (D) of this section,	2134
"successfully completed kindergarten" and "successful completion	2135
of kindergarten" mean that the child has completed the	2136
kindergarten requirements at one of the following:	2137

(1) A public or chartered nonpublic school;

2138

(2) A kindergarten class that is both of the following:

2139

(a) Offered by a day-care provider licensed under Chapter	2140
5104. of the Revised Code;	2141

(b) If offered after July 1, 1991, is directly taught by a	2142
teacher who holds one of the following:	2143

(i) A valid educator license issued under section 3319.22 of	2144
the Revised Code;	2145

(ii) A Montessori preprimary credential or age-appropriate	2146
diploma granted by the American Montessori society or the	2147
association Montessori internationale;	2148

(iii) Certification determined under division (G) of this	2149
section to be equivalent to that described in division	2150
(B)(2)(b)(ii) of this section;	2151

(iv) Certification for teachers in nontax-supported schools	2152
pursuant to section 3301.071 of the Revised Code.	2153

(C) Except as provided in division (D) of this section, no	2154
school district shall admit to the first grade any child who has	2155
not successfully completed kindergarten.	2156

(D) Upon request of a parent, the requirement of division (C)	2157
of this section may be waived by the district's pupil personnel	2158
services committee in the case of a child who is at least six	2159
years of age by the thirtieth day of September of the year of	2160
admittance and who demonstrates to the satisfaction of the	2161
committee the possession of the social, emotional, and cognitive	2162
skills necessary for first grade.	2163

The board of education of each city, local, and exempted	2164
village school district shall establish a pupil personnel services	2165
committee. The committee shall be composed of all of the following	2166
to the extent such personnel are either employed by the district	2167
or employed by the governing board of the educational service	2168
center within whose territory the district is located and the	2169
educational service center generally furnishes the services of	2170
such personnel to the district:	2171

(1) The director of pupil personnel services;

2172

(2) An elementary school counselor;

2173

(3) An elementary school principal;

2174

(4) A school psychologist;

2175

(5) A teacher assigned to teach first grade;

2176

(6) A gifted coordinator.

2177

The responsibilities of the pupil personnel services	2178
committee shall be limited to the issuing of waivers allowing	2179
admittance to the first grade without the successful completion of	2180
kindergarten. The committee shall have no other authority except	2181
as specified in this section.	2182

(E) The scheduling of times for kindergarten classes and	2183
length of the school day for kindergarten shall be determined by	2184
the board of education of a city, exempted village, or local	2185
school district.	2186

(F) Any kindergarten class offered by a day-care provider or	2187
school described by division (B)(1) or (B)(2)(a) of this section	2188
shall be developmentally appropriate.	2189

(G) Upon written request of a day-care provider described by	2190
division (B)(2)(a) of this section, the department of education	2191
shall determine whether certification held by a teacher employed	2192
by the provider meets the requirement of division (B)(2)(b)(iii)	2193
of this section and, if so, shall furnish the provider a statement	2194
to that effect.	2195

(H) As used in this division, "all-day kindergarten" has the	2196
same meaning as in section 3317.029 of the Revised Code.	2197

(1) Any school district that is not eligible to receive	2198
poverty-based assistance for all-day kindergarten under division	2199
(D) of section 3317.029 of the Revised Code may charge fees or	2200
tuition for students enrolled in all-day kindergarten. If a	2201
district charges fees or tuition for all-day kindergarten under	2202
this division, the district shall develop a sliding fee scale	2203
based on family incomes.	2204

(2) The department of education shall conduct an annual	2205
survey of each school district described in division (H)(1) of	2206
this section to determine the following:	2207

(a) Whether the district charges fees or tuition for students	2208
enrolled in all-day kindergarten;	2209

(b) The amount of the fees or tuition charged;

2210

(c) How many of the students for whom tuition is charged are	2211
eligible for free lunches under the "National School Lunch Act,"	2212
60 Stat. 230 (1946), 42 U.S.C. 1751, as amended, and the "Child	2213
Nutrition Act of 1966," 80 Stat. 885, 42 U.S.C. 1771, as amended,	2214
and how many of the students for whom tuition is charged are	2215
eligible for reduced price lunches under those acts;	2216

(d) How many students are enrolled in traditional half-day	2217
kindergarten rather than all-day kindergarten.	2218

Each district shall report to the department, in the manner	2219
prescribed by the department, the information described in	2220
divisions (H)(2)(a) to (d) of this section.	2221

The department shall issue an annual report on the results of	2222
the survey and shall post the report on its web site. The	2223
department shall issue the first report not later than April 30,	2224
2008, and shall issue a report not later than the thirtieth day of	2225
April each year thereafter.	2226

Sec. 5727.84.  (A) As used in this section and sections	2227
5727.85, 5727.86, and 5727.87 of the Revised Code:	2228

(1) "School district" means a city, local, or exempted	2229
village school district.	2230

(2) "Joint vocational school district" means a joint	2231
vocational school district created under section 3311.16 of the	2232
Revised Code, and includes a cooperative education school district	2233
created under section 3311.52 or 3311.521 of the Revised Code and	2234
a county school financing district created under section 3311.50	2235
of the Revised Code.	2236

(3) "Local taxing unit" means a subdivision or taxing unit,	2237
as defined in section 5705.01 of the Revised Code, a park district	2238
created under Chapter 1545. of the Revised Code, or a township	2239
park district established under section 511.23 of the Revised	2240
Code, but excludes school districts and joint vocational school	2241
districts.	2242

(4) "State education aid," for a school district, means the	2243
sum of state aid amounts computed for the district under	2244
divisions (A), (C)(1), (C)(4), (D), (E), and (F) of section	2245
3317.022; divisions (B), (C), and (D) of section 3317.023;	2246
divisions (G), (L), and (N) of section 3317.024; and sections	2247
3317.029, 3317.0216, 3317.0217, 3317.04, 3317.05, 3317.052, and	2248
3317.053 of the Revised Code; and the adjustments required by:	2249
division (C) of section 3310.08; division (C)(2) of section	2250
3310.41; division (C) of section 3314.08; division (D)(2) of	2251
section 3314.091; division (D) of section 3314.13; divisions (E),	2252
(K), (L), (M), and (N) of section 3317.023; division (C) of	2253
section 3317.20; and sections 3313.979 and 3313.981 of the	2254
Revised Code. However, when calculating state education aid for	2255
a school district for fiscal years 2008 and 2009, include the	2256
amount computed for the district under Section 269.20.80 of	2257
H.B. 119 of the 127th general assembly, as subsequently	2258
amended, instead of division (D) of section 3317.022 of the	2259
Revised Code; and include amounts calculated under Section	2260
269.30.80 of this act, as subsequently amended; and account for	2261
adjustments under division (C)(2) of section 3310.41 of the	2262
Revised Code.	2263

(5) "State education aid," for a joint vocational school	2264
district, means the sum of the state aid amounts computed for the	2265
district under division (N) of section 3317.024 and section	2266
3317.16 of the Revised Code. However, when calculating state	2267
education aid for a joint vocational school district for fiscal	2268
years 2008 and 2009, include the amount computed for the district	2269
under Section 269.30.90 of H.B. 119 of the 127th general	2270
assembly, as subsequently amended.	2271

(6) "State education aid offset" means the amount determined	2272
for each school district or joint vocational school district under	2273
division (A)(1) of section 5727.85 of the Revised Code.	2274

(7) "Recognized valuation" has the same meaning as in section	2275
3317.02 of the Revised Code.	2276

(8) "Electric company tax value loss" means the amount	2277
determined under division (D) of this section.	2278

(9) "Natural gas company tax value loss" means the amount	2279
determined under division (E) of this section.	2280

(10) "Tax value loss" means the sum of the electric company	2281
tax value loss and the natural gas company tax value loss.	2282

(11) "Fixed-rate levy" means any tax levied on property other	2283
than a fixed-sum levy.	2284

(12) "Fixed-rate levy loss" means the amount determined under	2285
division (G) of this section.	2286

(13) "Fixed-sum levy" means a tax levied on property at	2287
whatever rate is required to produce a specified amount of tax	2288
money or levied in excess of the ten-mill limitation to pay debt	2289
charges, and includes school district emergency levies imposed	2290
pursuant to section 5705.194 of the Revised Code.	2291

(14) "Fixed-sum levy loss" means the amount determined under	2292
division (H) of this section.	2293

(15) "Consumer price index" means the consumer price index	2294
(all items, all urban consumers) prepared by the bureau of labor	2295
statistics of the United States department of labor.	2296

(B) The kilowatt-hour tax receipts fund is hereby created in	2297
the state treasury and shall consist of money arising from the tax	2298
imposed by section 5727.81 of the Revised Code. All money in the	2299
kilowatt-hour tax receipts fund shall be credited as follows:	2300

(1) Sixty-three per cent shall be credited to the general	2301
revenue fund.	2302

(2) Twenty-five and four-tenths per cent shall be credited to	2303
the school district property tax replacement fund, which is hereby	2304
created in the state treasury for the purpose of making the	2305
payments described in section 5727.85 of the Revised Code.	2306

(3) Eleven and six-tenths per cent shall be credited to the	2307
local government property tax replacement fund, which is hereby	2308
created in the state treasury for the purpose of making the	2309
payments described in section 5727.86 of the Revised Code.	2310

(C) The natural gas tax receipts fund is hereby created in	2311
the state treasury and shall consist of money arising from the tax	2312
imposed by section 5727.811 of the Revised Code. All money in the	2313
fund shall be credited as follows:	2314

(1) Sixty-eight and seven-tenths per cent shall be credited	2315
to the school district property tax replacement fund for the	2316
purpose of making the payments described in section 5727.85 of the	2317
Revised Code.	2318

(2) Thirty-one and three-tenths per cent shall be credited	2319
to the local government property tax replacement fund for the	2320
purpose of making the payments described in section 5727.86 of	2321
the Revised Code.	2322

(D) Not later than January 1, 2002, the tax commissioner	2323
shall determine for each taxing district its electric company tax	2324
value loss, which is the sum of the applicable amounts described	2325
in divisions (D)(1) to (4) of this section:	2326

(1) The difference obtained by subtracting the amount	2327
described in division (D)(1)(b) from the amount described in	2328
division (D)(1)(a) of this section.	2329

(a) The value of electric company and rural electric company	2330
tangible personal property as assessed by the tax commissioner for	2331
tax year 1998 on a preliminary assessment, or an amended	2332
preliminary assessment if issued prior to March 1, 1999, and as	2333
apportioned to the taxing district for tax year 1998;	2334

(b) The value of electric company and rural electric company	2335
tangible personal property as assessed by the tax commissioner for	2336
tax year 1998 had the property been apportioned to the taxing	2337
district for tax year 2001, and assessed at the rates in effect	2338
for tax year 2001.	2339

(2) The difference obtained by subtracting the amount	2340
described in division (D)(2)(b) from the amount described in	2341
division (D)(2)(a) of this section.	2342

(a) The three-year average for tax years 1996, 1997, and 1998	2343
of the assessed value from nuclear fuel materials and assemblies	2344
assessed against a person under Chapter 5711. of the Revised Code	2345
from the leasing of them to an electric company for those	2346
respective tax years, as reflected in the preliminary assessments;	2347

(b) The three-year average assessed value from nuclear fuel	2348
materials and assemblies assessed under division (D)(2)(a) of this	2349
section for tax years 1996, 1997, and 1998, as reflected in the	2350
preliminary assessments, using an assessment rate of twenty-five	2351
per cent.	2352

(3) In the case of a taxing district having a nuclear power	2353
plant within its territory, any amount, resulting in an electric	2354
company tax value loss, obtained by subtracting the amount	2355
described in division (D)(1) of this section from the difference	2356
obtained by subtracting the amount described in division (D)(3)(b)	2357
of this section from the amount described in division (D)(3)(a) of	2358
this section.	2359

(a) The value of electric company tangible personal property	2360
as assessed by the tax commissioner for tax year 2000 on a	2361
preliminary assessment, or an amended preliminary assessment if	2362
issued prior to March 1, 2001, and as apportioned to the taxing	2363
district for tax year 2000;	2364

(b) The value of electric company tangible personal property	2365
as assessed by the tax commissioner for tax year 2001 on a	2366
preliminary assessment, or an amended preliminary assessment if	2367
issued prior to March 1, 2002, and as apportioned to the taxing	2368
district for tax year 2001.	2369

(4) In the case of a taxing district having a nuclear power	2370
plant within its territory, the difference obtained by subtracting	2371
the amount described in division (D)(4)(b) of this section from	2372
the amount described in division (D)(4)(a) of this section,	2373
provided that such difference is greater than ten per cent of the	2374
amount described in division (D)(4)(a) of this section.	2375

(a) The value of electric company tangible personal property	2376
as assessed by the tax commissioner for tax year 2005 on a	2377
preliminary assessment, or an amended preliminary assessment if	2378
issued prior to March 1, 2006, and as apportioned to the taxing	2379
district for tax year 2005;	2380

(b) The value of electric company tangible personal property	2381
as assessed by the tax commissioner for tax year 2006 on a	2382
preliminary assessment, or an amended preliminary assessment if	2383
issued prior to March 1, 2007, and as apportioned to the taxing	2384
district for tax year 2006.	2385

(E) Not later than January 1, 2002, the tax commissioner	2386
shall determine for each taxing district its natural gas company	2387
tax value loss, which is the sum of the amounts described in	2388
divisions (E)(1) and (2) of this section:	2389

(1) The difference obtained by subtracting the amount	2390
described in division (E)(1)(b) from the amount described in	2391
division (E)(1)(a) of this section.	2392

(a) The value of all natural gas company tangible personal	2393
property, other than property described in division (E)(2) of this	2394
section, as assessed by the tax commissioner for tax year 1999 on	2395
a preliminary assessment, or an amended preliminary assessment if	2396
issued prior to March 1, 2000, and apportioned to the taxing	2397
district for tax year 1999;	2398

(b) The value of all natural gas company tangible personal	2399
property, other than property described in division (E)(2) of this	2400
section, as assessed by the tax commissioner for tax year 1999 had	2401
the property been apportioned to the taxing district for tax year	2402
2001, and assessed at the rates in effect for tax year 2001.	2403

(2) The difference in the value of current gas obtained by	2404
subtracting the amount described in division (E)(2)(b) from the	2405
amount described in division (E)(2)(a) of this section.	2406

(a) The three-year average assessed value of current gas as	2407
assessed by the tax commissioner for tax years 1997, 1998, and	2408
1999 on a preliminary assessment, or an amended preliminary	2409
assessment if issued prior to March 1, 2001, and as apportioned in	2410
the taxing district for those respective years;	2411

(b) The three-year average assessed value from current gas	2412
under division (E)(2)(a) of this section for tax years 1997, 1998,	2413
and 1999, as reflected in the preliminary assessment, using an	2414
assessment rate of twenty-five per cent.	2415

(F) The tax commissioner may request that natural gas	2416
companies, electric companies, and rural electric companies file a	2417
report to help determine the tax value loss under divisions (D)	2418
and (E) of this section. The report shall be filed within thirty	2419
days of the commissioner's request. A company that fails to file	2420
the report or does not timely file the report is subject to the	2421
penalty in section 5727.60 of the Revised Code.	2422

(G) Not later than January 1, 2002, the tax commissioner	2423
shall determine for each school district, joint vocational school	2424
district, and local taxing unit its fixed-rate levy loss, which is	2425
the sum of its electric company tax value loss multiplied by the	2426
tax rate in effect in tax year 1998 for fixed-rate levies and its	2427
natural gas company tax value loss multiplied by the tax rate in	2428
effect in tax year 1999 for fixed-rate levies.	2429

(H) Not later than January 1, 2002, the tax commissioner	2430
shall determine for each school district, joint vocational school	2431
district, and local taxing unit its fixed-sum levy loss, which is	2432
the amount obtained by subtracting the amount described in	2433
division (H)(2) of this section from the amount described in	2434
division (H)(1) of this section:	2435

(1) The sum of the electric company tax value loss multiplied	2436
by the tax rate in effect in tax year 1998, and the natural gas	2437
company tax value loss multiplied by the tax rate in effect in tax	2438
year 1999, for fixed-sum levies for all taxing districts within	2439
each school district, joint vocational school district, and local	2440
taxing unit. For the years 2002 through 2006, this computation	2441
shall include school district emergency levies that existed in	2442
1998 in the case of the electric company tax value loss, and 1999	2443
in the case of the natural gas company tax value loss, and all	2444
other fixed-sum levies that existed in 1998 in the case of the	2445
electric company tax value loss and 1999 in the case of the	2446
natural gas company tax value loss and continue to be charged in	2447
the tax year preceding the distribution year. For the years 2007	2448
through 2016 in the case of school district emergency levies, and	2449
for all years after 2006 in the case of all other fixed-sum	2450
levies, this computation shall exclude all fixed-sum levies that	2451
existed in 1998 in the case of the electric company tax value loss	2452
and 1999 in the case of the natural gas company tax value loss,	2453
but are no longer in effect in the tax year preceding the	2454
distribution year. For the purposes of this section, an emergency	2455
levy that existed in 1998 in the case of the electric company tax	2456
value loss, and 1999 in the case of the natural gas company tax	2457
value loss, continues to exist in a year beginning on or after	2458
January 1, 2007, but before January 1, 2017, if, in that year,	2459
the board of education levies a school district emergency levy	2460
for an annual sum at least equal to the annual sum levied by the	2461
board in tax year 1998 or 1999, respectively, less the amount of	2462
the payment certified under this division for 2002.	2463

(2) The total taxable value in tax year 1999 less the tax	2464
value loss in each school district, joint vocational school	2465
district, and local taxing unit multiplied by one-fourth of one	2466
mill.	2467

If the amount computed under division (H) of this section for	2468
any school district, joint vocational school district, or local	2469
taxing unit is greater than zero, that amount shall equal the	2470
fixed-sum levy loss reimbursed pursuant to division (E) of section	2471
5727.85 of the Revised Code or division (A)(2) of section 5727.86	2472
of the Revised Code, and the one-fourth of one mill that is	2473
subtracted under division (H)(2) of this section shall be	2474
apportioned among all contributing fixed-sum levies in the	2475
proportion of each levy to the sum of all fixed-sum levies within	2476
each school district, joint vocational school district, or local	2477
taxing unit.	2478

(I) Notwithstanding divisions (D), (E), (G), and (H) of this	2479
section, in computing the tax value loss, fixed-rate levy loss,	2480
and fixed-sum levy loss, the tax commissioner shall use the	2481
greater of the 1998 tax rate or the 1999 tax rate in the case of	2482
levy losses associated with the electric company tax value loss,	2483
but the 1999 tax rate shall not include for this purpose any tax	2484
levy approved by the voters after June 30, 1999, and the tax	2485
commissioner shall use the greater of the 1999 or the 2000 tax	2486
rate in the case of levy losses associated with the natural gas	2487
company tax value loss.	2488

(J) Not later than January 1, 2002, the tax commissioner	2489
shall certify to the department of education the tax value loss	2490
determined under divisions (D) and (E) of this section for each	2491
taxing district, the fixed-rate levy loss calculated under	2492
division (G) of this section, and the fixed-sum levy loss	2493
calculated under division (H) of this section. The calculations	2494
under divisions (G) and (H) of this section shall separately	2495
display the levy loss for each levy eligible for reimbursement.	2496

(K) Not later than September 1, 2001, the tax commissioner	2497
shall certify the amount of the fixed-sum levy loss to the county	2498
auditor of each county in which a school district with a fixed-sum	2499
levy loss has territory.	2500

Section 2. That existing sections 3314.08, 3314.084, 3314.26,	2501
3317.016, 3317.017, 3317.02, 3317.029, 3317.03, 3321.01, and	2502
5727.84 and section 3314.13 of the Revised Code are hereby	2503
repealed.	2504

Section 3. Sections 1 and 2 of this act take effect July 1,	2505
2009.	2506