To amend section 3314.088 of the Revised Code to temporarily reduce the per pupil base-cost payments to certain community schools in academic watch or academic emergency, to use the aggregate of those reductions to make supplemental payments for Auxiliary Services for chartered nonpublic school students and for administrative cost reimbursement to chartered nonpublic schools, and to make an appropriation.

Section 1.  That section 3314.088 of the Revised Code be amended to read as follows:

Sec. 3314.088.  (A) For purposes of applying sections 3314.08 and 3314.13 of the Revised Code to fiscal years 2010 and 2011:

(1) The base formula amount for community schools for fiscal year 2010 is $5,718 and for fiscal year 2011 is $5,703. These respective amounts shall be applied wherein sections 3314.08 and 3314.13 of the Revised Code the base formula amount is specified, except for deducting and paying amounts for special education weighted funding and vocational education weighted funding and except as prescribed in division (C) of this section.

(2) The base funding supplements under section 3317.012 of the Revised Code shall be deemed in each year to be the amounts specified in that section for fiscal year 2009.

(3) Special education additional weighted funding shall be calculated by multiplying the applicable weight specified in section 3317.013 of the Revised Code for fiscal year 2009 times $5,732.

(4) Vocational education additional weighted funding shall be calculated by multiplying the applicable weight specified in section 3317.014 of the Revised Code for fiscal year 2009 times $5,732.

(5) The per pupil amounts paid to a school district under sections 3317.029 and 3317.0217 of the Revised Code shall be deemed to be the respective per pupil amounts paid under those sections to that district for fiscal year 2009.

(6) A community school may receive all-day kindergarten payments under section 3314.13 of the Revised Code only for all-day kindergarten students who are entitled to attend school in school districts that, for fiscal year 2009, met the eligibility requirements of division (D) of section 3317.029 of the Revised Code. For students entitled to attend school in such school districts that actually received payment for all-day kindergarten for fiscal year 2009, the payments to community schools under section 3314.13 of the Revised Code shall be deducted from the school district's state education aid. For students entitled to attend school in such school districts that did not receive payment for all-day kindergarten for fiscal year 2009, the payments to community schools under section 3314.13 of the Revised Code shall be paid out of the funds appropriated under appropriation item 200550, foundation funding, as appropriated in section 265.10 of Am. Sub. H.B. 1 of the 128th General Assembly general assembly. As used in this division, "entitled to attend school" has the same meaning as in section 3314.08 of the Revised Code.

(B) For purposes of applying section 3314.085 of the Revised Code to fiscal years 2010 and 2011, the minimum per pupil expenditure required for pupil instruction under that section is $2,931, which equals the minimum amount required by that section for fiscal year 2009.

(C) This division applies only to each community school that is rated as academic watch or academic emergency on the school's report card published by the department of education for the prior school year and is not a community school in which a majority of the enrolled students are children with disabilities receiving special education and related services in accordance with Chapter 3323. of the Revised Code.

Unless division (C)(3)(a), (b)(i), or (b)(ii)(II) of Section 5 of Sub. H.B. 268 of the 128th general assembly applies, for each of fiscal years 2010 and 2011, the base formula amount attributed to each student enrolled in a community school to which this division applies shall be as follows:

(1) The base formula amount for the purpose of the deductions from school districts required by division (C) of section 3314.08 of the Revised Code, except for deductions for special education weighted funding and vocational education weighted funding, shall be the respective amount specified in division (A)(1) of this section.

(2) The base formula amount for the purpose of the payments to the community school required by division (D) of section 3314.08 of the Revised Code for each full-time equivalent student who is not a child with a disability, except for payments for vocational education weighted funding, shall be $5,018 for fiscal year 2010 and $5,003 for fiscal year 2011.

(3) The base formula amount for the purpose of the payments to the community school required by division (D) of section 3314.08 of the Revised Code for each full-time equivalent student who is a child with a disability, except for payments for special education weighted funding and vocational education weighted funding, shall be the respective amount specified in division (A)(1) of this section.

(4) The department shall pay into the auxiliary services and administrative cost supplement fund, created by Section 3 of Sub. H.B. 268 of the 128th general assembly, an amount equal to $700 for each full-time equivalent student enrolled in the community school who is not a child with a disability.

As used in this division, "child with a disability" means a child with a disability, as defined in section 3323.01 of the Revised Code, who is receiving special education and related services in accordance with Chapter 3323. of the Revised Code.

Section 2.  That existing section 3314.088 of the Revised Code is hereby repealed.

Section 3. The Auxiliary Services and Administrative Cost Supplement Fund is hereby created in the state treasury. The fund shall consist of moneys described in division (C) of section 3314.088 of the Revised Code. The Department of Education shall make payments from the fund as prescribed in Section 5 of this act.

Section 4. All items in this section are hereby appropriated as designated out of any moneys in the state treasury to the credit of the State Special Revenue Fund. For all appropriations made in this act, those in the first column are for fiscal year 2010 and those in the second column are for fiscal year 2011. The appropriations made in this act are in addition to any other appropriations made for the FY 2010-FY 2011 biennium.

Appropriations

State Special Revenue Fund

AUXILIARY SERVICES AND ADMINISTRATIVE COST SUPPLEMENT

The foregoing appropriation item 200649, Auxiliary Services and Administrative Cost Supplement, shall be used by the Department of Education to make supplemental Auxiliary Service payments to school districts and supplemental administrative cost reimbursement payments to chartered nonpublic schools as described in Section 5 of this act.

An amount equal to the unexpended, unencumbered portion of appropriation item 200649, Auxiliary Services and Administrative Cost Supplement, at the end of fiscal year 2010 is hereby reappropriated to fiscal year 2011 for use under the same appropriation item.

Section 5. (A) Subject to division (C) of this section, the Department of Education shall use up to $23,382,321, in fiscal year 2010, and up to $23,043,817, in fiscal year 2011, of the aggregate amount paid into the Auxiliary Services and Administrative Cost Supplement Fund, created by Section 3 of this act, to make supplemental Auxiliary Service payments to school districts, which shall be administered in accordance with section 3317.06 of the Revised Code and which shall be used by the districts in accordance with that section.

(B) Subject to division (C) of this section, the Department shall use up to $10,603,611, in fiscal year 2010, and up to $10,450,103, in fiscal year 2011, of the aggregate amount paid into the Auxiliary Services and Administrative Cost Supplement Fund, created by Section 3 of this act, to make supplemental administrative cost reimbursement payments to chartered nonpublic schools, which shall be administered in accordance with section 3317.063 of the Revised Code and which shall be used by chartered nonpublic schools in accordance with that section. The combined amount paid to each chartered nonpublic school for administrative cost reimbursement under this division and under Section 265.30.10 of Am. Sub. H.B. 1 of the 128th General Assembly shall not exceed the maximum amount prescribed in section 3317.063 of the Revised Code.

(C)(1) For each of fiscal years 2010 and 2011, the Department shall project the aggregate amount required to be paid into the Auxiliary Services and Administrative Cost Supplement Fund under division (C) of section 3314.088 of the Revised Code and shall determine whether the corresponding aggregate reductions in payments to community schools under that division may cause the state to be out of compliance with the maintenance of effort or use of funds obligations under the "American Recovery and Reinvestment Act of 2009," Pub. L. No. 111-5, 123 Stat. 115. The Department shall make the projection for fiscal year 2010 immediately after the effective date of this section. The Department shall make the projection for fiscal year 2011 at the same time that it issues report cards under section 3314.012 of the Revised Code for the 2009-2010 school year.

(2) If the Department determines that the reduction of payments to community schools will not cause the state to be out of compliance with the federal maintenance of effort or use of funds obligations, the Department shall make the reduced periodic payments to community schools and pay the amount of the reductions into the Auxiliary Services and Administrative Cost Supplement Fund, as required under division (C) of section 3314.088 of the Revised Code, and shall make payments to school districts and to chartered nonpublic schools from the moneys in the fund as provided under this section.

(3) If the Department determines that the reduction of payments to community schools may cause the state to be out of compliance with the federal maintenance of effort or use of funds obligations, the Department shall forthwith apply to the United States Secretary of Education for a waiver from either or both of those obligations, as applicable, to the extent necessary lawfully to reduce the payments to community schools and to pay the aggregate amount of such reductions into the Auxiliary Services and Administrative Cost Supplement Fund, so long as the Department also reasonably determines that such a waiver is possible.

(a) If the Department reasonably determines that a waiver from these obligations is not possible, the Department shall not reduce periodic payments to community schools and shall not make payments into the Auxiliary Services and Administrative Cost Supplement Fund, as otherwise required under division (C) of section 3314.088 of the Revised Code. Instead, the Department shall pay each community school full periodic payments based on the base formula amount prescribed in division (A)(1) of section 3314.088 of the Revised Code for the entire fiscal year.

(b) If the Department reasonably determines that a waiver from these obligations is possible:

(i) Until the Department receives notice of the Secretary's decision regarding the waiver, the Department shall not reduce periodic payments to community schools and shall not make payments into the Auxiliary Services and Administrative Cost Supplement Fund, as otherwise required under division (C) of section 3314.088 of the Revised Code. Instead, the Department shall pay each community school periodic payments based on the base formula amount prescribed in division (A)(1) of section 3314.088 of the Revised Code.

(ii) Upon receipt of the notice of the Secretary's decision regarding the waiver:

(I) If the Secretary grants the waiver, for the balance of the fiscal year, the Department shall reduce periodic payments to community schools and pay the amount of the reductions into the Auxiliary Services and Administrative Cost Supplement Fund, as required under division (C) of section 3314.088 of the Revised Code, in proportion to the number of months remaining in the fiscal year and shall begin to make payments to school districts and to chartered nonpublic schools from the moneys in that fund as provided under this section.

(II) If the Secretary denies the waiver, for the balance of the fiscal year, the Department shall continue to make full periodic payments to community schools based on the base formula amount prescribed in division (A)(1) of section 3314.088 of the Revised Code and shall not make payments into the Auxiliary Services and Administrative Cost Supplement Fund.

Section 6. Within the limits set forth in this act, the Director of Budget and Management shall establish accounts indicating the source and amount of funds for each appropriation made in this act, and shall determine the form and manner in which appropriation accounts shall be maintained. Expenditures from appropriations contained in this act shall be accounted for as though made in Am. Sub. H.B. 1 of the 128th General Assembly.

The appropriations made in this act are subject to all provisions of Am. Sub. H.B. 1 of the 128th General Assembly that are generally applicable to such appropriations.

Section 7. The sections of law contained in this act, and the items of law of which the sections of law contained in this act are composed, are not subject to the referendum. Therefore, under Ohio Constitution, Article II, Section 1d and section 1.471 of the Revised Code, the sections of law contained in this act, and the items of law of which the sections of law contained in this act are composed, go into immediate effect when this act becomes law.