Finance and Funding FAQs

Foundation Payment

Foundation Payment

    What is the schedule and payment proportions for Auxiliary Service payments?
    • August/September - ¼ Estimated
    • November - ¼ Estimated
    • February - ½ Actual

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    What is the schedule and payment proportion for Administrative Cost Reimbursement payments?
    • November - 1/3
    • February - 1/3
    • April - 1/3

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    How will the equalization payments for half-mill school facilities maintenance levies work?

    For districts that entered into a maintenance agreement between July 1,1997 and July 1, 2006, we will calculate a valuation per pupil figure for each district and the state average valuation per pupil using tax year 2005 values and October 2005 formula ADM. These calculations will be provided to OSFC. On or before July 1 of each year beginning in 2007 we will compute the statewide average valuation per pupil and the valuation per pupil for each district that has not already entered into a project agreement and provide these to the OSFC.

    At the time the OSFC enters into a project agreement with a district, if the district’s valuation per pupil is less than the state average it will compute the difference between the district’s valuation per pupil and the state average, multiply that difference by ½ mill and then by the district’s formula ADM. This is the amount of aid the OSFC will certify along with the ending date of the maintenance agreement to ODE. For districts that entered into agreements between 7/1/97 and 7/1/06 the same type calculation will be made using the data described above in the first paragraph.

    In the fourth quarter of each fiscal year, ODE will pay the amounts calculated above to each eligible district. Payments will be made for each year including the year in which the district’s maintenance levy requirement terminates. Payments will be made from the half mill equalization fund, subject to appropriation by the General Assembly.

    Payments made to districts are to be credited to the district’s classroom facilities maintenance fund and can only be used for the purpose of maintaining facilities constructed or renovated under the project agreement.

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    What is the impact of the changes in tangible personal property taxation on hold harmless payments for the impact of electric deregulation?

    Reimbursement for loss of tax revenue due to electric deregulation has come to you in two parts. First, your SF-3 funding is larger than it would have been had deregulation not taken place to reduce your charge-off valuation. Also, the rest of the loss not covered by the increase in SF-3 funding is paid in two direct payments each year that are not a part of the SF-3. Therefore, since these direct payments are not a part of the SF-3, they are not included in the transitional aid guarantee base.

    The phase out of the tangible personal property tax from TY2006 to TY2011 should not have an effect on the calculation of your electric deregulation reimbursement. The loss will be reimbursed with a combination of increases in SF-3 aid over what would have been received had deregulation not occurred. However, whether you remain eligible for reimbursement may be affected by the drop in tangible personal property. The deregulation provisions state that beginning in October 2006 and through 2016, ODE will determine for each district whether the increase in SF-3 aid from FY2002 to the current fiscal year is greater than the value of the property tax loss adjusted for inflation from January 1, 2002 to June 30th of the current year. If it is greater, no further deregulation payments will be made. If it is not, ODE will calculate and pay the deregulation payment. Therefore, the reduction in tangible value could cause a district’s SF-3 aid to increase enough to make the increase from 2002 to the current year to be larger that the inflation adjusted property tax loss and make them ineligible for more aid.

    After FY2016 no fixed rate reimbursements will be made.

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    Why are the valuation figures ODE uses in my charge off sometimes different than the ones I received from my county auditor?

    If there is a difference it is usually because the figures from the county auditor include the value of the first $10,000 of tangible personal property that is exempt from taxation while the figures certified by the Taxation Department are slightly lower to reflect the fact that the state reimbursement of the loss due to this exemption is being phased out. Other differences could be due to adjustments in the abstract that the auditors make after they provide data to school districts.

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    How much revenue does my district get from Ohio Lottery profits?

    The Ohio Constitution established in 1987 the Lottery Profits Education Fund, which may be used only for the support of elementary, secondary, vocational and special education programs. Ohio Lottery funds consistently represent roughly 5 percent of the total operating funds for these schools.

    Note: Lottery funds are combined with other funds in paying for basic, foundational school aid. The figure stated as the amount of basic aid received by your school from lottery profits is an estimate based upon a calculation, not an actual revenue line-item.

    In fiscal year 2005, the appropriation to the Lottery Profits Education Fund was $639.9 million. Of that amount, $606.2 million was designated to support base-cost funding, which includes such items as basic aid, special education weighted funding, vocational education weighted funding and educational service centers. The balance of the appropriation was designated for the retirement of bonds used to support school construction.

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Last Modified: 4/23/2013 9:44:57 AM