H. B. No. 226 As Introduced

As Introduced

127th General Assembly

Regular Session

2007-2008

H. B. No. 226

Representative Batchelder

Cosponsors: Representatives Webster, Wachtmann, Williams, S., Jones, Stebelton

A BILL

To amend sections 3317.01, 3317.02, 3317.021, 1
3317.03, 3770.06, and 5747.03, to enact new 2
sections 3317.022, 3317.023, and 3317.16, and to 3
repeal sections 3317.012, 3317.013, 3317.022, 4
3317.023, 3317.0212, 3317.0213, 3317.0214, 5
3317.0215, 3317.0216, 3317.0217, 3317.05, 6
3317.051, 3317.052, 3317.053, and 3317.16 of the 7
Revised Code to earmark 88% of the personal income 8
tax for primary and secondary education 9
expenditures, in addition to all lottery profits, 10
and to create a new method for distributing state 11
aid among school districts. 12

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

       Section 1. That sections 3317.01, 3317.02, 3317.021, 13
3317.03, 3770.06, and 5747.03 be amended and new sections 14
3317.022, 3317.023, and 3317.16 of the Revised Code be enacted to 15
read as follows: 16

       Sec. 3317.01. As used in this section and section 3317.011 17
of the Revised Code, "school district," unless otherwise 18
specified, means any city, local, exempted village, joint 19
vocational, or cooperative education school district and any 20
educational service center. 21

       This chapter shall be administered by the state board of 22
education. The superintendent of public instruction shall 23
calculate the amounts payable to each school district and shall 24
certify the amounts payable to each eligible district to the 25
treasurer of the district as provided by this chapter. ~~As soon as~~ 26
~~possible after such amounts are calculated, the superintendent~~ 27
~~shall certify to the treasurer of each school district the~~ 28
~~district's adjusted charge-off increase, as defined in section~~ 29
~~5705.211 of the Revised Code.~~ No moneys shall be distributed 30
pursuant to this chapter without the approval of the controlling 31
board. 32

       The state board of education shall, in accordance with 33
appropriations made by the general assembly, meet the financial 34
obligations of this chapter. 35

       Annually, the department of education shall calculate and 36
report to each school district the district's total state and 37
local funds for providing an adequate basic education ~~to the~~ 38
~~district's nonhandicapped students, utilizing the determination in~~ 39
~~section 3317.012 of the Revised Code. In addition, the department~~ 40
~~shall calculate and report separately for each school district the~~ 41
~~district's total state and local funds for providing an adequate~~ 42
~~education for its handicapped students, utilizing the~~ 43
~~determinations in both sections 3317.012 and 3317.013 of the~~ 44
~~Revised Code~~. 45

       Not later than the thirty-first day of August of each fiscal 46
year, the department of education shall provide to each school 47
district and county MR/DD board a preliminary estimate of the 48
amount of funding that the department calculates the district will 49
receive under ~~each of divisions (C)(1) and (4) of~~ section 3317.022 50
of the Revised Code. No later than the first day of December of 51
each fiscal year, the department shall update that preliminary 52
estimate. 53

       Moneys distributed pursuant to this chapter shall be 54
calculated and paid on a fiscal year basis, beginning with the 55
first day of July and extending through the thirtieth day of June. 56
The moneys appropriated for each fiscal year shall be distributed 57
at least monthly to each school district unless otherwise provided 58
for. The state board shall submit a yearly distribution plan to 59
the controlling board at its first meeting in July. The state 60
board shall submit any proposed midyear revision of the plan to 61
the controlling board in January. Any year-end revision of the 62
plan shall be submitted to the controlling board in June. If 63
moneys appropriated for each fiscal year are distributed other 64
than monthly, such distribution shall be on the same basis for 65
each school district. 66

       The total amounts paid each month shall constitute, as nearly 67
as possible, one-twelfth of the total amount payable for the 68
entire year. 69

       ~~Until fiscal year 2007, payments~~Payments made during the 70
first six months of the fiscal year may be based on an estimate of 71
the amounts payable for the entire year. Payments made in the last 72
six months shall be based on the final calculation of the amounts 73
payable to each school district for that fiscal year. Payments 74
made in the last six months may be adjusted, if necessary, to 75
correct the amounts distributed in the first six months, and to 76
reflect enrollment increases when such are at least three per 77
cent. 78

       ~~Beginning in fiscal year 2007, payments shall be calculated~~ 79
~~to reflect the biannual reporting of average daily membership. In~~ 80
~~fiscal year 2007 and in each fiscal year thereafter, annualized~~ 81
~~periodic payments for each school district shall be based on the~~ 82
~~district's student counts certified pursuant to section 3317.03 of~~ 83
~~the Revised Code as follows:~~ 84

~~the sum of one-half of the number of students reported~~ 85

~~for the first full week in October plus one-half of the~~ 86

~~average of the numbers reported for the first full week~~ 87

~~in October and for the first full week in February~~ 88

       Except as otherwise provided, payments under this chapter 89
shall be made only to those school districts in which: 90

       (A) The school district, except for any educational service 91
center and any joint vocational or cooperative education school 92
district, levies for current operating expenses at least twenty 93
mills. Levies for joint vocational or cooperative education 94
school districts or county school financing districts, limited to 95
or to the extent apportioned to current expenses, shall be 96
included in this qualification requirement. School district income 97
tax levies under Chapter 5748. of the Revised Code, limited to or 98
to the extent apportioned to current operating expenses, shall be 99
included in this qualification requirement to the extent 100
determined by the tax commissioner under division (D) of section 101
3317.021 of the Revised Code. 102

       (B) The school year next preceding the fiscal year for which 103
such payments are authorized meets the requirement of section 104
3313.48 or 3313.481 of the Revised Code, with regard to the 105
minimum number of days or hours school must be open for 106
instruction with pupils in attendance, for individualized 107
parent-teacher conference and reporting periods, and for 108
professional meetings of teachers. This requirement shall be 109
waived by the superintendent of public instruction if it had been 110
necessary for a school to be closed because of disease epidemic, 111
hazardous weather conditions, inoperability of school buses or 112
other equipment necessary to the school's operation, damage to a 113
school building, or other temporary circumstances due to utility 114
failure rendering the school building unfit for school use, 115
provided that for those school districts operating pursuant to 116
section 3313.48 of the Revised Code the number of days the school 117
was actually open for instruction with pupils in attendance and 118
for individualized parent-teacher conference and reporting periods 119
is not less than one hundred seventy-five, or for those school 120
districts operating on a trimester plan the number of days the 121
school was actually open for instruction with pupils in attendance 122
not less than seventy-nine days in any trimester, for those school 123
districts operating on a quarterly plan the number of days the 124
school was actually open for instruction with pupils in attendance 125
not less than fifty-nine days in any quarter, or for those school 126
districts operating on a pentamester plan the number of days the 127
school was actually open for instruction with pupils in attendance 128
not less than forty-four days in any pentamester. 129

       A school district shall not be considered to have failed to 130
comply with this division or section 3313.481 of the Revised Code 131
because schools were open for instruction but either twelfth grade 132
students were excused from attendance for up to three days or only 133
a portion of the kindergarten students were in attendance for up 134
to three days in order to allow for the gradual orientation to 135
school of such students. 136

       The superintendent of public instruction shall waive the 137
requirements of this section with reference to the minimum number 138
of days or hours school must be in session with pupils in 139
attendance for the school year succeeding the school year in which 140
a board of education initiates a plan of operation pursuant to 141
section 3313.481 of the Revised Code. The minimum requirements of 142
this section shall again be applicable to such a district 143
beginning with the school year commencing the second July 144
succeeding the initiation of one such plan, and for each school 145
year thereafter. 146

       A school district shall not be considered to have failed to 147
comply with this division or section 3313.48 or 3313.481 of the 148
Revised Code because schools were open for instruction but the 149
length of the regularly scheduled school day, for any number of 150
days during the school year, was reduced by not more than two 151
hours due to hazardous weather conditions. 152

       (C) The school district has on file, and is paying in 153
accordance with, a teachers' salary schedule which complies with 154
section 3317.13 of the Revised Code. 155

       A board of education or governing board of an educational 156
service center which has not conformed with other law and the 157
rules pursuant thereto, shall not participate in the distribution 158
of funds authorized by sections 3317.022 to 3317.0211, 3317.11, 159
3317.16, 3317.17, and 3317.19 of the Revised Code, except for good 160
and sufficient reason established to the satisfaction of the state 161
board of education and the state controlling board. 162

       All funds allocated to school districts under this chapter, 163
except those specifically allocated for other purposes, shall be 164
used to pay current operating expenses only. 165

       Sec. 3317.02. As used in this chapter: 166

       (A) Unless otherwise specified, "school district" means city, 167
local, and exempted village school districts. 168

       (B) ~~"Formula amount" means the base cost for the fiscal year~~ 169
~~specified in division (B)(4) of section 3317.012 of the Revised~~ 170
~~Code.~~ 171

       ~~(C) "FTE basis" means a count of students based on full-time~~ 172
~~equivalency, in accordance with rules adopted by the department of~~ 173
~~education pursuant to section 3317.03 of the Revised Code. In~~ 174
~~adopting its rules under this division, the department shall~~ 175
~~provide for counting any student in category one, two, three,~~ 176
~~four, five, or six special education ADM or in category one or two~~ 177
~~vocational education ADM in the same proportion the student is~~ 178
~~counted in formula ADM.~~ 179

       ~~(D) "Formula~~"District ADM" means, for a city, local, or 180
exempted village school district, the number reported pursuant to 181
division (A) of section 3317.03 of the Revised Code, and for a 182
joint vocational school district, the number reported pursuant to 183
division ~~(D)~~(C) of section 3317.03 of the Revised Code. ~~Beginning~~ 184
~~in fiscal year 2007, for payments in which formula ADM is a~~ 185
~~factor, the formula ADM for each school district for the fiscal~~ 186
~~year is the sum of one-half of the number reported for October of~~ 187
~~that fiscal year plus one-half of the average of the numbers~~ 188
~~reported for October and February of that fiscal year.~~ 189

       ~~(E) "Three-year average formula ADM" means the average of~~ 190
~~formula ADMs for the current and preceding two fiscal years.~~ 191

       ~~(F)(1) "Category one special education ADM" means the average~~ 192
~~daily membership of handicapped children receiving special~~ 193
~~education services for the handicap specified in division (A) of~~ 194
~~section 3317.013 of the Revised Code and reported under division~~ 195
~~(B)(5) or (D)(2)(b) of section 3317.03 of the Revised Code.~~ 196
~~Beginning in fiscal year 2007, the district's category one special~~ 197
~~education ADM for a fiscal year is the sum of one-half of the~~ 198
~~number reported for October of that fiscal year plus one-half of~~ 199
~~the average of the numbers reported for October and February of~~ 200
~~that fiscal year.~~ 201

       ~~(2) "Category two special education ADM" means the average~~ 202
~~daily membership of handicapped children receiving special~~ 203
~~education services for those handicaps specified in division (B)~~ 204
~~of section 3317.013 of the Revised Code and reported under~~ 205
~~division (B)(6) or (D)(2)(c) of section 3317.03 of the Revised~~ 206
~~Code. Beginning in fiscal year 2007, the district's category two~~ 207
~~special education ADM for a fiscal year is the sum of one-half of~~ 208
~~the number reported for October of that fiscal year plus one-half~~ 209
~~of the average of the numbers reported for October and February of~~ 210
~~that fiscal year.~~ 211

       ~~(3) "Category three special education ADM" means the average~~ 212
~~daily membership of students receiving special education services~~ 213
~~for those handicaps specified in division (C) of section 3317.013~~ 214
~~of the Revised Code, and reported under division (B)(7) or~~ 215
~~(D)(2)(d) of section 3317.03 of the Revised Code. Beginning in~~ 216
~~fiscal year 2007, the district's category three special education~~ 217
~~ADM for a fiscal year is the sum of one-half of the number~~ 218
~~reported for October of that fiscal year plus one-half of the~~ 219
~~average of the numbers reported for October and February of that~~ 220
~~fiscal year.~~ 221

       ~~(4) "Category four special education ADM" means the average~~ 222
~~daily membership of students receiving special education services~~ 223
~~for those handicaps specified in division (D) of section 3317.013~~ 224
~~of the Revised Code and reported under division (B)(8) or~~ 225
~~(D)(2)(e) of section 3317.03 of the Revised Code. Beginning in~~ 226
~~fiscal year 2007, the district's category four special education~~ 227
~~ADM for a fiscal year is the sum of one-half of the number~~ 228
~~reported for October of that fiscal year plus one-half of the~~ 229
~~average of the numbers reported for October and February of that~~ 230
~~fiscal year.~~ 231

       ~~(5) "Category five special education ADM" means the average~~ 232
~~daily membership of students receiving special education services~~ 233
~~for the handicap specified in division (E) of section 3317.013 of~~ 234
~~the Revised Code and reported under division (B)(9) or (D)(2)(f)~~ 235
~~of section 3317.03 of the Revised Code. Beginning in fiscal year~~ 236
~~2007, the district's category five special education ADM for a~~ 237
~~fiscal year is the sum of one-half of the number reported for~~ 238
~~October of that fiscal year plus one-half of the average of the~~ 239
~~numbers reported for October and February of that fiscal year.~~ 240

       ~~(6) "Category six special education ADM" means the average~~ 241
~~daily membership of students receiving special education services~~ 242
~~for the handicap specified in division (F) of section 3317.013 of~~ 243
~~the Revised Code and reported under division (B)(10) or (D)(2)(g)~~ 244
~~of section 3317.03 of the Revised Code. Beginning in fiscal year~~ 245
~~2007, the district's category six special education ADM for a~~ 246
~~fiscal year is the sum of one-half of the number reported for~~ 247
~~October of that fiscal year plus one-half of the average of the~~ 248
~~numbers reported for October and February of that fiscal year.~~ 249

       ~~(7) "Category one vocational education ADM" means the average~~ 250
~~daily membership of students receiving vocational education~~ 251
~~services described in division (A) of section 3317.014 of the~~ 252
~~Revised Code and reported under division (B)(11) or (D)(2)(h) of~~ 253
~~section 3317.03 of the Revised Code. Beginning in fiscal year~~ 254
~~2007, the district's category one vocational education ADM for a~~ 255
~~fiscal year is the sum of one-half of the number reported for~~ 256
~~October of that fiscal year plus one-half of the average of the~~ 257
~~numbers reported for October and February of that fiscal year.~~ 258

       ~~(8) "Category two vocational education ADM" means the average~~ 259
~~daily membership of students receiving vocational education~~ 260
~~services described in division (B) of section 3317.014 of the~~ 261
~~Revised Code and reported under division (B)(12) or (D)(2)(i) of~~ 262
~~section 3317.03 of the Revised Code. Beginning in fiscal year~~ 263
~~2007, the district's category two vocational education ADM for a~~ 264
~~fiscal year is the sum of one-half of the number reported for~~ 265
~~October of that fiscal year plus one-half of the average of the~~ 266
~~numbers reported for October and February of that fiscal year.~~ 267

       ~~(G) "Handicapped preschool child" means a handicapped child,~~ 268
~~as defined in section 3323.01 of the Revised Code, who is at least~~ 269
~~age three but is not of compulsory school age, as defined in~~ 270
~~section 3321.01 of the Revised Code, and who is not currently~~ 271
~~enrolled in kindergarten.~~ 272

       ~~(H)~~(C) "County MR/DD board" means a county board of mental 273
retardation and developmental disabilities. 274

       ~~(I) "Recognized valuation" means the amount calculated for a~~ 275
~~school district pursuant to section 3317.015 of the Revised Code.~~ 276

       ~~(J) "Transportation ADM" means the number of children~~ 277
~~reported under division (B)(13) of section 3317.03 of the Revised~~ 278
~~Code.~~ 279

       ~~(K) "Average efficient transportation use cost per student"~~ 280
~~means a statistical representation of transportation costs as~~ 281
~~calculated under division (D)(2) of section 3317.022 of the~~ 282
~~Revised Code.~~ 283

       ~~(L)~~(D) "County ADM" means the sum of the district ADMs for 284
all school districts having the principal administrative offices 285
in the county. 286

       (E) "State ADM" means the sum of the district ADMs for all 287
school districts in the state. 288

       (F) "District valuation" means the sum of recognized 289
valuation and the amount certified under division (A)(2) of 290
section 3317.021 of the Revised Code for a school district. 291

       (G) "County valuation" means the sum of recognized valuation 292
and the amount certified under division (A)(2) of section 3317.021 293
of the Revised Code for each school district having its principal 294
administrative office situated in the county. 295

       (H) "District valuation per pupil" means the district 296
valuation divided by the district ADM. 297

       (I) "County valuation per pupil" means the county valuation 298
divided by the county ADM. 299

       (J) "Recognized valuation" means the amount computed for a 300
school district for a fiscal year under section 3317.015 of the 301
Revised Code. 302

       (K) "District expenditure" means the total amount expended by 303
a school district from all state, federal, and local funding 304
sources for the preceding fiscal year. 305

       (L) "District per pupil expenditure" means the total district 306
expenditure divided by the district ADM. 307

       (M) "State per pupil expenditure" means the sum of the 308
district expenditures for all school districts in the state 309
divided by the state ADM. 310

       (N) "State aid for fiscal year 2007" means all payments made 311
to the district in fiscal year 2007 under the main operating 312
appropriations act or under any supplemental appropriations act of 313
the 126th or 127th general assembly. 314

       (O) "Taxes charged and payable" means the taxes charged and 315
payable against real and public utility property after making the 316
reduction required by section 319.301 of the Revised Code, plus 317
the taxes levied against tangible personal property. 318

       ~~(M) "Total taxable value" means the sum of the amounts~~ 319
~~certified for a city, local, exempted village, or joint vocational~~ 320
~~school district under divisions (A)(1) and (2) of section 3317.021~~ 321
~~of the Revised Code.~~ 322

       ~~(N) "Cost-of-doing-business factor" means the amount~~ 323
~~indicated in division (N)(1) or (2) of this section for the county~~ 324
~~in which a city, local, exempted village, or joint vocational~~ 325
~~school district is located. If a city, local, or exempted village~~ 326
~~school district is located in more than one county, the factor is~~ 327
~~the amount indicated for the county to which the district is~~ 328
~~assigned by the state department of education. If a joint~~ 329
~~vocational school district is located in more than one county, the~~ 330
~~factor is the amount indicated for the county in which the joint~~ 331
~~vocational school with the greatest formula ADM operated by the~~ 332
~~district is located.~~ 333

       ~~(1) In fiscal year 2006, the cost-of-doing-business factor~~ 334
~~for each county is:~~ 335

~~COST-OF-DOING-BUSINESS~~ 336

~~COUNTY~~ ~~FACTOR AMOUNT~~ 337

~~Adams~~ ~~1.00233~~ 338

~~Allen~~ ~~1.01373~~ 339

~~Ashland~~ ~~1.01980~~ 340

~~Ashtabula~~ ~~1.02647~~ 341

~~Athens~~ ~~1.00093~~ 342

~~Auglaize~~ ~~1.01647~~ 343

~~Belmont~~ ~~1.00427~~ 344

~~Brown~~ ~~1.01180~~ 345

~~Butler~~ ~~1.04307~~ 346

~~Carroll~~ ~~1.00913~~ 347

~~Champaign~~ ~~1.02973~~ 348

~~Clark~~ ~~1.02980~~ 349

~~Clermont~~ ~~1.03607~~ 350

~~Clinton~~ ~~1.02193~~ 351

~~Columbiana~~ ~~1.01427~~ 352

~~Coshocton~~ ~~1.01153~~ 353

~~Crawford~~ ~~1.01093~~ 354

~~Cuyahoga~~ ~~1.04173~~ 355

~~Darke~~ ~~1.02253~~ 356

~~Defiance~~ ~~1.00973~~ 357

~~Delaware~~ ~~1.03520~~ 358

~~Erie~~ ~~1.02587~~ 359

~~Fairfield~~ ~~1.02440~~ 360

~~Fayette~~ ~~1.02127~~ 361

~~Franklin~~ ~~1.04053~~ 362

~~Fulton~~ ~~1.0220~~ 363

~~Gallia~~ ~~1.00000~~ 364

~~Geauga~~ ~~1.03340~~ 365

~~Greene~~ ~~1.02960~~ 366

~~Guernsey~~ ~~1.00440~~ 367

~~Hamilton~~ ~~1.05000~~ 368

~~Hancock~~ ~~1.01433~~ 369

~~Hardin~~ ~~1.02373~~ 370

~~Harrison~~ ~~1.00493~~ 371

~~Henry~~ ~~1.02120~~ 372

~~Highland~~ ~~1.00987~~ 373

~~Hocking~~ ~~1.01253~~ 374

~~Holmes~~ ~~1.01187~~ 375

~~Huron~~ ~~1.01953~~ 376

~~Jackson~~ ~~1.00920~~ 377

~~Jefferson~~ ~~1.00487~~ 378

~~Knox~~ ~~1.01860~~ 379

~~Lake~~ ~~1.03493~~ 380

~~Lawrence~~ ~~1.00540~~ 381

~~Licking~~ ~~1.02540~~ 382

~~Logan~~ ~~1.02567~~ 383

~~Lorain~~ ~~1.03433~~ 384

~~Lucas~~ ~~1.02600~~ 385

~~Madison~~ ~~1.03253~~ 386

~~Mahoning~~ ~~1.02307~~ 387

~~Marion~~ ~~1.02040~~ 388

~~Medina~~ ~~1.03573~~ 389

~~Meigs~~ ~~1.00173~~ 390

~~Mercer~~ ~~1.01353~~ 391

~~Miami~~ ~~1.02740~~ 392

~~Monroe~~ ~~1.00333~~ 393

~~Montgomery~~ ~~1.03020~~ 394

~~Morgan~~ ~~1.00593~~ 395

~~Morrow~~ ~~1.02007~~ 396

~~Muskingum~~ ~~1.00847~~ 397

~~Noble~~ ~~1.00487~~ 398

~~Ottawa~~ ~~1.03240~~ 399

~~Paulding~~ ~~1.00767~~ 400

~~Perry~~ ~~1.01067~~ 401

~~Pickaway~~ ~~1.02607~~ 402

~~Pike~~ ~~1.00687~~ 403

~~Portage~~ ~~1.03147~~ 404

~~Preble~~ ~~1.02947~~ 405

~~Putnam~~ ~~1.01440~~ 406

~~Richland~~ ~~1.01327~~ 407

~~Ross~~ ~~1.01007~~ 408

~~Sandusky~~ ~~1.02140~~ 409

~~Scioto~~ ~~1.00080~~ 410

~~Seneca~~ ~~1.01487~~ 411

~~Shelby~~ ~~1.01853~~ 412

~~Stark~~ ~~1.01700~~ 413

~~Summit~~ ~~1.03613~~ 414

~~Trumbull~~ ~~1.02340~~ 415

~~Tuscarawas~~ ~~1.00593~~ 416

~~Union~~ ~~1.03333~~ 417

~~Van Wert~~ ~~1.00887~~ 418

~~Vinton~~ ~~1.00633~~ 419

~~Warren~~ ~~1.04387~~ 420

~~Washington~~ ~~1.00400~~ 421

~~Wayne~~ ~~1.02320~~ 422

~~Williams~~ ~~1.01520~~ 423

~~Wood~~ ~~1.02400~~ 424

~~Wyandot~~ ~~1.01140~~ 425

       ~~(2) In fiscal year 2007, the cost-of-doing-business factor~~ 426
~~for each county is:~~ 427

~~COST-OF-DOING-BUSINESS~~ 428

~~COUNTY~~ ~~FACTOR AMOUNT~~ 429

~~Adams~~ ~~1.00117~~ 430

~~Allen~~ ~~1.00687~~ 431

~~Ashland~~ ~~1.00990~~ 432

~~Ashtabula~~ ~~1.01323~~ 433

~~Athens~~ ~~1.00047~~ 434

~~Auglaize~~ ~~1.00823~~ 435

~~Belmont~~ ~~1.00213~~ 436

~~Brown~~ ~~1.00590~~ 437

~~Butler~~ ~~1.02153~~ 438

~~Carroll~~ ~~1.00457~~ 439

~~Champaign~~ ~~1.01487~~ 440

~~Clark~~ ~~1.01490~~ 441

~~Clermont~~ ~~1.01803~~ 442

~~Clinton~~ ~~1.01097~~ 443

~~Columbiana~~ ~~1.00713~~ 444

~~Coshocton~~ ~~1.00577~~ 445

~~Crawford~~ ~~1.00547~~ 446

~~Cuyahoga~~ ~~1.02087~~ 447

~~Darke~~ ~~1.01127~~ 448

~~Defiance~~ ~~1.00487~~ 449

~~Delaware~~ ~~1.01760~~ 450

~~Erie~~ ~~1.01293~~ 451

~~Fairfield~~ ~~1.01220~~ 452

~~Fayette~~ ~~1.01063~~ 453

~~Franklin~~ ~~1.02027~~ 454

~~Fulton~~ ~~1.01100~~ 455

~~Gallia~~ ~~1.00000~~ 456

~~Geauga~~ ~~1.01670~~ 457

~~Greene~~ ~~1.01480~~ 458

~~Guernsey~~ ~~1.00220~~ 459

~~Hamilton~~ ~~1.02500~~ 460

~~Hancock~~ ~~1.00717~~ 461

~~Hardin~~ ~~1.01187~~ 462

~~Harrison~~ ~~1.00247~~ 463

~~Henry~~ ~~1.01060~~ 464

~~Highland~~ ~~1.00493~~ 465

~~Hocking~~ ~~1.00627~~ 466

~~Holmes~~ ~~1.00593~~ 467

~~Huron~~ ~~1.00977~~ 468

~~Jackson~~ ~~1.00460~~ 469

~~Jefferson~~ ~~1.00243~~ 470

~~Knox~~ ~~1.00930~~ 471

~~Lake~~ ~~1.01747~~ 472

~~Lawrence~~ ~~1.00270~~ 473

~~Licking~~ ~~1.01270~~ 474

~~Logan~~ ~~1.01283~~ 475

~~Lorain~~ ~~1.01717~~ 476

~~Lucas~~ ~~1.01300~~ 477

~~Madison~~ ~~1.01627~~ 478

~~Mahoning~~ ~~1.01153~~ 479

~~Marion~~ ~~1.01020~~ 480

~~Medina~~ ~~1.01787~~ 481

~~Meigs~~ ~~1.00087~~ 482

~~Mercer~~ ~~1.00677~~ 483

~~Miami~~ ~~1.01370~~ 484

~~Monroe~~ ~~1.00167~~ 485

~~Montgomery~~ ~~1.01510~~ 486

~~Morgan~~ ~~1.00297~~ 487

~~Morrow~~ ~~1.01003~~ 488

~~Muskingum~~ ~~1.00423~~ 489

~~Noble~~ ~~1.00243~~ 490

~~Ottawa~~ ~~1.01620~~ 491

~~Paulding~~ ~~1.00383~~ 492

~~Perry~~ ~~1.00533~~ 493

~~Pickaway~~ ~~1.01303~~ 494

~~Pike~~ ~~1.00343~~ 495

~~Portage~~ ~~1.01573~~ 496

~~Preble~~ ~~1.01473~~ 497

~~Putnam~~ ~~1.00720~~ 498

~~Richland~~ ~~1.00663~~ 499

~~Ross~~ ~~1.00503~~ 500

~~Sandusky~~ ~~1.01070~~ 501

~~Scioto~~ ~~1.00040~~ 502

~~Seneca~~ ~~1.00743~~ 503

~~Shelby~~ ~~1.00927~~ 504

~~Stark~~ ~~1.00850~~ 505

~~Summit~~ ~~1.01807~~ 506

~~Trumbull~~ ~~1.01170~~ 507

~~Tuscarawas~~ ~~1.00297~~ 508

~~Union~~ ~~1.01667~~ 509

~~Van Wert~~ ~~1.00443~~ 510

~~Vinton~~ ~~1.00317~~ 511

~~Warren~~ ~~1.02193~~ 512

~~Washington~~ ~~1.00200~~ 513

~~Wayne~~ ~~1.01160~~ 514

~~Williams~~ ~~1.00760~~ 515

~~Wood~~ ~~1.01200~~ 516
~~Wyandot~~ ~~1.00570~~ 517

       ~~(O) "Tax exempt value" of a school district means the amount~~ 518
~~certified for a school district under division (A)(4) of section~~ 519
~~3317.021 of the Revised Code.~~ 520

       ~~(P) "Potential value" of a school district means the~~ 521
~~recognized valuation of a school district plus the tax exempt~~ 522
~~value of the district.~~ 523

       ~~(Q) "District median income" means the median Ohio adjusted~~ 524
~~gross income certified for a school district. On or before the~~ 525
~~first day of July of each year, the tax commissioner shall certify~~ 526
~~to the department of education for each city, exempted village,~~ 527
~~and local school district the median Ohio adjusted gross income of~~ 528
~~the residents of the school district determined on the basis of~~ 529
~~tax returns filed for the second preceding tax year by the~~ 530
~~residents of the district.~~ 531

       ~~(R) "Statewide median income" means the median district~~ 532
~~median income of all city, exempted village, and local school~~ 533
~~districts in the state.~~ 534

       ~~(S) "Income factor" for a city, exempted village, or local~~ 535
~~school district means the quotient obtained by dividing that~~ 536
~~district's median income by the statewide median income.~~ 537

       ~~(T) "Medically fragile child" means a child to whom all of~~ 538
~~the following apply:~~ 539

       ~~(1) The child requires the services of a doctor of medicine~~ 540
~~or osteopathic medicine at least once a week due to the~~ 541
~~instability of the child's medical condition.~~ 542

       ~~(2) The child requires the services of a registered nurse on~~ 543
~~a daily basis.~~ 544

       ~~(3) The child is at risk of institutionalization in a~~ 545
~~hospital, skilled nursing facility, or intermediate care facility~~ 546
~~for the mentally retarded.~~ 547

       ~~(U) A child may be identified as "other health~~ 548
~~handicapped-major" if the child's condition meets the definition~~ 549
~~of "other health impaired" established in rules adopted by the~~ 550
~~state board of education prior to July 1, 2001, and if either of~~ 551
~~the following apply:~~ 552

       ~~(1) The child is identified as having a medical condition~~ 553
~~that is among those listed by the superintendent of public~~ 554
~~instruction as conditions where a substantial majority of cases~~ 555
~~fall within the definition of "medically fragile child." The~~ 556
~~superintendent of public instruction shall issue an initial list~~ 557
~~no later than September 1, 2001.~~ 558

       ~~(2) The child is determined by the superintendent of public~~ 559
~~instruction to be a medically fragile child. A school district~~ 560
~~superintendent may petition the superintendent of public~~ 561
~~instruction for a determination that a child is a medically~~ 562
~~fragile child.~~ 563

       ~~(V) A child may be identified as "other health~~ 564
~~handicapped-minor" if the child's condition meets the definition~~ 565
~~of "other health impaired" established in rules adopted by the~~ 566
~~state board of education prior to July 1, 2001, but the child's~~ 567
~~condition does not meet either of the conditions specified in~~ 568
~~division (U)(1) or (2) of this section.~~ 569

       ~~(W) "SF-3 payment" means the sum of the payments to a school~~ 570
~~district in a fiscal year under divisions (A), (C)(1), (C)(4),~~ 571
~~(D), (E), and (F) of section 3317.022, divisions (G), (L), and (N)~~ 572
~~of section 3317.024, and sections 3317.029, 3317.0216, 3317.0217,~~ 573
~~3317.04, 3317.05, 3317.052, and 3317.053 of the Revised Code after~~ 574
~~making the adjustments required by sections 3313.981 and 3313.979~~ 575
~~of the Revised Code, divisions (B), (C), (D), (E), (K), (L), (M),~~ 576
~~(N), and (O) of section 3317.023, and division (C) of section~~ 577
~~3317.20 of the Revised Code.~~ 578

       ~~(X) "Property exemption value" means zero in fiscal year~~ 579
~~2006, and in fiscal year 2007 and each fiscal year thereafter, the~~ 580
~~amount certified for a school district under divisions (A)(6) and~~ 581
~~(7) of section 3317.021 of the Revised Code.~~ 582

       Sec. 3317.021. (A) On or before the first day of June of 583
each year, the tax commissioner shall certify to the department of 584
education the information described in ~~divisions (A)(1) to (8)~~ 585
division (A) of this section for each city, exempted village, and 586
local school district, and the information required by ~~divisions~~ 587
~~(A)(1) and (2)~~division (A) of this section for each joint 588
vocational school district, and it shall be used, along with the 589
information certified under division (B) of this section, in 590
making the computations for the district under ~~sections 3317.022,~~ 591
~~3317.0216, and 3317.0217 or~~ section 3317.022 or 3317.16 of the 592
Revised Code. 593

       (1) The taxable value of real and public utility real 594
property in the school district subject to taxation in the 595
preceding tax year, by class and by county of location. 596

       (2) The taxable value of tangible personal property, 597
including public utility personal property, subject to taxation by 598
the district for the preceding tax year. 599

       ~~(3)(a) The total property tax rate and total taxes charged~~ 600
~~and payable for the current expenses for the preceding tax year~~ 601
~~and the total property tax rate and the total taxes charged and~~ 602
~~payable to a joint vocational district for the preceding tax year~~ 603
~~that are limited to or to the extent apportioned to current~~ 604
~~expenses.~~ 605

       ~~(b) The portion of the amount of taxes charged and payable~~ 606
~~reported for each city, local, and exempted village school~~ 607
~~district under division (A)(3)(a) of this section attributable to~~ 608
~~a joint vocational school district.~~ 609

       ~~(4) The value of all real and public utility real property in~~ 610
~~the school district exempted from taxation minus both of the~~ 611
~~following:~~ 612

       ~~(a) The value of real and public utility real property in the~~ 613
~~district owned by the United States government and used~~ 614
~~exclusively for a public purpose;~~ 615

       ~~(b) The value of real and public utility real property in the~~ 616
~~district exempted from taxation under Chapter 725. or 1728. or~~ 617
~~section 3735.67, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632,~~ 618
~~5709.73, or 5709.78 of the Revised Code.~~ 619

       ~~(5) The total federal adjusted gross income of the residents~~ 620
~~of the school district, based on tax returns filed by the~~ 621
~~residents of the district, for the most recent year for which this~~ 622
~~information is available.~~ 623

       ~~(6) The sum of the school district compensation value as~~ 624
~~indicated on the list of exempted property for the preceding tax~~ 625
~~year under section 5713.08 of the Revised Code as if such property~~ 626
~~had been assessed for taxation that year and the other~~ 627
~~compensation value for the school district, minus the amounts~~ 628
~~described in divisions (A)(6)(c) to (i) of this section. The~~ 629
~~portion of school district compensation value or other~~ 630
~~compensation value attributable to an incentive district exemption~~ 631
~~may be subtracted only once even if that incentive district~~ 632
~~satisfies more than one of the criteria in divisions (A)(6)(c) to~~ 633
~~(i) of this section.~~ 634

       ~~(a) "School district compensation value" means the aggregate~~ 635
~~value of real property in the school district exempted from~~ 636
~~taxation pursuant to an ordinance or resolution adopted under~~ 637
~~division (C) of section 5709.40, division (C) of section 5709.73,~~ 638
~~or division (B) of section 5709.78 of the Revised Code to the~~ 639
~~extent that the exempted value results in the charging of payments~~ 640
~~in lieu of taxes required to be paid to the school district under~~ 641
~~division (D)(1) or (2) of section 5709.40, division (D) of section~~ 642
~~5709.73, or division (C) of section 5709.78 of the Revised Code.~~ 643

       ~~(b) "Other compensation value" means the quotient that~~ 644
~~results from dividing (i) the dollar value of compensation~~ 645
~~received by the school district during the preceding tax year~~ 646
~~pursuant to division (B), (C), or (D) of section 5709.82 of the~~ 647
~~Revised Code and the amounts received pursuant to an agreement as~~ 648
~~specified in division (D)(2) of section 5709.40, division (D) of~~ 649
~~section 5709.73, or division (C) of section 5709.78 of the Revised~~ 650
~~Code to the extent those amounts were not previously reported or~~ 651
~~included in division (A)(6)(a) of this section, and so that any~~ 652
~~such amount is reported only once under division (A)(6)(b) of this~~ 653
~~section, in relation to exemptions from taxation granted pursuant~~ 654
~~to an ordinance or resolution adopted under division (C) of~~ 655
~~section 5709.40, division (C) of section 5709.73, or division (B)~~ 656
~~of section 5709.78 of the Revised Code, by (ii) the real property~~ 657
~~tax rate in effect for the preceding tax year for~~ 658
~~nonresidential/agricultural real property after making the~~ 659
~~reductions required by section 319.301 of the Revised Code.~~ 660

       ~~(c) The portion of school district compensation value or~~ 661
~~other compensation value that was exempted from taxation pursuant~~ 662
~~to such an ordinance or resolution for the preceding tax year, if~~ 663
~~the ordinance or resolution is adopted prior to January 1, 2006,~~ 664
~~and the legislative authority or board of township trustees or~~ 665
~~county commissioners, prior to January 1, 2006, executes a~~ 666
~~contract or agreement with a developer, whether for-profit or~~ 667
~~not-for-profit, with respect to the development of a project~~ 668
~~undertaken or to be undertaken and identified in the ordinance or~~ 669
~~resolution, and upon which parcels such project is being, or will~~ 670
~~be, undertaken;~~ 671

        ~~(d) The portion of school district compensation value that~~ 672
~~was exempted from taxation for the preceding tax year and for~~ 673
~~which payments in lieu of taxes for the preceding tax year were~~ 674
~~provided to the school district under division (D)(1) of section~~ 675
~~5709.40 of the Revised Code.~~ 676

       ~~(e) The portion of school district compensation value that~~ 677
~~was exempted from taxation for the preceding tax year pursuant to~~ 678
~~such an ordinance or resolution, if and to the extent that, on or~~ 679
~~before April 1, 2006, the fiscal officer of the municipal~~ 680
~~corporation that adopted the ordinance, or of the township or~~ 681
~~county that adopted the resolution, certifies and provides~~ 682
~~appropriate supporting documentation to the tax commissioner and~~ 683
~~the director of development that, based on hold-harmless~~ 684
~~provisions in any agreement between the school district and the~~ 685
~~legislative authority of the municipal corporation, board of~~ 686
~~township trustees, or board of county commissioners that was~~ 687
~~entered into on or before June 1, 2005, the ability or obligation~~ 688
~~of the municipal corporation, township, or county to repay bonds,~~ 689
~~notes, or other financial obligations issued or entered into prior~~ 690
~~to January 1, 2006, will be impaired, including obligations to or~~ 691
~~of any other body corporate and politic with whom the legislative~~ 692
~~authority of the municipal corporation or board of township~~ 693
~~trustees or county commissioners has entered into an agreement~~ 694
~~pertaining to the use of service payments derived from the~~ 695
~~improvements exempted;~~ 696

        ~~(f) The portion of school district compensation value that~~ 697
~~was exempted from taxation for the preceding tax year pursuant to~~ 698
~~such an ordinance or resolution, if the ordinance or resolution is~~ 699
~~adopted prior to January 1, 2006, in a municipal corporation with~~ 700
~~a population that exceeds one hundred thousand, as shown by the~~ 701
~~most recent federal decennial census, that includes a major~~ 702
~~employment center and that is adjacent to historically distressed~~ 703
~~neighborhoods, if the legislative authority of the municipal~~ 704
~~corporation that exempted the property prepares an economic~~ 705
~~analysis that demonstrates that all taxes generated within the~~ 706
~~incentive district accruing to the state by reason of improvements~~ 707
~~constructed within the district during its existence exceed the~~ 708
~~amount the state pays the school district under section 3317.022~~ 709
~~of the Revised Code attributable to such property exemption from~~ 710
~~the school district's recognized valuation. The analysis shall be~~ 711
~~submitted to and approved by the department of development prior~~ 712
~~to January 1, 2006, and the department shall not unreasonably~~ 713
~~withhold approval.~~ 714

        ~~(g) The portion of school district compensation value that~~ 715
~~was exempted from taxation for the preceding tax year under such~~ 716
~~an ordinance or resolution, if the ordinance or resolution is~~ 717
~~adopted prior to January 1, 2006, and if service payments have~~ 718
~~been pledged to be used for mixed-use riverfront entertainment~~ 719
~~development in any county with a population that exceeds six~~ 720
~~hundred thousand, as shown by the most recent federal decennial~~ 721
~~census;~~ 722

        ~~(h) The portion of school district compensation value that~~ 723
~~was exempted from taxation for the preceding tax year under such~~ 724
~~an ordinance or resolution, if, prior to January 1, 2006, the~~ 725
~~legislative authority of a municipal corporation, board of~~ 726
~~township trustees, or board of county commissioners has pledged~~ 727
~~service payments for a designated transportation capacity project~~ 728
~~approved by the transportation review advisory council under~~ 729
~~Chapter 5512. of the Revised Code;~~ 730

        ~~(i) The portion of school district compensation value that~~ 731
~~was exempted from taxation for the preceding tax year under such~~ 732
~~an ordinance or resolution if the legislative authority of a~~ 733
~~municipal corporation, board of township trustees, or board of~~ 734
~~county commissioners have, by January 1, 2006, pledged proceeds~~ 735
~~for designated transportation improvement projects that involve~~ 736
~~federal funds for which the proceeds are used to meet a local~~ 737
~~share match requirement for such funding.~~ 738

       ~~As used in division (A)(6) of this section, "project" has the~~ 739
~~same meaning as in section 5709.40 of the Revised Code.~~ 740

       ~~(7) The aggregate value of real property in the school~~ 741
~~district for which an exemption from taxation is granted by an~~ 742
~~ordinance or resolution adopted on or after January 1, 2006, under~~ 743
~~Chapter 725. or 1728., sections 3735.65 to 3735.70, or section~~ 744
~~5709.62, 5709.63, 5709.632, 5709.84, or 5709.88 of the Revised~~ 745
~~Code, as indicated on the list of exempted property for the~~ 746
~~preceding tax year under section 5713.08 of the Revised Code and~~ 747
~~as if such property had been assessed for taxation that year,~~ 748
~~minus the product determined by multiplying (a) the aggregate~~ 749
~~value of the real property in the school district exempted from~~ 750
~~taxation for the preceding tax year under any of the chapters or~~ 751
~~sections specified in this division, by (b) a fraction, the~~ 752
~~numerator of which is the difference between (i) the amount of~~ 753
~~anticipated revenue such school district would have received for~~ 754
~~the preceding tax year if the real property exempted from taxation~~ 755
~~had not been exempted from taxation and (ii) the aggregate amount~~ 756
~~of payments in lieu of taxes on the exempt real property for the~~ 757
~~preceding tax year and other compensation received for the~~ 758
~~preceding tax year by the school district pursuant to any~~ 759
~~agreements entered into on or after January 1, 2006, under section~~ 760
~~5709.82 of the Revised Code between the school district and the~~ 761
~~legislative authority of a political subdivision that acted under~~ 762
~~the authority of a chapter or statute specified in this division,~~ 763
~~that were entered into in relation to such exemption, and the~~ 764
~~denominator of which is the amount of anticipated revenue such~~ 765
~~school district would have received in the preceding fiscal year~~ 766
~~if the real property exempted from taxation had not been exempted.~~ 767

       ~~(8) For each school district receiving payments under~~ 768
~~division (B) or (C) of section 3317.0216 of the Revised Code~~ 769
~~during the current fiscal year, as included on the most recent~~ 770
~~list of such districts sent to the tax commissioner under division~~ 771
~~(F) of that section, the following:~~ 772

       ~~(a) The portion of the total amount of taxes charged and~~ 773
~~payable for current expenses certified under division (A)(3)(a) of~~ 774
~~this section that is attributable to each new levy approved and~~ 775
~~charged in the preceding tax year and the respective tax rate of~~ 776
~~each of those new levies;~~ 777

       ~~(b) The portion of the total taxes collected for current~~ 778
~~expenses under a school district income tax adopted pursuant to~~ 779
~~section 5748.03 or 5748.08 of the Revised Code, as certified under~~ 780
~~division (A)(2) of section 3317.08 of the Revised Code, that is~~ 781
~~attributable to each new school district income tax first~~ 782
~~effective in the current taxable year or in the preceding taxable~~ 783
~~year.~~ 784

       (B) On or before the first day of May each year, the tax 785
commissioner shall certify to the department of education the 786
total taxable real property value of railroads and, separately, 787
the total taxable tangible personal property value of all public 788
utilities for the preceding tax year, by school district and by 789
county of location. 790

       (C) If a public utility has properly and timely filed a 791
petition for reassessment under section 5727.47 of the Revised 792
Code with respect to an assessment issued under section 5727.23 of 793
the Revised Code affecting taxable property apportioned by the tax 794
commissioner to a school district, the taxable value of public 795
utility tangible personal property included in the certification 796
under divisions (A)(2) and (B) of this section for the school 797
district shall include only the amount of taxable value on the 798
basis of which the public utility paid tax for the preceding year 799
as provided in division (B)(1) or (2) of section 5727.47 of the 800
Revised Code. 801

       (D) If on the basis of the information certified under 802
division (A) of this section, the department determines that any 803
district fails in any year to meet the qualification requirement 804
specified in division (A) of section 3317.01 of the Revised Code, 805
the department shall immediately request the tax commissioner to 806
determine the extent to which any school district income tax 807
levied by the district under Chapter 5748. of the Revised Code 808
shall be included in meeting that requirement. Within five days of 809
receiving such a request from the department, the tax commissioner 810
shall make the determination required by this division and report 811
the quotient obtained under division (D)(3) of this section to the 812
department. This quotient represents the number of mills that the 813
department shall include in determining whether the district meets 814
the qualification requirement of division (A) of section 3317.01 815
of the Revised Code. 816

       The tax commissioner shall make the determination required by 817
this division as follows: 818

       (1) Multiply one mill times the total taxable value of the 819
district as determined in divisions (A)(1) and (2) of this 820
section; 821

       (2) Estimate the total amount of tax liability for the 822
current tax year under taxes levied by Chapter 5748. of the 823
Revised Code that are apportioned to current operating expenses of 824
the district; 825

       (3) Divide the amount estimated under division (D)(2) of this 826
section by the product obtained under division (D)(1) of this 827
section. 828

       ~~(E)(1) On or before June 1, 2006, and the first day of April~~ 829
~~of each year thereafter, the director of development shall report~~ 830
~~to the department of education and the tax commissioner the total~~ 831
~~amounts of payments received by each city, local, exempted~~ 832
~~village, or joint vocational school district for the preceding tax~~ 833
~~year pursuant to division (D) of section 5709.40, division (D) of~~ 834
~~section 5709.73, division (C) of section 5709.78, or division~~ 835
~~(B)(1), (B)(2), (C), or (D) of section 5709.82 of the Revised Code~~ 836
~~in relation to exemptions from taxation granted pursuant to an~~ 837
~~ordinance adopted by the legislative authority of a municipal~~ 838
~~corporation under division (C) of section 5709.40 of the Revised~~ 839
~~Code, or a resolution adopted by a board of township trustees or~~ 840
~~board of county commissioners under division (C) of section~~ 841
~~5709.73 or division (B) of section 5709.78 of the Revised Code,~~ 842
~~respectively. On or before April 1, 2006, and the first day of~~ 843
~~March of each year thereafter, the treasurer of each city, local,~~ 844
~~exempted village, or joint vocational school district that has~~ 845
~~entered into such an agreement shall report to the director of~~ 846
~~development the total amounts of such payments the district~~ 847
~~received for the preceding tax year as provided in this section.~~ 848
~~The state board of education, in accordance with sections 3319.31~~ 849
~~and 3319.311 of the Revised Code, may suspend or revoke the~~ 850
~~license of a treasurer found to have willfully reported erroneous,~~ 851
~~inaccurate, or incomplete data under this division.~~ 852

       ~~(2) On or before April 1, 2007, and the first day of April of~~ 853
~~each year thereafter, the director of development shall report to~~ 854
~~the department of education and to the tax commissioner the total~~ 855
~~amounts of payments received by each city, local, exempted~~ 856
~~village, or joint vocational school district for the preceding tax~~ 857
~~year pursuant to divisions (B), (C), and (D) of section 5709.82 of~~ 858
~~the Revised Code in relation to exemptions from taxation granted~~ 859
~~pursuant to ordinances or resolutions adopted on or after January~~ 860
~~1, 2006, under Chapter 725. or 1728., sections 3735.65 to 3735.70,~~ 861
~~or section 5709.62, 5709.63, 5709.632, 5709.84, or 5709.88 of the~~ 862
~~Revised Code. On or before March 1, 2007, and the first day of~~ 863
~~March of each year thereafter, the treasurer of each city, local,~~ 864
~~exempted village, or joint vocational school district that has~~ 865
~~entered into such an agreement shall report to the director of~~ 866
~~development the total amounts of such payments the district~~ 867
~~received for the preceding tax year as provided by this section.~~ 868
~~The state board of education, in accordance with sections 3319.31~~ 869
~~and 3319.311 of the Revised Code, may suspend or revoke the~~ 870
~~license of a treasurer found to have willfully reported erroneous,~~ 871
~~inaccurate, or incomplete data under this division.~~ 872

       Sec. 3317.022. There is hereby created in the county 873
treasury of each county in the state a county school trust fund. 874
Moneys in the fund shall consist of payments to the fund made 875
under division (A)(1) of section 5747.03 and section 3770.06 of 876
the Revised Code. The county school trust fund shall be used for 877
making the distribution payments required by this section. 878

       (A) By the fifteenth day of each month, the county auditor 879
shall certify to the superintendent of public instruction the 880
balance in the county's school trust fund on the last day of the 881
preceding month. Each school district having its principal 882
administrative office situated in the county shall receive a 883
payment computed by the superintendent and certified to the 884
auditor as follows: 885

       (1) Multiply the balance in the fund on the last day of the 886
preceding month by the district's ADM divided by the county ADM. 887

       (2) Divide the district's valuation per pupil by the county 888
valuation per pupil and subtract the quotient from one. 889

       (3) If the district's valuation per pupil is less than the 890
county valuation per pupil, pay the district: 891

       (a) The amount computed under division (A)(1) of this 892
section, plus 893

       (b) The product obtained by multiplying the amount computed 894
under division (A)(1) of this section by the amount computed under 895
division (A)(2) of this section. 896

       (4) If the district's valuation per pupil is greater than the 897
county valuation per pupil, pay the district the following amount, 898
if the computation produces a positive number: 899

       (a) The amount computed under division (A)(1) of this 900
section, minus 901

       (b) The product obtained by multiplying the amount computed 902
under division (A)(1) of this section by the absolute value of the 903
amount computed under division (A)(2) of this section. 904

       If the computation produces a negative amount, the district 905
shall not receive a payment under this division. 906

       (5) If the district's valuation per pupil is the same as the 907
county valuation per pupil, pay the district the amount computed 908
under division (A)(1) of this section. 909

       (B) If the balance in the county school trust fund on the 910
last day of the preceding month is greater than the sum of the 911
payments required by division (A) of this section, the county 912
auditor shall pay such excess into the state equalization and 913
special program fund established in section 3317.023 of the 914
Revised Code. If the amount required to make the payments under 915
division (A) of this section exceeds the balance in the trust fund 916
on the last day of the preceding month, the county auditor shall 917
certify the amount of such deficiency to the department of 918
education, which shall pay an amount equal to the deficiency to 919
the county's school trust fund from the state equalization and 920
special program fund. 921

       (C) If the amount paid to a district under division (A) of 922
this section during a fiscal year from the county school trust 923
fund divided by the district ADM is less than the district's state 924
aid for fiscal year 2007 divided by the district ADM for that 925
fiscal year, the superintendent of public instruction shall pay 926
the district from the state equalization and special program fund 927
an additional amount equal to the difference multiplied by the 928
district ADM. 929

       (D) Annually in December, from information that shall be 930
furnished by school districts upon request by the superintendent 931
of public instruction, the superintendent shall compute the state 932
per pupil expenditure and district per pupil expenditure for each 933
school district in the state. If the district per pupil 934
expenditure is less than eighty-five per cent of the state per 935
pupil expenditure, the superintendent shall pay to the district 936
from the fund established in section 3317.023 of the Revised Code 937
the district ADM multiplied by the following difference: 938

       (1) Eighty-five per cent of the state per pupil expenditure, 939
minus 940

       (2) The district's per pupil expenditure. 941

       (E) Notwithstanding divisions (A) and (D) of this section, 942
the amount paid to a district during a fiscal year divided by the 943
district ADM shall not exceed one hundred eight per cent of the 944
amount paid under this section to the district during the previous 945
fiscal year divided by the district ADM for that previous year. 946

       (F) The department of education shall adopt rules for the 947
efficient administration of this section, including the adjustment 948
of payments to or the requirement of a reimbursement from a 949
district during the first three months of a fiscal year to make 950
corrections for overpayments or underpayments under divisions (C), 951
(D), and (E) of this section during the preceding fiscal year. 952

       Sec. 3317.023. There is hereby created in the state treasury 953
the state equalization and special program fund, consisting of 954
moneys paid to it under division (B) of section 3317.022 and 955
division (A)(2) of section 5747.03 of the Revised Code and any 956
other moneys credited to it by an act of the general assembly. The 957
fund shall be used to make the payments required by divisions (B), 958
(C), and (D) of section 3317.022, division (J) of section 3313.64, 959
and sections 3317.029, 3317.06, 3317.08, 3317.11, and 3317.16 of 960
the Revised Code and for special education programs of county 961
MR/DD boards and the state institutions mentioned in section 962
3323.091 of the Revised Code. The laws appropriating the moneys to 963
and from the fund may also specify the distribution of moneys for 964
desegregation costs, handicapped preschool programs, vocational 965
education, gifted and special education programs, purchasing of 966
school buses, for administrative costs of the superintendent of 967
public instruction, and paying debt service charges of obligations 968
issued for school district facilities. 969

       Sec. 3317.03. Notwithstanding divisions (A)(1),and (B)(1), 970
~~and (C)~~ of this section, except as provided in division (A)(2)(h) 971
of this section, any student enrolled in kindergarten more than 972
half time shall be reported as one-half student under this 973
section. 974

       (A) The superintendent of each city and exempted village 975
school district and of each educational service center shall, for 976
the schools under the superintendent's supervision, certify to the 977
state board of education on or before the fifteenth day of October 978
in each year for the first full school week in October ~~the formula~~ 979
~~ADM. Beginning in fiscal year 2007, each superintendent also shall~~ 980
~~certify to the state board, for the schools under the~~ 981
~~superintendent's supervision, the formula ADM for the first full~~ 982
~~week in February. If a school under the superintendent's~~ 983
~~supervision is closed for one or more days during that week due to~~ 984
~~hazardous weather conditions or other circumstances described in~~ 985
~~the first paragraph of division (B) of section 3317.01 of the~~ 986
~~Revised Code, the superintendent may apply to the superintendent~~ 987
~~of public instruction for a waiver, under which the superintendent~~ 988
~~of public instruction may exempt the district superintendent from~~ 989
~~certifying the formula ADM for that school for that week and~~ 990
~~specify an alternate week for certifying the formula ADM of that~~ 991
~~school.~~ 992

       ~~The formula ADM shall consist of the average daily membership~~ 993
~~during such week of~~ the sum of the following: 994

       (1) ~~On an FTE basis, the~~The number of students in grades 995
kindergarten through twelve receiving any educational services 996
from the district, except that the following categories of 997
students shall not be included in the determination: 998

       (a) Students enrolled in adult education classes; 999

       (b) Adjacent or other district students enrolled in the 1000
district under an open enrollment policy pursuant to section 1001
3313.98 of the Revised Code; 1002

       (c) Students receiving services in the district pursuant to a 1003
compact, cooperative education agreement, or a contract, but who 1004
are entitled to attend school in another district pursuant to 1005
section 3313.64 or 3313.65 of the Revised Code; 1006

       (d) Students for whom tuition is payable pursuant to sections 1007
3317.081 and 3323.141 of the Revised Code; 1008

       (e) Students receiving services in the district through a 1009
scholarship awarded under section 3310.41 of the Revised Code. 1010

       (2) ~~On an FTE basis, except~~Except as provided in division 1011
(A)(2)(h) of this section, the number of students entitled to 1012
attend school in the district pursuant to section 3313.64 or 1013
3313.65 of the Revised Code, but receiving educational services in 1014
grades kindergarten through twelve from one or more of the 1015
following entities: 1016

       (a) A community school pursuant to Chapter 3314. of the 1017
Revised Code, including any participation in a college pursuant to 1018
Chapter 3365. of the Revised Code while enrolled in such community 1019
school; 1020

       (b) An alternative school pursuant to sections 3313.974 to 1021
3313.979 of the Revised Code as described in division ~~(I)~~(H)(2)(a) 1022
or (b) of this section; 1023

       (c) A college pursuant to Chapter 3365. of the Revised Code, 1024
except when the student is enrolled in the college while also 1025
enrolled in a community school pursuant to Chapter 3314. of the 1026
Revised Code; 1027

       (d) An adjacent or other school district under an open 1028
enrollment policy adopted pursuant to section 3313.98 of the 1029
Revised Code; 1030

       (e) An educational service center or cooperative education 1031
district; 1032

       (f) Another school district under a cooperative education 1033
agreement, compact, or contract; 1034

       (g) A chartered nonpublic school with a scholarship paid 1035
under section 3310.08 of the Revised Code; 1036

        (h) An alternative public provider or a registered private 1037
provider with a scholarship awarded under section 3310.41 of the 1038
Revised Code. Each such scholarship student who is enrolled in 1039
kindergarten shall be counted as one full-time-equivalent student. 1040

       As used in this section, "alternative public provider" and 1041
"registered private provider" have the same meanings as in section 1042
3310.41 of the Revised Code. 1043

       (3) Twenty per cent of the number of students enrolled in a 1044
joint vocational school district or under a vocational education 1045
compact, excluding any students entitled to attend school in the 1046
district under section 3313.64 or 3313.65 of the Revised Code who 1047
are enrolled in another school district through an open enrollment 1048
policy as reported under division (A)(2)(d) of this section and 1049
then enroll in a joint vocational school district or under a 1050
vocational education compact; 1051

       (4) The number of handicapped children, other than 1052
handicapped preschool children, entitled to attend school in the 1053
district pursuant to section 3313.64 or 3313.65 of the Revised 1054
Code who are placed by the district with a county MR/DD board, 1055
minus the number of such children placed with a county MR/DD board 1056
in fiscal year 1998. If this calculation produces a negative 1057
number, the number reported under division (A)(4) of this section 1058
shall be zero. 1059

       ~~(5) Beginning in fiscal year 2007, in the case of the report~~ 1060
~~submitted for the first full week in February, or the alternative~~ 1061
~~week if specified by the superintendent of public instruction, the~~ 1062
~~number of students reported under division (A)(1) or (2) of this~~ 1063
~~section for the first full week of the preceding October but who~~ 1064
~~since that week have received high school diplomas.~~ 1065

       (B) To enable the department of education to obtain the data 1066
needed to complete the calculation of payments pursuant to this 1067
chapter, in addition to the ~~formula ADM~~amounts certified under 1068
division (A) of this section, each superintendent shall report 1069
separately the following student counts ~~for the same week for~~ 1070
~~which formula ADM is certified~~: 1071

       (1) The total average daily membership in regular day classes 1072
included in the report under division (A)(1) or (2) of this 1073
section for kindergarten, and each of grades one through twelve in 1074
schools under the superintendent's supervision; 1075

       (2) The number of all handicapped preschool children enrolled 1076
as of the first day of December in classes in the district that 1077
are eligible for approval under division (B) of section 3317.05 1078
of the Revised Code and the number of those classes, which shall 1079
be reported not later than the fifteenth day of December, in 1080
accordance with rules adopted under that section; 1081

       (3) The number of children entitled to attend school in the 1082
district pursuant to section 3313.64 or 3313.65 of the Revised 1083
Code who are: 1084

       (a) Participating in a pilot project scholarship program 1085
established under sections 3313.974 to 3313.979 of the Revised 1086
Code as described in division ~~(I)~~(H)(2)(a) or (b) of this section; 1087

       (b) Enrolled in a college under Chapter 3365. of the Revised 1088
Code, except when the student is enrolled in the college while 1089
also enrolled in a community school pursuant to Chapter 3314. of 1090
the Revised Code; 1091

       (c) Enrolled in an adjacent or other school district under 1092
section 3313.98 of the Revised Code; 1093

       (d) Enrolled in a community school established under Chapter 1094
3314. of the Revised Code that is not an internet- or 1095
computer-based community school as defined in section 3314.02 of 1096
the Revised Code, including any participation in a college 1097
pursuant to Chapter 3365. of the Revised Code while enrolled in 1098
such community school; 1099

       (e) Enrolled in an internet- or computer-based community 1100
school, as defined in section 3314.02 of the Revised Code, 1101
including any participation in a college pursuant to Chapter 3365. 1102
of the Revised Code while enrolled in the school; 1103

        (f) Enrolled in a chartered nonpublic school with a 1104
scholarship paid under section 3310.08 of the Revised Code; 1105

       (g) Enrolled in kindergarten through grade twelve in an 1106
alternative public provider or a registered private provider with 1107
a scholarship awarded under section 3310.41 of the Revised Code; 1108

        (h) Enrolled as a handicapped preschool child in an 1109
alternative public provider or a registered private provider with 1110
a scholarship awarded under section 3310.41 of the Revised Code; 1111

       (i) Participating in a program operated by a county MR/DD 1112
board or a state institution. 1113

       (4) The number of pupils enrolled in joint vocational 1114
schools; 1115

       (5) The average daily membership of handicapped children 1116
reported under division (A)(1) or (2) of this section receiving 1117
special education services ~~for the category one handicap described~~ 1118
~~in division (A) of section 3317.013 of the Revised Code;~~ 1119

       ~~(6) The average daily membership of handicapped children~~ 1120
~~reported under division (A)(1) or (2) of this section receiving~~ 1121
~~special education services for category two handicaps described in~~ 1122
~~division (B) of section 3317.013 of the Revised Code;~~ 1123

       ~~(7) The average daily membership of handicapped children~~ 1124
~~reported under division (A)(1) or (2) of this section receiving~~ 1125
~~special education services for category three handicaps described~~ 1126
~~in division (C) of section 3317.013 of the Revised Code;~~ 1127

       ~~(8) The average daily membership of handicapped children~~ 1128
~~reported under division (A)(1) or (2) of this section receiving~~ 1129
~~special education services for category four handicaps described~~ 1130
~~in division (D) of section 3317.013 of the Revised Code;~~ 1131

       ~~(9) The average daily membership of handicapped children~~ 1132
~~reported under division (A)(1) or (2) of this section receiving~~ 1133
~~special education services for the category five handicap~~ 1134
~~described in division (E) of section 3317.013 of the Revised Code;~~ 1135

       ~~(10) The combined average daily membership of handicapped~~ 1136
~~children reported under division (A)(1) or (2) and under division~~ 1137
~~(B)(3)(h) of this section receiving special education services for~~ 1138
~~category six handicaps described in division (F) of section~~ 1139
~~3317.013 of the Revised Code, including children attending a~~ 1140
~~special education program operated by an alternative public~~ 1141
~~provider or a registered private provider with a scholarship~~ 1142
~~awarded under section 3310.41 of the Revised Code;~~ 1143

       ~~(11) The average daily membership of pupils reported under~~ 1144
~~division (A)(1) or (2) of this section enrolled in category one~~ 1145
~~vocational education programs or classes, described in division~~ 1146
~~(A) of section 3317.014 of the Revised Code, operated by the~~ 1147
~~school district or by another district, other than a joint~~ 1148
~~vocational school district, or by an educational service center,~~ 1149
~~excluding any student reported under division (B)(3)(e) of this~~ 1150
~~section as enrolled in an internet- or computer-based community~~ 1151
~~school, notwithstanding division (C) of section 3317.02 of the~~ 1152
~~Revised Code and division (C)(3) of this section;~~ 1153

       ~~(12) The average daily membership of pupils reported under~~ 1154
~~division (A)(1) or (2) of this section enrolled in category two~~ 1155
~~vocational education programs or services, described in division~~ 1156
~~(B) of section 3317.014 of the Revised Code, operated by the~~ 1157
~~school district or another school district, other than a joint~~ 1158
~~vocational school district, or by an educational service center,~~ 1159
~~excluding any student reported under division (B)(3)(e) of this~~ 1160
~~section as enrolled in an internet- or computer-based community~~ 1161
~~school, notwithstanding division (C) of section 3317.02 of the~~ 1162
~~Revised Code and division (C)(3) of this section;~~ 1163

       ~~(13) The average number of children transported by the school~~ 1164
~~district on board-owned or contractor-owned and -operated buses,~~ 1165
~~reported in accordance with rules adopted by the department of~~ 1166
~~education~~; 1167

       ~~(14)~~(6)(a) The number of children, other than handicapped 1168
preschool children, the district placed with a county MR/DD board 1169
in fiscal year 1998; 1170

       (b) The number of handicapped children, other than 1171
handicapped preschool children, placed with a county MR/DD board 1172
in the current fiscal year to receive special education services 1173
~~for the category one handicap described in division (A) of section~~ 1174
~~3317.013 of the Revised Code;~~ 1175

       ~~(c) The number of handicapped children, other than~~ 1176
~~handicapped preschool children, placed with a county MR/DD board~~ 1177
~~in the current fiscal year to receive special education services~~ 1178
~~for category two handicaps described in division (B) of section~~ 1179
~~3317.013 of the Revised Code;~~ 1180

       ~~(d) The number of handicapped children, other than~~ 1181
~~handicapped preschool children, placed with a county MR/DD board~~ 1182
~~in the current fiscal year to receive special education services~~ 1183
~~for category three handicaps described in division (C) of section~~ 1184
~~3317.013 of the Revised Code;~~ 1185

       ~~(e) The number of handicapped children, other than~~ 1186
~~handicapped preschool children, placed with a county MR/DD board~~ 1187
~~in the current fiscal year to receive special education services~~ 1188
~~for category four handicaps described in division (D) of section~~ 1189
~~3317.013 of the Revised Code;~~ 1190

       ~~(f) The number of handicapped children, other than~~ 1191
~~handicapped preschool children, placed with a county MR/DD board~~ 1192
~~in the current fiscal year to receive special education services~~ 1193
~~for the category five handicap described in division (E) of~~ 1194
~~section 3317.013 of the Revised Code;~~ 1195

       ~~(g) The number of handicapped children, other than~~ 1196
~~handicapped preschool children, placed with a county MR/DD board~~ 1197
~~in the current fiscal year to receive special education services~~ 1198
~~for category six handicaps described in division (F) of section~~ 1199
~~3317.013 of the Revised Code.~~ 1200

       ~~(C)(1) Except as otherwise provided in this section for~~ 1201
~~kindergarten students, the average daily membership in divisions~~ 1202
~~(B)(1) to (12) of this section shall be based upon the number of~~ 1203
~~full-time equivalent students. The state board of education shall~~ 1204
~~adopt rules defining full-time equivalent students and for~~ 1205
~~determining the average daily membership therefrom for the~~ 1206
~~purposes of divisions (A), (B), and (D) of this section.~~ 1207

       ~~(2) A student enrolled in a community school established~~ 1208
~~under Chapter 3314. of the Revised Code shall be counted in the~~ 1209
~~formula ADM and, if applicable, the category one, two, three,~~ 1210
~~four, five, or six special education ADM of the school district in~~ 1211
~~which the student is entitled to attend school under section~~ 1212
~~3313.64 or 3313.65 of the Revised Code for the same proportion of~~ 1213
~~the school year that the student is counted in the enrollment of~~ 1214
~~the community school for purposes of section 3314.08 of the~~ 1215
~~Revised Code.~~ 1216

       ~~(3) No child shall be counted as more than a total of one~~ 1217
~~child in the sum of the average daily memberships of a school~~ 1218
~~district under division (A), divisions (B)(1) to (12), or division~~ 1219
~~(D) of this section, except as follows:~~ 1220

       ~~(a) A child with a handicap described in section 3317.013 of~~ 1221
~~the Revised Code may be counted both in formula ADM and in~~ 1222
~~category one, two, three, four, five, or six special education ADM~~ 1223
~~and, if applicable, in category one or two vocational education~~ 1224
~~ADM. As provided in division (C) of section 3317.02 of the Revised~~ 1225
~~Code, such a child shall be counted in category one, two, three,~~ 1226
~~four, five, or six special education ADM in the same proportion~~ 1227
~~that the child is counted in formula ADM.~~ 1228

       ~~(b) A child enrolled in vocational education programs or~~ 1229
~~classes described in section 3317.014 of the Revised Code may be~~ 1230
~~counted both in formula ADM and category one or two vocational~~ 1231
~~education ADM and, if applicable, in category one, two, three,~~ 1232
~~four, five, or six special education ADM. Such a child shall be~~ 1233
~~counted in category one or two vocational education ADM in the~~ 1234
~~same proportion as the percentage of time that the child spends in~~ 1235
~~the vocational education programs or classes.~~ 1236

       ~~(4) Based on the information reported under this section, the~~ 1237
~~department of education shall determine the total student count,~~ 1238
~~as defined in section 3301.011 of the Revised Code, for each~~ 1239
~~school district~~. 1240

       ~~(D)~~(C)(1) The superintendent of each joint vocational school 1241
district shall certify to the superintendent of public instruction 1242
on or before the fifteenth day of October in each year for the 1243
first full school week in October the ~~formula ADM. Beginning in~~ 1244
~~fiscal year 2007, each superintendent also shall certify to the~~ 1245
~~state superintendent the formula ADM for the first full week in~~ 1246
~~February. If a school operated by the joint vocational school~~ 1247
~~district is closed for one or more days during that week due to~~ 1248
~~hazardous weather conditions or other circumstances described in~~ 1249
~~the first paragraph of division (B) of section 3317.01 of the~~ 1250
~~Revised Code, the superintendent may apply to the superintendent~~ 1251
~~of public instruction for a waiver, under which the superintendent~~ 1252
~~of public instruction may exempt the district superintendent from~~ 1253
~~certifying the formula ADM for that school for that week and~~ 1254
~~specify an alternate week for certifying the formula ADM of that~~ 1255
~~school.~~ 1256

       ~~The formula ADM, except as otherwise provided in this~~ 1257
~~division, shall consist of the average daily membership during~~ 1258
~~such week, on an FTE basis, of the~~ number of students receiving 1259
any educational services from the district, including students 1260
enrolled in a community school established under Chapter 3314. of 1261
the Revised Code who are attending the joint vocational district 1262
under an agreement between the district board of education and the 1263
governing authority of the community school and are entitled to 1264
attend school in a city, local, or exempted village school 1265
district whose territory is part of the territory of the joint 1266
vocational district. ~~Beginning in fiscal year 2007, in the case of~~ 1267
~~the report submitted for the first week in February, or the~~ 1268
~~alternative week if specified by the superintendent of public~~ 1269
~~instruction, the superintendent of the joint vocational school~~ 1270
~~district may include the number of students reported under~~ 1271
~~division (D)(1) of this section for the first full week of the~~ 1272
~~preceding October but who since that week have received high~~ 1273
~~school diplomas.~~ 1274

        The following categories of students shall not be included in 1275
the determination made under division ~~(D)~~(C)(1) of this section: 1276

       (a) Students enrolled in adult education classes; 1277

       (b) Adjacent or other district joint vocational students 1278
enrolled in the district under an open enrollment policy pursuant 1279
to section 3313.98 of the Revised Code; 1280

       (c) Students receiving services in the district pursuant to a 1281
compact, cooperative education agreement, or a contract, but who 1282
are entitled to attend school in a city, local, or exempted 1283
village school district whose territory is not part of the 1284
territory of the joint vocational district; 1285

       (d) Students for whom tuition is payable pursuant to sections 1286
3317.081 and 3323.141 of the Revised Code. 1287

       (2) To enable the department of education to obtain the data 1288
needed to complete the calculation of payments pursuant to this 1289
chapter, ~~in addition to the formula ADM,~~ each superintendent shall 1290
report separately the average daily membership included in the 1291
report under division ~~(D)~~(C)(1) of this section for each of the 1292
following categories of students for the same week ~~for which~~ 1293
~~formula ADM is certified~~: 1294

       (a) Students enrolled in each grade included in the joint 1295
vocational district schools; 1296

       (b) Handicapped children receiving special education services 1297
~~for the category one handicap described in division (A) of section~~ 1298
~~3317.013 of the Revised Code;~~ 1299

       ~~(c) Handicapped children receiving special education services~~ 1300
~~for the category two handicaps described in division (B) of~~ 1301
~~section 3317.013 of the Revised Code;~~ 1302

       ~~(d) Handicapped children receiving special education services~~ 1303
~~for category three handicaps described in division (C) of section~~ 1304
~~3317.013 of the Revised Code;~~ 1305

       ~~(e) Handicapped children receiving special education services~~ 1306
~~for category four handicaps described in division (D) of section~~ 1307
~~3317.013 of the Revised Code;~~ 1308

       ~~(f) Handicapped children receiving special education services~~ 1309
~~for the category five handicap described in division (E) of~~ 1310
~~section 3317.013 of the Revised Code;~~ 1311

       ~~(g) Handicapped children receiving special education services~~ 1312
~~for category six handicaps described in division (F) of section~~ 1313
~~3317.013 of the Revised Code;~~ 1314

       ~~(h) Students receiving category one vocational education~~ 1315
~~services, described in division (A) of section 3317.014 of the~~ 1316
~~Revised Code;~~ 1317

       ~~(i) Students receiving category two vocational education~~ 1318
~~services, described in division (B) of section 3317.014 of the~~ 1319
~~Revised Code~~. 1320

       The superintendent of each joint vocational school district 1321
shall also indicate the city, local, or exempted village school 1322
district in which each joint vocational district pupil is entitled 1323
to attend school pursuant to section 3313.64 or 3313.65 of the 1324
Revised Code. 1325

       ~~(E)~~(D) In each school of each city, local, exempted village, 1326
joint vocational, and cooperative education school district there 1327
shall be maintained a record of school membership, which record 1328
shall accurately show, for each day the school is in session, the 1329
actual membership enrolled in regular day classes. For the purpose 1330
of determining average daily membership, the membership figure of 1331
any school shall not include any pupils except those pupils 1332
described by division (A) of this section. The record of 1333
membership for each school shall be maintained in such manner that 1334
no pupil shall be counted as in membership prior to the actual 1335
date of entry in the school and also in such manner that where for 1336
any cause a pupil permanently withdraws from the school that pupil 1337
shall not be counted as in membership from and after the date of 1338
such withdrawal. There shall not be included in the membership of 1339
any school any of the following: 1340

       (1) Any pupil who has graduated from the twelfth grade of a 1341
public or nonpublic high school; 1342

       (2) Any pupil who is not a resident of the state; 1343

       (3) Any pupil who was enrolled in the schools of the district 1344
during the previous school year when tests were administered under 1345
section 3301.0711 of the Revised Code but did not take one or more 1346
of the tests required by that section and was not excused pursuant 1347
to division (C)(1) or (3) of that section; 1348

       (4) Any pupil who has attained the age of twenty-two years, 1349
except for veterans of the armed services whose attendance was 1350
interrupted before completing the recognized twelve-year course of 1351
the public schools by reason of induction or enlistment in the 1352
armed forces and who apply for reenrollment in the public school 1353
system of their residence not later than four years after 1354
termination of war or their honorable discharge. 1355

       If, however, any veteran described by division ~~(E)~~(D)(4) of 1356
this section elects to enroll in special courses organized for 1357
veterans for whom tuition is paid under the provisions of federal 1358
laws, or otherwise, that veteran shall not be included in average 1359
daily membership. 1360

       Notwithstanding division ~~(E)~~(D)(3) of this section, the 1361
membership of any school may include a pupil who did not take a 1362
test required by section 3301.0711 of the Revised Code if the 1363
superintendent of public instruction grants a waiver from the 1364
requirement to take the test to the specific pupil and a parent is 1365
not paying tuition for the pupil pursuant to section 3313.6410 of 1366
the Revised Code. The superintendent may grant such a waiver only 1367
for good cause in accordance with rules adopted by the state board 1368
of education. 1369

       Except as provided in divisions (B)(2) and ~~(F)~~(E) of this 1370
section, the average daily membership figure of any local, city, 1371
exempted village, or joint vocational school district shall be 1372
determined by dividing the figure representing the sum of the 1373
number of pupils enrolled during each day the school of attendance 1374
is actually open for instruction during the week for which the 1375
~~formula ADM~~average daily membership is being certified by the 1376
total number of days the school was actually open for instruction 1377
during that week. For purposes of state funding, "enrolled" 1378
persons are only those pupils who are attending school, those who 1379
have attended school during the current school year and are absent 1380
for authorized reasons, and those handicapped children currently 1381
receiving home instruction. 1382

       The average daily membership figure of any cooperative 1383
education school district shall be determined in accordance with 1384
rules adopted by the state board of education. 1385

       ~~(F)(1) If the formula ADM for the first full school week in~~ 1386
~~February is at least three per cent greater than that certified~~ 1387
~~for the first full school week in the preceding October, the~~ 1388
~~superintendent of schools of any city, exempted village, or joint~~ 1389
~~vocational school district or educational service center shall~~ 1390
~~certify such increase to the superintendent of public instruction.~~ 1391
~~Such certification shall be submitted no later than the fifteenth~~ 1392
~~day of February. For the balance of the fiscal year, beginning~~ 1393
~~with the February payments, the superintendent of public~~ 1394
~~instruction shall use the increased formula ADM in calculating or~~ 1395
~~recalculating the amounts to be allocated in accordance with~~ 1396
~~section 3317.022 or 3317.16 of the Revised Code. In no event shall~~ 1397
~~the superintendent use an increased membership certified to the~~ 1398
~~superintendent after the fifteenth day of February. Division~~ 1399
~~(F)(1) of this section does not apply after fiscal year 2006.~~ 1400

       ~~(2) If on the first school day of April the total number of~~ 1401
~~classes or units for handicapped preschool children that are~~ 1402
~~eligible for approval under division (B) of section 3317.05 of the~~ 1403
~~Revised Code exceeds the number of units that have been approved~~ 1404
~~for the year under that division, the superintendent of schools of~~ 1405
~~any city, exempted village, or cooperative education school~~ 1406
~~district or educational service center shall make the~~ 1407
~~certifications required by this section for that day. If the~~ 1408
~~department determines additional units can be approved for the~~ 1409
~~fiscal year within any limitations set forth in the acts~~ 1410
~~appropriating moneys for the funding of such units, the department~~ 1411
~~shall approve additional units for the fiscal year on the basis of~~ 1412
~~such average daily membership. For each unit so approved, the~~ 1413
~~department shall pay an amount computed in the manner prescribed~~ 1414
~~in section 3317.052 or 3317.19 and section 3317.053 of the Revised~~ 1415
~~Code.~~ 1416

       ~~(3)~~(E) If a student attending a community school under 1417
Chapter 3314. of the Revised Code is not included in the ~~formula~~ 1418
~~ADM~~average daily membership certified for the school district in 1419
which the student is entitled to attend school under section 1420
3313.64 or 3313.65 of the Revised Code, the department of 1421
education shall adjust the ~~formula ADM~~average daily membership of 1422
that school district to include ~~the~~ community school ~~student in~~ 1423
~~accordance with division (C)(2) of this section~~students, and 1424
shall recalculate the school district's payments under this 1425
chapter for the entire fiscal year on the basis of that adjusted 1426
~~formula ADM~~average daily membership. This requirement applies 1427
regardless of whether the student was enrolled, as defined in 1428
division ~~(E)~~(D) of this section, in the community school during 1429
the week for which the ~~formula ADM~~average daily membership is 1430
being certified. 1431

       ~~(4)~~ If a student awarded an educational choice scholarship is 1432
not included in the ~~formula ADM~~average daily membership of the 1433
school district from which the department deducts funds for the 1434
scholarship under section 3310.08 of the Revised Code, the 1435
department shall adjust the ~~formula ADM~~average daily membership 1436
of that school district to include the student to the extent 1437
necessary to account for the deduction, and shall recalculate the 1438
school district's payments under this chapter for the entire 1439
fiscal year on the basis of that adjusted ~~formula ADM~~average 1440
daily membership. This requirement applies regardless of whether 1441
the student was enrolled, as defined in division ~~(E)~~(D) of this 1442
section, in the chartered nonpublic school, the school district, 1443
or a community school during the week for which the ~~formula ADM~~ 1444
average daily membership is being certified. 1445

       ~~(G)~~(F)(1)(a) The superintendent of an institution operating a 1446
special education program pursuant to section 3323.091 of the 1447
Revised Code shall, for the programs under such superintendent's 1448
supervision, certify to the state board of education, in the 1449
manner prescribed by the superintendent of public instruction, 1450
both of the following: 1451

       (i) The average daily membership of all handicapped children 1452
other than handicapped preschool children receiving services at 1453
the institution ~~for each category of handicap described in~~ 1454
~~divisions (A) to (F) of section 3317.013 of the Revised Code~~; 1455

       (ii) The average daily membership of all handicapped 1456
preschool children in classes or programs ~~approved annually by the~~ 1457
~~department of education for unit funding under section 3317.05 of~~ 1458
~~the Revised Code~~. 1459

       (b) The superintendent of an institution ~~with~~providing 1460
vocational education ~~units approved under division (A) of section~~ 1461
~~3317.05 of the Revised Code~~services shall~~, for the units under~~ 1462
~~the superintendent's supervision,~~ certify to the state board of 1463
education the average daily membership ~~in those units~~of children 1464
receiving such services, in the manner prescribed by the 1465
superintendent of public instruction. 1466

       (2) The superintendent of each county MR/DD board that 1467
~~maintains~~provides special education ~~classes under section 3317.20~~ 1468
~~of the Revised Code or units approved pursuant to section 3317.05~~ 1469
~~of the Revised Code~~services shall do both of the following: 1470

       (a) Certify to the state board, in the manner prescribed by 1471
the board, the average daily membership ~~in classes under section~~ 1472
~~3317.20 of the Revised Code~~of children receiving such services 1473
for each school district ~~that has placed children in the classes~~; 1474

       (b) Certify to the state board, in the manner prescribed by 1475
the board, the number of all handicapped preschool children 1476
enrolled as of the first day of December ~~in classes eligible for~~ 1477
~~approval under division (B) of section 3317.05 of the Revised~~ 1478
~~Code, and the number of those classes~~. 1479

       ~~(3)(a) If on the first school day of April the number of~~ 1480
~~classes or units maintained for handicapped preschool children by~~ 1481
~~the county MR/DD board that are eligible for approval under~~ 1482
~~division (B) of section 3317.05 of the Revised Code is greater~~ 1483
~~than the number of units approved for the year under that~~ 1484
~~division, the superintendent shall make the certification required~~ 1485
~~by this section for that day.~~ 1486

       ~~(b) If the department determines that additional classes or~~ 1487
~~units can be approved for the fiscal year within any limitations~~ 1488
~~set forth in the acts appropriating moneys for the funding of the~~ 1489
~~classes and units described in division (G)(3)(a) of this section,~~ 1490
~~the department shall approve and fund additional units for the~~ 1491
~~fiscal year on the basis of such average daily membership. For~~ 1492
~~each unit so approved, the department shall pay an amount computed~~ 1493
~~in the manner prescribed in sections 3317.052 and 3317.053 of the~~ 1494
~~Revised Code.~~ 1495

       ~~(H)~~(G) Except as provided in division ~~(I)~~(H) of this section, 1496
when any city, local, or exempted village school district provides 1497
instruction for a nonresident pupil whose attendance is 1498
unauthorized attendance as defined in section 3327.06 of the 1499
Revised Code, that pupil's membership shall not be included in 1500
that district's membership figure used in the calculation of that 1501
district's ~~formula~~district ADM or included in the determination 1502
of any unit approved for the district under section 3317.05 of the 1503
Revised Code. The reporting official shall report separately the 1504
average daily membership of all pupils whose attendance in the 1505
district is unauthorized attendance, and the membership of each 1506
such pupil shall be credited to the school district in which the 1507
pupil is entitled to attend school under division (B) of section 1508
3313.64 or section 3313.65 of the Revised Code as determined by 1509
the department of education. 1510

       ~~(I)~~(H)(1) A city, local, exempted village, or joint 1511
vocational school district admitting a scholarship student of a 1512
pilot project district pursuant to division (C) of section 1513
3313.976 of the Revised Code may count such student in its average 1514
daily membership. 1515

       (2) In any year for which funds are appropriated for pilot 1516
project scholarship programs, a school district implementing a 1517
state-sponsored pilot project scholarship program that year 1518
pursuant to sections 3313.974 to 3313.979 of the Revised Code may 1519
count in average daily membership: 1520

       (a) All children residing in the district and utilizing a 1521
scholarship to attend kindergarten in any alternative school, as 1522
defined in section 3313.974 of the Revised Code; 1523

       (b) All children who were enrolled in the district in the 1524
preceding year who are utilizing a scholarship to attend any such 1525
alternative school. 1526

       ~~(J)~~(I) The superintendent of each cooperative education 1527
school district shall certify to the superintendent of public 1528
instruction, in a manner prescribed by the state board of 1529
education, the applicable average daily memberships for all 1530
students in the cooperative education district, also indicating 1531
the city, local, or exempted village district where each pupil is 1532
entitled to attend school under section 3313.64 or 3313.65 of the 1533
Revised Code. 1534

       Sec. 3317.16. (A) As used in this section, "valuation per 1535
pupil" means the sum of the recognized valuations of the school 1536
districts composing a joint vocational school district divided by 1537
the average daily membership of the joint vocational school 1538
district. 1539

        (B) For fiscal years 2009 and thereafter, each joint 1540
vocational school district shall receive under this section an 1541
amount per pupil equal to the amount per pupil the district 1542
received for fiscal year 2008, plus any supplemental payment under 1543
division (C) of this section and any additional amount 1544
appropriated specifically for the purpose by an act of the general 1545
assembly. 1546

        (C) For fiscal years 2009 and thereafter, in addition to any 1547
amount distributed to joint vocational school districts, each 1548
joint vocational school district for which the valuation per pupil 1549
is not more than $600,000 shall receive a supplemental payment 1550
computed as a percentage of the amount distributed under division 1551
(B) of this section. The percentage shall be determined as 1552
follows: 1553

        (1) If the valuation per pupil of the district is not more 1554
than three hundred thousand dollars, the percentage is twelve and 1555
one-half per cent; 1556

        (2) If the valuation per pupil of the district is more than 1557
three hundred thousand dollars but not more than four hundred 1558
thousand dollars, the percentage is ten per cent; 1559

        (3) If the valuation per pupil of the district is more than 1560
four hundred thousand dollars but not more than five hundred 1561
thousand dollars, the percentage is seven and one-half per cent; 1562

        (4) If the valuation per pupil of the district is more than 1563
five hundred thousand dollars but not more than six hundred 1564
thousand dollars, the percentage is five per cent. 1565

       Sec. 3770.06. (A) There is hereby created the state lottery 1566
gross revenue fund, which shall be in the custody of the treasurer 1567
of state but shall not be part of the state treasury. All gross 1568
revenues received from sales of lottery tickets, fines, fees, and 1569
related proceeds in connection with the statewide lottery and all 1570
gross proceeds from statewide joint lottery games shall be 1571
deposited into the fund. The treasurer of state shall invest any 1572
portion of the fund not needed for immediate use in the same 1573
manner as, and subject to all provisions of law with respect to 1574
the investment of, state funds. The treasurer of state shall 1575
disburse money from the fund on order of the director of the state 1576
lottery commission or the director's designee. 1577

       Except for gross proceeds from statewide joint lottery games, 1578
all revenues of the state lottery gross revenue fund that are not 1579
paid to holders of winning lottery tickets, that are not required 1580
to meet short-term prize liabilities, that are not credited to 1581
lottery sales agents in the form of bonuses, commissions, or 1582
reimbursements, that are not paid to financial institutions to 1583
reimburse those institutions for sales agent nonsufficient funds, 1584
and that are collected from sales agents for remittance to 1585
insurers under contract to provide sales agent bonding services 1586
shall be transferred to the state lottery fund, which is hereby 1587
created in the state treasury. In addition, all revenues of the 1588
state lottery gross revenue fund that represent the gross proceeds 1589
from the statewide joint lottery games and that are not paid to 1590
holders of winning lottery tickets, that are not required to meet 1591
short-term prize liabilities, that are not credited to lottery 1592
sales agents in the form of bonuses, commissions, or 1593
reimbursements, and that are not necessary to cover operating 1594
expenses associated with those games or to otherwise comply with 1595
the agreements signed by the governor that the director enters 1596
into under division (J) of section 3770.02 of the Revised Code or 1597
the rules the commission adopts under division (B)(5) of section 1598
3770.03 of the Revised Code shall be transferred to the state 1599
lottery fund. All investment earnings of the fund shall be 1600
credited to the fund. Moneys shall be disbursed from the fund 1601
pursuant to vouchers approved by the director. Total disbursements 1602
for monetary prize awards to holders of winning lottery tickets in 1603
connection with the statewide lottery and purchases of goods and 1604
services awarded as prizes to holders of winning lottery tickets 1605
shall be of an amount equal to at least fifty per cent of the 1606
total revenue accruing from the sale of lottery tickets. 1607

       (B) Pursuant to Section 6 of Article XV, Ohio Constitution, 1608
there is hereby established in the state treasury the lottery 1609
profits education fund. Whenever, in the judgment of the director 1610
of budget and management, the amount to the credit of the state 1611
lottery fund that does not represent proceeds from statewide joint 1612
lottery games is in excess of that needed to meet the maturing 1613
obligations of the commission and as working capital for its 1614
further operations, the director shall transfer the excess to the 1615
lottery profits education fund in connection with the statewide 1616
lottery. In addition, whenever, in the judgment of the director of 1617
budget and management, the amount to the credit of the state 1618
lottery fund that represents proceeds from statewide joint lottery 1619
games equals the entire net proceeds of those games as described 1620
in division (B)(5) of section 3770.03 of the Revised Code and the 1621
rules adopted under that division, the director shall transfer 1622
those proceeds to the lottery profits education fund. There shall 1623
also be credited to the fund any repayments of moneys loaned from 1624
the educational excellence investment fund. Investment earnings of 1625
the lottery profits education fund shall be credited to the fund. 1626

       ~~The lottery profits education fund shall be used solely for~~ 1627
~~the support of elementary, secondary, vocational, and special~~ 1628
~~education programs as determined in appropriations made by the~~ 1629
~~general assembly, or as provided in applicable bond proceedings~~ 1630
~~for the payment of debt service on obligations issued to pay costs~~ 1631
~~of capital facilities, including those for a system of common~~ 1632
~~schools throughout the state pursuant to section 2n of Article~~ 1633
~~VIII, Ohio Constitution.~~On or before the tenth day of each month, 1634
and as often as may be otherwise needed for the purposes of 1635
distributing payments under division (A) of section 3317.022 of 1636
the Revised Code, the director of budget and management shall 1637
transfer all moneys credited to the lottery profits education fund 1638
to the county school trust funds of the state. Each county fund 1639
shall receive an amount equal to the moneys credited to the 1640
lottery profits education fund multiplied by the county ADM, as 1641
defined in section 3317.02 of the Revised Code, divided by the 1642
state ADM. When determining the availability of money in the 1643
lottery profits education fund, the director of budget and 1644
management may consider all balances and estimated revenues of the 1645
fund. 1646

       From the amounts ~~that~~credited to the state lottery fund, the 1647
director of budget and management ~~transfers in any fiscal year~~ 1648
~~from the state lottery fund to the lottery profits education fund,~~ 1649
~~the director~~ shall transfer ~~the initial~~ ten million dollars of 1650
~~those amounts from the lottery profits education fund~~ to the 1651
school building program bond service fund created in division (Q) 1652
of section 3318.26 of the Revised Code to be pledged for the 1653
purpose of paying bond service charges as defined in division (C) 1654
of section 3318.21 of the Revised Code on one or more issuances of 1655
obligations, which obligations are issued to provide moneys for 1656
the school building program assistance fund created in section 1657
3318.25 of the Revised Code. 1658

       (C) There is hereby established in the state treasury the 1659
deferred prizes trust fund. With the approval of the director of 1660
budget and management, an amount sufficient to fund annuity prizes 1661
shall be transferred from the state lottery fund and credited to 1662
the trust fund. The treasurer of state shall credit all earnings 1663
arising from investments purchased under this division to the 1664
trust fund. Within sixty days after the end of each fiscal year, 1665
the director of budget and management shall certify the amount of 1666
investment earnings necessary to have been credited to the trust 1667
fund during the fiscal year just ending to provide for continued 1668
funding of deferred prizes. Any earnings credited in excess of 1669
this certified amount shall be transferred to the lottery profits 1670
education fund. 1671

       To provide all or a part of the amounts necessary to fund 1672
deferred prizes awarded by the commission in connection with the 1673
statewide lottery, the treasurer of state, in consultation with 1674
the commission, may invest moneys contained in the deferred prizes 1675
trust fund which represents proceeds from the statewide lottery in 1676
obligations of the type permitted for the investment of state 1677
funds but whose maturities are thirty years or less. 1678
Notwithstanding the requirements of any other section of the 1679
Revised Code, to provide all or part of the amounts necessary to 1680
fund deferred prizes awarded by the commission in connection with 1681
statewide joint lottery games, the treasurer of state, in 1682
consultation with the commission, may invest moneys in the trust 1683
fund which represent proceeds derived from the statewide joint 1684
lottery games in accordance with the rules the commission adopts 1685
under division (B)(5) of section 3770.03 of the Revised Code. 1686
Investments of the trust fund are not subject to the provisions of 1687
division (A)(10) of section 135.143 of the Revised Code limiting 1688
to twenty-five per cent the amount of the state's total average 1689
portfolio that may be invested in debt interests and limiting to 1690
one-half of one per cent the amount that may be invested in debt 1691
interests of a single issuer. 1692

       All purchases made under this division shall be effected on a 1693
delivery versus payment method and shall be in the custody of the 1694
treasurer of state. 1695

       The treasurer of state may retain an investment advisor, if 1696
necessary. The commission shall pay any costs incurred by the 1697
treasurer of state in retaining an investment advisor. 1698

       (D) The auditor of state shall conduct annual audits of all 1699
funds and any other audits as the auditor of state or the general 1700
assembly considers necessary. The auditor of state may examine all 1701
records, files, and other documents of the commission, and records 1702
of lottery sales agents that pertain to their activities as 1703
agents, for purposes of conducting authorized audits. 1704

       The state lottery commission shall establish an internal 1705
audit program before the beginning of each fiscal year, subject to 1706
the approval of the auditor of state. At the end of each fiscal 1707
year, the commission shall prepare and submit an annual report to 1708
the auditor of state for the auditor of state's review and 1709
approval, specifying the internal audit work completed by the end 1710
of that fiscal year and reporting on compliance with the annual 1711
internal audit program. The form and content of the report shall 1712
be prescribed by the auditor of state under division (C) of 1713
section 117.20 of the Revised Code. 1714

       (E) Whenever, in the judgment of the director of budget and 1715
management, an amount of net state lottery proceeds is necessary 1716
to be applied to the payment of debt service on obligations, all 1717
as defined in sections 151.01 and 151.03 of the Revised Code, the 1718
director shall transfer that amount directly from the state 1719
lottery fund ~~or from the lottery profits education fund~~ to the 1720
bond service fund defined in those sections. The provisions of 1721
this division are subject to any prior pledges or obligation of 1722
those amounts to the payment of bond service charges as defined in 1723
division (C) of section 3318.21 of the Revised Code, as referred 1724
to in division (B) of this section. 1725

       Sec. 5747.03. (A) ~~All~~For purposes of this section, "net 1726
amount" means taxes, penalties, and interest minus refunds and 1727
interest thereon. 1728

       From the money collected under this chapter arising from the 1729
taxes imposed by section 5747.02 or 5747.41 of the Revised Code 1730
~~shall be credited to the general revenue fund, except that the~~ 1731
~~treasurer of state shall:~~ 1732

       ~~(1) Credit~~the treasurer of state shall credit to the Ohio 1733
political party fund, at the beginning of each calendar quarter 1734
pursuant to section 3517.16 of the Revised Code, an amount equal 1735
to the total dollar value realized from the taxpayer exercise of 1736
the income tax checkoff option on tax forms processed during the 1737
preceding calendar quarter. The amount credited shall be 1738
subtracted from the amount of taxes collected during the preceding 1739
month under this chapter. The amount remaining shall be credited 1740
as follows: 1741

       (1) Each month, the treasurer of state shall credit sixty-six 1742
per cent of the net amount collected from residents of this state 1743
during the preceding month into the state school trust fund, which 1744
is hereby created in the state treasury. By the fifteenth day of 1745
each month the tax commissioner shall provide for payment from 1746
that fund to the county treasurer of each county the net amount 1747
collected from residents of a city, local, or exempted village 1748
school district having its principal administrative office 1749
situated in the county. Each county treasurer shall credit the 1750
payment to the county school trust fund established by section 1751
3317.022 of the Revised Code. 1752

       (2) By the fifteenth day of each month, the treasurer of 1753
state shall credit to the state equalization and special program 1754
fund created by section 3317.023 of the Revised Code twenty-two 1755
per cent of the net amount collected from residents and 1756
nonresidents of this state. 1757

       (3) The treasurer of state shall credit an amount equal to 1758
four and two-tenths per cent of ~~those taxes collected under this~~ 1759
~~chapter~~the net amount collected from residents and nonresidents 1760
of this state to the local government fund, which is hereby 1761
created in the state treasury, for distribution in accordance with 1762
section 5747.50 of the Revised Code;. 1763

       ~~(2) Credit~~(4) The treasurer of state shall credit an amount 1764
equal to five and seven-tenths per cent of ~~those taxes collected~~ 1765
~~under this chapter~~the net amount collected from residents and 1766
nonresidents of this state to the library and local government 1767
support fund, which is hereby created in the state treasury, for 1768
distribution in accordance with section 5747.47 of the Revised 1769
Code;. 1770

       ~~(3) At the beginning of each calendar quarter, credit to the~~ 1771
~~Ohio political party fund, pursuant to section 3517.16 of the~~ 1772
~~Revised Code, an amount equal to the total dollar value realized~~ 1773
~~from the taxpayer exercise of the income tax checkoff option on~~ 1774
~~tax forms processed during the preceding calendar quarter;~~ 1775

       ~~(4) Credit~~(5) The treasurer of state shall credit an amount 1776
equal to six-tenths of one per cent of ~~those taxes collected under~~ 1777
~~this chapter~~the net amount collected from residents and 1778
nonresidents of this state to the local government revenue 1779
assistance fund for distribution in accordance with section 1780
5747.61 of the Revised Code. 1781

       (6) After crediting amounts to the Ohio political party fund 1782
and the funds identified in divisions (A)(1) to (5) of this 1783
section, the treasurer of state shall credit the remaining amount 1784
to the general revenue fund. 1785

       (B)(1) Following the crediting of moneys pursuant to division 1786
(A) of this section, the remainder deposited in the general 1787
revenue fund shall be distributed pursuant to division (F) of 1788
section 321.24 and section 323.156 of the Revised Code; to make 1789
subsidy payments to institutions of higher education from 1790
appropriations to the Ohio board of regents; to support 1791
expenditures for programs and services for the mentally ill, 1792
mentally retarded, developmentally disabled, and elderly; for 1793
primary and secondary education; for medical assistance; and for 1794
any other purposes authorized by law, subject to the limitation 1795
that at least fifty per cent of the income tax collected by the 1796
state from the tax imposed by section 5747.02 of the Revised Code 1797
shall be returned pursuant to Section 9 of Article XII, Ohio 1798
Constitution. 1799

       (2) To ensure that such constitutional requirement is 1800
satisfied the tax commissioner shall, on or before the thirtieth 1801
day of June of each year, from the best information available to 1802
the tax commissioner, determine and certify for each county to the 1803
director of budget and management the amount of taxes collected 1804
under this chapter from the tax imposed under section 5747.02 of 1805
the Revised Code during the preceding calendar year that are 1806
required to be returned to the county by Section 9 of Article XII, 1807
Ohio Constitution. The director shall provide for payment from the 1808
general revenue fund to the county in the amount, if any, that the 1809
sum of the amount so certified for that county exceeds the sum of 1810
the following: 1811

       (a) The sum of the payments from the general revenue fund for 1812
the preceding calendar year to the credit of the county's 1813
undivided income tax fund pursuant to division (F) of section 1814
321.24 and section 323.156 of the Revised Code; 1815

       (b) The sum of the amounts from the general revenue fund 1816
distributed in the county during the preceding calendar year for 1817
subsidy payments to institutions of higher education from 1818
appropriations to the Ohio board of regents; for programs and 1819
services for mentally ill, mentally retarded, developmentally 1820
disabled, and elderly persons; for primary and secondary 1821
education; and for medical assistance. 1822

       (c) The payments during the preceding calendar year to the 1823
county's school trust fund; 1824

       (d) The amount distributed to the county during the preceding 1825
calendar year from the local government fund; 1826

       ~~(d)~~(e) The amount distributed to the county during the 1827
preceding calendar year from the library and local government 1828
support fund; 1829

       ~~(e)~~(f) The amount distributed to the county during the 1830
preceding calendar year from the local government revenue 1831
assistance fund; 1832

       (g) Amounts distributed to a school district having its 1833
administrative office located in the county from the fund 1834
established by section 3317.023 of the Revised Code. 1835

       Payments under this division shall be credited to the 1836
county's undivided income tax fund, except that, notwithstanding 1837
section 5705.14 of the Revised Code, such payments may be 1838
transferred by the board of county commissioners to the county 1839
general fund by resolution adopted with the affirmative vote of 1840
two-thirds of the members thereof. 1841

       (C) All payments received in each month from taxes imposed 1842
under Chapter 5748. of the Revised Code and any penalties or 1843
interest thereon shall be paid into the school district income tax 1844
fund, which is hereby created in the state treasury, except that 1845
an amount equal to the following portion of such payments shall be 1846
paid into the general school district income tax administrative 1847
fund, which is hereby created in the state treasury: 1848

       (1) One and three-quarters of one per cent of those received 1849
in fiscal year 1996; 1850

       (2) One and one-half per cent of those received in fiscal 1851
year 1997 and thereafter. 1852

       Money in the school district income tax administrative fund 1853
shall be used by the tax commissioner to defray costs incurred in 1854
administering the school district's income tax, including the cost 1855
of providing employers with information regarding the rate of tax 1856
imposed by any school district. Any moneys remaining in the fund 1857
after such use shall be deposited in the school district income 1858
tax fund. 1859

       All interest earned on moneys in the school district income 1860
tax fund shall be credited to the fund. 1861

       (D)(1)(a) Within thirty days of the end of each calendar 1862
quarter ending on the last day of March, June, September, and 1863
December, the director of budget and management shall make a 1864
payment from the school district income tax fund to each school 1865
district for which school district income tax revenue was received 1866
during that quarter. The amount of the payment shall equal the 1867
balance in the school district's account at the end of that 1868
quarter. 1869

       (b) After a school district ceases to levy an income tax, the 1870
director of budget and management shall adjust the payments under 1871
division (D)(1)(a) of this section to retain sufficient money in 1872
the school district's account to pay refunds. For the calendar 1873
quarters ending on the last day of March and December of the 1874
calendar year following the last calendar year the tax is levied, 1875
the director shall make the payments in the amount required under 1876
division (D)(1)(a) of this section. For the calendar quarter 1877
ending on the last day of June of the calendar year following the 1878
last calendar year the tax is levied, the director shall make a 1879
payment equal to nine-tenths of the balance in the account at the 1880
end of that quarter. For the calendar quarter ending on the last 1881
day of September of the calendar year following the last calendar 1882
year the tax is levied, the director shall make no payment. For 1883
the second and succeeding calendar years following the last 1884
calendar year the tax is levied, the director shall make one 1885
payment each year, within thirty days of the last day of June, in 1886
an amount equal to the balance in the district's account on the 1887
last day of June. 1888

       (2) Moneys paid to a school district under this division 1889
shall be deposited in its school district income tax fund. All 1890
interest earned on moneys in the school district income tax fund 1891
shall be apportioned by the tax commissioner pro rata among the 1892
school districts in the proportions and at the times the districts 1893
are entitled to receive payments under this division. 1894

       Section 2. That existing sections 3317.01, 3317.02, 1895
3317.021, 3317.03, 3770.06, and 5747.03 and sections 3317.012, 1896
3317.013, 3317.022, 3317.023, 3317.0212, 3317.0213, 3317.0214, 1897
3317.0215, 3317.0216, 3317.0217, 3317.05, 3317.051, 3317.052, 1898
3317.053, and 3317.16 of the Revised Code are hereby repealed. 1899

       Section 3. The amendments, enactments, and repeals made in 1900
Sections 1 and 2 of this act apply to fiscal years 2009 and 1901
thereafter. 1902

       Section 4. Section 3317.03 of the Revised Code is presented 1903
in this act as a composite of the section as amended by both Am. 1904
Sub. H.B. 79 and Am. Sub. H.B. 699 of the 126th General Assembly. 1905
The General Assembly, applying the principle stated in division 1906
(B) of section 1.52 of the Revised Code that amendments are to be 1907
harmonized if reasonably capable of simultaneous operation, finds 1908
that the composite is the resulting version of the section in 1909
effect prior to the effective date of the section as presented in 1910
this act. 1911

Section 1. That sections 3317.01, 3317.02, 3317.021,	13
3317.03, 3770.06, and 5747.03 be amended and new sections	14
3317.022, 3317.023, and 3317.16 of the Revised Code be enacted to	15
read as follows:	16

Sec. 3317.01. As used in this section and section 3317.011	17
of the Revised Code, "school district," unless otherwise	18
specified, means any city, local, exempted village, joint	19
vocational, or cooperative education school district and any	20
educational service center.	21

This chapter shall be administered by the state board of	22
education. The superintendent of public instruction shall	23
calculate the amounts payable to each school district and shall	24
certify the amounts payable to each eligible district to the	25
treasurer of the district as provided by this chapter. ~~As soon as~~	26
~~possible after such amounts are calculated, the superintendent~~	27
~~shall certify to the treasurer of each school district the~~	28
~~district's adjusted charge-off increase, as defined in section~~	29
~~5705.211 of the Revised Code.~~ No moneys shall be distributed	30
pursuant to this chapter without the approval of the controlling	31
board.	32

The state board of education shall, in accordance with	33
appropriations made by the general assembly, meet the financial	34
obligations of this chapter.	35

Annually, the department of education shall calculate and	36
report to each school district the district's total state and	37
local funds for providing an adequate basic education ~~to the~~	38
~~district's nonhandicapped students, utilizing the determination in~~	39
~~section 3317.012 of the Revised Code. In addition, the department~~	40
~~shall calculate and report separately for each school district the~~	41
~~district's total state and local funds for providing an adequate~~	42
~~education for its handicapped students, utilizing the~~	43
~~determinations in both sections 3317.012 and 3317.013 of the~~	44
~~Revised Code~~.	45

Not later than the thirty-first day of August of each fiscal	46
year, the department of education shall provide to each school	47
district and county MR/DD board a preliminary estimate of the	48
amount of funding that the department calculates the district will	49
receive under ~~each of divisions (C)(1) and (4) of~~ section 3317.022	50
of the Revised Code. No later than the first day of December of	51
each fiscal year, the department shall update that preliminary	52
estimate.	53

Moneys distributed pursuant to this chapter shall be	54
calculated and paid on a fiscal year basis, beginning with the	55
first day of July and extending through the thirtieth day of June.	56
The moneys appropriated for each fiscal year shall be distributed	57
at least monthly to each school district unless otherwise provided	58
for. The state board shall submit a yearly distribution plan to	59
the controlling board at its first meeting in July. The state	60
board shall submit any proposed midyear revision of the plan to	61
the controlling board in January. Any year-end revision of the	62
plan shall be submitted to the controlling board in June. If	63
moneys appropriated for each fiscal year are distributed other	64
than monthly, such distribution shall be on the same basis for	65
each school district.	66

The total amounts paid each month shall constitute, as nearly	67
as possible, one-twelfth of the total amount payable for the	68
entire year.	69

~~Until fiscal year 2007, payments~~Payments made during the	70
first six months of the fiscal year may be based on an estimate of	71
the amounts payable for the entire year. Payments made in the last	72
six months shall be based on the final calculation of the amounts	73
payable to each school district for that fiscal year. Payments	74
made in the last six months may be adjusted, if necessary, to	75
correct the amounts distributed in the first six months, and to	76
reflect enrollment increases when such are at least three per	77
cent.	78

~~Beginning in fiscal year 2007, payments shall be calculated~~	79
~~to reflect the biannual reporting of average daily membership. In~~	80
~~fiscal year 2007 and in each fiscal year thereafter, annualized~~	81
~~periodic payments for each school district shall be based on the~~	82
~~district's student counts certified pursuant to section 3317.03 of~~	83
~~the Revised Code as follows:~~	84

Except as otherwise provided, payments under this chapter	89
shall be made only to those school districts in which:	90

(A) The school district, except for any educational service	91
center and any joint vocational or cooperative education school	92
district, levies for current operating expenses at least twenty	93
mills. Levies for joint vocational or cooperative education	94
school districts or county school financing districts, limited to	95
or to the extent apportioned to current expenses, shall be	96
included in this qualification requirement. School district income	97
tax levies under Chapter 5748. of the Revised Code, limited to or	98
to the extent apportioned to current operating expenses, shall be	99
included in this qualification requirement to the extent	100
determined by the tax commissioner under division (D) of section	101
3317.021 of the Revised Code.	102

(B) The school year next preceding the fiscal year for which	103
such payments are authorized meets the requirement of section	104
3313.48 or 3313.481 of the Revised Code, with regard to the	105
minimum number of days or hours school must be open for	106
instruction with pupils in attendance, for individualized	107
parent-teacher conference and reporting periods, and for	108
professional meetings of teachers. This requirement shall be	109
waived by the superintendent of public instruction if it had been	110
necessary for a school to be closed because of disease epidemic,	111
hazardous weather conditions, inoperability of school buses or	112
other equipment necessary to the school's operation, damage to a	113
school building, or other temporary circumstances due to utility	114
failure rendering the school building unfit for school use,	115
provided that for those school districts operating pursuant to	116
section 3313.48 of the Revised Code the number of days the school	117
was actually open for instruction with pupils in attendance and	118
for individualized parent-teacher conference and reporting periods	119
is not less than one hundred seventy-five, or for those school	120
districts operating on a trimester plan the number of days the	121
school was actually open for instruction with pupils in attendance	122
not less than seventy-nine days in any trimester, for those school	123
districts operating on a quarterly plan the number of days the	124
school was actually open for instruction with pupils in attendance	125
not less than fifty-nine days in any quarter, or for those school	126
districts operating on a pentamester plan the number of days the	127
school was actually open for instruction with pupils in attendance	128
not less than forty-four days in any pentamester.	129

A school district shall not be considered to have failed to	130
comply with this division or section 3313.481 of the Revised Code	131
because schools were open for instruction but either twelfth grade	132
students were excused from attendance for up to three days or only	133
a portion of the kindergarten students were in attendance for up	134
to three days in order to allow for the gradual orientation to	135
school of such students.	136

The superintendent of public instruction shall waive the	137
requirements of this section with reference to the minimum number	138
of days or hours school must be in session with pupils in	139
attendance for the school year succeeding the school year in which	140
a board of education initiates a plan of operation pursuant to	141
section 3313.481 of the Revised Code. The minimum requirements of	142
this section shall again be applicable to such a district	143
beginning with the school year commencing the second July	144
succeeding the initiation of one such plan, and for each school	145
year thereafter.	146

A school district shall not be considered to have failed to	147
comply with this division or section 3313.48 or 3313.481 of the	148
Revised Code because schools were open for instruction but the	149
length of the regularly scheduled school day, for any number of	150
days during the school year, was reduced by not more than two	151
hours due to hazardous weather conditions.	152

(C) The school district has on file, and is paying in	153
accordance with, a teachers' salary schedule which complies with	154
section 3317.13 of the Revised Code.	155

A board of education or governing board of an educational	156
service center which has not conformed with other law and the	157
rules pursuant thereto, shall not participate in the distribution	158
of funds authorized by sections 3317.022 to 3317.0211, 3317.11,	159
3317.16, 3317.17, and 3317.19 of the Revised Code, except for good	160
and sufficient reason established to the satisfaction of the state	161
board of education and the state controlling board.	162

All funds allocated to school districts under this chapter,	163
except those specifically allocated for other purposes, shall be	164
used to pay current operating expenses only.	165

(A) Unless otherwise specified, "school district" means city,	167
local, and exempted village school districts.	168

(B) ~~"Formula amount" means the base cost for the fiscal year~~	169
~~specified in division (B)(4) of section 3317.012 of the Revised~~	170
~~Code.~~	171

~~(C) "FTE basis" means a count of students based on full-time~~	172
~~equivalency, in accordance with rules adopted by the department of~~	173
~~education pursuant to section 3317.03 of the Revised Code. In~~	174
~~adopting its rules under this division, the department shall~~	175
~~provide for counting any student in category one, two, three,~~	176
~~four, five, or six special education ADM or in category one or two~~	177
~~vocational education ADM in the same proportion the student is~~	178
~~counted in formula ADM.~~	179

~~(D) "Formula~~"District ADM" means, for a city, local, or	180
exempted village school district, the number reported pursuant to	181
division (A) of section 3317.03 of the Revised Code, and for a	182
joint vocational school district, the number reported pursuant to	183
division ~~(D)~~(C) of section 3317.03 of the Revised Code. ~~Beginning~~	184
~~in fiscal year 2007, for payments in which formula ADM is a~~	185
~~factor, the formula ADM for each school district for the fiscal~~	186
~~year is the sum of one-half of the number reported for October of~~	187
~~that fiscal year plus one-half of the average of the numbers~~	188
~~reported for October and February of that fiscal year.~~	189

~~(E) "Three-year average formula ADM" means the average of~~	190
~~formula ADMs for the current and preceding two fiscal years.~~	191

~~(F)(1) "Category one special education ADM" means the average~~	192
~~daily membership of handicapped children receiving special~~	193
~~education services for the handicap specified in division (A) of~~	194
~~section 3317.013 of the Revised Code and reported under division~~	195
~~(B)(5) or (D)(2)(b) of section 3317.03 of the Revised Code.~~	196
~~Beginning in fiscal year 2007, the district's category one special~~	197
~~education ADM for a fiscal year is the sum of one-half of the~~	198
~~number reported for October of that fiscal year plus one-half of~~	199
~~the average of the numbers reported for October and February of~~	200
~~that fiscal year.~~	201

~~(2) "Category two special education ADM" means the average~~	202
~~daily membership of handicapped children receiving special~~	203
~~education services for those handicaps specified in division (B)~~	204
~~of section 3317.013 of the Revised Code and reported under~~	205
~~division (B)(6) or (D)(2)(c) of section 3317.03 of the Revised~~	206
~~Code. Beginning in fiscal year 2007, the district's category two~~	207
~~special education ADM for a fiscal year is the sum of one-half of~~	208
~~the number reported for October of that fiscal year plus one-half~~	209
~~of the average of the numbers reported for October and February of~~	210
~~that fiscal year.~~	211

~~(3) "Category three special education ADM" means the average~~	212
~~daily membership of students receiving special education services~~	213
~~for those handicaps specified in division (C) of section 3317.013~~	214
~~of the Revised Code, and reported under division (B)(7) or~~	215
~~(D)(2)(d) of section 3317.03 of the Revised Code. Beginning in~~	216
~~fiscal year 2007, the district's category three special education~~	217
~~ADM for a fiscal year is the sum of one-half of the number~~	218
~~reported for October of that fiscal year plus one-half of the~~	219
~~average of the numbers reported for October and February of that~~	220
~~fiscal year.~~	221

~~(4) "Category four special education ADM" means the average~~	222
~~daily membership of students receiving special education services~~	223
~~for those handicaps specified in division (D) of section 3317.013~~	224
~~of the Revised Code and reported under division (B)(8) or~~	225
~~(D)(2)(e) of section 3317.03 of the Revised Code. Beginning in~~	226
~~fiscal year 2007, the district's category four special education~~	227
~~ADM for a fiscal year is the sum of one-half of the number~~	228
~~reported for October of that fiscal year plus one-half of the~~	229
~~average of the numbers reported for October and February of that~~	230
~~fiscal year.~~	231

~~(5) "Category five special education ADM" means the average~~	232
~~daily membership of students receiving special education services~~	233
~~for the handicap specified in division (E) of section 3317.013 of~~	234
~~the Revised Code and reported under division (B)(9) or (D)(2)(f)~~	235
~~of section 3317.03 of the Revised Code. Beginning in fiscal year~~	236
~~2007, the district's category five special education ADM for a~~	237
~~fiscal year is the sum of one-half of the number reported for~~	238
~~October of that fiscal year plus one-half of the average of the~~	239
~~numbers reported for October and February of that fiscal year.~~	240

~~(6) "Category six special education ADM" means the average~~	241
~~daily membership of students receiving special education services~~	242
~~for the handicap specified in division (F) of section 3317.013 of~~	243
~~the Revised Code and reported under division (B)(10) or (D)(2)(g)~~	244
~~of section 3317.03 of the Revised Code. Beginning in fiscal year~~	245
~~2007, the district's category six special education ADM for a~~	246
~~fiscal year is the sum of one-half of the number reported for~~	247
~~October of that fiscal year plus one-half of the average of the~~	248
~~numbers reported for October and February of that fiscal year.~~	249