To amend Sections 263.10 and 263.230 of Am. Sub. H.B. 59 of the 130th General Assembly, as subsequently amended, to earmark funds for a pre-K through 5 Language and Literacy Program and to establish the program guidelines.

Section 1.  That Sections 263.10 and 263.230 of Am. Sub. H.B. 59 of the 130th General Assembly, as amended by Am. Sub. H.B. 483 of the 130th General Assembly, be amended to read as follows:

Sec. 263.10. EDU DEPARTMENT OF EDUCATION

General Revenue Fund

General Services Fund Group

Federal Special Revenue Fund Group

State Special Revenue Fund Group

Lottery Profits Education Fund Group

Revenue Distribution Fund Group

Sec. 263.230. FOUNDATION FUNDING

Of the foregoing appropriation item 200550, Foundation Funding, up to $675,000 in fiscal year 2014 shall be used to support the work of the College of Education and Human Ecology at the Ohio State University in reviewing and assessing the alignment of courses offered through the distance learning clearinghouse established in sections 3333.81 to 3333.88 of the Revised Code with the academic content standards adopted under division (A) of section 3301.079 of the Revised Code.

Of the foregoing appropriation item 200550, Foundation Funding, up to $40,000,000 in each fiscal year shall be used to provide additional state aid to school districts, joint vocational school districts, community schools, and STEM schools for special education students under division (C)(3) of section 3314.08, section 3317.0214, division (B) of section 3317.16, and section 3326.34 of the Revised Code, except that the Controlling Board may increase these amounts if presented with such a request from the Department of Education at the final meeting of the fiscal year.

Of the foregoing appropriation item 200550, Foundation Funding, up to $2,000,000 in each fiscal year shall be reserved for Youth Services tuition payments under section 3317.024 of the Revised Code.

Of the foregoing appropriation item 200550, Foundation Funding, up to $3,800,000 in each fiscal year shall be used to fund gifted education at educational service centers. The Department shall distribute the funding through the unit-based funding methodology in place under division (L) of section 3317.024, division (E) of section 3317.05, and divisions (A), (B), and (C) of section 3317.053 of the Revised Code as they existed prior to fiscal year 2010.

Of the foregoing appropriation item 200550, Foundation Funding, up to $43,500,000 in fiscal year 2014 and up to $40,000,000 in fiscal year 2015 shall be reserved to fund the state reimbursement of educational service centers under the section of Am. Sub. H.B. 59 of the 130th General Assembly entitled "EDUCATIONAL SERVICE CENTERS FUNDING"; and up to $3,500,000 in each fiscal year shall be distributed to educational service centers for School Improvement Initiatives and, in consultation with the Governor's Director of 21st Century Education, for the provision of technical assistance as required by the Elementary and Secondary Education Act Flexibility waivers approved for Ohio by the United States Department of Education. Educational service centers shall be required to support districts in the development and implementation of their continuous improvement plans as required in section 3302.04 of the Revised Code and to provide technical assistance and support in accordance with Title I of the "No Child Left Behind Act of 2001," 115 Stat. 1425, 20 U.S.C. 6317, as administered pursuant to the Elementary and Secondary Education Act Flexibility waivers approved for Ohio by the United States Department of Education.

Of the foregoing appropriation item 200550, Foundation Funding, up to $20,000,000 in each fiscal year shall be reserved for payments under sections 3317.026, 3317.027, and 3317.028 of the Revised Code. If this amount is not sufficient, the Department of Education shall prorate the payment amounts so that the aggregate amount allocated in this paragraph is not exceeded.

Of the foregoing appropriation item 200550, Foundation Funding, up to $2,000,000 in each fiscal year shall be used to pay career-technical planning districts for the amounts reimbursed to students, as prescribed in this paragraph. Each career-technical planning district shall reimburse individuals taking the online General Educational Development (GED) test for the first time for application/test fees in excess of $40. Each career-technical planning district shall designate a site or sites where individuals may register and take the exam. For each individual that registers for the exam, the career-technical planning district shall make available and offer career counseling services, including information on adult education programs that are available. Any remaining funds in each fiscal year shall be reimbursed to the Department of Youth Services and the Department of Rehabilitation and Correction for individuals in these facilities who have taken the GED for the first time. The amounts reimbursed shall not exceed the per-individual amounts reimbursed to other individuals under this section for each section of the GED.

Of the foregoing appropriation item 200550, Foundation Funding, up to $410,000 in each fiscal year shall be used to pay career-technical planning districts $500 for each student that receives a journeyman certification, as recognized by the United States Department of Labor.

Of the foregoing appropriation item 200550, Foundation Funding, up to $18,713,327 in fiscal year 2014 and up to $26,213,327 in fiscal year 2015 shall be used to support school choice programs.

Of the portion of the funds distributed to the Cleveland Municipal School District under this section, up to $11,901,887 in each fiscal year shall be used to operate the school choice program in the Cleveland Municipal School District under sections 3313.974 to 3313.979 of the Revised Code. Notwithstanding divisions (B) and (C) of section 3313.978 and division (C) of section 3313.979 of the Revised Code, up to $1,000,000 in each fiscal year of this amount shall be used by the Cleveland Municipal School District to provide tutorial assistance as provided in division (H) of section 3313.974 of the Revised Code. The Cleveland Municipal School District shall report the use of these funds in the district's three-year continuous improvement plan as described in section 3302.04 of the Revised Code in a manner approved by the Department of Education.

Of the foregoing appropriation item 200550, Foundation Funding, up to $2,000,000 in fiscal year 2015 shall be used to pay college-preparatory boarding schools the per pupil boarding amount pursuant to section 3328.34 of the Revised Code.

Of the foregoing appropriation item 200550, Foundation Funding, up to $500,000 in each fiscal year shall be used to support Jobs for Ohio's Graduates.

Of the foregoing appropriation item 200550, Foundation Funding, up to $250,000 in fiscal year 2015 may be used for payment of the Post-Secondary Enrollment Options Program for students instructed at home pursuant to section 3321.04 of the Revised Code.

Of the foregoing appropriation item 200550, Foundation Funding, up to $5,000,000 in fiscal year 2014 shall be used to reimburse school districts for the full amount deducted in that year under section 3310.55 of the Revised Code for Jon Peterson Scholarships awarded under sections 3310.51 to 3310.64 of the Revised Code to students who did not attend a public school in their resident district in the previous school year. If this amount is not sufficient, the Department of Education shall prorate the payment amounts so that the aggregate amount appropriated in this paragraph is not exceeded.

Of the foregoing appropriation item 200550, Foundation Funding, an amount shall be available in each fiscal year to be paid to joint vocational school districts in accordance with division (A) of section 3317.16 of the Revised Code and the section of Am. Sub. H.B. 59 of the 130th General Assembly entitled "TEMPORARY TRANSITIONAL AID FOR JOINT VOCATIONAL SCHOOL DISTRICTS."

Of the foregoing appropriation item 200550, Foundation Funding, up to $700,000 in each fiscal year shall be used by the Department of Education for a 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 of Am. Sub. H.B. 59 of the 130th General Assembly entitled "PRIVATE TREATMENT FACILITY PROJECT."

Of the foregoing appropriation item 200550, Foundation Funding, up to $675,000 in fiscal year 2015 shall be used to provide grants on a competitive basis to public and chartered nonpublic schools for their participation in the electronic textbook pilot project. These funds shall be administered as provided under the section of Am. Sub. H.B. 59 of the 130th General Assembly entitled ELECTRONIC TEXTBOOK PILOT PROJECT.

Of the foregoing appropriation item 200550, Foundation Funding, up to $500,000 in fiscal year 2014 and up to $3,000,000 in fiscal year 2015 shall be used for the New Leaders for Ohio Schools Pilot Project in accordance with Section 733.40 of Am. Sub. H.B. 59 of the 130th General Assembly.

Of the foregoing appropriation item 200550, Foundation Funding, up to $8,000,000 in fiscal year 2015 shall be used to support the implementation of a digital learning-based pre-K through 5 program that teaches a language and literacy curriculum for English Learner (EL) students to increase their ability to meet grade level reading standards. The program shall provide first language support for three out of the top five most prevalent languages spoken in Ohio.

The remainder of appropriation item 200550, Foundation Funding, shall be used to distribute the amounts calculated for formula aid under section 3317.022 of the Revised Code and the section of Am. Sub. H.B. 59 of the 130th General Assembly entitled "TEMPORARY TRANSITIONAL AID FOR CITY, LOCAL, AND EXEMPTED VILLAGE SCHOOL DISTRICTS."

Appropriation items 200502, Pupil Transportation, 200540, Special Education Enhancements, and 200550, Foundation Funding, other than specific set-asides, are collectively used in each fiscal year to pay state formula aid obligations for school districts, community schools, STEM schools, college preparatory boarding schools, and joint vocational school districts under Am. Sub. H.B. 59 of the 130th General Assembly. The first priority of these appropriation items, with the exception of specific set-asides, is to fund state formula aid obligations. It may be necessary to reallocate funds among these appropriation items or use excess funds from other general revenue fund appropriation items in the Department of Education's budget in each fiscal year, in order to meet state formula aid obligations. If it is determined that it is necessary to transfer funds among these appropriation items or to transfer funds from other General Revenue Fund appropriations in the Department of Education's budget to meet state formula aid obligations, the Department of Education shall seek approval from the Controlling Board to transfer funds as needed.

The Superintendent of Public Instruction shall make payments, transfers, and deductions, as authorized by Title XXXIII of the Revised Code and Sections 267.30.50, 267.30.53, 267.30.56, and 267.30.60 of Am. Sub. H.B. 153 of the 129th General Assembly, in amounts substantially equal to those made in the prior year, or otherwise, at the discretion of the Superintendent, until at least the effective date of the amendments and enactments made to Title XXXIII by Am. Sub. H.B. 59 of the 130th General Assembly. If a new school district, community school, or STEM school opens prior to the effective date of Am. Sub. H.B. 59 of the 130th General Assembly, the Department of Education shall pay to the district or school an amount of $5,000 per pupil, based upon the estimated number of students that the district or school is expected to serve. Any funds paid to districts or schools under this section shall be credited toward the annual funds calculated for the district or school after the changes made to Title XXXIII in Am. Sub. H.B. 59 of the 130th General Assembly are effective. Upon the effective date of changes made to Title XXXIII in Am. Sub. H.B. 59 of the 130th General Assembly, funds shall be calculated as an annual amount.

Section 2.  That existing Sections 263.10 and 263.230 of Am. Sub. H.B. 59 of the 130th General Assembly, as amended by Am. Sub. H.B. 483 of the 130th General Assembly, are hereby repealed.

Section 3. (A) In recognition of the need to provide all English Learner (EL) students in grades kindergarten through five with the instructional assistance necessary to meet the standards established by the Third Grade Reading Guarantee by the end of third grade and achieve grade level proficiency in reading by the fifth grade, the K-5 Language and Literacy Program is hereby created. The purpose of this program shall be to identify quality technology-based literacy and language development software programs designed specifically for K-5 EL students that can be purchased by districts, schools, or education consortia with Straight A funds for the purpose of improving English language proficiency and reading skills in grades kindergarten through five.

(B) The Department of Education shall issue a request for proposals for technology-based English language fluency and reading skills development software programs designed specifically for students in grades kindergarten through five. All proposals submitted to the Department under this section shall include a complete breakdown of the levels and activities available under each program. Each program shall also meet, at a minimum, all of the following requirements:

(1) The program develops grade level appropriate oral and written academic vocabulary that will allow the student to become a proficient reader in academic content areas.

(2) The program incorporates listening and speaking activities that assist in the development of the English language fluency needed to become a proficient reader.

(3) The program directly teaches phonological awareness skills and reading through instructional strategies that include echo reading and the recording of decodable books.

(4) The program provides all of the following components for all EL students for whom English is a second language:

(a) First language support within the software that utilizes the student's first language as a bridge to English language acquisition. This support shall cover, at a minimum, 90 per cent of all students in grades kindergarten through five whose first language is not English.

(b) Phonemic awareness instruction, which shall include both new phonemes and phonemes that are shared by the student's native language and the English language.

(5) The program is individualized, with progress through the program based upon student performance in the program. Immediate remediation and delayed remediation, acceleration, and teacher-assigned lessons shall be available based upon on-going, in-program assessments and interactive teacher reports.

(6) The program is based upon current scientific research and is aligned with Ohio's academic content standards and the guidelines of the federal No Child Left Behind Act. The program shall also include modeling, guided practice, realia and inter-textual comprehension in order to prepare EL students to meet the standards established by the Third Grade Reading Guarantee and achieve grade level reading proficiency.

(C) The Department shall review all proposals received under this section and shall identify quality programs within these proposals. The Department shall then prepare a list of recommended software providers based upon these quality programs and distribute it to all school districts, schools, or education consortia to select from, at their discretion, and to pay for with funds allocated under Section 263.230 of Am. Sub. H.B. 59 of the 130th General Assembly.

(D) Any software provider that provides its services under this section shall annually provide data on the usage and results of its program by grade level, school, and district, if applicable, to both the purchasing district, school, or education consortia, and the Department. The Department shall make each annual report available, as it is received, to the General Assembly in accordance with section 101.68 of the Revised Code.