3301-105-01. Funding for educational service centers

(A) As used in this rule:

(1) "Client" means any city, exempted village, local, or joint vocational school district or community school that has entered into an agreement under section 3313.843 (primary contract), 3313.844 (community school contract), or 3313.845 (fee-for-service contract) of the Revised Code to receive services from an educational service center.

(2) "Primary services" means the five services provided by an educational service center to its clients that the service center selects to demonstrate cost savings for purposes of this rule. "Primary services" may include services provided to clients by a regional council of government established under Chapter 167. of the Revised Code, if the educational service center is a member of the council and has contracted with the council for provision of those services

(3) "Student count" means the sum of the average daily student enrollment for each of an educational service center's clients for the previous fiscal year.

(B) Beginning in fiscal year 2017, any educational service center may apply to the department of education in accordance with paragraph (C) of this rule to be designated as a high-performing educational service center. The department shall determine, for each educational service center submitting an application, the total percentage of cost savings generated for the service center's clients in the previous fiscal year due to the clients receiving primary services from the service center instead of another source. The department shall designate each educational service center that generated cost savings for its clients of at least five per cent as a high-performing educational service center.

(C) Application process:

(1) An educational service center may seek designation as a high-performing educational service center by submitting an application to the department by August thirty-first of the fiscal year in which designation is sought.

(2) The application shall include all of the following information for the previous fiscal year:

(a) A brief description of the primary services selected by the educational service center;

(b) A list of the clients that received each of the primary services;

(c) The actual amount of money that each client saved by electing to receive the primary service from the educational service center instead of providing the service itself or through another vendor; and

(d) Evidence to support the amount of cost savings.

(3) Cost savings shall be calculated based on the price charged to the client by the educational service center for a primary service.

(4) The department shall notify educational service centers by October thirty-first whether they have been designated as high-performing or not.

(D) Payments

(1) In fiscal year 2017, the department shall pay each educational service center designated as high-performing state funds equal to thirty-five dollars times the service center's student count and shall pay each other educational service center state funds equal to thirty-three dollars times the service center's student count.

(2) In subsequent fiscal years, the department shall pay each educational service center designated as high-performing and each other educational service center the amount specified in the applicable appropriations act times the service center's student count.

(3) If the amount earmarked for payments to educational service centers is not sufficient to pay the amounts specified in paragraph (D)(1) or (D)(2) of this rule, the department shall prorate the payment amounts so that the appropriation is not exceeded.

(4) The department shall adjust payments to high-performing educational service centers beginning with the first payment in December of the applicable fiscal year.

Effective: 6/13/2016
Five Year Review (FYR) Dates: 06/13/2021
Promulgated Under: 119.03
Statutory Authority: Section 263.390 of Am. Sub. HB 64
Rule Amplifies: Section 263.390 of Am. Sub. HB 64