1. Overview of Gifted Funding in the Evidence-Based Model June 1, 2010 Kelly Weir Director, Office of Budget and Planning

2. Major Topics School Funding Big Picture Ohio Evidence-Based Model (EBM) Gifted Funding Accountability Overall Gifted

3. Overall FY10-11 ODE Budget GRF budget totals $7.789 billion in FY10 and $7.742 billion in FY11 (includes tax relief but not lottery). GRF totals include $417.6 million in FY10 and $457.4 million in FY11 in State Fiscal Stabilization Funding (SFSF). Lottery Profits for Education total $705 million in FY10 and $711 million in FY11. The overall state General Revenue Fund is decreasing by approximately 8% in FY10. Note: The above figures have been modified since HB 1 because of changes made through HB 318 and Controlling Board.

4. Primary and Secondary Education as % of State Budget

5. Brief Ohio School Funding History In the 1990’s the system was primarily based on a unit-based methodology. In response to the DeRolph litigation, funding moved to a minimum per pupil-based system. Our current system is an Evidence-Based Model (EBM) which bases funding on components of a successful educational system.

6. Ohio Evidence-Based Model EBM is to be phased in over 10 years. The SF-3 was replaced with the PASS (PAthway to Student Success) form. The PASS form provides the summary of state resources provided for each district.

7. Features of Ohio Evidence-Based Model Each EBM component is allocated in one of the following ways: Per the # of teachers needed to address different types of student needs Per pupil Per district Per organizational unit

8. Features of Ohio Evidence-Based Model Organizational units Not an actual building but instead demonstrates the prototypical size for managing students in different grade bands Mostly used to allocate funds for operational/administrative costs Not the same as gifted units

9. Features of Ohio Evidence-Based Model Many of the components are adjusted by a new Educational Challenge Factor (ECF) An index that adjusts funding for certain funding factors to account for student and community socioeconomic factors such as the district’s wealth, poverty, and college attainment. Ranges from 0.76 to 1.64

10. Features of Ohio Evidence-Based Model State Share Percentage impacted by: Reduced charge-off (local share) District’s property valuations Transitional aid is provided to guarantee that districts receive 99% of prior year funding in FY10 and 98% of prior year funding in FY11. A gain cap is applied so that no district will receive more than a 0.75% increase in each year.

11. School Funding Advisory Council Ongoing 28-member council began meeting in January. Committees Special Needs Education Linkages Regional Variation Learning Environments Traditional Public/Community School Collaboration Education Reform Tracking First report due in Dec. 2010 except for Community School Collaboration which is due in Sept. 2010.

12. Gifted Funding before the EBM Unit funding to districts and ESCs Units provided for Gifted Intervention Specialists and Coordinators Not equalized Gifted identification Allocated on a per pupil basis Provided outside the formula Not equalized Summer Honors Institutes

13. Gifted Funding within the EBM Gifted education support now based on four factors Gifted Identification Gifted Coordinators Gifted Intervention Specialists (GIS) GIS Professional Development All factors adjusted by state share percentage and gain cap 13

14. Gifted Funding within the EBM Gifted Identification $5 per pupil Based on all ADM Gifted Coordinators 1 coordinator per 2,500 students Based on all ADM Salary amount is $66,375 in FY10 and $67,660 in FY11 14

15. Gifted Funding within the EBM Gifted Intervention Specialists (GIS) 1 per organizational unit Phased in at 20% in FY10 and 30% in FY11 ECF applies Salary amount of $56,902 in FY10 and $57,812 in FY11 (same as all teacher salaries in the EBM) GIS Professional Development $1,833 per GIS Phased in at 20% in FY10 and 30% in FY11.

16. Overall EBM Accountability The State Superintendent must develop expenditure and reporting rules for the EBM funding components. Reporting standards apply to all components and for all districts – effective no sooner than FY11 Expenditure standards cannot be effective before FY12 - exceptions for gifted funding

17. Overall EBM Accountability Spending Plan All districts will eventually have to submit a spending plan describing how the EBM funding components will be deployed. Districts that qualify for oversight by the Governor’s Closing the Achievement Gap Initiative must work with ODE in developing its spending plan. FACT (Formula ACcountability and Transparency) form Compares EBM allocations to the spending plan and ultimately how the funds were actually deployed.

18. Overall EBM Accountability Spending Waivers School districts will be permitted to apply to the State Superintendent for a waiver of the bill’s spending requirements or the new operating standards (once they become effective). Can be up to five years and may be renewed (exceptions for gifted funding). All day kindergarten also has its own waiver provision.

19. Gifted Accountability Reporting Requirements Reporting same as for other components Included in Spending Plan and FACT form like other components Expenditure Requirements Different than other components Current vs Future Waiver provisions different

21. Gifted Accountability Waivers for additional spending requirements under Section (E) of 3306.09 A district that did not receive gifted unit funding in FY09 may apply for a waiver from these additional spending requirements. First waiver cannot be effective longer than two years. Any waiver renewals cannot be effective longer than one year.

22. Questions???