To enact sections 3302.033 and 3317.60 of the Revised Code to establish a bipartisan committee to recommend to the General Assembly a system that provides state funds to pay one hundred per cent of the actual cost of providing a thorough and efficient education to each public school student and to require the Department of Education to report certain school funding information to the parents and taxpayers of each school district.

Section 1.  That sections 3302.033 and 3317.60 of the Revised Code be enacted to read as follows:

Sec. 3302.033.  As a component of the funding and expenditure accountability report required under division (A) of section 3302.031 of the Revised Code, the department of education shall include the following information about the state's performance on public education funding:

(A) The current and five-year projected cost of a thorough and efficient education for every student and the added cost of providing services for special education, career-technical education, gifted students, and economically disadvantaged students as determined by the committee established under section 3317.60 of the Revised Code;

(B) By district and building, expenditures for operation and facilities construction and maintenance;

(C) The amount of operations funding disparity among school districts in the state using all of the following methods of measurement:

(1) Ratio of revenue of the highest-funded district to the revenue of the lowest-funded district;

(2) Federal range ratio;

(3) Gini coefficient;

(4) McLoone index.

At the time the information prescribed under this section is published, the department also shall report the items described in divisions (B) and (C) of this section to the committee established under section 3317.60 of the Revised Code.

Sec. 3317.60. (A) Within sixty days after the effective date of this section, the president of the senate and the speaker of the house of representatives shall appoint a joint bipartisan committee to study and determine the current and five-year projected cost of providing a thorough and efficient education to each public school student and to recommend legislative changes necessary to establish a system to provide state funding to each public school in the state in an amount equal to one hundred per cent of the actual cost as determined by the committee. The committee shall make its recommendations to the general assembly not later than eighteen months after the effective date of this section.

(B) The school funding system recommended by the committee shall provide for all of the following:

(1) State funding for one hundred per cent of the actual base cost of a thorough and efficient education for each student in a public school and one hundred per cent of the actual cost of all special education, career-technical education, gifted education, poverty-based assistance, and transportation costs attributable on a per pupil basis;

(2) Calculation of actual costs without the use of an inferential method;

(3) Recalculation of actual costs once every two years;

(4) Authority for a school district to levy additional taxes with the approval of the district's electors for funding of operating costs of providing services not paid for with state funds. The system shall specify the services for which state funding will and will not be provided.

(5) Guarantee to each school district that for the first ten years following the enactment of the new system the district will not receive in state funding an amount less than the district received under Chapter 3317. of the Revised Code, as it existed June 30, 2010. After the end of the ten-year period, the guarantee shall be phased out in annual increments of three percentage points on a district-by-district basis until the amount of state funding received by a district equals the amount calculated for the district under the system described in division (B)(1) of this section. The goal of the system shall be that by the end of the ten-year period, the disparity between the highest-funded school district and the lowest-funded school district in base-cost per pupil funding is not more than twenty percentage points.

(6) Uniform statewide accounting and auditing procedures for all school districts.

Section 2. Notwithstanding anything to the contrary in section 3302.033 of the Revised Code, until the committee established under section 3317.60 of the Revised Code has determined the actual cost of a thorough and efficient education for primary and secondary students, the Department of Education is not required to include in the report prescribed under section 3302.033 of the Revised Code the information described in division (A) of that section. The Department shall include in that report all other information described in that section.