HB 110 – Funding for Community/STEM Schools

Elena Sanders and James Lansden Office of Budget and School Funding - 5/4/2022

HB 110 – Key Changes for Community/STEM Schools

Implements the Fair School Funding Plan for FY22 and FY23.
Direct funding for Community Schools, STEM Schools, Scholarship Programs, and Open Enrollment (fund students where they are educated).
Establishes a base cost methodology based on student teacher ratios.
Revises categorical aid and restricts funds for subgroups.

Payment Report – Community Schools

Community/STEM School Funding – FY22

Base Cost 65.6%

$9,048
per pupil

English Learners 0.7%

Special Education 11.4%

 $1.05 Billion	

Career-Tech 2.0%

 		DPIA 6.9%

*FY22 March Payment

Formula Transition Supplement 9.0%

Facilities 4.0%

Transportation 0.4%

STEM School Funding – FY22
Base Cost 70.6%

$8,660
per pupil

English Learners 0.1%

Special Education 4.9%

 $32.1 Million	

Formula Transition Supplement

  

Facilities

Career-Tech 10.2%

DPIA 1.4%

*FY22 April Payment

7.1%

5.7%

Prior Law

Base Cost

As Passed in HB 110		
Using an input-based and professional judgement approach to a base cost.
Statewide average per-pupil amounts calculated on the traditional districts side are used for community/STEM schools.
Each community school will generate a
different base cost amount.
The statewide average base cost per pupil is	$7,349.22 (if fully phased-in).	

Since the 2013-14 school year, this element of the formula is referred to the opportunity grant or formula amount.
In FY19, the per-pupil amount was
$6,020.
The per-pupil amount has received criticism because it is not connected to the actual cost of educating a student.

Base Cost (cont.)
Base cost funding includes five areas:
Teacher Base Cost (4 subcomponents)
Student Support Base
Leadership & Accountability
Building Leadership & Operations
Athletic Co-Curricular (contingent on eligibility)

Statewide Average Base Cost Per-pupil for #2-5 are calculated on the traditional district side using districts’ FY18 expenditure data

Categorical Aid
Provides additional funding beyond base cost for:
Economically disadvantaged students (increased per pupil amount - $272 to
$422 and renamed disadvantaged pupil impact aid)
English learners – funds are restricted to English learners. Funding levels converted to weights.
Students with disabilities – increased per pupil amounts. Funding levels converted to weights.
Career-Technical Education – Funding levels converted to weights.

Categorical Aid Weights
Special Education and English Learners Weights are multiplied by Statewide Average Base Cost Per-Pupil

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Categorical Aid Weights
Career Technical Education Weights are multiplied by Statewide Average Career Technical Base Cost Per-Pupil

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Student Wellness and Success Funding

As Passed in HB 110		
Moves Student Wellness and Success Funding initiative into the DPIA funding.
Allows funds to be spent on certain initiatives, including those previously designated under the Student Wellness and Success Funding.
Requires that community schools develop implementations plans with a community partner as to how they plan to use these DPIA funds. This is like the requirement that existed under the stand-alone Student Wellness and Success.
Unspent funds from FY20 and FY21 continue to be restricted for SWSF purposes.	

Prior Law
Student Wellness and Success Funding is a stand-alone item designed to serve all students.
–May be used for certain designated initiatives, based on a plan developed with two community partners.
Per-pupil funding scaled based on census poverty data.

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Base Cost – Student Wellness and Success
This restricted portion of the base cost is calculated in the following manner:

Using data from the Statewide Traditional District Base Cost report calculate the ratio of Student Wellness and Success Cost to Student Support Base Cost and then apply the resulting ratio to the Statewide Student Support per pupil amount. This results in the Student Wellness and Success per pupil amount.
Multiply the resulting Community School Student Wellness and Success per pupil amount from step #1 by the Community School Enrolled ADM. That results in an aggregate Student Wellness and Success funding before the phase-in.
Divide the aggregate amount calculated in #2 into the Community School Aggregate Base Cost.
Apply the ratio from #3 to the Base Cost State Funding amount of the Summary SFPR.
The amount calculated in #4 will be displayed on Base Cost – Student Wellness and Success line in the Annual Amount column of the Statement of Settlement and subtracted from the Base Cost line.

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Restricted Funds

3211 – Disadvantaged Pupil Impact Aid (DPIA) (formerly known as Economically Disadvantaged funding)
3218 – Student Wellness and Success Funding (previously receipted with 3219)
DPIA and SWS Guidance

3215 – Career Technical Education Funding (previously receipted with 3219)

3217 – English Learner Funding
EL Guidance

Phase-In Approach* (for most schools)
Most schools will not see their full amount calculated by the formula in FY22. They will gradually get there through a phase-in.
Phase-in percentage of 16.67% in FY22 and 33.33% in FY23.
Transportation and Facilities funding not subject to phase-in.
Full phase-in period is over the course of 6 years.

Some schools will receive the full amount in FY22 because it is less than their funding base and no phase-in necessary.

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Funding Base
3317.02 (P)(1-3) Community Schools
3317.02 (Q)(1-3) STEM Schools

Schools operating in FY20
–Amount paid to school in FY20
–FY20 Final #2 – Sum of Lines I, L and M
Schools not in operation in FY20 - opened in FY21 and FY22
–Amount school would have been paid had it been opened in FY20

Phase-In Approach (most schools)

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Formula Transition Supplement

–Calculated on a per-pupil basis (new)
–FY21 funding components used to calculate the per-pupil amount:
– Opportunity Grant (before the executive ordered reductions), Economically Disadvantaged, English Learners, Special Education, K-3 Literacy, Career-Tech, Transportation, Graduation Bonus, 3rd Grade Reading Bonus, and Student Wellness and Success

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Payment Reports
Funding has been calculated based on the new funding formula starting with January 2022
Payment Reports are available here
Base Cost Report
Detailed SFPR
Other Adjustments Report
Payment Comparison Report
Statement of Settlement
Summary SFPR

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How reports work together

Detailed SFPR calculations are reflected in Calculated State Funding – column [b] on Summary SFPR

Summary SFPR Column [d] amounts are reflected in Annual Amount Column on Statement of Settlement

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Other Adjustments
NEW	-	Other Adjustments (Line L) on the SFPR
–Career-Tech Associated Services – use USAS 476
–Catastrophic Cost Reimbursement – use USAS 3110
10% of Special Education funds are to be withheld for catastrophic cost reimbursement claims

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Transportation

Transportation
–FY22 T-1 Transportation Data was used for the first time in February.
The ridership amounts that were entered into the T-1 report were used to calculate transportation funding.
–Prior to February, FY21 EMIS ridership data was used to calculate transportation.

School Funding Resources
Funding Bases (Excel File)
Excel file of Summary SFPR
Supplemental Reports
CTE Guidance Letter/Spreadsheet

Monthly Payment Letter

Pertinent information about each monthly payment
Payment letters are available here
– Posted one week prior to the payment date

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School Funding – FY23

Detailed SFPR/Base Cost
–Weights Remain Constant
–Update to FY23 (Current Year) Enrolled ADM for Base Cost and Categorical Funding
Funding Bases Remain Constant
Phase-In - 33.33%

 	

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Questions???

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@OHEducation

Elena Sanders – Financial Manager, Office of Budget and School Funding Phone: (614) 752-1561
Email: elena.sanders@education.ohio.gov

James Lansden – Community School Payment Administrator Phone: (614) 387-0415
Email: james.lansden@education.ohio.gov

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