07/05/2021
LEGISLATIVE UPDATE: HB110 - STATE BIENNIUM BUDGET
The State of Ohio has enacted its biennium (2-year) budget (HB 110) effective 6/30/21. This is always a comprehensive piece of legislation that includes changes in permanent law as well as financial support for all aspects of state policy. The enrolled version is 2438 pages in length.
There are several changes in law in HB 110 that affect home educating families, effective immediately. This update will provide details on 2 of these changes. The remaining policies will be described in a separate update because they affect families who are leaving the home education experience to enroll their children in public or nonpublic schools.
Here is a link to the bill so you can look up the relevant page numbers and review the information in the text of the bill. Underlined language is NEW language.
https://search-prod.lis.state.oh.us/solarapi/v1/general_assembly_134/bills/hb110/EN/07/hb110_07_EN?format=pdf
CHEO’S position on both of these policy issues is a neutral position. As stand-alone policies, there are no ties to the parameters of our state regulations. Both of these policies are voluntary in nature on the part of the home educating parent.
RC Section 5747.72(A) on pp. 1919-1920
Tax credit for education expenses used directly for education expenses for students who have been excused from compulsory attendance for the purpose of home education. The amount allowed as a tax credit is $250 per taxpayer for whom the student is a dependent (per taxable year).
Allowable expenses are: books, supplementary materials, supplies, computer software, applications, or subscriptions. Expenses not allowed to be used as a tax credit are computers or similar electronic devices or accessories thereto.
Please note that this is a credit, not a tax deduction.
The Ohio Tax Commissioner is permitted (not required) to request that a qualifying taxpayer claiming a credit furnish information (i.e. receipts for purchase) as necessary to support the claim for the tax credit.
RC Section 3310.70 paragraphs (A) through (H) on pp. 747-749
A new savings account program is established for “eligible” students - the Afterschool Child Enrichment (ACE) educational savings account.
This is a temporary funding source Ohio has received from the federal government for “Coronavirus School Relief” and HB110 disperses the funds directly to families on a first come first serve basis. When the funds run out it is finished.
“Eligible student” = age 6-18; family income is below 300% of federal poverty guidelines (see info below); enrolled in a public or nonpublic school; excused from the compulsory attendance law for the purpose of home instruction (aka. home educated)
Amount per student = $500 per year for the next 2 years
What the money can be used for (secular or non-secular):
Before or after school educational programs
Day camps, including camps for academics, music, and arts
Tuition at learning extension centers
Tuition for learning pods
Purchase of curriculum and materials (home educated students only)
Educational, learning, or study skills services
Field trips to historical landmarks, museums, science centers, and theaters, including admission, exhibit, and program fees
Language classes
Instrument lessons
Tutoring
Funds can NOT be used for the purchase of electronic devices
How this program will be set up and function:
1. Before the first week of August the ODE must adopt emergency rules that prescribe the procedures for setting up the ACE account at the request of the parent or guardian of the student.
2. ACE accounts shall be set up on a first come first serve basis according to availability of funds.
3. Before the last week of October the ODE must contract with a vendor to administer the accounts giving preference to vendors who use a smart phone application that is capable of scanning receipts and provides a customer service # for parents who have technical issues.
4. The vendor will monitor how the money is spent and recoup money used for purposes not authorized. They will also provide a list to the ODE of purchases made with the accounts.
5. If a parent requests an account and the funds are available, the account shall be front loaded with $500 within 14 days of the request and that money shall be used no later than the following June 30.
6. The funds must be deposited into ACE accounts no later than Dec. 31, 2021 for FY2022.
Source of funds: Appropriation #200-640 Federal Coronavirus School Relief
FY2022 (July 1, 2021 - June 30, 2022): $50 million. (At $500 per student, this means a max of 100,000 students.)
FY2023 (July 1, 2022 - June 30, 2023): $75 million (At $500 per student, this means a max of 150,000 students.)
If the first $50 million is not completely spent, it will be re-appropriated for FY2023 (added to the $75 million the following year).
Family income is 300% of the federal poverty guidelines.
https://aspe.hhs.gov/2021-poverty-guidelines
300% means...
family of 4 - $79,500
family of 5 - $93,120
family of 6 - $106,740
family of 7 - $120,360
family of 8 - $133,980
