Ohio Revised Code
Chapter 3317 | Foundation Program
Section 3317.022 | Formulas for State Operating Funds to School Districts, Schools, and Scholarships.

Effective: December 14, 2021
Latest Legislation: Senate Bill 229 - 134th General Assembly
The department of education shall compute and distribute state core foundation funding to each eligible funding unit that is a city, local, or exempted village school district, the community and STEM school unit, the educational choice scholarship unit, the pilot project scholarship unit, the autism scholarship unit, and the Jon Peterson special needs scholarship unit for the fiscal year, using the information obtained under section 3317.021 of the Revised Code in the calendar year in which the fiscal year begins in accordance with the following:
For fiscal years 2022 and 2023, for a funding unit that is a city, local, or exempted village school district:
The district's funding base + [(the district's state core foundation funding components for that fiscal year calculated under divisions (A)(1), (2), (3), (5), (6), (7), and (8) of this section - the district's general funding base calculated in accordance with division (N)(1) of section 3317.02 of the Revised Code) X the district's general phase-in percentage for that fiscal year] + [(the district's disadvantaged pupil impact aid for that fiscal year calculated under division (A)(4) of this section - the district's disadvantaged pupil impact aid funding base calculated in accordance with division (N)(2) of section 3317.02 of the Revised Code) X the district's phase-in percentage for disadvantaged pupil impact aid for that fiscal year] + the district's supplemental targeted assistance funds calculated under section 3317.0218 of the Revised Code
For fiscal year 2024 and each fiscal year thereafter, for a funding unit that is a city, local, or exempted village school district, the sum of the district's state core foundation funding components for that fiscal year calculated under divisions (A)(1), (2), (3), (4), (5), (6), (7), and (8) of this section and the district's supplemental targeted assistance funds calculated under section 3317.0218 of the Revised Code, if the general assembly authorizes such payments to these funding units.
For fiscal years 2022 and 2023, for the community and STEM school unit, an amount calculated in accordance with section 3317.026 of the Revised Code.
For fiscal years 2024 and each fiscal year thereafter, for the community and STEM school unit, an amount calculated in accordance with divisions (A)(1), (3), (4), (5), (7), (8), and (9) of this section, if the general assembly authorizes such payments to these funding units.
For the educational choice scholarship unit, the amount calculated under division (A)(10) of this section.
For the pilot project scholarship unit, the amount calculated under division (A)(11) of this section.
For the autism scholarship unit, the amount calculated under division (A)(12) of this section.
For the Jon Peterson special needs scholarship unit, the amount calculated under division (A)(13) of this section.
(A) A funding unit's state core foundation funding components shall be the following:
(1)(a) If the funding unit is a city, local, or exempted village school district, the district's state share, which is equal to the following:
(i) For fiscal years 2022 and 2023, the amount calculated under division (B) of section 3317.017 of the Revised Code;
(ii) For fiscal year 2024 and each fiscal year thereafter, an amount calculated in a manner determined by the general assembly.
(b) If the funding unit is the community and STEM school unit, the aggregate base cost for all schools in that unit, which is equal to the following:
(i) For fiscal years 2022 and 2023, the amount calculated under section 3317.0110 of the Revised Code;
(ii) For fiscal year 2024 and each fiscal year thereafter, an amount calculated in a manner determined by the general assembly.
(2) If the funding unit is a city, local, or exempted village school district, targeted assistance funds equal to the following:
(a) For fiscal years 2022 and 2023, an amount calculated under section 3317.0217 of the Revised Code;
(b) For fiscal year 2024 and each fiscal year thereafter, an amount calculated in a manner determined by the general assembly.
(3) If the funding unit is a city, local, or exempted village school district or the community and STEM school unit, additional state aid for special education and related services provided under Chapter 3323. of the Revised Code calculated as follows:
(a) For fiscal years 2022 and 2023, the sum of the following:
(i) The funding unit's category one special education ADM X the multiple specified in division (A) of section 3317.013 of the Revised Code X the statewide average base cost per pupil for that fiscal year X if the funding unit is a city, local, or exempted village school district, the district's state share percentage;
(ii) The funding unit's category two special education ADM X the multiple specified in division (B) of section 3317.013 of the Revised Code X the statewide average base cost per pupil for that fiscal year X if the funding unit is a city, local, or exempted village school district, the district's state share percentage;
(iii) The funding unit's category three special education ADM X the multiple specified in division (C) of section 3317.013 of the Revised Code X the statewide average base cost per pupil for that fiscal year X if the funding unit is a city, local, or exempted village school district, the district's state share percentage;
(iv) The funding unit's category four special education ADM X the multiple specified in division (D) of section 3317.013 of the Revised Code X the statewide average base cost per pupil for that fiscal year X if the funding unit is a city, local, or exempted village school district, the district's state share percentage;
(v) The funding unit's category five special education ADM X the multiple specified in division (E) of section 3317.013 of the Revised Code X the statewide average base cost per pupil for that fiscal year X if the funding unit is a city, local, or exempted village school district, the district's state share percentage;
(vi) The funding unit's category six special education ADM X the multiple specified in division (F) of section 3317.013 of the Revised Code X the statewide average base cost per pupil for that fiscal year X if the funding unit is a city, local, or exempted village school district, the district's state share percentage.
(b) For fiscal year 2024 and each fiscal year thereafter, the sum of the following:
(i) An amount calculated in a manner determined by the general assembly times the funding unit's category one special education ADM;
(ii) An amount calculated in a manner determined by the general assembly times the funding unit's category two special education ADM;
(iii) An amount calculated in a manner determined by the general assembly times the funding unit's category three special education ADM;
(iv) An amount calculated in a manner determined by the general assembly times the funding unit's category four special education ADM;
(v) An amount calculated in a manner determined by the general assembly times the funding unit's category five special education ADM;
(vi) An amount calculated in a manner determined by the general assembly times the funding unit's category six special education ADM.
(4) If the funding unit is a city, local, or exempted village school district or the community and STEM school unit, disadvantaged pupil impact aid calculated according to the following formula:
(a) If the funding unit is a city, local, or exempted village school district, an amount equal to the following:
(i) For fiscal years 2022 and 2023, the following product:
$422 X (the district's economically disadvantaged index) X the number of students who are economically disadvantaged as certified under division (B)(21) of section 3317.03 of the Revised Code
(ii) For fiscal year 2024 and each fiscal year thereafter, an amount calculated in a manner determined by the general assembly.
(b) If the funding unit is the community and STEM school unit, an amount equal to the following:
(i) For fiscal years 2022 and 2023, an amount calculated as follows:
(I) For each student in the funding unit's enrolled ADM who is economically disadvantaged and is not enrolled in an internet- or computer-based community school, multiply $422 by the economically disadvantaged index of the school in which the student is enrolled;
(II) Compute the funding unit's disadvantaged pupil impact aid by calculating the sum of the amounts determined under division (A)(4)(b)(i)(I) of this section.
(ii) For fiscal year 2024 and each fiscal year thereafter, an amount calculated as follows:
(I) For each student in the funding unit's enrolled ADM who is economically disadvantaged and is not enrolled in an internet- or computer-based community school, calculate an amount in the manner determined by the general assembly;
(II) Compute the funding unit's disadvantaged pupil impact aid by calculating the sum of the amounts determined under division (A)(4)(b)(ii)(I) of this section.
(5) If the funding unit is a city, local, or exempted village school district or the community and STEM school unit, English learner funds calculated as follows:
(a) For fiscal years 2022 and 2023, the sum of the following:
(i) The funding unit's category one English learner ADM X the multiple specified in division (A) of section 3317.016 of the Revised Code X the statewide average base cost per pupil for that fiscal year X if the funding unit is a city, local, or exempted village school district, the district's state share percentage;
(ii) The funding unit's category two English learner ADM X the multiple specified in division (B) of section 3317.016 of the Revised Code X the statewide average base cost per pupil for that fiscal year X if the funding unit is a city, local, or exempted village school district, the district's state share percentage;
(iii) The funding unit's category three English learner ADM X the multiple specified in division (C) of section 3317.016 of the Revised Code X the statewide average base cost per pupil for that fiscal year X if the funding unit is a city, local, or exempted village school district, the district's state share percentage.
(b) For fiscal year 2024 and each fiscal year thereafter, the sum of the following:
(i) An amount calculated in a manner determined by the general assembly times the funding unit's category one English learner ADM;
(ii) An amount calculated in a manner determined by the general assembly times the funding unit's category two English learner ADM;
(iii) An amount calculated in a manner determined by the general assembly times the funding unit's category three English learner ADM.
(6)(a) For fiscal years 2022 and 2023, if the funding unit is a city, local, or exempted village school district, all of the following:
(i) Gifted identification funds calculated according to the following formula:
$24 X the district's enrolled ADM for grades kindergarten through six X the district's state share percentage
(ii) Gifted referral funds calculated according to the following formula:
$2.50 X the district's enrolled ADM X the district's state share percentage
(iii) Gifted professional development funds calculated according to the following formula:
(The greater of the number of gifted students enrolled in the district as certified under division (B)(22) of section 3317.03 of the Revised Code and ten per cent of the district's enrolled ADM) X the district's state share percentage X $7, for fiscal year 2022, or $14, for fiscal year 2023
(iv) Gifted unit funding calculated under section 3317.051 of the Revised Code.
(b) For fiscal year 2024 and each fiscal year thereafter, all of the following:
(i) Gifted identification funds calculated in a manner determined by the general assembly;
(ii) Gifted referral funds calculated in a manner determined by the general assembly, if the general assembly authorizes such a payment;
(iii) Gifted professional development funds calculated in a manner determined by the general assembly, if the general assembly authorizes such a payment;
(iv) Gifted unit funding calculated in an amount determined by the general assembly.
(7) If the funding unit is a city, local, or exempted village school district or the community and STEM school unit, career-technical education funds calculated under division (C) of section 3317.014 of the Revised Code.
(8) If the funding unit is a city, local, or exempted village school district or the community and STEM school unit, career-technical education associated services funds calculated under division (D) of section 3317.014 of the Revised Code.
(9) If the funding unit is the community and STEM school unit, an amount calculated as follows:
(a) For fiscal years 2022 and 2023, an amount equal to the following:
[The number of students in the funding unit's enrolled ADM who are reported under division (B)(5) of section 3314.08 of the Revised Code X (the aggregate base cost calculated for all schools in the funding unit for that fiscal year under section 3317.0110 of the Revised Code / the funding unit's enrolled ADM) X.20]
(b) For fiscal year 2024 and each fiscal year thereafter, an amount calculated in a manner determined by the general assembly.
(10) If the funding unit is the educational choice scholarship unit, an amount calculated as follows:
(a) For each student in the funding unit's enrolled ADM, determine the lesser of the following:
(i) The base tuition of the chartered nonpublic school in which the student is enrolled minus the total amount of any applicable tuition discounts for which the student qualifies;
(ii) $5,500, if the student is in grades kindergarten through eight, or $7,500, if the student is in grades nine through twelve.
The amounts specified in division (A)(10)(a)(ii) of this section shall increase in future fiscal years by the same percentage that the statewide average base cost per pupil increases in future fiscal years.
(b) Compute the sum of the amounts calculated under division (A)(10)(a) of this section.
(11) If the funding unit is the pilot project scholarship unit, an amount calculated as follows:
(a) For each student in the funding unit's enrolled ADM, determine the lesser of the following:
(i) The net tuition charges of the student's alternative school;
(ii) $5,500, if the student is in grades kindergarten through eight, or $7,500, if the student is in grades nine through twelve.
The amounts specified in division (A)(11)(a)(ii) of this section shall increase in future fiscal years by the same percentage that the statewide average base cost per pupil increases in future fiscal years.
For purposes of division (A)(11)(a) of this section, the net tuition and fees charged to a student shall be the tuition amount specified by the alternative school minus all other financial aid, discounts, and adjustments received for the student. In cases where discounts are offered for multiple students from the same family, and not all students in the same family are scholarship recipients, the net tuition amount attributable to the scholarship recipient shall be the lowest net tuition to which the family is entitled.
The department shall provide for an increase in the amount determined for any student who is an LRE student with a disability and shall further increase such amount in the case of any separately educated student with a disability, as that term is defined in section 3313.974 of the Revised Code. Such increases shall take into account the instruction, related services, and transportation costs of educating such students.
(b) Compute the sum of the amounts calculated under division (A)(17)(a) of this section.
(12) If the funding unit is the autism scholarship unit, an amount calculated as follows:
(a) For each student in the funding unit's enrolled ADM, determine the lesser of the following:
(i) The tuition charged for the student's special education program, as that term is defined in section 3310.41 of the Revised Code;
(ii) $31,500, for fiscal year 2022, and $32,445, for fiscal year 2023 and each fiscal year thereafter.
(b) Compute the sum of the amounts calculated under division (A)(12)(a) of this section.
(13) If the funding unit is the Jon Peterson special needs scholarship unit, an amount calculated as follows:
(a) For each student in the funding unit's enrolled ADM, determine the least of the following:
(i) The amount of fees charged for that school year by the student's alternative public provider or registered private provider, as those terms are defined in section 3310.51 of the Revised Code;
(ii) $6,217, for fiscal year 2022, and $6,414, for fiscal year 2023, plus an amount determined as follows:
(I) If the student is receiving special education services for a disability specified in division (A) of section 3317.013 of the Revised Code, $1,514, for fiscal year 2022, and $1,562, for fiscal year 2023;
(II) If the student is receiving special education services for a disability specified in division (B) of section 3317.013 of the Revised Code, $3,841, for fiscal year 2022, and $3,963, for fiscal year 2023;
(III) If the student is receiving special education services for a disability specified in division (C) of section 3317.013 of the Revised Code, $9,465, for fiscal year 2022, and $9,522, for fiscal year 2023;
(IV) If the student is receiving special education services for a disability specified in division (D) of section 3317.013 of the Revised Code, $12,644, for fiscal year 2022, and $12,707, for fiscal year 2023;
(V) If the student is receiving special education services for a disability specified in division (E) of section 3317.013 of the Revised Code, $17,193, for fiscal year 2022, and $17,209, for fiscal year 2023;
(VI) If the student is receiving special education services for a disability specified in division (F) of section 3317.013 of the Revised Code, $24,591, for fiscal year 2022, and $25,370, for fiscal year 2023.
(iii) $27,000.
The amount specified for fiscal year 2023 in division (A)(13)(a)(ii) of this section shall increase in future fiscal years by the same percentage that the statewide average base cost per pupil increases in future fiscal years.
The amounts specified for fiscal year 2023 in divisions (A)(13)(a)(ii)(I) to (VI) of this section shall increase in future fiscal years by the same percentage that the amounts calculated by the general assembly for those categories of special education services under division (A)(3) of this section increase in future fiscal years.
(b) Compute the sum of the amounts calculated under division (A)(13)(a) of this section.
(B) In any fiscal year, a funding unit that is a city, local, or exempted village school district shall spend for purposes that the department designates as approved for special education and related services expenses at least the amount calculated as follows:
(The base cost per pupil calculated for the district for that fiscal year X the total special education ADM) + (the district's category one special education ADM X the multiple specified in division (A) of section 3317.013 of the Revised Code X the statewide average base cost per pupil) + (the district's category two special education ADM X the multiple specified in division (B) of section 3317.013 of the Revised Code X the statewide average base cost per pupil) + (the district's category three special education ADM X the multiple specified in division (C) of section 3317.013 of the Revised Code X the statewide average base cost per pupil) + (the district's category four special education ADM X the multiple specified in division (D) of section 3317.013 of the Revised Code X the statewide average base cost per pupil) + (the district's category five special education ADM X the multiple specified in division (E) of section 3317.013 of the Revised Code X the statewide average base cost per pupil) + (the district's category six special education ADM X the multiple specified in division (F) of section 3317.013 of the Revised Code X the statewide average base cost per pupil)
The purposes approved by the department for special education expenses shall include, but shall not be limited to, identification of children with disabilities, compliance with state rules governing the education of children with disabilities and prescribing the continuum of program options for children with disabilities, provision of speech language pathology services, and the portion of the school district's overall administrative and overhead costs that are attributable to the district's special education student population.
(C) A funding unit that is a city, local, or exempted village school district shall spend the funds it receives under division (A)(4) of this section in accordance with section 3317.25 of the Revised Code.
(D)(1) Except as provided in division (B) of section 3317.026 of the Revised Code, the department shall distribute to each community school established under Chapter 3314. of the Revised Code and to each STEM school established under Chapter 3326. of the Revised Code, from the funds paid to the community and STEM school unit under this section, an amount for each student enrolled in the school equal to the sum of the following:
(a) The school's base cost per pupil for that fiscal year, calculated as follows:
(i) For fiscal years 2022 and 2023:
The aggregate base cost calculated for the school for that fiscal year under section 3317.0110 of the Revised Code / the number of students enrolled in the school for that fiscal year
(ii) For fiscal year 2024 and each fiscal year thereafter, an amount determined by the general assembly under division (A)(1)(b)(ii) of this section divided by the number of students enrolled in the school for that fiscal year.
(b) If the student is a special education student:
(i) For fiscal years 2022 and 2023, the multiple specified for the student's special education category under section 3317.013 of the Revised Code times the statewide average base cost per pupil;
(ii) For fiscal year 2024 and each fiscal year thereafter, the amount calculated for the student's special education category in a manner determined by the general assembly under division (A)(3)(b) of this section.
(c) If the school is not an internet- or computer-based community school and the student is economically disadvantaged:
(i) For fiscal years 2022 and 2023, the amount calculated for the student under division (A)(4)(b)(i)(I) of this section;
(ii) For fiscal year 2024 and each fiscal year thereafter, an amount calculated for the student in the manner determined by the general assembly under division (A)(4)(b)(ii)(I) of this section.
(d) If the school is not an internet- or computer-based community school and the student is an English learner:
(i) For fiscal years 2022 and 2023, the multiple specified for the student's English learner category under section 3317.016 of the Revised Code times the statewide average base cost per pupil;
(ii) For fiscal year 2024 and each fiscal year thereafter, the amount calculated for the student's special education category in a manner determined by the general assembly under division (A)(5)(b) of this section.
(e) If the student is a career-technical education student:
(i) For fiscal years 2022 and 2023, the multiple specified for the student's career-technical education category under section 3317.014 of the Revised Code times the statewide average career-technical base cost per pupil;
(ii) For fiscal year 2024 and each fiscal year thereafter, the amount calculated for the student's career-technical education category in a manner determined by the general assembly under section 3317.014 of the Revised Code.
(f) If the student is a career-technical education student:
(i) For fiscal years 2022 and 2023, the multiple for career-technical associated services specified under section 3317.014 of the Revised Code times the statewide average career-technical base cost per pupil;
(ii) For fiscal year 2024 and each fiscal year thereafter, the amount calculated for career-technical associated services in a manner determined by the general assembly under section 3317.014 of the Revised Code.
(2) The department shall distribute to each community school established under Chapter 3314. of the Revised Code and to each STEM school established under Chapter 3326. of the Revised Code, from the funds paid to the community and STEM school unit under this section, an amount equal to the amount calculated for the school under division (A)(9) of this section.
(E) The department shall distribute to the parent of each student for whom an educational choice scholarship is awarded under section 3310.03 or 3310.032 of the Revised Code, or to the student if at least eighteen years of age, from the funds paid to the educational choice scholarship unit under this section, a scholarship equal to the amount calculated for the student under division (A)(10)(a) of this section. The scholarship shall be distributed in monthly partial payments, and the department shall proportionately reduce or terminate the payments for any student who withdraws from a chartered nonpublic school prior to the end of the school year.
For purposes of divisions (E) and (F) of this section, in the case of a student who is not living with the student's parent, the department shall distribute the scholarship payments to the student's guardian, legal custodian, kinship caregiver, foster caregiver, or caretaker. For the purposes of this division, "caretaker" has the same meaning as in section 3310.033 of the Revised Code, "kinship caregiver" has the same meaning as in section 5101.85 of the Revised Code, and "foster caregiver" has the same meaning as in section 5103.02 of the Revised Code.
(F) If a student is awarded a pilot project scholarship under sections 3313.974 to 3313.979 of the Revised Code, the department shall distribute to the parent of the student, if the student is attending a registered private school as defined in section 3313.974 of the Revised Code, or the student's school district of attendance, if the scholarship is to be used for payments to a public school in a school district adjacent to the pilot project school district pursuant to section 3327.06 of the Revised Code, a scholarship from the funds paid to the pilot project scholarship unit under this section that is equal to the amount calculated for the student under division (A)(11)(a) of this section.
In the case of a scholarship distributed to a student's parent, the scholarship shall be distributed in monthly partial payments. The scholarship amount shall be proportionately reduced in the case of any such student who is not enrolled in a registered private school, as that term is defined in section 3313.974 of the Revised Code, for the entire school year.
In the case of a scholarship distributed to a student's school district of attendance, the department shall, on behalf of the student's parents, use the scholarship to make the tuition payments required by section 3327.06 of the Revised Code to the student's school district of attendance, except that, notwithstanding sections 3323.13, 3323.14, and 3327.06 of the Revised Code, the total payments in any school year shall not exceed the scholarship amount calculated for the student under division (A)(11)(a) of this section.
(G) The department shall distribute to the parent of each student for whom an autism scholarship is awarded under section 3310.41 of the Revised Code, from the funds paid to the autism scholarship unit under this section, a scholarship equal to the amount calculated for the student under division (A)(12)(a) of this section. The scholarship shall be distributed from time to time in partial payments. The scholarship amount shall be proportionately reduced in the case of any student who is not enrolled in the special education program for which a scholarship was awarded under section 3310.41 of the Revised Code for the entire school year. The department shall make no payments to the parent of a student while any administrative or judicial mediation or proceedings with respect to the content of the student's individualized education program are pending.
(H) The department shall distribute to the parent of each student for whom a Jon Peterson special needs scholarship is awarded under sections 3310.51 to 3310.64 of the Revised Code, from the funds paid to the Jon Peterson special needs scholarship unit under this section, a scholarship equal to the amount calculated for the student under division (A)(13)(a) of this section. The scholarship shall be distributed in periodic payments, and the department shall proportionately reduce or terminate the payments for any student who is not enrolled in the special education program of an alternative public provider or a registered private provider, as those terms are defined in section 3310.51 of the Revised Code, for the entire school year.
(I) For fiscal years 2022 and 2023, a school district shall spend the funds it receives under division (A)(5) of this section only for services for English learners.
(J) For fiscal years 2022 and 2023, a school district shall spend the funds it receives under division (A)(6) of this section only for the identification of gifted students, gifted coordinator services, gifted intervention specialist services, other service providers approved by the department of education, and gifted professional development. For fiscal years 2022 and 2023, if the department determines that a district is not in compliance with this division, it shall reduce the district's payments for that fiscal year under this chapter by an amount equal to the amount paid to the district for that fiscal year under division (A)(6) of this section that was not spent in accordance with this division.
Last updated January 13, 2023 at 12:30 PM

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