This is Part 2 in a Series of Legal Updates the Education Law Group will be providing on House Bill 33…
The operating appropriations of House Bill 33, the “budget bill,” became effective on July 4, 2023. As with every biennial appropriations bill, multiple provisions affect funding for educational establishments, including public school districts, community schools, and chartered nonpublic schools.
Public Schools
The phase-in of the Cupp Patterson Fair School Funding Plan will continue over the next two fiscal years. Specifically, this formula will continue to be phased-in at a rate of 50% for FY 2024 and 66.67% for FY 2025. The formula relies on a base cost per-pupil amount, which was previously calculated using 2018 data. For the next two fiscal years, however, the formula will rely on more recent 2022 numbers. Additional changes include increases to the base minimum teacher’s salary to $35,000 and the minimum state share percentage to 10%.
Community Schools
The community school financing system, initially enacted in 2021, is extended through the next two fiscal years. Brick and mortar community schools will receive an additional $650 per student per fiscal year for curricular and other student programming. Supplemental facilities funding will be increased to $1,000 per student. Finally, certain eligible schools will receive an additional $3,000 per economically disadvantaged student and $2,250 per student for all others.
Chartered Nonpublic Schools
The value of the EdChoice and Cleveland scholarships has been increased to $6,165 for students in K-8 and $8,407 for high school students. Further, eligibility for the EdChoice Expansion Scholarship has been changed to include all Ohio pupils. Children in families with household incomes at or below 450% of the federal poverty level (about $135,000 for a family of four) are eligible for the full scholarship. Students in families with higher incomes are eligible for a pro-rated scholarship, of at least $650 (grades K-8) or $900 (grades 9-12) for those above 750% of the federal poverty level. All nonpublic schools are also permitted to accept private scholarships as payment for the difference between the EdChoice scholarship amount and the school’s annual tuition. Overall, these changes are expected to cost the state at least another $370 million over the next two fiscal years, on top of current EdChoice expenditures. Additional changes include requiring the newly-created Department of Education and Workforce to develop a student growth measure for EdChoice students in grades 4-8 and publish this data on its website.
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Weston Hurd LLP attorneys regularly assist school districts in all aspects of school law. For further information please contact Miriam Fair at mfair@westonhurd.com or any of the education law attorneys.
