Briefing Document: Ohio Senate Bill No. 68 – Nonchartered Educational Savings Account Program
Purpose: Ohio Senate Bill No. 68 aims to establish the Nonchartered Educational Savings Account Program.
Key Provisions:
- Program Establishment: The program is set to begin operating for the 2026-2027 school year.
- Administration: The treasurer of state will administer the program with the assistance of the department of education and workforce.
- Educational Savings Accounts: The treasurer of state will establish an educational savings account for each participating student.
- Funding: Funds for these accounts will be transferred by the department of education and workforce from the nonchartered educational savings account unit, which is a newly defined funding unit.
- Eligible Use of Funds: Funds in the scholarship account can be used by the parent for tuition and fees at a participating school and for curriculum, textbooks, instructional materials, and supplies.
- Participating Schools: These are nonchartered nonpublic schools that choose to participate in the program. Participating schools must notify the treasurer of state and meet certain requirements, such as maintaining a physical location in Ohio.
- Student Eligibility and Application: Parents of students enrolled in a participating nonchartered nonpublic school can submit an application to the treasurer of state. Eligibility requires the student to be enrolling in grades kindergarten through twelve in a participating school, and the parent must not have claimed certain ineligible tuition tax credits.
- Scholarship Amounts: The scholarship amount for a student will be determined by the department of education and workforce based on a formula that considers the student’s family adjusted gross income.
- Complaint and Compliance Procedures: The department of education and workforce will establish a system for submitting and investigating complaints about alleged violations of the program’s requirements. The treasurer of state will establish due process procedures for individuals and participating schools determined to be noncompliant.
- Oversight: The department of education and workforce will annually verify that participating schools have filed required reports and will request health and fire inspection reports. The department will report to the treasurer on a school’s compliance with minimum education standards and health and safety laws.
Related Amendments:
- The bill amends sections 3317.02, 3317.022, 3317.03, and 5747.75 of the Revised Code.
- Section 5747.75, which pertains to a tax credit for taxpayers with dependents in nonchartered nonpublic schools, is amended to exclude tuition paid from a scholarship account authorized by this program from being considered “eligible tuition expenses” for the tax credit.
Appropriation:
- The act includes an appropriation of $51,000,000 for fiscal year 2027 for Foundation Funding – All Students under the Department of Education and Workforce.
In summary, Senate Bill No. 68 creates a state-funded program to provide educational savings accounts for students attending participating nonchartered nonpublic schools, aiming to support educational choice through direct financial assistance for tuition and other educational expenses, starting in the 2026-2027 school year. The program will be administered by the treasurer of state with oversight from the department of education and workforce.