130th Ohio General Assembly
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As Passed by the House*

122nd General Assembly
Regular Session
1997-1998
Am. Sub. H. B. No. 650

REPRESENTATIVES JOHNSON-SYKES-STAPLETON-DAMSCHRODER-PERZ-MOTTLEY- MEAD-WOMER BENJAMIN-O'BRIEN-CORE-BOYD-ROBERTS-PRENTISS- MALLORY-VERICH-TAVARES-WILSON-METELSKY-OPFER-SAWYER-THOMAS- MILLER-CORBIN-HARRIS-BRADING-AMSTUTZ-JONES-COLONNA-SALERNO


A BILL
To amend sections 3317.022, 3317.023, 3317.0213, 3318.05, 3318.35, and 5705.29 of the Revised Code; to amend Sections 50, 50.04, 50.07, 50.09, 50.15, 50.20, 50.23, 50.24, 50.43, 50.44, 69.03, 76, and 130.01 of Am. Sub. H.B. 215 of the 122nd General Assembly; to amend Sections 50.06 and 50.11 of Am. Sub. H.B. 215 of the 122nd General Assembly, as amended by Am. Sub. H.B. 182 of the 122nd General Assembly; to amend Section 50.16 of Am. Sub. H.B. 215 of the 122nd General Assembly, as amended by Am. Sub. S.B. 55 of the 122nd General Assembly; to amend Section 5 of Am. Sub. S.B. 102 of the 122nd General Assembly, as subsequently amended; and to repeal Section 50.05 of Am. Sub. H.B. 215 of the 122nd General Assembly to make specific appropriations and certain increases and decreases in existing appropriations for fiscal year 1999; to change the use of the fiscal year 1998 year-end balance in the General Revenue Fund for purposes of funding elementary and secondary education beginning July 1, 1998; to modify the Ohio School Facilities Commission Law; to require the School Facilities Commission instead of the Department of Education to administer the Disability Access Projects Program and the Asbestos Abatement Program; to require that the General Assembly pass a separate education budget act for the fiscal year 2000-2001 biennium; and to create a special committee on Property Tax Revision and Restructuring.

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


Section 1. That sections 3317.022, 3317.023, 3317.0213, 3318.05, 3318.35, and 5705.29 of the Revised Code be amended to read as follows:

Sec. 3317.022. (A) As used in the computation under this section, the "formula amount" for fiscal year 1998" 1999 equals $3,663 $3,790. The department of education shall compute and distribute state aid to each school district for the fiscal year in accordance with the following formula, using adjusted total taxable value as defined under division (M) of section 3317.02 of the Revised Code and the information obtained under section 3317.021 of the Revised Code in 1997 calendar year 1998:

Compute the following for each eligible district: (cost-of-doing-business factor X the formula amount X ADM)- (.023 X adjusted total taxable value)

If the difference obtained is a negative number, the district's computation shall be zero.

(B)(1) For each school district for which the tax exempt value of the district equals or exceeds twenty-five per cent of the potential value of the district, the department of education shall calculate the difference between the district's tax exempt value and twenty-five per cent of the district's potential value.

(2) For each school district to which division (B)(1) of this section applies, the adjusted total taxable value used in the calculation under division (A) of this section shall be the adjusted total taxable value modified by subtracting the amount calculated under division (B)(1) of this section.

(C) If in any fiscal year insufficient funds are appropriated to provide each school district the amount of money calculated under the formula in division (A) of this section and pursuant to other sections of this chapter, such calculated amounts shall be reduced in accordance with any formula provided for that purpose by the general assembly in its main biennial appropriations act.

Sec. 3317.023. (A) Notwithstanding section 3317.022 of the Revised Code, the amounts required to be paid to a district under that section shall be adjusted by the amount of the computations made under divisions (B) to (L) of this section.

As used in this section:

(1) "Classroom teacher" means a licensed employee who provides direct instruction to pupils, excluding teachers funded from money paid to the district from federal sources; educational service personnel; and vocational and special education teachers.

(2) "Educational service personnel" shall not include such specialists funded from money paid to the district from federal sources or assigned full-time to vocational or special education students and classes and may only include those persons employed in the eight specialist areas in a pattern approved by the department of education under guidelines established by the state board of education.

(3) "Annual salary" means the annual base salary stated in the state minimum salary schedule for the performance of the teacher's regular teaching duties that the teacher earns for services rendered for the first full week of October of the fiscal year for which the adjustment is made under division (D) of this section. It shall not include any salary payments for supplemental teachers contracts.

(4) As used in division (B) of this section, "average daily membership" means the three-year average number of pupils in grades one through twelve plus one-half the kindergarten average daily membership certified under section 3317.03 of the Revised Code for the current and preceding two fiscal years, except that:

(a) In the case of a big eight district "average daily membership" means the three-year average number of pupils in grades one through twelve, plus the three-year average number of pupils in all-day kindergarten, plus three-fourths of the three-year average number of pupils in extended kindergarten, plus one-half of the three-year average number of pupils in traditional kindergarten, all certified under division (A) of that section for the current and preceding two fiscal years;

(b) In the case of an urban district, "average daily membership" means the three-year average number of pupils in grades one through twelve, plus three-fourths of the three-year average number of pupils in all-day or extended kindergarten, plus one-half of the three-year average number of pupils in traditional kindergarten, all as certified under division (A) of that section for the current and preceding two fiscal years.

(5) As used in division (B) of this section, "per cent figure" means a school district's three-year average number of children participating in Ohio works first (OWF) under Chapter 5107. of the Revised Code divided by the average daily membership, multiplied by one hundred.

(6) As used in divisions (A)(5) and (B) of this section, "aid to dependent children" and "ADC" mean:

(a) Aid provided under Chapter 5107. of the Revised Code prior to October 1, 1996;

(b) Cash assistance provided on or after October 1, 1996, under a state program operated pursuant to Title IV-A of the "Social Security Act," 110 Stat. 2113 (1996), 42 U.S.C.A. 601, as amended, regardless of the name used to designate that assistance.

(B)(1)(a) If the three-year average of the number of children ages five to seventeen residing in the district and living in a family participating in Ohio works first, as certified or adjusted under section 3317.10 of the Revised Code for the current and preceding two fiscal years, is equal to five per cent or more of the number of pupils in the average daily membership, add the amount computed for the district in accordance with the following schedule, as adjusted by division (B)(1)(b) of this section:
THREE-YEAR AVERAGE NUMBER OF 
OWF CHILDREN DIVIDED BYPAYMENT PER OWF CHILD IN
THE AVERAGE DAILY MEMBERSHIPTHE THREE-YEAR AVERAGE

At least 5%, but less than 10%$198.00 OWF
At least 10%, but less than 20%($101.50 x per cent figure) minus $817.00 OWF
At least 20%, but less than 30 40%($7.50 x per cent figure) plus $1,063.00 OWF
At least 30 40%$1,288.00OWF 1,488.40

(b) In fiscal year 1998, for school districts with a per cent figure of at least five, increase the amount determined under division (B)(1)(a) of this section by four per cent. In fiscal year 1999, FOR ANY DISTRICT WITH A PER CENT FIGURE LESS THAN FORTY, determine the per-ADC-child PER-OWF-CHILD amount the district would have received in fiscal year 1998 under divisions (B)(1)(a) and (b) of this section, based on its per cent figure for fiscal year 1999, and increase that amount by five per cent.

(2) If in any year the sum of the additions made under this division is less than ninety-seven per cent of the amount appropriated for this division for that year, the department of education shall increase the amount added for each district under this division. The amount so added for each district shall equal (1) the difference between ninety-seven per cent of the amount appropriated and the total amount of the additions prior to such increase, times (2) the percentage that the amount added for the district prior to the increase was of the total of such amount added for all districts.

(3) Except as provided in division (B)(4) of this section, a district shall expend at least seventy per cent of any addition received under this division for any of the following:

(a) The purchase of technology for instructional purposes;

(b) All-day kindergarten;

(c) Reduction of class sizes;

(d) Summer school remediation or other remedial programs;

(e) Dropout prevention programs;

(f) Guaranteeing that all third graders are ready to progress to more advanced work;

(g) Summer education and work programs;

(h) Adolescent pregnancy programs;

(i) Head start or preschool programs;

(j) Reading improvement programs described by the department of education;

(k) Programs designed to ensure that schools are free of drugs and violence and have a disciplined environment conducive to learning;

(l) Furnishing free of charge materials used in courses of instruction, except for the necessary textbooks required to be furnished without charge pursuant to section 3329.06 of the Revised Code, to pupils living in families participating in Ohio works first in accordance with section 3313.642 of the Revised Code;

(m) School breakfasts provided pursuant to section 3313.813 of the Revised Code.

(4) Except as provided in division (B) of section 3301.0719 of the Revised Code, each at-risk school district, as defined in division (A)(3) of section 3301.0719 of the Revised Code, that receives at least three hundred thousand dollars under divisions (B)(1) and (2) of this section shall expend at least one-tenth of the amount described in division (B)(3) of this section for either all-day kindergarten classes with a student teacher ratio of fifteen to one or for reduction of class sizes in grades kindergarten to four to a fifteen to one student teacher ratio, or both. Such districts shall also expend such funds to provide training for teachers participating in such programs on an ongoing basis, including at least six days of training each school year. Amounts expended for all-day kindergarten under this section shall only be expended to provide additional all-day kindergarten classes not in existence on July 26, 1991. Upon the request of a board of education, the state board of education may grant an exemption from the requirement of division (B)(4) of this section if the district board satisfies the state board that the district has insufficient physical facilities to implement this requirement.

(5) Each district shall maintain the portion required to be spent under division (B)(3) of this section in a separate district account. Each district shall submit to the department, in such format and at such time as the department shall specify, a report on the programs for which it expended funds under this division.

(C) If the district employs less than one full-time equivalent classroom teacher for each twenty-five pupils in ADM in any school district, deduct the sum of the amounts obtained from the following computations:

(1) Divide the number of the district's full-time equivalent classroom teachers employed by one twenty-fifth;

(2) Subtract the quotient in (1) from the district's ADM;

(3) Multiply the difference in (2) by seven hundred fifty-two dollars.

(D) If a positive amount, add one-half of the amount obtained by multiplying the number of full-time equivalent classroom teachers by:

(1) The mean annual salary of all full-time equivalent classroom teachers employed by the district at their respective training and experience levels minus;

(2) The mean annual salary of all such teachers at their respective levels in all school districts receiving payments under this section.

The number of full-time equivalent classroom teachers used in this computation shall not exceed one twenty-fifth of the district's ADM. In calculating the district's mean salary under this division, those full-time equivalent classroom teachers with the highest training level shall be counted first, those with the next highest training level second, and so on, in descending order. Within the respective training levels, teachers with the highest years of service shall be counted first, the next highest years of service second, and so on, in descending order.

(E) This division does not apply to a school district that has entered into an agreement under division (A) of section 3313.42 of the Revised Code. Deduct the amount obtained from the following computations if the district employs fewer than five full-time equivalent educational service personnel, including elementary school art, music, and physical education teachers, counselors, librarians, visiting teachers, school social workers, and school nurses for each one thousand pupils in ADM:

(1) Divide the number of full-time equivalent educational service personnel employed by the district by five one-thousandths;

(2) Subtract the quotient in (1) from the district's ADM;

(3) Multiply the difference in (2) by ninety-four dollars.

(F) If a local school district, or a city or exempted village school district to which a governing board of an educational service center provides services pursuant to section 3313.843 of the Revised Code, deduct the amount of the payment required for the reimbursement of the governing board under section 3317.11 of the Revised Code.

(G)(1) If the district is required to pay to or entitled to receive tuition from another school district under division (C)(2) or (3) of section 3313.64 or section 3313.65 of the Revised Code, or if the superintendent of public instruction is required to determine the correct amount of tuition and make a deduction or credit under section 3317.08 of the Revised Code, deduct and credit such amounts as provided in division (I) of section 3313.64 or section 3317.08 of the Revised Code.

(2) For each child for whom the district is responsible for tuition under division (A)(1) of section 3317.082 or under division (B)(1) of section 3323.091 of the Revised Code, deduct the amount of tuition for which the district is responsible.

(H) If the district has been certified by the superintendent of public instruction under section 3313.90 of the Revised Code as not in compliance with the requirements of that section, deduct an amount equal to ten per cent of the amount computed for the district under section 3317.022 of the Revised Code.

(I) If the amount computed by the department of education under division (I)(1) of this section is less than the amount computed under division (I)(2) of this section, add an amount equal to the result obtained by subtracting the amount computed under division (I)(1) from the amount computed under division (I)(2) of this section.

The department of education shall compute both of the following for each district:

(1) The sum of the amounts computed for the district under section 3317.022 and division (N) of section 3317.024 of the Revised Code for units approved under division (B) of section 3317.05 of the Revised Code.

(2) The amount the district would be entitled to receive under section 3317.022 of the Revised Code if the ADM used in the computation required by that section included the number of full-time equivalent pupils enrolled in the units for handicapped children approved under division (B) of section 3317.05 of the Revised Code that are used to make the computation required by division (N)(1)(a) of section 3317.024 of the Revised Code.

(J) If the district has received a loan from a commercial lending institution for which payments are made by the superintendent of public instruction pursuant to division (E)(3) of section 3313.483 of the Revised Code, deduct an amount equal to such payments.

(K)(1) If the district is a party to an agreement entered into under division (D), (E), or (F) of section 3311.06 or division (B) of section 3311.24 of the Revised Code and is obligated to make payments to another district under such an agreement, deduct an amount equal to such payments if the district school board notifies the department in writing that it wishes to have such payments deducted.

(2) If the district is entitled to receive payments from another district that has notified the department to deduct such payments under division (K)(1) of this section, add the amount of such payments.

(L) If the district is required to pay an amount of funds to a cooperative education district pursuant to a provision described by division (B)(4) of section 3311.52 or division (B)(8) of section 3311.521 of the Revised Code, deduct such amounts as provided under that provision and credit those amounts to the cooperative education district for payment to the district under division (B)(1) of section 3317.19 of the Revised Code.

Sec. 3317.0213. (A) As used in this section:

(1) "ADM" for any school district means the average daily membership described by division (A) of section 3317.02 of the Revised Code, as finally determined by the department of education in calculating the district's payments under section 3317.022 of the Revised Code for the preceding fiscal year.

(2) "Total taxable value" means the sum of the average of the amounts certified for a district in the second, third, and fourth preceding fiscal years under divisions (A)(1) and (2) of section 3317.021 of the Revised Code.

(3) "District median income" means the median Ohio adjusted gross income certified for a district under division (B) of this section.

(4) "Statewide median income" means the median district median income of all school districts in the state.

(5) "Income factor" for a district means the quotient obtained by dividing that district's median income by the statewide median income.

(6) "Valuation per pupil" for a district means the district's total taxable value, divided by the district's ADM.

(7) "Threshold valuation" means the adjusted valuation per pupil of the school district with the two FOUR hundred ninety-third FIFTY-EIGHTH lowest adjusted valuation per pupil in the state, according to data available at the time of the computation under division (C) of this section.

(8) "Adjusted valuation per pupil" for a district means an amount calculated in accordance with the following formula:

The district's valuation per pupil - ($30,000 X (one minus the district's income factor))

(9) "COST-OF-DOING-BUSINESS FACTOR" HAS THE SAME MEANING AS IN SECTION 3317.02 of the Revised Code.

(B) On or before the first day of July of each year, the tax commissioner shall certify to the department of education for each city, exempted village, and local school district the median Ohio adjusted gross income of the residents of the school district determined on the basis of tax returns filed for the second preceding tax year by the residents of the district. The amount certified shall be used in calculating the district's income factor.

(C) Beginning in fiscal year 1993, during DURING August of each fiscal year, the department of education shall distribute to CALCULATE FOR each school district meeting the requirements of section 3317.01 of the Revised Code whose adjusted valuation per pupil is less than the threshold valuation, an amount ADEQUACY AID PHASE-IN PAYMENT. EXCEPT AS PROVIDED IN DIVISION (D) OF THIS SECTION, THE ADEQUACY AID PHASE-IN PAYMENT SHALL BE calculated in accordance with the following formula:

(The threshold valuation - the district's adjusted valuation per pupil) X .013 XADM

ADEQUACY AID PER PUPIL AMOUNT X COST-OF-DOING-BUSINESS FACTOR X ADM

THE ADEQUACY AID PER PUPIL AMOUNT SHALL BE DETERMINED FOR EACH SCHOOL DISTRICT AS FOLLOWS:

(1) IF THE DISTRICT'S ADJUSTED VALUATION PER PUPIL IS LESS THAN OR EQUAL TO THAT OF THE SCHOOL DISTRICT WITH THE TWO HUNDRED TWENTY-NINTH LOWEST ADJUSTED VALUATION PER PUPIL IN THE STATE, THE ADEQUACY AID PER PUPIL AMOUNT IS $210.

(2) IF THE DISTRICT'S ADJUSTED VALUATION PER PUPIL IS GREATER THAN THE TWO HUNDRED TWENTY-NINTH LOWEST ADJUSTED VALUATION PER PUPIL IN THE STATE, BUT LESS THAN THE THRESHOLD VALUATION, THE ADEQUACY AID PER PUPIL AMOUNT IS DETERMINED IN ACCORDANCE WITH THE FOLLOWING FORMULA:

$210 - $210 X [(DISTRICT'S ADJUSTED VALUATION PER PUPIL - THE 229th LOWEST ADJUSTED VALUATION PER PUPIL IN THE STATE)/ (THE THRESHOLD VALUATION - THE 229th LOWEST ADJUSTED VALUATION PER PUPIL IN THE STATE)]

(3) NOTWITHSTANDING DIVISIONS (C)(1) AND (2) OF THIS SECTION, IF ANY SCHOOL DISTRICT RECEIVED EQUITY AID IN FISCAL YEAR 1998 UNDER THE VERSION OF THIS SECTION IN EFFECT THAT YEAR AND IF THE TOTAL OF THAT DISTRICT'S ADEQUACY AID PER PUPIL AMOUNT CALCULATED UNDER DIVISION (C)(1) OR (2) OF THIS SECTION AND $3,790 IS LESS THAN THE TOTAL OF $3,663 AND THE QUOTIENT OBTAINED BY DIVIDING THE DISTRICT'S FISCAL YEAR 1998 EQUITY AID PAYMENT BY ITS ADM AS FINALLY DETERMINED IN CALCULATING PAYMENT UNDER SECTION 3317.022 of the Revised Code FOR FISCAL YEAR 1998, THEN THE DISTRICT'S FISCAL YEAR 1999 ADEQUACY AID PER PUPIL AMOUNT SHALL BE CALCULATED AS FOLLOWS:

[$3,663 + (THE DISTRICT'S FISCAL YEAR 1998 EQUITY AID PAYMENT/ADM AS FINALLY DETERMINED IN CALCULATING THE PAYMENT UNDER SECTION 3317.022 of the Revised Code FOR FISCAL YEAR 1998)] - $3,790

(D) IF THE DEPARTMENT ESTIMATES IN AUGUST THAT A SCHOOL DISTRICT ELIGIBLE FOR FUNDS UNDER THIS SECTION IS ALSO ELIGIBLE TO RECEIVE GUARANTEE FUNDS UNDER SECTION 3317.0212 OF THE REVISED CODE IN THE SAME FISCAL YEAR, THE DISTRICT'S ADEQUACY AID PHASE-IN PAYMENT SHALL BE THE DIFFERENCE BETWEEN THE AMOUNT CALCULATED FOR THE DISTRICT UNDER DIVISION (C) OF THIS SECTION MINUS THE GUARANTEE AMOUNT THE DEPARTMENT ESTIMATES IT WILL PAY UNDER SECTION 3317.0212 OF THE REVISED CODE. IF THIS CALCULATION PRODUCES A NEGATIVE NUMBER, THE DISTRICT'S ADEQUACY AID PHASE-IN PAYMENT SHALL BE ZERO.

(E) THE DEPARTMENT SHALL PAY EACH ELIGIBLE SCHOOL DISTRICT ITS ADEQUACY AID PHASE-IN PAYMENT UNDER THIS SECTION IN QUARTERLY INSTALLMENTS, PAYING THE FIRST INSTALLMENT IN AUGUST.

Sec. 3318.05. The conditional approval of the Ohio school facilities commission for a project shall lapse and the amount reserved and encumbered for such project shall be released unless the school district board accepts such conditional approval within one hundred twenty days following the date of certification of the conditional approval to the school district board and the electors of the school district vote favorably on both of the propositions described in divisions (A) and (B) of this section within one year of the date of such certification. The propositions described in divisions (A) and (B) of this section shall be combined in a single proposal. If the district board or the district's electors fail to meet such requirements and the amount reserved and encumbered for the district's project is released, the district shall be given first priority for project funding as such funds become available.

(A) On the question of issuing bonds of the school district board, for the school district's portion of the basic project cost, in either whatever amount may be necessary to raise the net bonded indebtedness of the school district to within five thousand dollars of the required level of indebtedness calculated for the year preceding the year in which the resolution declaring the necessity of the election is adopted, or an amount equal to the required percentage of the basic project costs, whichever is greater; provided, that such question need not be submitted if at the time of the passage of such resolution the net bonded indebtedness of the school district (1) aggregates ninety-five per cent or more of the required level of indebtedness, or (2) is within twenty thousand dollars of such level and the required percentage of the basic project costs is not greater than either the amount necessary to raise the net bonded indebtedness of the school district to within five thousand dollars of the required level of indebtedness or twenty thousand dollars; and

(B) On the question of levying a tax the proceeds of which shall be used to pay the cost of maintaining the classroom facilities included in the project, except that in any year the district's adjusted valuation per pupil is greater than the state-wide median adjusted valuation per pupil one-half of the proceeds of the tax shall be used for such maintenance and one-half of such proceeds shall be used to pay the cost of the purchase of the classroom facilities from the state under the provisions of sections 3318.01 to 3318.20 of the Revised Code. Such tax shall be at the rate of one-half mill for each dollar of valuation except that in those years in which the Ohio school facilities commission, pursuant to section 3318.051 of the Revised Code, requires the district to increase the tax rate to an amount greater than one-half mill, but not in excess of four mills, until the purchase price is paid but in no case longer than twenty-three years. Proceeds of the tax to be used for maintenance of the classroom facilities shall be deposited into a separate fund established by the school district for such purpose.

Sec. 3318.35. (A) As used in this section,:

(1) "ADJUSTED VALUATION PER PUPIL" HAS THE SAME MEANING AS IN SECTION 3317.0213 of the Revised Code.

(2) "Ohio school facilities commission" has the same meaning as in section 3318.01 of the Revised Code.

(B) The Ohio school facilities commission shall establish and administer the emergency school building repair program. Under the program, the commission shall distribute moneys appropriated by the general assembly for such purpose to school districts, beginning with those districts with an adjusted per pupil valuation PER PUPIL less than the threshold ADJUSTED valuation defined in section 3317.0213 PER PUPIL of the Revised Code SCHOOL DISTRICT WITH THE TWO HUNDRED NINETY-THIRD LOWEST ADJUSTED VALUATION PER PUPIL IN THE STATE. The commission shall determine and certify SUBMIT to the controlling board for its approval any determination the commission makes as to the necessity of emergency repairs based on an on-site inspection of the school buildings in a school district OR DISAPPROVAL REQUESTS FOR ALLOCATIONS OF LUMP SUMS OF MONEY FROM WHICH THE COMMISSION MAY DISBURSE FUNDS TO SCHOOL DISTRICTS UPON DETERMINING THAT THE DISTRICTS QUALIFY FOR EMERGENCY BUILDING REPAIR ASSISTANCE. Any school district that receives moneys under this section shall expend them only to repair the following:

(1) Heating systems;

(2) Floors, roofs, and exterior doors;

(3) Air ducts and other air ventilation devices;

(4) Emergency exit or egress passageway lighting;

(5) Fire alarm systems;

(6) Handicapped access needs;

(7) Sewage systems;

(8) Water supplies;

(9) Asbestos removal; and

(10) Any other repairs to a school building that meet the requirements of the life safety code, as interpreted by the commission.

(C) No moneys for emergency school building repair under this section shall be distributed to a school district to repair a school building that the commission reasonably believes will not be needed by the district or will be substantially replaced within the next seven fiscal years pursuant to sections 3318.01 to 3318.33 of the Revised Code.

(D) After receipt of moneys from the emergency school building repair program, no school district shall be eligible to receive additional moneys from the program for the following five fiscal years unless a school building in that district is damaged due to an act of God that could not have been prevented by reasonable maintenance of that building THE OHIO SCHOOL FACILITIES COMMISSION SHALL ADOPT RULES IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE NECESSARY TO CARRY OUT ITS DUTIES AND RESPONSIBILITIES UNDER THIS SECTION.

Sec. 5705.29. The tax budget shall present the following information in such detail as is prescribed by the auditor of state, unless an alternative form of the budget is permitted under section 5705.281 of the Revised Code:

(A)(1) A statement of the necessary current operating expenses for the ensuing fiscal year for each department and division of the subdivision, classified as to personal services and other expenses, and the fund from which such expenditures are to be made. Except in the case of a school district, this estimate may include a contingent expense not designated for any particular purpose, and not to exceed three per cent of the total amount of appropriations for current expenses. In the case of a school district, this estimate may include a contingent expense not designated for any particular purpose and not to exceed thirteen per cent of the total amount of appropriations for current expenses.

(2) A statement of the expenditures for the ensuing fiscal year necessary for permanent improvements, exclusive of any expense to be paid from bond issues, classified as to the improvements contemplated by the subdivision and the fund from which such expenditures are to be made;

(3) The amounts required for the payment of final judgments;

(4) A statement of expenditures for the ensuing fiscal year necessary for any purpose for which a special levy is authorized, and the fund from which such expenditures are to be made;

(5) Comparative statements, so far as possible, in parallel columns of corresponding items of expenditures for the current fiscal year and the two preceding fiscal years.

(B)(1) An estimate of receipts from other sources than the general property tax during the ensuing fiscal year, which shall include an estimate of unencumbered balances at the end of the current fiscal year, and the funds to which such estimated receipts are credited;

(2) The amount each fund requires from the general property tax, which shall be the difference between the contemplated expenditure from the fund and the estimated receipts, as provided in this section. The section of the Revised Code under which the tax is authorized shall be set forth.

(3) Comparative statements, so far as possible, in parallel columns of taxes and other revenues for the current fiscal year and the two preceding fiscal years.

(C)(1) The amount required for debt charges;

(2) The estimated receipts from sources other than the tax levy for payment of such debt charges, including the proceeds of refunding bonds to be issued to refund bonds maturing in the next succeeding fiscal year;

(3) The net amount for which a tax levy shall be made, classified as to bonds authorized and issued prior to January 1, 1922, and those authorized and issued subsequent to such date, and as to what portion of the levy will be within and what in excess of the ten-mill limitation.

(D) An estimate of amounts from taxes authorized to be levied in excess of the ten-mill limitation on the tax rate, and the fund to which such amounts will be credited, together with the sections of the Revised Code under which each such tax is exempted from all limitations on the tax rate.

(E)(1) A board of education may include in its budget for the fiscal year in which a levy proposed under section 5705.194, 5705.21, or 5705.213, or the original levy under section 5705.212 of the Revised Code is first extended on the tax list and duplicate an estimate of expenditures to be known as a voluntary contingency reserve balance, which shall not be greater than twenty-five per cent of the total amount of the levy estimated to be available for appropriation in such year.

(2) A board of education may include in its budget for the fiscal year following the year in which a levy proposed under section 5705.194, 5705.21, or 5705.213, or the original levy under section 5705.212 of the Revised Code is first extended on the tax list and duplicate an estimate of expenditures to be known as a voluntary contingency reserve balance, which shall not be greater than twenty per cent of the amount of the levy estimated to be available for appropriation in such year.

(3) Except as provided in division (E)(4) of this section, the full amount of any reserve balance the board includes in its budget shall be retained by the county auditor and county treasurer out of the first semiannual settlement of taxes until the beginning of the next succeeding fiscal year, and thereupon, with the depository interest apportioned thereto, it shall be turned over to the board of education, to be used for the purposes of such fiscal year.

(4) A board of education may, by a two-thirds vote of all members of the board, appropriate any amount withheld as a voluntary contingency reserve balance during the fiscal year for any lawful purpose, provided that prior to such appropriation the board of education has authorized the expenditure of all amounts appropriated for contingencies under section 5705.40 of the Revised Code. Upon request by the board of education, the county auditor shall draw a warrant on the district's account in the county treasury payable to the district in the amount requested.

(F)(1) As used in this division, "police or fire department equipment expenditures" includes expenditures for equipment used to provide ambulance or emergency medical services operated by a police or fire department.

A board of township trustees may include in its budget an estimate of expenditures to be known as a reserve balance for police or fire department equipment or road maintenance equipment expenditures. This reserve balance shall not exceed ten per cent of the total estimated appropriations included in the township budget estimate. If, in accordance with division (A) of section 505.83 of the Revised Code, the board of township trustees has unanimously adopted a resolution establishing the reserve balance account and specifying the reason for its creation and has certified the resolution to the county auditor, the full amount of the reserve balance, as allowed by the budget commission, shall be turned over to the township each year by the county auditor and county treasurer out of the second semiannual settlement of taxes until the date specified in the resolution, which shall not be later than five years from the date of the first such deposit in the account, or until the reserve amount has been reached, whichever occurs first.

(2) Upon receipt of a certified copy of a resolution to rescind the creation of a township reserve balance account pursuant to division (B) of section 505.83 of the Revised Code, the county auditor shall close the account and transfer the account moneys and depository interest apportioned to it to the township's general fund.

(G)(1) A board of education may include a spending reserve in its budget for fiscal years ending on or before June 30, 2002. The spending reserve shall consist of an estimate of expenditures not to exceed the district's spending reserve balance. A district's spending reserve balance is the amount by which the designated percentage of the district's estimated personal property taxes to be settled during the calendar year in which the fiscal year ends exceeds the estimated amount of personal property taxes to be so settled and received by the district during that fiscal year. Moneys from a spending reserve shall be appropriated in accordance with section 133.301 of the Revised Code.

(2) For the purposes of computing a school district's spending reserve balance for a fiscal year, the designated percentage shall be as follows:

Fiscal year ending in:

Designated percentage

199850%
199940%
200030%
200120%
200210%

(H) As used in this division:

(1) "Police or fire department equipment expenditures" includes expenditures for equipment used to provide ambulance or emergency medical services operated by a police or fire department.

(2) "Detention facility" means any place used for the confinement of a person charged with or convicted of any crime or alleged or found to be a delinquent or unruly child.

The legislative authority of a municipal corporation may include in its budget an estimate of expenditures to be known as a reserve balance for police or fire department equipment expenditures, for constructing, acquiring, equipping, or repairing a detention facility, or for road maintenance equipment expenditures by creating, by ordinance or resolution, a reserve balance account. Money credited to the account may be derived from any general fund sources or from the proceeds of a special levy that may be used for the purpose for which the account is established. The ordinance or resolution shall state that money in the account may be expended only for the purpose for which the account is established, that the account will be maintained until a specified date not to exceed five years from the date of the first deposit in the account, and that the total amount of money in all reserve balance accounts derived from general fund sources shall not exceed ten per cent of the current total estimated expenditures from the municipal corporation's general fund, and the total amount of money in all reserve balance accounts derived from a special levy shall not exceed ten per cent of the current total estimated expenditures from the special levy. The legislative authority shall certify a copy of the ordinance or resolution to the county auditor. Upon receiving the certified copy, the county auditor and county treasurer shall turn over to the municipal corporation, out of the second semiannual settlement of taxes, any amount of the reserve balance to be derived from property tax sources, but only until the date specified in the ordinance or resolution or until the reserve amount as indicated in the ordinance or resolution has been reached, whichever occurs first.

A legislative authority may create a separate reserve balance account under this division for police department equipment expenditures, fire department equipment expenditures, or ambulance or emergency medical services equipment expenditures, or any combination thereof. Each such account is subject to the provisions of this section regarding a single account for all such purposes.

Upon receiving a certified copy of an ordinance or resolution to rescind the creation of a municipal reserve balance account, the county auditor shall close the account and transfer all money in the account to the municipal general fund, if the account is derived from the general fund, or to the fund to which proceeds of the special levy are credited, if the account is derived from the proceeds of a special levy.

(I) A board of county commissioners that has adopted a resolution establishing a reserve balance account under section 305.23 of the Revised Code may include in its budget an estimate of expenditures to be known as a reserve balance for the purpose for which the account was established under that section. The reserve shall not exceed ten per cent of the total estimated appropriations included in the budget estimate of the general fund in the case of a reserve balance account established under division (A) of that section, or ten per cent of the total estimated appropriations included in the budget estimate of the special fund in which the account is established in the case of a reserve balance account established under division (B) of that section. If the board of county commissioners has certified a copy of a resolution to the county auditor pursuant to that section, the county auditor and county treasurer shall deposit the amount of the annual reserve balance into the reserve balance account out of the second semiannual settlement of taxes until the date specified in that resolution, or until the reserve amount specified in the resolution has been reached, whichever occurs first.

Upon receiving a certified copy of a resolution rescinding a reserve balance account, the county auditor shall close the account and transfer all money in the account to a special fund created for the purpose of receiving that money. Money deposited into the fund from the reserve balance account shall be expended only for the purpose for which the account was established.

(J) The county budget commission shall not reduce the taxing authority of a board of township trustees, a board of county commissioners, or the legislative authority of a municipal corporation as a result of the creation of a reserve balance account, and shall not consider the amount in a reserve balance account as an unencumbered balance or as revenue for the purposes of division (E)(3) or (4) of section 5747.51 or division (E)(3) or (4) of section 5747.62 of the Revised Code.

(K)(1) Each board of education shall include in its tax budget a budget reserve fund. The budget reserve fund shall consist of money reserved for the fund from general fund revenues or from other sources that may lawfully be credited to the general fund. The balance in the budget reserve fund shall not at any time be less than five per cent of general fund revenues for the most recently concluded fiscal year, except as provided in division (K)(2) or (3) of this section, and except for deficiencies arising from the appropriation of money from the fund for unanticipated deficiencies in revenue or other emergencies pursuant to a resolution adopted by two-thirds of the membership of the board of education specifying the reason for the appropriation. The auditor of state and the superintendent of public instruction jointly shall adopt rules governing conditions that constitute unanticipated deficiencies in revenue or emergencies for which appropriations may be made from a budget reserve fund. The rules also shall provide that a board of education that includes a spending reserve in its tax budget for a fiscal year under division (G) of this section is not subject to division (K)(2) of this section for that fiscal year. A board of education shall not appropriate money from a budget reserve fund without filing a schedule for replenishing the fund with the superintendent of public instruction and receiving approval of the schedule from the superintendent of public instruction.

(2) Beginning with the fiscal year ending in 1999 and continuing each fiscal year until the balance in the budget reserve fund equals five per cent of the district's revenues received for current expenses for the preceding fiscal year, if the growth in a district's total revenues received for current expenses from one fiscal year to the next is three per cent or more, the board of education shall credit to its budget reserve fund, from the general fund or from other sources that may lawfully be credited to the general fund, an amount not less than one per cent of the revenue received for current expenses for the fiscal year, at which time the balance in the budget reserve fund shall be maintained as otherwise required under division (K)(1) of this section.

(3) The balance in the budget reserve fund of a school district may be less than five per cent of the general fund revenue for the most recently concluded fiscal year in any fiscal year in which the school district is in a state of fiscal watch or fiscal emergency pursuant to section 3316.03 of the Revised Code.

(4) Notwithstanding any provision to the contrary in Chapter 4117. of the Revised Code, the requirements of division (K) of this section prevail over any conflicting provisions of agreements between employee organizations and public employers entered into after the effective date of this section NOVEMBER 21, 1997.

(5) NOTWITHSTANDING DIVISION (K)(2) OF THIS SECTION, A SCHOOL DISTRICT MAY, PURSUANT TO RULES ADOPTED BY THE AUDITOR OF STATE, CREDIT LESS THAN ONE PER CENT OF ITS PRIOR YEAR'S REVENUE RECEIVED FOR CURRENT EXPENSES INTO ITS BUDGET RESERVE FUND.


Section 2. That existing sections 3317.022, 3317.023, 3317.0213, 3318.05, 3318.35, and 5705.29 of the Revised Code are hereby repealed.


Section 3. That Sections 50, 50.04, 50.07, 50.09, 50.15, 50.20, 50.23, 50.24, 50.43, 50.44, 69.03, 76, and 130.01 of Am. Sub. H.B. 215 of the 122nd General Assembly be amended to read as follows:

"Sec. 50. EDU DEPARTMENT OF EDUCATION

General Revenue Fund GRF200-510ADEQUACY PHASE-IN
GRF200-100Personal Services$10,744,925$0
  10,756,210
GRF200-200Maintenance$8,691,111$0
  4,597,207
GRF200-300Equipment$117,449$0
  116,773
GRF200-405Primary and Secondary Education Funding$0$4,470,135,592
  0
GRF200-406Head Start$83,739,058$0
  95,562,977
GRF200-408Public Preschool$17,468,094$0
  17,904,796
GRF200-411Family and Children First$8,500,500$0
  10,642,188
GRF200-412Driver Education Administration$143,429$0
  142,605
GRF200-415Consumer Education$500,000$0
  500,000
GRF200-416Vocational Education Match$2,245,026$0
  2,248,664
GRF200-417Professional Development$14,370,077$0
  9,922,829
GRF200-422School Management Assistance$550,596$0
 800,596 841,563
GRF200-423Teacher Recruitment$1,289,067$0
  1,321,292
GRF200-424Simulation System$449,796$0
  447,210
GRF200-426Ohio Educational Computer Network$21,698,858$0
  22,228,079
GRF200-429Local Professional Development Block Grants$9,259,713$0
  15,359,713
GRF200-431School Improvement Models$16,450,000$0
  11,525,000
GRF200-432School Conflict Management$392,575$0
  402,390
GRF200-437Student Proficiency$10,555,476$0
  11,798,788
GRF200-441American Sign Language$226,245$0
  226,245
GRF200-442Child Care Licensing$1,359,171$0
  1,438,172
GRF200-446Education Management Information System$12,060,657$0
  10,299,674
GRF200-447GED Testing/Adult High School$1,939,001$0
  1,987,475
GRF200-455Charter Schools$1,200,000$0
  2,300,000
GRF200-500School Finance Equity$109,405,982$0
GRF200-501School Foundation Basic Allowance$2,202,851,688$0
  2,333,474,870
GRF200-502Pupil Transportation$179,702,987$0
  195,152,119
GRF200-503Bus Purchase Allowance$36,365,821$0
  37,274,967
GRF200-504Special Education$556,029,126$0
  588,042,739
GRF200-505School Lunch Match$9,450,000$0
  9,450,000
GRF200-507Vocational Education$317,612,847$0
  337,786,050
GRF200-509Adult Literacy Education$8,928,273$0
  9,151,480
$0 $176,000,030
GRF200-511Auxiliary Services$95,956,267$0
  101,617,687
GRF200-512Driver Education$6,026,070$0
  6,206,852
GRF200-514Post-Secondary/Adult Vocational Education$20,695,861$0
  20,695,861
GRF200-520Disadvantaged Pupil Impact Aid$277,205,650$0
  290,000,000
GRF200-521Gifted Pupil Program$34,383,349$0
  36,326,043
GRF200-524Educational Excellence and Competency$9,528,000$0
  9,168,000
GRF200-526Vocational Education Equipment Replacement$4,941,622$0
  4,941,622
GRF200-532Nonpublic Administrative Cost Reimbursement$41,829,125$0
  44,297,043
GRF200-533School-Age Child Care$1,046,647$0
  1,046,647
GRF200-534Desegregation Costs$50,400,000$0
  50,400,000
GRF200-541Peer Review$1,840,000$0
  3,640,000
GRF200-542National Board Certification$1,600,000$0
  1,950,000
GRF200-543Entry Year Program$2,396,205$0
  2,456,110
GRF200-544Individual Career Plan & Passport$5,708,968$0
  5,851,692
GRF200-551Reading Improvement$1,666,133$0
  1,666,133
GRF200-552County MR/DD Boards Vehicle Purchases$1,551,774$0
  1,590,569
GRF200-553County MR/DD Boards Transportation Operating$6,611,623$0
  6,876,088
GRF200-577Preschool Special Education$62,268,535$0
  67,352,278
GRF200-589Special Education Aides$1,635,157$0
  1,684,212
GRF200-901Property Tax Allocation - Education$566,800,000$600,800,000
GRF200-906Tangible Tax Exemption - Education$61,320,000$63,210,000
TOTAL GRF General Revenue Fund$4,899,708,534$5,134,145,592
 4,899,958,534 5,240,678,942

General Services Fund Group
4D1200-602Ohio Prevention/Education Resource Center$277,560$285,332
138200-606Computer Services$4,036,728$4,143,201
452200-638Fees and Gifts$1,788,862$1,838,335
596200-656Ohio Career Information System$647,156$660,812
4P1200-629Adult Literacy Education$2,364,400$2,430,603
4L2200-681Teacher Certification and Licensure$3,580,741$3,675,311
TOTAL GSF General Services    
Fund Group$12,695,447$13,033,594

Federal Special Revenue Fund Group
309200-601Educationally Disadvantaged$12,486,104$12,904,245
366200-604Adult Basic Education$16,300,000$18,000,000
3H9200-605Head Start Collaboration Project$200,000$200,000
367200-607School Food Services$9,290,000$10,160,000
368200-614Veterans' Training$565,232$593,493
369200-616Vocational Education$10,556,971$10,787,320
3L6200-617Federal School Lunch$159,570,000$167,550,000
3L7200-618Federal School Breakfast$29,818,000$31,607,000
3L8200-619Child and Adult Care Programs$58,600,000$59,800,000
3L9200-621Vocational Education Basic Grant$54,122,121$54,122,121
3M0200-623ESEA Chapter One$356,669,568$374,503,047
370200-624Education of All Handicapped Children$12,902,838$12,902,838
3N7200-627School-to-Work$18,000,000$13,500,000
371200-631EEO Title IV$364,655$377,850
372200-635Federal Driver Education Projects$84,500$84,500
373200-642Pupil Transportation Safety Project$81,000$81,000
374200-647E.S.E.A. Consolidated Grants$260,301$265,624
375200-652Technical Assistance for Educational Mobility$216,720$227,556
376200-653J.T.P.A.$5,000,000$5,034,523
3R3200-654Goals 2000$19,789,214$22,000,000
377200-657Sex Equity$125,685$131,969
378200-660Math/Science Technology Investments$10,802,634$12,000,000
3D1200-664Drug Free Schools$17,410,259$19,500,000
3D2200-667Honors Scholarship Program$1,231,979$1,231,979
3E2200-668AIDS Education Project$718,734$620,775
3M1200-678ESEA Chapter Two$13,478,447$14,152,369
3M2200-680Ind W/Disab Education Act$91,825,830$91,825,830
TOTAL FED Federal Special    
Revenue Fund Group$900,470,792$934,164,039

State Special Revenue Fund Group 5H3200-687SCHOOL DISTRICT SOLVENCY ASSISTANCE
454200-610Guidance and Testing$490,662$503,912
455200-608Commodity Foods$8,000,000$8,000,000
4V7200-633Interagency Vocational Support$514,000$528,392
5F8200-645Textbooks/Instructional Materials$25,000,000$25,000,000
598200-659Auxiliary Services Mobile Units$1,224,444$1,258,728
$0$30,000,000
4R7200-695Indirect Cost Recovery$1,357,434$1,393,146
TOTAL SSR State Special Revenue    
Fund Group$36,586,540$36,684,178
  66,684,178

Lottery Profits Education Fund Group 018200-649Disability Access ProjectJudgementJUDGMENT Loan
017200-682Lease Rental Payment Reimbursement$21,105,000$32,780,000
017200-670School Foundation - Basic Allowance$584,137,200$0
  592,093,028
017200-671Special Education$44,000,000$0
  44,000,000
017200-672Vocational Education$30,000,000$0
  30,000,000
017200-673Primary and Secondary Lottery Funding$0$666,093,028
  0
017200-694Bus Purchase One Time Supplement$10,000,000$0
$5,000,000 $0
018200-669$5,650,000$0
Total 017 and 018    
LPE Lottery Profits Education    
Fund Group$699,892,200$698,873,028
 694,892,200  

Education Improvement Fund
006200-689Hazardous Waste Removal$1,500,000$1,443,401
TOTAL Education Improvement Fund$1,500,000$1,443,401
TOTAL ALL BUDGET FUND GROUPS$6,550,853,513$6,818,343,832
 6,546,103,513 6,953,433,781

Primary and Secondary Education Funding

By January 15, 1998, the General Assembly shall develop a plan to provide itemized appropriations for the Department of Education for fiscal year 1999.

In anticipation of a new, improved school finance formula and education reform plan, to be enacted before fiscal year 1999, the foregoing appropriation item, 200-405, Primary and Secondary Education Funding is hereby appropriated.

Payment of fiscal year 1999 earmarks in the Department of Education's budget are subject to the passage of a new school finance formula and education reform plan.

Sec. 50.04. Family and Children First

(A) Of the foregoing appropriation item 200-411, Family and Children First, the Department of Education shall transfer up to $3,587,500 in fiscal year 1998 and $3,677,188 in fiscal year 1999 by intrastate transfer voucher to the Department of Mental Retardation and Developmental Disabilities. These funds shall be spent on direct grants to county family and children first councils and local intersystem services for children clusters created under section 121.37 of the Revised Code. The funds shall be used as partial support payment and reimbursement for the maintenance and treatment costs of multi-need children that come to the attention of the Family and Children First Cabinet Council pursuant to section 121.37 of the Revised Code. The Department of Mental Retardation and Developmental Disabilities shall administer the distribution of the direct grants to the county councils and local clusters. The Department of Mental Retardation and Developmental Disabilities may use up to five per cent of this amount for administrative expenses associated with the distribution of funds to the county councils and local clusters.

(B) Of the funds appropriated in this item, up to $1,643,000 in fiscal year 1998 and $1,775,000 in fiscal year 1999 shall be used as administrative grants to county family and children first councils to provide a portion of the salary and fringe benefits necessary to fund county council coordinators, administrative support, training, or parental involvement. The total initial grant under this provision to any county family and children first council shall not exceed $18,500 in fiscal year 1998 and $20,000 in fiscal year 1999. In the event that not all counties in the state have established a county council, at the beginning of the fourth quarter of a fiscal year, any remaining funds to be used as administrative grants may be distributed among those counties that have established a county council. Of the funds appropriated in this item, up to $15,000 shall be used by the Family and Children First Cabinet Council for administrative costs including stipends to family representatives participating in approved activities of the initiative, educational and informational forums, and technical assistance to local family and children first councils.

(C) Of the foregoing appropriation item 200-411, Family and Children First, up to $3,120,000 in fiscal year 1998 and $5,040,000 in fiscal year 1999 shall be used to fund school-based or school-linked school readiness resource centers in school districts where there is a concentration of risk factors to school readiness and success, including indicators of poverty, health, and family stability. The purpose of these centers is to assist in providing services to families of school-age children who want and need support.

School readiness resource centers shall be located in each of the state's 21 urban school districts as defined in division (H) of section 3317.02 of the Revised Code. The Ohio Family and Children First Cabinet Council, in consultation with the Department of Education and school districts, shall identify individual schools based on quantitative and qualitative factors that reflect both the need for school readiness resource centers and the local capacity for redesigning, as necessary, a delivery system of family support services. The council and the Department of Education shall organize and provide technical assistance to the school districts and communities in planning, developing, and implementing the centers. The council shall also negotiate a performance agreement that details required program characteristics, service options, and expected results.

Each urban school district and community may receive up to $240,000 for three school readiness resource centers that may be located in or linked to elementary, middle, and high school sites that are connected by student assignment patterns within the school districts. Each school district shall work with a representative of the local family and children first council and a representative cross-section of families and community leaders in the district to design a unified and comprehensive service delivery plan that supports the development and implementation of the school readiness resource centers and the results and conditions agreed to in the performance agreement negotiated with the state council.

Up to $50,000 in each fiscal year may be used by the Ohio Family and Children First Cabinet Council for an evaluation of the effectiveness of the school readiness resource centers. Up to $100,000 in each fiscal year may be used by the cabinet council to approve technical assistance and oversee the implementation of the centers. The administration and management of the school readiness resource centers may be contracted out through a competitive bidding process established by the cabinet council in consultation with the Department of Education.

Driver Education Administration

The foregoing appropriation item 200-412, Driver Education Administration, shall be used by the Department of Education for the administration of driver education programs.

Consumer Education

The foregoing appropriation item 200-415, Consumer and Economic Education, shall be used by the Department of Education to promote the teaching of consumer and economic education as an integral part of the entire elementary and secondary school curriculum, which shall include the development, dissemination, and implementation of comprehensive education curriculum materials designed to improve understanding of economic principles, family and public needs, and the methods by which our economic systems function.

Vocational Education Match

The foregoing appropriation item 200-416, Vocational Education Match, shall be used by the Department of Education to provide vocational administration matching funds pursuant to 20 U.S.C. 2311.

Professional Development

The foregoing appropriation item 200-417, Professional Development, shall be used by the Department of Education to develop a statewide comprehensive system of twelve professional development centers that support local educators' ability to foster academic achievement in the students they serve. The centers shall include training teachers on site-based management concepts to encourage teachers to become involved in the management of their schools. Each fiscal year, up to $450,000 of the appropriation item shall be used to continue Ohio leadership academies to develop and train superintendents, principals, other administrators, and board members in new leadership and management practices to support high performance schools. This training shall be coordinated with other locally administered leadership programs.

Of the foregoing appropriation item 200-417, Professional Development, up to $6,000,000 in fiscal year 1998 shall be used for the creation or expansion of urban professional development academies in Akron, Cincinnati, Cleveland, Columbus, Dayton, and Toledo. Challenge grants in the amount of $1,000,000 per academy shall be provided to support academies that have established an improvement plan that includes an overall professional development plan that align with and advances the district improvement plan, and that defines the contribution the academy is expected to make toward the achievement of the professional development plan.

(A) These challenge grants are to support start-up academies that include all of the following:

(1) A contractual relationship for the operation of the academy between the school district, one or more public or private universities, and the teachers' union;

(2) A self-supporting foundation for the operation of the academy;

(3) A governing committee comprised of the superintendent of the public school; the president of the teachers' union; the dean of the college of education of each participating university; and at least two representatives of the business community to be determined by the governing committee;

(4) Mandatory teacher participation in job-embedded, team-building activities that may include principals and other administrative staff;

(5) Annual evaluation of the academy to be filed with the Ohio Department of Education, which shall determine the parameters of the annual evaluations, that include the school district's progress toward the achievement of its improvement plan.

(B) Challenge grants of up to $1,000,000 per academy will be provided to support existing academies that agree to implement one or more of the following:

(1) Adoption of a policy of mandatory teacher participation in academy activities;

(2) Creation of a leadership component in the academy;

(3) The participation of personnel from other urban districts in the academy.

Existing academies shall conduct annual evaluations of the academy to be filed with the Ohio Department of Education, which shall determine the parameters of the annual evaluations.

School districts receiving a $1,000,000 challenge grant for the creation of an urban professional development academy may select, but are not required to select, the New American Schools Program as the focus of their academy. The challenge grant for the Cincinnati City School District may be used for the expansion of either the Mayerson Academy or the New American Schools project, or both, at the discretion of the district.

Of the foregoing appropriation item 200-417, Professional Development, $50,000 each year shall be distributed to the Ohio Geographical Alliance at such time as matching funds are provided by the National Geographical Society. These moneys shall be used by the Ohio Geographical Alliance to provide inservice geography training to Ohio public school teachers.

Of the foregoing appropriation ITEM 200-417, Professional Development, $75,000 in each fiscal year shall be distributed by the Department of Education to the Ohio University Leadership Project.

Of the foregoing appropriation item 200-417, Professional Development, up to $500,000 each year shall be used by the Department of Education to work with school districts in coordinating and improving the training and performance of classroom teachers.

Of the foregoing appropriation item 200-417, Professional Development, $25,000 in each fiscal year shall be used by the Lake County Educational Service Center and $25,000 in each fiscal year shall be used by the Geauga County Educational Service Center. Both projects shall be used for professional teacher development of innovative teaching practices in science and math.

Of the foregoing appropriation item 200-417, Professional Development, $500,000 in each fiscal year shall be used by the Rural Appalachian Initiative to create professional development academies for teachers, principals, and superintendents in the Appalachian region.

Of the foregoing appropriation item 200-417, Professional Development, up to $900,000 in fiscal year 1998 and up to $1,800,000 in fiscal year 1999 shall be used by the Department of Education in cooperation with the Regional Professional Development Centers to train mentor teachers and provide stipends of $1,500 per year to each mentor teacher to assist in the professional development of beginning teachers.

Of the foregoing appropriation item 200-417, Professional Development, up to $500,000 in fiscal year 1998 and up to $1,000,000 in fiscal year 1999 shall be used by the Department of Education in cooperation with the Regional Professional Development Centers to train teacher assessors and provide stipends of $2,500 per year to each teacher assessor to assist in the evaluation of the classroom performance of beginning teachers.

School Management Assistance

The foregoing appropriation item 200-422, School Management Assistance, shall be used by the Department of Education to provide fiscal technical assistance and inservice education for school district management personnel, to coordinate school district borrowing under the provisions of section 3313.483 of the Revised Code, and to implement year-end borrowing authority by districts pursuant to section 133.303 of the Revised Code.

OF THE FOREGOING APPROPRIATION ITEM 200-422, SCHOOL MANAGEMENT ASSISTANCE, UP TO $250,000 IN FISCAL YEAR 1998 AND UP TO $275,000 IN FISCAL YEAR 1999 SHALL BE USED BY THE DEPARTMENT OF EDUCATION TO SUPPORT ITS EFFORTS WITH RESPECT TO SCHOOL DISTRICTS ON FISCAL EMERGENCY AND FISCAL WATCH.

Teacher Recruitment

The foregoing appropriation item 200-423, Teacher Recruitment, shall be used by the Department of Education to establish programs targeted at recruiting under-represented populations into the teaching profession. In each year, the appropriation item shall be used by the department to include, but not be limited to, alternative teacher licensure or certification programs emphasizing the recruitment of highly qualified minority candidates into teaching, including emphasizing the recruitment of highly qualified minority candidates into teaching positions in schools which have a high percentage of minority students. The recruitment programs shall also target recruiting qualified candidates available as a result of downsizing of the military and business sectors. Funding shall also be targeted to statewide, regional, and local programs that are competitively selected as promising programs demonstrating the potential of significantly increasing Ohio's minority teaching force.

Simulation System

The foregoing appropriation item 200-424, Simulation System, shall be used by the Department of Education to develop software and other computer assistance to maintain and enhance a system of administrative, statistical, and legislative education information to be used for policy analysis. The data base shall be kept current at all times. Such a system will be used to supply information and analysis of data to the General Assembly and other state policy makers, including the Office of Budget and Management and the Legislative Budget Office of the Legislative Service Commission.

The Department of Education may use funding from this line item to purchase or contract for the development of software systems or contract for policy studies that will assist in the provision and analysis of policy-related information.

Ohio Education Computer Network

The foregoing appropriation item 200-426, Ohio Education Computer Network, shall be used by the Department of Education to maintain a system of information technology throughout Ohio and to provide technical assistance for such a system in support of the State Education Technology Plan pursuant to section 3301.07 of the Revised Code.

This system shall support the development, maintenance, and operation of a network of uniform and compatible computer-based information and instructional systems. The technical assistance shall include, but not be restricted to, the development and maintenance of adequate computer software systems to support network activities. Program funds may be used, through a formula and guidelines devised by the department, to subsidize the activities of not more than twenty-four designated data acquisition sites, as defined by State Board of Education rules, to provide to school districts and chartered nonpublic schools computer-based student and teacher instructional and administrative information services, including approved computerized financial accounting, and to provide adequate services to member districts to assure the effective operation of local automated administrative systems used for the management information system.

In order to broaden the scope of the use of technology for education, the department may use up to $250,000 each fiscal year of these funds to coordinate the activities of the computer network with other agencies funded by the department or the state of Ohio. In order to improve the efficiency of network activities, the department and data acquisition sites may jointly purchase equipment, materials, and services from funds provided under this appropriation for use by the network and, when considered practical by the department, may utilize the services of appropriate state purchasing agencies.

Of the foregoing appropriation item 200-426, Ohio Educational Computer Network, up to $5,637,000 in fiscal year 1998 and $5,637,000 in fiscal year 1999 shall be used by the Department of Education to support connections of all public school buildings to the Ohio Educational Computer Network. In each fiscal year the Department of Education shall use these funds to help reimburse data acquisition sites or school districts for the operational costs associated with using the Ohio Educational Computer Network. The Department of Education shall develop a formula and guidelines for the distribution of these funds to the data acquisition sites or individual school districts.

For each year of the biennium the Department of Education shall use up to $250,000 to continue to manage and develop the statewide union catalog and InfOhio Network of library resources that will be accessible to all school districts through the Ohio Educational Computer Network, and up to $180,000 each year to develop and implement software to interface with the InfOhio union catalog and other electronic library systems to provide access for public school library media centers to the union catalog.

In each fiscal year the Department of Education shall use up to $180,000 to defray the costs associated with leasing additional telecommunications capacity needed to connect non-public schools to the Ohio Educational Computer Network.

In each fiscal year the THE Department of Education shall use up to $1,809,665 in fiscal year 1998 and up to $1,854,906 in fiscal year 1999 to assist designated data acquisition sites for operational costs associated with the increased use of the system by chartered non-public schools. The Department of Education shall develop a formula and guidelines for distribution of these funds to designated data acquisition sites.

Of the foregoing appropriation item 200-426, Ohio Educational Computer Network, up to $130,000 in fiscal year 1998 and up to $120,000 in fiscal year 1999 shall be used by the Department of Education to contract through a competitive selection process with an independent for-profit or nonprofit entity to provide current and historical information on Ohio government to school libraries for the purposes of enhancing social studies course instruction and supporting student research projects.


Local Professional Development Block Grants

Of the foregoing appropriation line item 200-429, Local Professional Development Block Grants, $500,000 in each fiscal year shall be used to establish or enhance alternative disciplinary schools by providing grants of $100,000 annually to each of the following programs: Wood County Alternative School Program, Interval Opportunity School in Summit County, Portage County Opportunity School in Ravenna, Auglaize County Alternative School Program, Licking County Alternative School Program. Such pilot programs shall encourage collaborative relationships with juvenile courts and other agencies to develop effective teaching and learning programs.

Of the foregoing appropriation item 200-429, Local Professional Development Block Grants, $200,000 in each fiscal year shall be provided to the Stark County Schools Teacher Technical Training Center.

The remainder of the appropriation shall be distributed on a per teacher basis to all school districts and, joint vocational school districts, AND CHARTERED NONPUBLIC SCHOOLS for locally developed teacher training and professional development and for the establishment of local professional development committees. School districts and joint vocational school districts shall not be precluded from using these funds for cooperative activities on a county or regional basis.

School Improvement Models

The foregoing appropriation item 200-431, School Improvement Models, shall be used by the Department of Education to continue to support the creation of a statewide network of school improvement sites by providing competitive venture capital grants to schools that demonstrate the capacity to invent or adapt school improvement models. The department shall showcase projects of exceptional merit and shall promote the networking of venture schools with both venture and nonventure schools so that administrators and teachers outside the district can benefit from the knowledge gained at these sites.

Up to $250,000 in each fiscal year shall be used by the Department of Education for personal services and maintenance costs necessary to administer the grants.

Of the foregoing appropriation item, 200-431, School Improvement Models, $500,000 in fiscal year 1998 and $500,000 in fiscal year 1999 shall be used to conduct performance audits of each of the 21 urban school districts, as defined by section 3317.02 of the Revised Code. The Auditor of State will conduct the performance audits to review any programs or areas of operation where the Auditor believes greater operational efficiencies or enhanced program results can be achieved. Of the appropriation for fiscal year 1998, funds may be carried over to fiscal year 1999 as needed to coincide with audit billings.

The State Superintendent of Public Instruction shall, at least annually, assess individual school district responses to such performance audits. These assessments shall be compiled into a report to the Speaker of the Ohio House of Representatives, the President of the Ohio Senate, and the chairs and ranking minority members of the House and Senate committees on Education and Finance.

Of the foregoing appropriation item 200-431, School Improvement Models, $200,000 in each fiscal year shall be distributed to the Toledo International Language Center.

Of the foregoing appropriation item 200-431, School Improvement Models, $250,000 in each fiscal year shall be used by the Rural Appalachian Initiative to provide one-time grants to establish benchmark data on current performance, to develop plans for achieving the benchmarks, and to improve the Appalachian school districts' performances against the benchmarks.

School Conflict Management

Of the foregoing appropriation item 200-432, School Conflict Management, the amounts shall be used by the Department of Education for the purpose of providing dispute resolution and conflict management training, consultation and materials for school districts, and for the purpose of providing competitive school conflict management grants to school districts.

The Department of Education shall assist the Commission on Dispute Resolution in the development and dissemination of the school conflict management program.

Student Proficiency

The foregoing appropriation item 200-437, Student Proficiency, shall be used to develop, field test, print, distribute, score, and report results from the tests required under sections 3301.0710 and 3301.0711 of the Revised Code and for similar purposes as required by section 3301.27 of the Revised Code.

American Sign Language

Of the foregoing appropriation item 200-441, American Sign Language, up to $150,000 in each fiscal year of the biennium shall be used to implement pilot projects in Manual English and to develop ways of including American Sign Language in the ninth- through twelfth-grade curriculum.

The remainder of the appropriation shall be used by the Department of Education to provide supervision and consultation to school districts in dealing with parents of handicapped children who are deaf or hard of hearing, in integrating American Sign Language as a foreign language, and in obtaining interpreters and improving their skills.

Child Care Licensing

The foregoing appropriation item 200-442, Child Care Licensing, shall be used by the Department of Education to license and to inspect preschool and school-age child care programs in accordance with sections 3301.52 to 3301.59 of the Revised Code.

Education Management Information System

The foregoing appropriation item 200-446, Education Management Information System, shall be used to provide school districts with the means to implement local automated information systems, and to implement, develop, and improve the Education Management Information System (EMIS).

Up to $822,706 in fiscal year 1998 and $843,274 in fiscal year 1999 shall be used by the Department of Education for hardware, personnel, equipment, staff development, software, and forms modification, as well as to support EMIS special report activities in the department that are designed to use the data collected by the system.

Up to $2,714,234 in fiscal year 1998 and $2,782,090 in fiscal year 1999 shall be distributed to designated data acquisition sites for costs relating to the processing, storing, and transfer of data for the effective operation of the EMIS. These costs may include, but are not limited to, personnel, hardware, software development, communications connectivity, professional development and support services, and to provide services to participate in the State Education Technology Plan pursuant to section 3301.07 of the Revised Code.

Up to $6,023,718 in fiscal year 1998 and $6,174,310 in fiscal year 1999 shall be distributed to school districts and joint vocational school districts on a per-pupil basis. From this money, each school district with enrollment greater than 100 students and each vocational school district shall receive a minimum of $5,000 for each year of the biennium. Each school district with enrollment between one and one hundred and each county office of education shall receive $3,000 for each year of the biennium. This money shall be used for costs associated with the development and operation of local automated record based information systems that provide data as required by the management information system, and facilitate local district, school, and classroom management activities.

Of the foregoing appropriation item 200-446, Education Management Information System, up to $2,500,000 in fiscal year 1998 and up to $500,000 in fiscal year 1999 shall be used by the Department of Education to procure or develop a common EMIS software. School districts and data acquisition sites shall use the common EMIS software unless the department determines that in a particular case local legacy software is completely compatible, performs tasks required for EMIS, and does not contain year 2000 problems.

GED Testing/Adult High School

The foregoing appropriation item 200-447, GED Testing/Adult High School, shall be used to provide General Educational Development (GED) testing at no cost to first time applicants, pursuant to rules adopted by the State Board of Education. Of the foregoing appropriation item 200-477, GED/Adult High School, up to $250,000 in each fiscal year shall be used by the department to reimburse local shool districts for a portion of the costs incurred in providing summer instructional or intervention services to students who have not graduated due to their inability to pass one or more parts of the state's ninth grade proficiency test. School districts may provide these services to students directly or contract with post-secondary or nonprofit community-based institutions in providing instruction. The remainder of the appropriation shall be used for state reimbursement to school districts for adult high school continuing education programs pursuant to section 3313.531 of the Revised Code or for costs associated with awarding adult high school diplomas under section 3313.611 of the Revised Code.

Sec. 50.07. Potential Value Recomputation

The recalculation described in division (B) of this section shall be made prior to any expenditure by the superintendent for the purpose of making payments for the vocational education pupil recomputation pursuant to the section headed "Vocational Education Pupil Recomputation" in Am. Sub. H.B. 117 215 of the 121st 122nd General Assembly and for the special education pupil recomputation pursuant to division (I) of section 3317.023 of the Revised Code.

(A) Notwithstanding division (B) of section 3317.022 of the Revised Code as amended by this act AM. SUB. H.B. 215 OF THE 122nd GENERAL ASSEMBLY, in each year of the biennium the Department of Education shall first calculate all state basic aid payments to school districts required under Chapter 3317. of the Revised Code and other sections of this act H.B. 215 under which payments are made from appropriation items 200-501, School Foundation Basic Allowance, and 200-670, School Foundation Basic Allowance, as if such division had not been enacted. Such calculated amounts shall be paid to school districts in accordance with section 3317.01 of the Revised Code.

(B) After the calculation required by division (A) of this heading, the department shall recalculate all state basic aid payments to school districts required under Chapter 3317. of the Revised Code and other sections of this act AM. SUB. H.B. 215 OF THE 122nd GENERAL ASSEMBLY, utilizing in such recalculation the provisions of division (B) of section 3317.022 of the Revised Code. From the additional available money, the department shall pay each district an amount equal to the difference between its calculated amount of basic aid under division (A) of this heading and its recalculated amount under this division. If there is not enough additional money to pay such amounts to all school districts, the department shall pay each district a percentage of such amount equal to the percentage the total amount of additional available money represents of the total amount of money that would be necessary to make the payments prescribed under this division to all districts.

Sec. 50.09. Vocational Education

The foregoing appropriation item 200-507, Vocational Education, shall be used for vocational education units not to exceed 7,141 in each fiscal year. Up to $6,695,000 in fiscal year 1998 and $7,500,000 in fiscal year 1999 may be used for nonvocational units necessary for graduation pursuant to section 3317.16 of the Revised Code, up to $6,210,000 in fiscal year 1998 and $6,500,000 in fiscal year 1999 shall be used for joint vocational school equalization pursuant to section 3317.16 of the Revised Code, up to $300,000 shall be distributed to the Toledo Technology Academy each fiscal year, up to $9,000,000 in fiscal year 1998 and up to $10,000,000 in fiscal year 1999 shall be used to fund the Jobs for Ohio Graduates (JOG) program, up to $2,100,000 in fiscal year 1998 and $2,205,000 in fiscal year 1999 may be used to support tech prep consortia, and up to $7,031,208 in fiscal year 1998 and $7,193,118 in fiscal year 1999 shall be used to fund the Graduation, Reality, and Dual Role Skills (GRADS) program.

Funds for nonvocational units necessary for graduation shall be distributed according to rules adopted by the State Board of Education. If federal funds for vocational education cannot be used for local school district leadership in either year under division (M) of section 3317.024 of the Revised Code or division (B) of section 3317.16 of the Revised Code, without being matched by state funds, then an amount as determined by the Superintendent of Public Instruction shall be made available from state funds appropriated for vocational education. If any state funds are used for this purpose, federal funds in an equal amount shall be distributed for vocational education units funded pursuant to division (M) of section 3317.024 or division (B) of section 3317.16 of the Revised Code in accordance with authorization of the state plan for vocational education for Ohio as approved by the Secretary of the United States Department of Education.

Notwithstanding the prohibition in section 3317.05 of the Revised Code that the State Board of Education annually approve for school districts, educational service centers, and institutions no more than the number of vocational education units for which it determines appropriations have been made and notwithstanding the amounts required to be annually paid to school districts, educational service centers, and institutions for approved vocational education units under division (M) of section 3317.024 and division (B) of section 3317.16 of the Revised Code, if the foregoing appropriation item is not sufficient to fund 7,141 vocational education units in fiscal year 1998 and 7,141 vocational units in fiscal year 1999 in accordance with division (M) of section 3317.024 and division (B) of section 3317.16 of the Revised Code, the State Board of Education may approve up to 7,141 vocational education units in fiscal year 1998 and 7,141 vocational education units in fiscal year 1999 and, in lieu of the amounts required to be paid for approved units under division (M) of section 3317.024 and division (B) of section 3317.16 of the Revised Code, shall proportionately reduce those amounts so that the total amount the State Board pays to school districts, educational service centers, and institutions for all approved units does not exceed the amount of funds available in the foregoing appropriation item for such units. During the course of each fiscal year, the State Board may alter its determination of any reduction under this section for that fiscal year.

Of the foregoing appropriation item 200-507, Vocational Education, up to $500,000 in each fiscal year shall be used by the Department of Education to establish an employer student apprenticeship training program for high school students in grades 11 and 12. Rules, procedures, and regulations for the employer student apprenticeship program will be developed by the School-to-Work office in the Ohio Bureau of Employment Services.

The Legislative Office of Education Oversight shall study the various programs designed to serve at-risk high school students. Differences and possible overlaps of purposes, goals, objectives and strategies among such programs as Jobs for Ohio Graduates (JOGS), Graduation, Reality, and Dual Role Skills (GRADS), Occupational Work Experience (OWE), Occupational Work Adjustment (OWA) will be identified.

Of the foregoing appropriation item 200-507, Vocational Education, $100,000 in fiscal year 1998 shall be used for the Cuyahoga County Vocational Apprenticeship Program, which provides funding for training in the building trades of eligible residents of the City of Cleveland. The program utilizes new housing development and rehabilitation programs of four nonprofit neighborhood development corporations as the focus of the skills training apprenticeship program. The four neighborhood development corporations participating in the program are the Glenville Development Corporation, Northeastern Neighborhood Development Corporation, Bell, Burton, and Carr Development Corporation, and the Buckeye Area Development Corporation.

Adult Literacy Education

The foregoing appropriation item 200-509, Adult Literacy Education, shall be used to support Adult Basic and Literacy Education instructional programs, the State Literacy Resource Center program, and the State Advisory Council on Adult Education and Literacy.

Of the foregoing appropriation item 200-509, ADULT LITERACY EDUCATION, up to $410,000 in fiscal year 1998 and $512,500 in fiscal year 1999 shall be used to satisfy state match requirements for the support and operation of the State Literacy Resource Center and the State Advisory Council on Adult Education and Literacy.

Of the foregoing appropriation item 200-509, Adult Literacy Education, up to $50,000 in each fiscal year shall be used to provide funds to literacy councils that have not previously received funding. Each of these councils, in order to receive funds, shall have its plan of service approved by the local Family and Children First council.

The remainder shall be used to continue to satisfy the state match requirement for the support and operation of the Ohio Department of Education administered instructional grant program for Adult Basic and Literacy Education in accordance with the department's state plan for Adult Basic and Literacy Education as approved by the State Board of Education and the Secretary of the United States Department of Education.

_ADEQUACY _PHASE-IN

THE FOREGOING APPROPRIATION ITEM 200-510, ADEQUACY PHASE-IN, SHALL BE USED TO MAKE ADEQUACY AID PAYMENTS TO SCHOOL DISTRICTS BASED ON THE FORMULA SPECIFIED IN SECTION 3317.0213 of the Revised Code.

Auxiliary Services

The foregoing appropriation item 200-511, Auxiliary Services, shall be used by the State Board of Education for the purpose of implementing section 3317.06 of the Revised Code. Of the appropriation, up to $1,000,000 in each fiscal year of the biennium may be used for payment of the Post-Secondary Enrollment Options Program for nonpublic students pursuant to section 3365.10 of the Revised Code.

Driver Education

The foregoing appropriation item 200-512, Driver Education, shall be used by the State Board of Education for subsidizing driver education courses for which the State Board of Education prescribes minimum standards pursuant to section 3301.07 of the Revised Code and courses for students released by high school principals to attend commercial driver training schools licensed under Chapter 4508. of the Revised Code.

Post-Secondary/Adult Vocational Education

The foregoing appropriation item 200-514, Post-Secondary/Adult Vocational Education, shall be used by the State Board of Education to provide post-secondary/adult vocational education pursuant to sections 3313.52 and 3313.53 of the Revised Code.

Of the foregoing appropriation item 200-514, POST-SECONDARY/ADULT VOCATIONAL EDUCATION, up to $500,000 in each fiscal year shall be allocated for the Ohio Career Information System (OCIS) and used for the dissemination of career information data to public schools, libraries, rehabilitation centers, two- and four-year colleges and universities, and other governmental units.

Of the foregoing appropriation item 200-514, Post-Secondary/Adult Vocational Education, up to $30,000 in each fiscal year shall be used for the statewide coordination of the activities of the Ohio Young Farmers.

Disadvantaged Pupil Impact Aid

The foregoing appropriation item 200-520, Disadvantaged Pupil Impact Aid, shall be distributed to school districts in each fiscal year pursuant to the formula established by division (B) of section 3317.023 of the Revised Code.

Annually, $1,450,000 shall be used by the Department of Education to provide state matching funds to implement the federal building based Effective School Program.

Of the foregoing appropriation item 200-520, Disadvantaged Pupil Impact Aid, up to $3,000,000 in each year of the biennium shall be used for school breakfast programs. Of the $3,000,000, $500,000 shall be used each year by the Department of Education to provide start-up grants to rural school districts that start school breakfast programs. The remainder of the $3,000,000 shall be used to: (1) partially reimburse school buildings within school districts that are required to have a school breakfast program pursuant to section 3313.813 of the Revised Code, at a rate decided upon by the department, for each breakfast served to any pupil enrolled in the district; (2) partially reimburse districts participating in the National School Lunch Program that have at least 20 per cent of students who are eligible for free and reduced meals according to federal standards, at a rate decided upon by the department; and (3) to partially reimburse districts participating in the National School Lunch Program for breakfast served to children eligible for free and reduced meals enrolled in the district, at a rate decided upon by the department.

Of the funds distributed to the Cleveland City School District under division (B) of section 3317.023 of the Revised Code, up to $7,100,000 in fiscal year 1998 and $8,700,000 in fiscal year 1999 shall be used to operate a pilot school choice program in the Cleveland City School District pursuant to sections 3313.974 to 3313.979 of the Revised Code.

Of the foregoing appropriation item 200-520, Disadvantaged Pupil Impact Aid, $3,850,000 in fiscal year 1998 and $8,750,000 in fiscal year 1999 shall be used for competitive discipline intervention grants for the 21 urban school districts as defined in division (H) of section 3317.02 of the Revised Code. The grants shall be administered by the Ohio Department of Education and designed to reduce problems with student attendance, truancy, dropouts, and discipline.

Of the foregoing appropriation item 200-520, Disadvantaged Pupil Impact Aid, $150,000 in fiscal year 1998 and $250,000 in fiscal year 1999 shall be distributed to the Franklin County Educational Council to provide a cross district alternative learning environment for students with alternative learning requirements, in collaboration with member districts and community services.

Of the foregoing appropriation item 200-520, Disadvantaged Pupil Impact Aid, $900,000 each year shall be used to support dropout recovery programs administered by the Ohio Department of Education, Jobs for Ohio's Graduates program.

Of the foregoing appropriation item 200-520, Disadvantaged Pupil Impact Aid, up to $1,000,000 in each year of the biennium shall be used to fund grants to improve reading performance, using programs such as Failure Free Reading, Slavin's Success for All, and other programs that have a demonstrated record of improving reading comprehension. The grants shall be made by the Department of Education to 20 schools in which at least 50 per cent of fourth grade students failed to pass at least four parts of the fourth grade proficiency test. The grants shall be made in the amount of $50,000 for each school.

Of the foregoing appropriation item 200-520, Disadvantaged Pupil Impact Aid, the Department shall distribute $75,000 in each fiscal year to the Collinwood Community Center to continue outreach work on the Parents' Pledge of Responsibility in the Cleveland City School District. This distribution shall come from the Cleveland City School District's Disadvantaged Pupil Impact Aid.

Of the foregoing appropriation item 200-520, Disadvantaged Pupil Impact Aid, up to $500,000 in each fiscal year shall be used by the Department of Education to encourage school districts to set high academic standards and provide a helping hand for students striving to meet them. Any school district that offers a summer school program for students who have been enrolled in the fourth and sixth grades, whether district-wide, in several school buildings or within a cluster of school buildings, may retain those students who fail to attend summer school programs if those students attend schools that offer such programs. A Summer Proficiency Academy shall be any school district's summer school program that is conducted for students who have been enrolled in the fourth and sixth grades, whether district-wide, in several school buildings or within a cluster of school buildings, that addresses the needs of students who did not pass at least three of the five parts of either the fourth-grade or sixth-grade proficiency test, that is of at least six weeks' duration, and that provides an innovative, enriching educational experience. The department shall use the funds indicated in this paragraph to make grants to those school districts that conduct such Summer Proficiency Academies and that have valuation per pupil less than 150 per cent of the statewide average valuation per pupil, to defray 75 per cent of the costs of conducting such academies. The amount of each grant shall not exceed $150,000 and each school district shall be eligible for up to four grants in each fiscal year. Grants shall be made to school districts based on the percentage of students failing three or more tests, with first priority given to districts with the highest failure rates. As used in this paragraph, "valuation per pupil"; has the same meaning as in division (A)(4) of section 3317.0212 of the Revised Code.

Sec. 50.15. Lottery Profits Education Fund

Appropriation item 200-670, School Foundation - Basic Allowance, shall be used in conjunction with GRF item 200-501 to provide payments to school districts pursuant to Chapter 3317. of the Revised Code.

Of the foregoing appropriation item, 200-670, School Foundation Basic Allowance, $25,000,000 in fiscal year 1999 shall be used from the funds transferred from the Unclaimed Prizes Trust Fund pursuant to the section entitled "Transfers from the Unclaimed Prizes Fund" of this act AM. SUB. H.B. 215 OF THE 122nd GENERAL ASSEMBLY.

Appropriation item 200-671, Special Education, shall be used in conjunction with GRF item 200-504 to provide payments to school districts pursuant to Chapter 3317. of the Revised Code. Appropriation item 200-672, Vocational Education, shall be used in conjunction with GRF item 200-507 to provide payments to school districts pursuant to Chapter 3317. of the Revised Code.

The Department of Education, with the approval of the Director of Budget and Management, shall determine the monthly distribution schedules of the GRF line item 200-501 and fund 017 line item 200-670, GRF line item 200-504 and fund 017 line item 200-671, and GRF line item 200-507 and fund 017 line item 200-672. If adjustments to the monthly distribution schedule are necessary, the Department of Education shall make such adjustments with the approval of the Director of Budget and Management.

The Director of Budget and Management shall transfer the amount appropriated under the Lottery Profits Education Fund for item 200-682, Lease Rental Payment Reimbursement, to the General Revenue Fund on a schedule determined by the director. These funds shall support the General Revenue Fund appropriation 200-413 230-428, Lease Rental Payments, OF THE SCHOOL FACILITIES COMMISSION.

Disability Access Projects

(A) As used in this section:

(1) "Percentile" means the percentile in which a school district is ranked according to the most recent ranking of school districts with regard to income and property wealth under division (B) of section 3318.011 of the Revised Code.

(2) "School district" means a city, local, or exempted village school district, except for a school district that is one of the state's 21 urban school districts as defined in division (H) of section 3317.02 of the Revised Code.

(3) As used in this section, "valuation per pupil" means a district's total taxable value as defined in section 3317.02 of the Revised Code divided by the district's ADM as defined in division (A) of section 3317.021 of the Revised Code.

(B) The Department of Education shall adopt rules for awarding grants to school districts with a valuation per pupil less than $200,000, to be used for construction, reconstruction, or renovation projects in classroom facilities, the purpose of which is to improve access to such facilities by physically handicapped persons. The rules shall include application procedures.

No school district shall be awarded a grant under this section in excess of $100,000. In addition, any school district shall be required to pay a percentage of the cost of the project for which the grant is being awarded equal to the percentile in which the district is so ranked.

The foregoing appropriation item 200-649, Disability Access Projects, shall be used to fund capital projects that make buildings more accessible to students with disabilities pursuant to this section. Of the foregoing appropriation item 200-649, Disability Access Projects, $60,000 shall be used for the Danville High School wheelchair lift.

Judgment Loan

The foregoing appropriation item 200-669, Judgment Loan, shall be used to make loans to eligible districts under this section HEADING.

(A) A school district is an "eligible district" for purposes of division (B) of this subsection HEADING if, in the two-year period immediately preceding the effective date of this subsection JUNE 30, 1997, the district was the subject of either:

(1) A single final nonappealable judgment, consent judgment, or settlement agreement in a civil action for damages for injury, death, or loss of person or property, the amount of which was equal to at least 90 per cent of the district's annual expenditures for operating expenses for the fiscal year in which the judgment, consent judgment, or settlement agreement was issued;

(2) Multiple final nonappealable judgments, consent judgments, or settlement agreements for such damages arising out of a single transaction or occurrence, or a series of transactions or occurrences arising out of the same wrongful act, the total of which judgments, consent judgments, or settlement agreements was an amount equal to at least 90 per cent of the district's total expenditures for operating expenses in any one of the fiscal years in which any such judgment, consent judgment, or settlement agreement was issued.

(B) Upon application by the board of education of an eligible district and to the extent funds are appropriated for the purpose, the Superintendent of Public Instruction, with the approval of the Director of Budget and Management, may enter into a loan agreement with the board under which the Department of Education shall loan to the district the amount of money necessary to pay all or part of any judgment, consent judgment, or settlement agreement described in division (A) of this section HEADING, plus any accrued interest. For repayment of the loan, the loan agreement shall require the department to deduct annually from state aid payments due to the district under Chapter 3317. of the Revised Code, and if necessary under sections 321.24 and 323.156 of the Revised Code, an amount equal to two-thousandths of the district's total taxable value reported pursuant to divisions (A)(1) and (2) of section 3317.021 of the Revised Code, for the lesser of the following periods:

(1) A period of twenty-five years, commencing with the later of the year of receipt of the loan or fiscal year 1999;

(2) A period equal to the number of years required to deduct an amount equal to the total amount of the loan from the district's state aid payments, commencing with the later of the year of receipt of the loan or fiscal year 1999.

Bus Purchase One Time Supplement

Of the foregoing appropriation item 200-694, Bus Purchase One Time Supplement, $2,100,000 shall be distributed by the Department of Education pursuant to the provisions of law governing appropriation line item 200-552, County MR/DD Boards - Vehicle Purchases.

The remaining funds allocated under this section HEADING shall be distributed by the Department of Education pursuant to the provisions of law governing appropriation line item 200-503, Bus Purchase Allowance.

Lottery Profits Transfers*

On May 15 of each fiscal year, the Director of Budget and Management shall determine if lottery profits transfers will meet the appropriation amounts from the Lottery Profits Education Fund.

On or after the date specified in each fiscal year, if the director determines that lottery profits will not meet appropriations and if other funds are not available to meet the shortfall, the Superintendent of Public Instruction shall take the actions specified under the "Reallocation of Funds" section of this act AM. SUB. H.B. 215 OF THE 122nd GENERAL ASSEMBLY.

Transfers from the Unclaimed Prizes Fund

By July 15 of fiscal year 1999, the Director of Budget and Management shall transfer $25,000,000 from the State Lottery Commission's Unclaimed Prizes Fund to the Lottery Profits Education Fund, to be used solely for purposes specified in the Department of Education's budget. Transfers of unclaimed prizes under this provision shall not count as Lottery Profits LOTTERY PROFITS in the determination made concerning excess profits titled "Lottery Profits" under the Department of Education in this act AM. SUB. H.B. 215 OF THE 122nd GENERAL ASSEMBLY.

Teacher Certification and Licensure

The foregoing appropriation item 200-681, Teacher Certification and Licensure, shall be used by the Department of Education in each year of the biennium to administer teacher certification and licensure functions pursuant to sections 3301.071, 3301.074, 3301.50, 3301.51, 3319.088, 3319.22, 3319.24 to 3319.28, 3319.281, 3319.282, 3319.29, 3319.301, 3319.31, and 3319.51 of the Revised Code.

Sec. 50.20. Supplemental Payment

In addition to any other payments made under Chapter 3317. of the Revised Code, or under this act AM. SUB. H.B. 215 OF THE 122nd GENERAL ASSEMBLY, a payment for fiscal year 1998 not greater than the sum of the computation under division (A) of this section and for fiscal year 1999 not greater than the sum of the computation under division (B) of this section may be made to each school district, subject to the recommendation of the Superintendent of Public Instruction and approval of the Controlling Board, for mandated costs not met from increases in funds for the appropriate year from this act H.B. 215. The increases for fiscal year 1998 shall be calculated by determining additional state funds received for the year under other sections of this act H.B. 215 and sections 3317.022 and 3317.023 of the Revised Code, plus additional state funds for approved units in operation for fiscal year 1998 funded under divisions (M), (N), and (O) of section 3317.024 of the Revised Code and the heading "Supplemental Unit Allowance" above amounts received by the district from such sections and divisions and under the heading "Supplemental Payment" in Section 45.11 of Am. Sub. H.B. 117 of the 121st General Assembly and Supplemental Unit Allowance in Section 45.06 of Am. Sub. H.B. 117 of the 121st General Assembly, for fiscal year 1997. The increases for fiscal year 1999 shall be calculated by determining additional state funds received for such year under other sections of this act H.B. 215 AND THIS ACT and sections 3317.022 and 3317.023 of the Revised Code plus additional state funds for approved units in operation for fiscal year 1999 funded under divisions (M), (N), and (O) of section 3317.024 of the Revised Code above the amounts received by the district from such sections and divisions and under this section of this act H.B. 215 for fiscal year 1998.

(A) For fiscal year 1998, the amount calculated under this division shall be the cost of employing additional full-time equivalent classroom teachers and educational service personnel whose employment was necessary to avoid a reduction in state aid under divisions (C) and (D) or (E) of section 3317.023 of the Revised Code and who exceed in number the number of full-time equivalent classroom teachers and full-time equivalent educational service personnel who were employed by the district during the first full week of October, 1996. The amount shall equal the minimum salaries for such additional full-time equivalent employees required by section 3317.13 of the Revised Code multiplied by 114 per cent.

(B) For fiscal year 1999, the amount calculated under this division shall be the cost of employing the additional full-time equivalent classroom teachers and educational service personnel whose employment was necessary to avoid a reduction in state aid under divisions (C) and (D) or (E) of section 3317.023 of the Revised Code and who exceed in number the number of full-time equivalent classroom teachers and educational service personnel who were employed by the district during either the first full week of October 1996, or during the first full week of October 1997, whichever week the number was smaller. The amount shall equal the minimum salaries for such additional full-time equivalent employees required by section 3317.13 of the Revised Code multiplied by 114 per cent.

The Department of Education shall determine application procedures and the schedule for applications and payments, subject to approval by the Controlling Board. The Department of Education may pay during the first half of each fiscal year, an amount equal to one-half of the estimated payment to which a district is entitled under this section. Subsequent to the approval of the Controlling Board, the amount of any over-payments shall be deducted from payments made under this act H.B. 215 during the remainder of the fiscal year.

Only those school districts eligible to receive payments under section 3317.022 of the Revised Code may receive any payment under this section.

The Superintendent of Public Instruction and the Controlling Board, before finalizing recommendations or approving payments pursuant to this section, may consider:

(1) Increases in revenues to a school district from sources other than Chapter 3317. of the Revised Code;

(2) Information relating to assumptions concerning potential state revenues made at the time of adoption of a new salary schedule for the district.

Sec. 50.23 Reallocation of Funds

(A) As used in this section:

(1) "Basic aid" means the amount calculated for the school district received for the fiscal year under sections 3317.022, 3317.023, and 3317.025 to 3317.028 of the Revised Code, as modified by language under the headings "Basic Aid Formula Amount," "Basic Aid Guarantees," and "Vocational Education Pupil Recomputations" of this act AM. SUB. H.B. 215 OF THE 122nd GENERAL ASSEMBLY and section 3317.0212 of the Revised Code.

(2) "Nonbasic aid" means:

(a) In the case of a school district, the amount computed for the district for fiscal year 1998 or fiscal year 1999 under Chapter 3317. of the Revised Code and this act H.B. 215, excluding the district's basic aid;

(b) In the case of a county board of mental retardation and developmental disabilities or for an institution providing special education programs under section 3323.091 of the Revised Code, the amount computed for the board or institution under divisions (N) and (O) of section 3317.024 of the Revised Code.

(3) "Total taxable value" has the meaning given in section 3317.02 of the Revised Code.

(4) "Total basic revenue" means the district's basic aid plus one of the following:

(a) For fiscal year 1998, two and three-tenths per cent of the district's total taxable value for the most recently completed tax year for which data are available for all school districts at the time the computations required by divisions (C) to (E) of this section are made;

(b) For fiscal year 1999, two and three-tenths per cent of the district's total taxable value for the most recently completed tax year for which data are available for all school districts at the time the computations required by divisions (C) to (E) of this section are made.

(B) If in either fiscal year of the biennium the Superintendent of Public Instruction determines prior to January 16, 1998, or January 16, 1999, respectively, that the amount appropriated to the Department of Education for distribution under this act AM. SUB. H.B. 215 OF THE 122nd GENERAL ASSEMBLY, THIS ACT, and Chapter 3317. of the Revised Code is insufficient to make all of the payments required under such provisions, or if the Governor issues an order under section 126.05 of the Revised Code to reduce expenditures and incurred obligations and the order requires the Superintendent to reduce such state aid payments, or if lottery profits transfers are insufficient to meet the amounts appropriated from the Lottery Profits Education Fund for basic aid, vocational education, and special education, and if other funds are not sufficient to offset the shortfall, the Superintendent shall reduce basic and nonbasic aid payments so that the total amount expended in the fiscal year will not exceed either the amount appropriated or the amount available for expenditure pursuant to the Governor's order. Subject to Controlling Board approval, the Superintendent shall reallocate appropriations not yet expended from one program to another.

(C)(1) If further reductions in basic and nonbasic aid are necessary following the reallocations implemented pursuant to division (B) of this section, the Superintendent shall request the Controlling Board to approve the use of the money appropriated by this division. The Superintendent shall include with the Superintendent's request a report listing the amount of reductions that each school district will receive pursuant to divisions (D) to (H) of this section if the request is not approved, and also the amount of the reduction, if any, that will still be required if the use of the money appropriated by this section is approved.

(2) In accordance with division (C)(1) of this section, there is hereby appropriated to the Department of Education from the unobligated balance remaining in the Lottery Profits Education Fund at the end of fiscal year 1997 and at the end of fiscal year 1998 the lesser of: the unobligated balance in the fund, or the amount needed to preclude a reallocation pursuant to divisions (D) to (H) of this section. The money appropriated by this division may be spent or distributed by the department only with the approval of the Controlling Board.

(D) If reductions in basic and nonbasic aid are still necessary following the actions taken pursuant to divisions (B) and (C) of this section, the Superintendent shall determine by what percentage expenditures for basic and nonbasic aid must be reduced for the remainder of the fiscal year to make the total amount distributed for the year equal the amount appropriated or available for distribution. The Superintendent shall reduce by that percentage the amount to be paid in nonbasic aid to each city, exempted village, local, and joint vocational school district, to each educational service center, to each county board of mental retardation and developmental disabilities, and to each institution providing special education programs under section 3323.091 of the Revised Code for the remainder of the fiscal year.

(E) As used in divisions (F) to (H) of this section, "school district" means city, local, and exempted village school districts.

(F) After computing the reduction required by division (D) of this section, the Superintendent shall:

(1) Determine the difference between the amount by which total basic and nonbasic aid payments must be reduced and the amount of the reductions made under division (D) of this section;

(2) Determine each school district's total basic revenue;

(3) Determine the total basic revenue of all such districts;

(4) Except as otherwise provided in division (G) of this section, reduce each such school district's basic aid by an amount computed as follows:

(a) Multiply the amount obtained under division (F)(1) of this section by the district's total basic revenue;

(b) Divide the product thus obtained by the total basic revenue of all districts. The quotient thus obtained shall be the amount by which the district's basic aid shall be reduced for the fiscal year.

(5) If the amount computed for a district under division (F)(4)(b) of this section equals or exceeds the basic aid remaining to be paid to the district for the fiscal year, the district shall receive no further basic aid in the fiscal year.

(G) If the amount by which any district's basic aid is required to be reduced under division (F)(4) of this section exceeds the amount of basic aid remaining to be paid to the district for the fiscal year, the department shall further reduce the basic aid to be paid to all other districts as follows:

(1) Determine the difference between:

(a) The amount determined under division (F)(1) of this section; and

(b) The amounts by which basic aid payments were reduced under divisions (F)(4) and (5) of this section.

(2) Determine the difference between:

(a) The total basic revenue of all districts; and

(b) The sum of the total basic revenue of each district to which division (F)(5) of this section applies.

(3) Reduce each remaining school district's basic aid by an amount computed as follows:

(a) Multiply the amount computed under division (G)(1) of this section by the district's total basic revenue;

(b) Divide the product obtained by the amount computed under division (G)(2) of this section. The quotient thus obtained shall be the additional amount by which the district's basic aid shall be reduced for the fiscal year.

(H) If the sum of the reductions under divisions (F) and (G) of this section equals or exceeds the amount of basic aid remaining to be paid to the district for the fiscal year, the district shall receive no further basic aid payments in the fiscal year and the department shall further reduce the amount of basic aid to be paid to the remaining school districts in accordance with the procedure set forth in division (G) of this section, but substituting the remaining amount of the deficit after the first operation of division (G) for the amount specified in division (G)(1) of this section, and subtracting the total basic revenue of those districts no longer participating in the allocation from the amount specified in division (G)(2) of this section.

Sec. 50.24. Lottery Profits

(A) There is hereby created the Lottery Profits Education Reserve Fund (Fund 018) in the State Treasury. At no time shall the amount to the credit of the fund exceed $50,000,000. Investment earnings of the Lottery Profits Education Reserve Fund shall be credited to the fund. Notwithstanding any provisions of law to the contrary, for fiscal years 1998 and 1999, there is hereby appropriated to the Department of Education, from the Lottery Profits Education Reserve Fund, an amount necessary to make loans authorized by sections 3317.0210, 3317.0211, and 3317.62 of the Revised Code. All loan repayments from loans made in fiscal years 1992, 1993, 1994, 1995, 1996, 1997, or 1998 shall be deposited into the credit of the Lottery Profits Education Reserve Fund.

(B)(1) On or before July 15, 1997, the Director of Budget and Management shall determine the amount by which lottery profit transfers received by the Lottery Profits Education Fund for fiscal year 1997 exceed $661,200,000.

After certifying fiscal year 1997 excess lottery profits pursuant to this division, and notwithstanding divisions (C) and (D) of this section, the Director of Budget and Management shall allocate up to $30,000,000 of the certified fiscal year 1997 excess lottery profits to support appropriations in fiscal year 1998 and fiscal year 1999 from the Lottery Profits Education Fund (Fund 017) for appropriation item 228-690, SchoolNet Electrical Infrastructure, to be used for the purposes specified in this act AM. SUB. H.B. 215 OF THE 122nd GENERAL ASSEMBLY.

The remaining balance of certified fiscal year 1997 excess lottery profits shall be distributed in fiscal year 1998 pursuant to divisions (C) and (D) of this section.

(2) On or before July 15, 1998, the Director of Budget and Management shall determine the amount by which lottery profit transfers received by the Lottery Profits Education Fund for fiscal year 1998 exceed $679,417,200. The amount so determined shall be distributed in fiscal year 1999 pursuant to divisions (E) and (F) of this section.

The Director of Budget and Management shall annually certify the amounts determined pursuant to this section to the Speaker of the House of Representatives and the President of the Senate.

(C) Not later than January 16, 1998, the Department of Education, in consultation with the Director of Budget and Management, shall determine, based upon estimates, if a reallocation of funds as described in the section titled "Reallocation of Funds" of this act H.B. 215 is required.

If a reallocation of funds is required, then the Superintendent of Public Instruction shall request Controlling Board approval for a release of any balances in the Lottery Profits Education Fund available for the purpose of this division and pursuant to divisions (C)(1) and (2) of the section titled "Reallocation of Funds" of this act H.B. 215. Any moneys so released are hereby appropriated.

(D) In fiscal year 1998, if the Department of Education does not determine that a reallocation of funds is necessary by January 16, as provided in division (C) of this section, or if there is a balance in the Lottery Profits Education Fund after the release of any amount needed to preclude a reallocation of funds as provided in division (C) of this section, the moneys in the Lottery Profits Education Fund shall be allocated as provided in this division. Any amounts so allocated are hereby appropriated.

(1) An amount equal to five per cent of the estimated lottery profits of $661,200,000 in fiscal year 1997 or the amount remaining in the fund, whichever is the lesser amount, shall be transferred to the Lottery Profits Education Reserve Fund within the limitations specified in division (A) of this section and be reserved and shall not be available for allocation or distribution during fiscal year 1998. Any amounts exceeding $50,000,000 shall be distributed pursuant to divisions (D)(2), (3), and (4) of this section.

(2) After reserving the required amount under division (D)(1) of this section, an amount equal to $25,000,000 or the unreserved amount remaining in the fund, whichever is the lesser amount, shall be transferred to the Public School Building Fund (Fund 021) to be allocated and distributed in accordance with Chapter 3318. of the Revised Code. The Department of Education shall submit annually a report to the Governor and General Assembly on the use of these funds. The report shall include for each project, a description of the need for the project, the total cost, the state and local share of the cost, and the project repayment schedule.

(3) After the allocation under division (D)(2) of this section, an amount equal to $20,000,000 or the unreserved amount remaining in the fund, whichever is the lesser amount, shall be allocated to the Department of Education SCHOOL FACILITIES COMMISSION to assist school districts in complying with federal regulations on asbestos abatement and removal and to assist school districts in making school buildings accessible to the handicapped.

(4) After the allocation under division (D)(3) of this section, the unreserved amount remaining in the fund shall be distributed pursuant to division (G) of this section.

(E) Not later than January 16, 1999, the Department of Education, in consultation with the Director of Budget and Management, shall determine, based upon estimates, if a reallocation of funds as described in the section titled "Reallocation of Funds" of this act H.B. 215 is required.

If a reallocation of funds is required, then the Superintendent of Public Instruction shall request Controlling Board approval for a release of any balances in the Lottery Profits Education Fund available for the purpose of this division and pursuant to divisions (C)(1) and (2) of the section titled "Reallocation of Funds" of this act H.B. 215. Any moneys so released are hereby appropriated.

(F) In fiscal year 1999, if the Department of Education does not determine that a reallocation of funds is necessary by January 16, as provided in division (E) of this section, or if there is a balance in the Lottery Profits Education Fund after the release of any amount needed to preclude a reallocation of funds as provided in division (E) of this section, the moneys in the Lottery Profits Education Fund shall be allocated as provided in this division. Any amounts so allocated are hereby appropriated.

(1) An amount equal to five per cent of the estimated lottery profits transfers of $679,417,200 in fiscal year 1998 or the amount remaining in the fund, whichever is the lesser amount, shall be transferred to the Lottery Profits Education Reserve Fund within the limitations specified in division (A) of this section and be reserved and shall not be available for allocation or distribution during fiscal year 1999. Any amounts exceeding $50,000,000 shall be distributed pursuant to divisions (F)(2), (3), and (4) of this section.

(2) After reserving the required amount under division (F)(1) of this section, an amount equal to $25,000,000 or the unreserved amount remaining in the fund, whichever is the lesser amount, shall be transferred to the School Building Fund (Fund 021) to be allocated and distributed in accordance with Chapter 3318. of the Revised Code. The Department of Education shall submit annually a report to the Governor and General Assembly on the use of these funds. The report shall include for each project, a description of the need for the project, the total cost, the state and local share of the cost, and the project repayment schedule.

(3) After the allocation under division (F)(2) of this section, an amount equal to $20,000,000 or the unreserved amount remaining in the fund, whichever is the lesser amount, shall be allocated to the Department of Education SCHOOL FACILITIES COMMISSION to assist school districts in complying with federal regulations on asbestos abatement and removal and to assist school districts in making school buildings accessible to the handicapped.

(4) After the allocation under division (F)(3) of this section, the amount remaining in the fund shall be distributed pursuant to division (G) of this section.

(G) In the appropriate fiscal year, any remaining amounts after the operations required by division (D) or (F) of this section, respectively, shall be available for distribution in accordance with this division.

(1) As used in this division:

(a) "State basic aid" means:

(i) In the case of a school district, the amount computed for a district under sections 3317.022, 3317.023, and 3317.025 to 3317.028 of the Revised Code exclusive of amounts computed under division (B) of section 3317.023 of the Revised Code, plus any amount computed for the district under section 3317.0212 of the Revised Code or under the heading "Basic Aid Guarantee" of this act H.B. 215 or any amount computed under section 3317.11 or 3317.16 of the Revised Code.

(ii) In the case of a 169 board, the amount computed under divisions (N) and (O) of section 3317.024 of the Revised Code.

(b) "ADM" means:

(i) In the case of a city, local, or exempted village school district, the district's average daily membership determined pursuant to section 3317.03 of the Revised Code, exclusive of those pupils who are enrolled in units for which an educational service center governing board receives funding under division (N) of section 3317.024 of the Revised Code or who are enrolled in a joint vocational school district;

(ii) In the case of a joint vocational school district, the sum of the number of pupils excluded from city, local, or exempted village school district ADMs under division (G)(1)(b)(i) of this section by virtue of their enrollment in that joint vocational school district;

(iii) In the case of an educational service center, the sum of the number of pupils excluded from city, local, and exempted village school district ADMs under division (G)(1)(b)(i) of this section by virtue of their enrollment in a unit for which that educational service center governing board receives funding under division (N) of section 3317.024 of the Revised Code;

(iv) In the case of a 169 board, the sum of the pupils included in classes and units approved for funding under section 3317.05 of the Revised Code.

(c) "169 board" means a county board of mental retardation and developmental disabilities.

(2) Ninety-seven and forty-three one-hundredths per cent of the amount made available for distribution under this division in each fiscal year shall be distributed to city, local, joint vocational, and exempted village school districts and educational service centers eligible to receive funds pursuant to Chapter 3317. of the Revised Code and to 169 boards in proportion to the percentage that the ADM of each such district, educational service center, or board is of the ADM of all such districts, educational service centers, and boards and shall be for the use of the public schools of the district or educational service center and 169 board programs. Two and fifty-seven one-hundredths per cent of such amount made available for distribution under this division in each fiscal year shall be distributed to nonpublic schools for the purposes of section 3317.063 of the Revised Code. Not later than the first day of March of each fiscal year, the Department of Education shall compute each school district's, each educational service center's, and each 169 board's share for that year of the amount to be distributed under this division and shall, subject to Controlling Board approval, distribute the shares so determined.

Amounts distributed to school districts, educational service centers, and 169 boards pursuant to this division shall be used solely to purchase textbooks and equipment. If funds have been appropriated by a board for any purposes permitted under this section, the amounts distributed to the district or educational service center under this division shall be used for additional expenditures for such purposes and shall not be substituted for funds previously appropriated by the board.

(3) Districts, educational service centers, 169 boards, and nonpublic schools shall report to the Department of Education no later than the last day of May of each fiscal year on the usage of funds received under this division. The Department of Education shall compile district and educational service center data and report on the usage of all funds distributed under this division to the Controlling Board by the last day of June of each fiscal year. If the department determines that a district or educational service center or a 169 board used funds distributed pursuant to this division for purposes not permitted, it shall reduce the district's, educational service center's, or board's state basic aid payments for the ensuing fiscal year by the amount improperly used.

It is the intent of the General Assembly that moneys distributed pursuant to this section shall not be included in any spending base calculations when appropriations for the 1999-2000 biennium are being considered.

Sec. 50.43. There is hereby created the Ohio Schools Technology Implementation Task Force composed of six voting members, three of whom shall be members of the Senate appointed by the President of the Senate and three of whom shall be members of the House of Representatives appointed by the Speaker of the House of Representatives. Not more than two members from each house shall be members of the same political party. From among these six voting members, the President of the Senate and the Speaker of the House of Representatives jointly shall appoint a chair of the Task Force. The Task Force shall include as ex officio nonvoting members the Superintendent of Public Instruction or the Superintendent's designee; the Directors of Budget and Management, Administrative Services, and the Office of Information, Learning, and Technology Services or their designees; a representative designated by the head of the Ohio Education Computer Network; a representative designated by the Chairperson of the Public Utilities Commission of Ohio; and a representative appointed by the Chairperson of the Ohio Education Broadcasting Network Commission. The voting members may, by majority vote, elect to include any number of additional nonvoting members on the Task Force.

The Legislative Service Commission and the Legislative Budget Office of the Legislative Service Commission shall provide any staffing assistance requested by the Task Force.

The Task Force shall develop recommendations for a comprehensive framework for coordinating the planning and implementation of technology in Ohio schools and issue a report not later than January 31 AUGUST 1, 1998. Upon issuing its report, the Task Force shall cease to operate.

Sec. 50.44. (A) There is hereby created the Teacher Professional Development Task Force. The purpose of the task force shall be to develop a comprehensive structure for the delivery of continuing professional development for teachers employed in the state's primary, secondary, vocational, and special educational system. On or before January 31 AUGUST 1, 1998, the task force shall issue to the President of the Senate, the Speaker of the House of Representatives, and the State Superintendent of Public Instruction a report outlining a comprehensive structure for the delivery of continuing professional development to such school teachers. On the date of the issuance of its report, the task force is abolished.

(B) The task force shall be composed of six legislators, three appointed by the President of the Senate and three by the Speaker of the House of Representatives. No more than two of the appointed members from each house shall be members of the same political party. From among these six appointed members, the President of the Senate and the Speaker of the House of Representatives jointly shall appoint a chair of the Task Force. Ex-officio nonvoting members of the task force shall include the State Superintendent of Public Instruction, or the Superintendent's designee; the Director of Budget and Management, or the Director's designee; a member appointed by the head official of the Ohio State School Boards Association; a member appointed by the head official of the Ohio Association of Educational Service Center Superintendents; a member appointed by the head official of the Ohio Education Association; a member appointed by the head official of the Ohio Federation of Teachers; a member appointed by the head official of the Buckeye Association of School Administrators; and two members of the institutions of higher education that have teacher education colleges, one member of which shall be from such a public institution appointed by the Chancellor of the Board of Regents and the other shall be from such a private institution appointed by the head official of the Association of Independent Colleges and Universities of Ohio. The voting members of the task force may appoint, by a majority vote, additional ex-officio nonvoting members to serve on the task force. The Legislative Service Commission and the Legislative Budget Office shall provide staff and services to the task force.

Sec. 69.03. SchoolNet Plus

In fiscal year 1998, by July 10, the Director of Budget and Management shall transfer $28,000,000 cash from the General Revenue Fund to the Office of Information, Learning and Technology Services' SchoolNet Plus Fund (4Y4). In fiscal year 1998, by July 10, the Director of Budget of Management shall transfer $3,664,253 from the Lottery Commission's Unclaimed Prizes Fund (Fund 872) to the Office of Information, Learning and Technology Services' SchoolNet Plus Fund (4Y4). In addition, on or before July 31, 1997, pursuant to the section titled "Transfer of Fiscal Year 1997 Ending Balances" $94,400,000 in surplus revenue shall be transferred to the SchoolNet Plus Fund (4Y4). A total of $31,664,253 shall be distributed from Fund (4Y4) line APPROPRIATION item 228-698, SchoolNet Plus, to non-qualifying districts to bring their total SchoolNet Plus payment up to $350 per pupil for students in kindergarten through the fourth grade.

To complete the SchoolNet Plus program, the Director of Budget and Management shall transfer in fiscal year 1999 $30,600,000 cash from the General Revenue Fund to the office's SchoolNet Plus Fund (4Y4).

Before any city, local, or exempted village school district applies for and receives additional funds through the SchoolNet Plus program, it must certify to the Office of Information, Learning, and Technology Services that it has used any previous moneys received through the SchoolNet Plus program to purchase and install computers for children enrolled in grades kindergarten through four, and that the equipment and software are being utilized daily as of the certification date. School districts may use their SchoolNet Plus moneys for assistant technology for disabled students.

Interactive Video Distance Learning

The foregoing appropriation item 200-650, Interactive Video Distance Learning, shall be used in fiscal year 1998 to help fund interactive video distance learning projects in local, exempted village, city, and joint vocational schools. The Office of Information, Learning, and Technology shall determine grant amounts in accordance with the guidelines of this section. Priority shall be given to consortiums of schools where a significant number of all the schools in a geographic area have demonstrated a desire to participate in the program and where no interactive video distance learning project involving multiple school districts now exists. Efforts shall be made to ensure that consortiums funded are geographically dispersed around the state.

The Office of Information, Learning, and Technology Services shall calculate a maximum grant amount for each approved school district or consortium. Such maximum grant shall be the amount sufficient to equip one classroom in each high school building of the participating school districts capable of both originating and receiving programming and may include one additional classroom in each high school building for receiving only. The maximum grant amount may also include funds for interconnecting the various sites involved in the consortium, for planning and for professional development. The percentage of the maximum grant amount awarded to school districts or consortia shall be greater for lower property valuation districts, and consortia of lower property valuation districts, and less for higher property valuation districts, and consortia. The amount awarded shall take into account the subsidy and discount available through the Federal Communication Commission's telephone universal service plan for schools, and may include a subsidy, up to the maximum permissible under the Snow-Rockefeller amendment, of the monthly telephone, cable, or other connection charges INCURRED BY SCHOOL DISTRICTS OR BY NEW OR EXISTING CONSORTIA INVOLVING SCHOOL DISTRICTS WITH EDUCATIONAL-RELATED ORGANIZATIONS WHOSE INCLUSION WILL ENHANCE EDUCATION FOR OHIO'S STUDENTS, for operation of the interactive distance learning programming. School districts or consortia of school districts whose per pupil valuation for the average of the preceding two years exceed 60 per cent of the statewide median valuation per pupil shall be eligible for funds only if they commit, as part of the application process, to provide programming without charge or at minimal cost to school districts whose valuation is below the statewide median valuation per pupil.

Sec. 76. LSC LEGISLATIVE SERVICE COMMISSION

General Revenue Fund GRF035-412SPECIAL COMMITTEE ON PROPERTY TAX
GRF035-321Operating Expenses$7,231,000$7,445,000
GRF035-402Legislative Interns$705,000$740,000
GRF035-403Legislative Budget Office$2,405,000$2,521,000
GRF035-404Legislative Office of Education Oversight$658,933$683,891
GRF035-405Correctional Institution Inspection Committee$475,000$490,000
GRF035-406ATMS Replacement Project$80,000$80,000
GRF035-407Legislative Task Force on Redistricting, Reapportionment, and Demographic Research$830,000$320,000
GRF035-409National Associations$510,957$376,729
GRF035-410Legislative Information Systems$3,200,000$3,200,000
$200,000 $0
TOTAL GRF General Revenue Fund$16,095,890$15,856,620

General Services Fund Group
410035-601Sale of Publications$25,000$25,000
4F6035-603Legislative Budget Services$120,000$128,000
4F7035-605Head Start Study$60,000$0
TOTAL GSF General Services    
Fund Group$205,000$153,000
TOTAL ALL BUDGET FUND GROUPS$16,300,890$16,009,620
 16,500,890  

ATMS Replacement Project

Of the foregoing appropriation item 035-406, ATMS Replacement Project, any amounts not used for the ATMS project may be used to pay the operating expenses of the Legislative Service Commission.

National Associations

Of the foregoing appropriation item 035-409, National Associations, $8,000 in each fiscal year shall be used for the State and Local Legal Center.

Legislative Office of Education Oversight

The foregoing appropriation item 035-404, Legislative Office of Education Oversight, shall be used to support the legislative oversight activities of the Legislative Committee on Education Oversight established in section 3301.68 of the Revised Code.

The Legislative Office of Education Oversight shall study ways for school districts to create a collaborative high school with neighboring districts. The study will determine the types of incentives, including state assistance, necessary to encourage schools toward this type of collaboration. The Legislative Office of Eduction EDUCATION Oversight shall report their recommendations to the Speaker of the House and the President of the Senate no later than June 30, 1999.

No later than January 31, 1999, the Legislative Office of Education Oversight shall issue a report on the status of the educational service center consolidations mandated by Section 45.32 of Am. Sub. H.B. 117 of the 121st General Assembly, as amended. The Office shall submit its report to the Speaker of the House of Representatives and the President of the Senate.

Head Start Study

The foregoing appropriation item 035-605, Head Start Study, shall be used by the Legislative Office of Education Oversight to conduct research on Head Start. The purpose of the study is to evaluate the implementation of Head Start, including the nature and quality of the educational programming, its cost, staff, and facilities, and the program's impact on participating children and families.

The Director of the Legislative Office of Education Oversight shall notify the Director of Budget and Management upon completion of the Head Start Study. The Director of Budget and Management shall transfer any unexpended and unobligated cash balances in Fund 4F7 to the General Revenue Fund.

_SPECIAL _COMMITTEE ON _PROPERTY _TAX _REVISION AND _RESTRUCTURING

THE FOREGOING APPROPRIATION ITEM 035-412, SPECIAL COMMITTEE ON PROPERTY TAX, SHALL BE USED TO FUND THE EXPENSES OF THE SPECIAL COMMITTEE ON PROPERTY TAX REVISION AND RESTRUCTURING.

OF THE FOREGOING APPROPRIATION ITEM 035-412, SPECIAL COMMITTEE ON PROPERTY TAX, ANY UNENCUMBERED AND UNALLOTTED FISCAL YEAR 1998 AMOUNTS SHALL BE TRANSFERRED BY THE DIRECTOR OF BUDGET AND MANAGEMENT TO APPROPRIATION ITEM 035-412, SPECIAL COMMITTEE ON PROPERTY TAX, IN FISCAL YEAR 1999. THOSE AMOUNTS SO TRANSFERRED FROM FISCAL YEAR 1998 TO FISCAL YEAR 1999 ARE HEREBY APPROPRIATED.

Section 103.41 103.141 Report

Notwithstanding section 103.41 103.141 of the Revised Code, the Legislative Budget Office of the Legislative Service Commission may submit the estimates required by that section for calendar years 1996 and 1997 in October, 2000.

Workforce Study Committee Additional Duties

The Legislative Service Commission Study Committee on Job Training and Workforce Development Programs appointed on February 5, 1997, by motion of the Commission pursuant to its authority in section 103.12 of the Revised Code, shall review the functions and duties of state, county, and other programs, including those performed by local offices of the Bureau of Employment Services and by state and county human services offices, that are directed toward job training, job placement, and workforce development. The Study Committee, after consulting with interested parties including the Director of Human Services and the Administrator of the Bureau of Employment Services, shall make recommendations to the Governor and to the Speaker and the Minority Leader of the House of Representatives and the President and the Minority Leader of the Senate, on behalf of the General Assembly, to improve the integration, efficiency, effectiveness, and collaboration of federal, state, and locally funded job training, job placement, and workforce development efforts.

Sec. 130.01. Lottery Transfers in Fiscal Year 1999

Notwithstanding division (B) of section 3770.06 of the Revised Code, from the amounts that the Director of Budget and Management transfers in fiscal year 1999 from the State Lottery Fund to the Lottery Profits Education Fund, the Director shall transfer the initial $15,000,000 of such amounts from the lottery profits education fund to Fund 5F8, the Instructional Materials Education Fund. This money shall be combined with the $10,000,000 that Fund 5F8 receives from fiscal year 1997 surplus revenue, to provide $25,000,000 in fiscal year 1999 to school districts for the purchase of textbooks and instructional materials for schools. THIS TRANSFER IS IN ADDITION TO THE AMOUNT NECESSARY TO MEET ALL OTHER APPROPRIATIONS FROM THE LOTTERY PROFITS EDUCATION FUND IN FISCAL YEAR 1999.


Section 4. That existing Sections 50, 50.04, 50.07, 50.09, 50.15, 50.20, 50.23, 50.24, 50.43, 50.44, 69.03, 76, and 130.01 of Am. Sub. H.B. 215 of the 122nd General Assembly are hereby repealed.


Section 5. That Sections 50.06 and 50.11 of Am. Sub. H.B. 215 of the 122nd General Assembly, as amended by Am. Sub. H.B. 182 of the 122nd General Assembly, be amended to read as follows:

"Sec. 50.06. School Foundation Basic Allowance

Of the foregoing appropriation item 200-501, School Foundation Basic Allowance, up to $6,000,000 in each year of the biennium shall be expended by the State Board of Education for the extended service allowance which shall be the teachers' salaries pursuant to the schedule contained in section 3317.13 of the Revised Code, plus fifteen per cent for retirement and sick leave; up to $425,000 shall be expended in each year of the biennium for court payments pursuant to section 2151.357 of the Revised Code; up to $150,000 in each year of the biennium shall be expended pursuant to section 3313.64 of the Revised Code; the Superintendent of Public Instruction shall expend in each year of the biennium the amount necessary for the purpose of making payments for the vocational education pupil recomputation pursuant to division (M) of section 3317.024 of the Revised Code and the provisions under the section headed "Vocational Education Pupil Recomputation" in this act AM. SUB. H.B. 215 OF THE 122nd GENERAL ASSEMBLY and the special education pupil recomputation pursuant to division (I) of section 3317.023 of the Revised Code; up to $100,000 shall be expended in each year of the biennium for supplemental payments pursuant to the section headed "Supplemental Payment" of this act AM. SUB. H.B. 215 OF THE 122nd GENERAL ASSEMBLY; an amount shall be available each year of the biennium for the cost of the reappraisal guarantee pursuant to section 3317.04 of the Revised Code; up to $9,000,000 in each year of the biennium shall be reserved for payments pursuant to sections 3317.026, 3317.027, and 3317.028 of the Revised Code; up to $2,000,000 in each year of the biennium shall be reserved for Youth Services tuition payments pursuant to division (F) of section 3317.024 of the Revised Code, up to $1,300,000 in fiscal year 1998 and $1,300,000 in fiscal year 1999 for small district aid; for districts with an ADM of less than 100, in addition to other funds, an amount shall be paid equal to the amount above the actual fiscal year 1996 and 1997 amounts for basic aid, including any guarantee aid the district would have received in fiscal years 1996 and 1997 had the amendments to divisions (D) and (E) of section 3317.0212 of the Revised Code, as amended in this act AM. SUB. H.B. 215 OF THE 122nd GENERAL ASSEMBLY, been in effect; up to $500,000 in each fiscal year shall be used to make payments to school districts that lose enrollment due to the implementation of the community schools program pursuant to this act AM. SUB. H.B. 215 OF THE 122nd GENERAL ASSEMBLY; $500,000 shall be transferred each year by the Director of Budget and Management to appropriation item 200-422, School Management Assistance, to help the Department of Education administer, monitor, and implement the fiscal emergency and fiscal watch provisions under Chapter 3316. of the Revised Code. Up to $45,330,000 in fiscal year 1998 and up to $47,795,600 in fiscal year 1999 shall be reserved to fund the state reimbursement of educational service centers pursuant to section 3317.11 of the Revised Code; and up to $1,200,000 in fiscal year 1998 shall be used by the Superintendent of Public Instruction to make incentive payments in any amounts the superintendent deems necessary to joint educational service centers established pursuant to section 3311.053 of the Revised Code. These supplemental payments may be made in fiscal year 1998 to defray the direct or indirect expenses of dissolving participating educational service centers. Each joint educational service center seeking a supplemental payment in fiscal year 1998 shall submit to the Superintendent of Public Instruction any documents and information that the Superintendent may require no later than December 31, 1997.

Of the foregoing appropriation item, 200-501, School Foundation Basic Allowance, up to $1,000,000 in each fiscal year shall be used by the Department of Education for a pilot program to pay for educational services for youth who have been assigned by a juvenile court or other authorized agency to any of the facilities described in division (A) of the section titled "Private Treatment Facility Pilot Project."

The remaining portion of this appropriation item shall be expended for basic state aid for the public schools of city, local, and exempted village school districts. ANY AMOUNTS WHICH WERE ENCUMBERED IN FISCAL YEAR 1997 BY THE DEPARTMENT OF EDUCATION FROM APPROPRIATION ITEM 200-501, SCHOOL FOUNDATION BASIC ALLOWANCE, FOR ANY OF THE USES DESCRIBED IN SECTION 45.05 OF AM. SUB. H.B. 117 OF THE 121st GENERAL ASSEMBLY, BUT WHICH, ON THE EFFECTIVE DATE OF THIS AMENDMENT OF THIS SECTION, REMAIN UNEXPENDED, MAY BE USED BY THE DEPARTMENT OF EDUCATION TO MAKE PAYMENTS FOR THE PURPOSES OF SECTIONS 3317.027 AND 3317.028 of the Revised Code IN EXCESS OF THE AMOUNTS SPECIFIED IN SECTION 45.05 OF AM. SUB. H.B. 117 OF THE 121st GENERAL ASSEMBLY, FOR FISCAL YEAR 1997 OBLIGATIONS PURSUANT TO SECTIONS 3317.027 AND 3317.028 of the Revised Code.

Sec. 50.11. Supplemental Unit Allowance

(A) As used under this heading:

(1) "Basic aid" has the same meaning as in division (A)(1) of section 3317.0212 of the Revised Code.

(2) "Adjusted formula amount" has the same meaning as in division (A)(6) of section 3313.98 of the Revised Code.

(3) "ADM" has the same meaning as in section 3317.02 of the Revised Code.

(4) "Per pupil basic aid" means a district's basic aid divided by its ADM.

(5) "Dollar amount" means the amount shown in the following table for the corresponding type of unit and the appropriate fiscal year:
TYPE OF UNITDOLLAR AMOUNT

FY 1998FY 1999
Division (M) of R.C. 3317.024$5,345$7,898
Division (N) of R.C. 3317.024$5,702$8,334
Division (O)(1) of R.C. 3317.024$2,293$3,234
Division (O)(2) of R.C. 3317.024$2,523$3,550

(6) "FY" means fiscal year.

(7) "Average unit amount" means the amount shown in the following table for the corresponding type of unit and the appropriate fiscal year:
TYPE OF UNITAVERAGE UNIT AMOUNT

FY 1998FY 1999
Division (M) of R.C. 3317.024$4,937$7,227
Division (N) of R.C. 3317.024$5,360$7,799
Division (O)(1) of R.C. 3317.024$2,129$2,966
Division (O)(2) of R.C. 3317.024$2,343$3,251

(B) In the case of each unit described in division (M), (N), or (O) of section 3317.024 of the Revised Code and allocated to a city, local, or exempted village school district, the Department of Education, in addition to the amounts specified in such divisions, shall pay a supplemental unit allowance equal to the sum of the following amounts:

(1) An amount equal to 50% of the average unit amount for the unit;

(2) An amount equal to the percentage of the dollar amount for the unit that is obtained by dividing the district's basic aid per pupil by its adjusted formula amount.

If, prior to the fifteenth day of May of a fiscal year, a school district's basic aid is recomputed pursuant to section 3317.027 or 3317.028 of the Revised Code, the department shall also recompute the district's entitlement to payment under this section utilizing a new basic aid per pupil amount under division (B)(1) of this section. Such new basic aid per pupil amount shall be determined using the district's recomputed basic aid amount pursuant to section 3317.027 or 3317.028 of the Revised Code. During the last six months of the fiscal year, the department shall pay the district a sum equal to one-half of the recomputed payment in lieu of one-half the payment otherwise calculated under this section.

(C)(1) In the case of each unit described in division (M) of section 3317.024 of the Revised Code that is allocated to any entity other than a city, exempted village, or local school district, the Department, in addition to the amount specified in such division and in section 3317.16 of the Revised Code, shall pay a supplemental unit allowance of $4,937 in fiscal year 1998 AND $7,227 IN FISCAL YEAR 1999.

(2) In the case of each unit described in division (N) of section 3317.024 of the Revised Code that is allocated to any entity other than a city, exempted village, or local school district, the Department, in addition to the amount specified in such division and in section 3317.16 of the Revised Code, shall pay a supplemental unit allowance of $5,360 in fiscal year 1998 AND $7,799 IN FISCAL YEAR 1999.

(3) In the case of each unit described in division (O)(1) of section 3317.024 of the Revised Code and allocated to any entity other than a city, exempted village, or local school district, the Department, in addition to the amounts specified in such qivision and in section 3317.16 of the Revised Code, shall pay a supplemental unit allowance of $2,129 in fiscal year 1998 AND $2,966 IN FISCAL YEAR 1999.

(4) In the case of each unit described in division (O)(2) of section 3317.024 of the Revised Code and allocated to any entity other than a city, exempted village, or local school district, the Department, in addition to the amounts specified in such division and in section 3317.16 of the Revised Code, shall pay a supplemental unit allowance of $2,343 in fiscal year 1998 AND $3,251 IN FISCAL YEAR 1999."


Section 6. That existing Sections 50.06 and 50.11 of Am. Sub. H.B. 215 of the 122nd General Assembly, as amended by Am. Sub. H.B. 182 of the 122nd General Assembly, are hereby repealed.


Section 7. That Section 50.16 of Am. Sub. H.B. 215 of the 122nd General Assembly, as amended by Am. Sub. S.B. 55 of the 122nd General Assembly, be amended to read as follows:

"Sec. 50.16. Property Tax Allocation

The Superintendent of Public Instruction shall not request and the Controlling Board shall not approve the transfer of funds from appropriation item 200-901, Property Tax Allocation--Education, to any other appropriation line item.

Textbooks/Instructional Materials

As used in this section, "valuation per pupil" means a district's total taxable value of the preceding fiscal year as defined in section 3317.02 of the Revised Code divided by the district's ADM of the preceding fiscal year as defined in division (A) of section 3317.02 of the Revised Code.

Money in the foregoing appropriation item 200-645, Textbooks/Instructional Materials, shall be distributed on a per pupil basis to all city, exempted village, and local school districts with a valuation per pupil less than $200,000. City, exempted village, and local school districts shall use moneys received from the appropriation item for textbooks, instructional software, instructional materials, and any other materials the district deems to be helpful in providing appropriate instruction to students in the following subject areas: reading, writing, mathematics, science, and citizenship.

_SCHOOL _DISTRICT _SOLVENCY _ASSISTANCE

THE FOREGOING APPROPRIATION ITEM 200-687, SCHOOL DISTRICT SOLVENCY ASSISTANCE, SHALL BE USED TO MAKE ADVANCEMENTS TO SCHOOL DISTRICTS TO ENABLE THEM TO REMAIN SOLVENT PURSUANT TO SECTION 3316.20 OF THE REVISED CODE. REIMBURSEMENTS FROM SCHOOL DISTRICTS FOR ANY AMOUNTS ADVANCED SHALL BE MADE TO THE SCHOOL DISTRICT SOLVENCY ASSISTANCE FUND."


Section 8. That existing Section 50.16 of Am. Sub. H.B. 215 of the 122nd General Assembly, as amended by Am. Sub. S.B. 55 of the 122nd General Assembly, is hereby repealed.


Section 9. That Section 50.05 of Am. Sub. H.B. 215 of the 122nd General Assembly is hereby repealed.


Section 10. That Section 5 of Am. Sub. S.B. 102 of the 122nd General Assembly, as amended by Am. Sub. H.B. 215 of the 122nd General Assembly, be amended to read as follows:

"Sec. 5. SFC SCHOOL FACILITIES COMMISSION

General Revenue Fund
GRF230-428Lease Rental Payments$27,020,000$57,176,000
TOTAL GRF General Revenue Fund$27,020,000$57,176,000

State Special Revenue Fund DISABILITY ACCESS PROJECT
5E3230-644Operating Expenses$2,000,000$2,400,000
Total SSR State Special Revenue    
Fund Group$2,000,000$2,400,000
LOTTERY PROFIT EDUCATION FUND GROUP    
018230-649$5,000,000 $0
TOTAL LPE LOTTERY PROFITS    
EDUCATION FUND GROUP $5,000,000 $0
TOTAL ALL BUDGET FUND GROUPS$29,020,000$59,576,000
    
 34,020,000  

Operating Expenses

The foregoing appropriation item 230-644, Operating Expenses, shall be used by the Ohio School Facilities Commission to carry out its responsibilities pursuant to this section and Chapter 3318. of the Revised Code.

There is hereby created in the state treasury the Ohio School Facilities Commission Fund (Fund 5E3). The fund shall consist of transfers of moneys authorized by the General Assembly, grants and other revenues described in division (D) of section 3318.31 of the Revised Code, and investment earnings of the fund. Moneys credited to the fund may be used by the commission for staffing and other administrative expenses, to conduct evaluations of school facilities, to prepare building design specifications, to provide project management services, and for any other purposes deemed necessary by the commission consistent with Chapter 3318. of the Revised Code.

Within 10 days of the effective date of this section, the Director of Budget and Management shall transfer up to $2,000,000 by intrastate transfer voucher from the School Facilities Commission's appropriation item 230-428, Lease Rental Payments, to the Ohio School Facilities Commission Fund (Fund 5E3). In fiscal year 1999, by July 10, 1998, the Director of Budget and Management shall transfer up to $2,400,000 by intrastate transfer voucher from the School Facilities Commission's line item 230-428 Lease Rental Payments to the Ohio School Facilities Commission Fund (Fund 5E3). Investment earnings to the School Building Assistance Fund (Fund 032) in excess of the amounts required to meet estimated federal arbitrage rebate requirements may be transferred at the request of the Ohio School Facilities Commission by the Director of Budget and Management to the Ohio School Facilities Commission Fund (Fund 5E3). Investment earnings to the Public School Building Fund (Fund 021) and repayments to the Public School Building Fund (Fund 021) made pursuant to Chapter 3318. of the Revised Code may be transferred at the request of the Ohio School Facilities Commission by the Director of Budget and Management to the Ohio School Facilities Commission Fund (Fund 5E3).

Lease Rental Payments

After the transfers described in this section under the heading, "Operating Expenses" are made, the remaining appropriation shall be used by the School Facilities Commission to meet all payments at the times required to be made during the period from July 1, 1997, to June 30, 1999, to pay bond service charges on obligations issued pursuant to Chapter 3318. of the Revised Code.

_DISABILITY _ACCESS _PROJECTS

(A) AS USED IN THIS SECTION:

(1) "PERCENTILE" MEANS THE PERCENTILE IN WHICH A SCHOOL DISTRICT IS RANKED ACCORDING TO THE MOST RECENT RANKING OF SCHOOL DISTRICTS WITH REGARD TO INCOME AND PROPERTY WEALTH UNDER DIVISION (B) OF SECTION 3318.011 OF THE REVISED CODE.

(2) "SCHOOL DISTRICT" MEANS A CITY, LOCAL, OR EXEMPTED VILLAGE SCHOOL DISTRICT, EXCEPT FOR A SCHOOL DISTRICT THAT IS ONE OF THE STATE'S 21 URBAN SCHOOL DISTRICTS AS DEFINED IN DIVISION (H) OF SECTION 3317.02 OF THE REVISED CODE.

(3) AS USED IN THIS SECTION, "VALUATION PER PUPIL" MEANS A DISTRICT'S TOTAL TAXABLE VALUE AS DEFINED IN SECTION 3317.02 OF THE REVISED CODE DIVIDED BY THE DISTRICT'S ADM AS DEFINED IN DIVISION (A) OF SECTION 3317.02 OF THE REVISED CODE.

(B) THE SCHOOL FACILITIES COMMISSION SHALL ADOPT RULES FOR AWARDING GRANTS TO SCHOOL DISTRICTS WITH A VALUATION PER PUPIL LESS THAN $200,000, TO BE USED FOR CONSTRUCTION, RECONSTRUCTION, OR RENOVATION PROJECTS IN CLASSROOM FACILITIES, THE PURPOSE OF WHICH IS TO IMPROVE ACCESS TO SUCH FACILITIES BY PHYSICALLY HANDICAPPED PERSONS. THE RULES SHALL INCLUDE APPLICATION PROCEDURES.

NO SCHOOL DISTRICT SHALL BE AWARDED A GRANT UNDER THIS SECTION IN EXCESS OF $100,000. IN ADDITION, ANY SCHOOL DISTRICT SHALL BE REQUIRED TO PAY A PERCENTAGE OF THE COST OF THE PROJECT FOR WHICH THE GRANT IS BEING AWARDED EQUAL TO THE PERCENTILE IN WHICH THE DISTRICT IS SO RANKED.

THE FOREGOING APPROPRIATION ITEM 200-649, DISABILITY ACCESS PROJECT, SHALL BE USED TO FUND CAPITAL PROJECTS THAT MAKE BUILDINGS MORE ACCESSIBLE TO STUDENTS WITH DISABILITIES PURSUANT TO THIS SECTION. OF THE FOREGOING APPROPRIATION ITEM 200-649, DISABILITY ACCESS PROJECT, $60,000 SHALL BE USED FOR THE DANVILLE HIGH SCHOOL WHEELCHAIR LIFT."


Section 11. That existing Section 5 of Am. Sub. S.B. 102 of the 122nd General Assembly, as amended by Am. Sub. H.B. 215 of the 122nd General Assembly, is hereby repealed.


Section 12. Transfer of Fiscal Year 1998 Ending GRF Balances

(A) Notwithstanding division (B)(1)(b) of section 131.44 of the Revised Code, Fiscal Year 1998 surplus revenue that would otherwise have been transferred to the Income Tax Reduction Fund shall instead be distributed as provided in division (B) of this section.

(B)(1) The first $30,000,000 of such surplus revenue shall be transferred from the General Revenue Fund to the School District Solvency Assistance Fund created in section 3316.20 of the Revised Code.

(2) The next $170,000,000 of surplus revenue shall be transferred from the General Revenue Fund to Fund 021, School Building Assistance. Any moneys deposited in Fund 021 under division (B)(2) of this section are hereby appropriated to pay for school building construction or renovation for low-wealth school districts as provided by Am. Sub. S.B. 102 of the 122nd General Assembly and other generally applicable provisions of law.

(3) Any surplus revenue in excess of the amounts distributed under division (B)(1) or (2) of this section shall be transferred to the Income Tax Reduction Fund and distributed in accordance with section 131.44 of the Revised Code.


Section 13. Appropriation Reductions

(A) The General Revenue Fund appropriations for Fiscal Year 1999 are hereby reduced by an amount equal to three per cent of the Fiscal Year 1999 appropriations authorized in any act of the 122nd General Assembly prior to the effective date of this act with the following exceptions:

(1) Appropriations to the following agencies are exempt from any reductions made in this section: the Department of Education; the Ohio School for the Blind; the Ohio School for the Deaf; the Office of Information, Learning and Technology Services; and the School Facilities Commission.

(2) Appropriations for the following purposes are exempt from any reductions made in this section: property tax allocation appropriations; tangible tax exemption appropriations; all appropriations for debt service, including lease rental payments; all state office building rent and office building appropriations made to the Department of Administrative Services; and pension systems' payments made by the Treasurer of State.

(3) The following appropriation line items are exempt from any reductions: 005-321, Operating Expenses - Judiciary; 110-506, Utility Bill Credits; 235-503, Ohio Instructional Grants; 235-504, War Orphans' Scholarships; 235-514, Central State Supplement; 235-530, Academic Scholarships; 235-531, Student Choice Grants; 235-549, Part-Time Student Instructional Grants; 400-411, TANF Federal Block Grant; 400-413, Day Care Match/Maintenance of Effort; 400-511, Disability Assistance; 400-528, Adoption Services; and 911-401, Emergency Purposes/Contingencies.

(4) Except for items included under divisions (A)(2) and (3) of this section, appropriations to the Board of Regents shall be reduced by one-half of one per cent, except for appropriation line items 235-100, Personal Services; 235-200, Maintenance; and 235-300, Equipment, which shall be reduced by three per cent.

(5) Except for items included under divisions (A)(2) and (3) of this section, appropriations to the Department of Mental Retardation and Developmental Disabilities, the Department of Youth Services, and the Department of Rehabilitation and Correction shall be reduced by two per cent.

(6) Except for items included under divisions (A)(2) and (3) of this section, appropriations to the Ohio Veterans' Home; the Department of Taxation; the Department of Mental Health; the Joint Committee on Agency Rule Review; the Department of Commerce; the Commission on Dispute Resolution and Conflict Management; the Ohio Elections Commission; the Environmental Review Appeals Commission; the Ohio Ethics Commission; the Ohio Expositions Commission; the Commission on Hispanic/Latino Affairs; the Office of the Inspector General; the Legal Rights Service; the Joint Legislative Ethics Committee; the Commission on Minority Health; the Ohioana Library Association; the State Personnel Board of Review; the State Board of Proprietary School Registration; the Rehabilitation Services Commission; the State and Local Government Commission of Ohio; the Veterans' Organizations; and the Women's Policy and Research Commission shall be reduced by one per cent.

(7) The Director of Budget and Management may reduce the appropriation for appropriation line item 400-525, Health Care/Medicaid, by an amount not to exceed one per cent. Notwithstanding the section of this act entitled "Appropriation Reductions," at the close of fiscal year 1998, the Director of Budget and Management shall review the balance in appropriation item 400-410, TANF State. If a sufficient balance remains, the Director may transfer amounts deemed necessary by the Director of Budget and Management to the Department of Alcohol and Drug Addiction Services, or any department for which funding was reduced under this act. Any transferred moneys shall be used for the purpose of providing federally allowable services to TANF eligible clients.

(8) The sum of all reductions made by this section shall not be less than $100,000,000.

(B) For all agencies that are subject to a reduction in appropriations, the agency director may allocate the reductions in division (A) of this section among the agency's appropriation line items with the approval of the Director of Budget and Management. When appropriations are reduced in an appropriation line item with amounts specified for a special purpose, the specified amount may be reduced by a percentage up to the percentage by which the line item itself is reduced.

(C) For the purpose of complying with this section, the reductions made to Fiscal Year 1999 line item appropriations that have state and federal shares identified in any act of the 122nd General Assembly prior to this act shall be made against the state share of such line items. Once that reduction in the state share is determined, the Director of Budget and Management shall, in determining the total reduction to such line items, add the corresponding amounts of federal matching funds at the percentages indicated by the state and federal division of the appropriation for such line items.


Section 14. The General Assembly shall enact a budget for the fiscal year 2000-2001 biennium for the Department of Education, the Ohio Board of Regents, and any other state agency established solely to carry out functions related to primary and secondary education or higher education, in legislation separate from the main operating appropriations act for that biennium.


Section 15. The Special Committee on Property Tax Revision and Restructuring is hereby created. The Committee shall consider options for comprehensive property tax reform and shall make a recommendation regarding the feasibility of a constitutional amendment imposing a statewide property tax on all classes of property for primary and secondary educational purposes. In considering reform options and developing its recommendation, the Committee shall consider various tax, expenditure, and restructuring issues, including tax rates on residential/agricultural real property, nonresidential/agricultural real property, tangible personal property, and public utility property; a concurrent decrease in local property taxes for primary and secondary educational purposes; funding impacts on school districts and other local governments; adjustments for inflationary growth; school district relative tax effort, including property and income taxes; tax exempt property; and changes to assessment rates and methods. Any person or organization may submit ideas or recommendations to the Committee concerning property tax revision and restructuring, and the Committee shall consider those submissions in its deliberations. The Committee shall issue a report on its considerations and recommendation to the Governor and General Assembly on or before December 31, 1998, and shall cease to exist when the report is issued.

The Committee shall consist of seventeen members. The Governor shall appoint eleven members as follows: one member representing agricultural interests, one member representing counties, one member representing townships, one member representing municipal corporations, two members representing business interests, two members representing labor unions, and three members representing educational interests. The Speaker of the House of Representatives shall appoint three members of the House of Representatives as members, no more than two of whom shall be of the same political party. The President of the Senate shall appoint three members of the Senate as members, no more than two of whom shall be of the same political party. All appointments to the Committee shall be made within thirty days after the effective date of this section, and the Committee shall hold its first meeting within two weeks after the last appointment is made. The Governor shall select the chairperson of the Committee.

The Committee may hire an executive director, or may contract with a person or public or private organization to assist it with its duties. At the request of the Committee, the Legislative Budget Office and any other state agency, including other legislative agencies, shall provide research assistance to the Committee. Members of the Committee shall receive no compensation or reimbursement of expenses for their service on the Committee.


Section 16. If at the general election of November 1997, the electors of any school district approved a district bond issue for a classroom facilities assistance project to be constructed under Chapter 3318. of the Revised Code, the original estimated basic project costs of which relied on specifications for plans and materials for classroom facilities used prior to the specifications adopted by the School Facilities Commission pursuant to Section 12 of Am. Sub. S.B. 102 of the 122nd General Assembly, and such original estimated basic project costs were reduced in the aggregate as a result of the use of the specifications adopted by the Commission, such school district for purposes of completion of its classroom facilities project may choose to have its project built in accordance with the original estimated basic project costs and specifications for plans and materials.


Section 17. (A) As used in this section:

(1) "Per cent figure" has the same meaning as in section 3317.023 of the Revised Code.

(2) "Fifteen to one money" means an amount of money equal to the difference between the per OWF child amount the district received under division (B) of section 3317.023 of the Revised Code in Fiscal Year 1998 and the amount it will receive per OWF child under such division as amended by this act, multiplied by the number of OWF children used in the calculation of such Fiscal Year 1999 amount.

(B) This division applies only to school districts with a per cent figure greater than thirty. In Fiscal Year 1999, each such school district shall spend its amount of fifteen to one money to reduce the pupil-to-teacher ratio to no more than fifteen to one in as many kindergarten through first grade classrooms as such amount of money supports.


Section 18. Section 3317.023 of the Revised Code is presented in this act as a composite of the section as amended by both Am. Sub. H.B. 215 and Sub. H.B. 408 of the 122nd General Assembly, with the new language of neither of the acts shown in capital letters. This is in recognition of the principle stated in division (B) of section 1.52 of the Revised Code that such amendments are to be harmonized where not substantively irreconcilable and constitutes a legislative finding that such is the resulting version in effect prior to the effective date of this act.


Section 19. The codified sections of law contained within the purview of Sections 1 and 2 of this act are not subject to the referendum. Therefore, under Ohio Constitution, Article II, Section 1d and section 1.471 of the Revised Code, the codified sections of law contained within the purview of Sections 1 and 2 of this act are entitled to go into immediate effect when this act becomes law. However, the codified sections of law contained within the purview of Sections 1 and 2 of this act take effect on July 1, 1998, or the day this act becomes law, whichever is later.


Section 20. (A) This section and Sections 3 to 17 and 19 of this act are not subject to the referendum. Therefore, under Ohio Constitution, Article II, Section 1d and section 1.471 of the Revised Code, this section and Sections 3 to 17 and 19 of this act go into immediate effect when this act becomes law.

(B) Section 18 of this act is not subject to the referendum. Therefore, under Ohio Constitution, Article II, Section 1d and section 1.471 of the Revised Code, Section 18 of this act is entitled to go into immediate effect when this act becomes law. However, Section 18 of this act takes effect on July 1, 1998, or the day the act becomes law, whichever is later.

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