State of Ohio - Controlling Board Request
30 East Broad Street, 34th Floor
Columbus, Ohio 43215-3457
(614) 466-5721 FAX:(614) 466-3813
Status:  Scheduled
Meeting Date:  6/1/2020




Authorization Requested Pursuant
to Revised Code Section 131.35
Increase Appropriation Authority
Create a New Fund
Establish Appropriation Authority
Fiscal Year(s)
Bill No.
HB 166

Line Item
Line Item Name
FYCurrent Appropriation AmountAmount of Increase or New Fund Total
Appropriation Amount
FED 3HS0 200640 CARES Act School Relief 2020

Paolo DeMaria
Agency Director or Authorized Agent On The Date Of
Date Controlling Board President/OBM Director
Name:  Aaron Rausch Title:  Director, Budget & School Fund
Phone:  (614) 995 - 9936 Fax:  E-Mail:
  The Ohio Department of Education respectfully requests Controlling Board approval to create a new fund, the CARES Act School Relief Fund (Fund 3HS0), and to establish appropriation authority in the amount of $100,000,000 for FY20 and $180,000,000 for FY21 in fund 3HS0, ALI 200640 (CARES Act School Relief) to support the responses to the coronavirus pandemic by Ohio's schools and districts.  
  On March 27, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act, authorizing $2.2 trillion in federal economic aid in response to the COVID-19 pandemic. Part of the act provided relief funding to primary and secondary schools through an overarching Educational Stabilization Fund, with states receiving approximately $13.5 billion under the Elementary and Secondary School Emergency Relief Fund (ESSER Fund) and another $3 billion through the Governor's Emergency Education Relief Fund.

On April 23, the U.S. Department of Education released its State Allocation Table for the ESSER Fund, allocating $489,205,200 of those emergency funds to Ohio. On May 5, Ohio submitted an application to US Department of Education and received approval on May 8. ODE is seeking $100,000,000 in appropriation for FY20 and $180,000,000 for FY21 based on the appropriation limit in ORC 131.35(E). If additional appropriation is needed in FY21, ODE will seek legislative action. Schools can request reimbursement for expenditures from March 13, 2020 through September 30, 2022.

Funding is divided into three parts:
Formula Distribution to Schools and Districts $440,284,680
State Activities $48,920,520
Administration $2,446,026

The largest amount (90%) is allocated by formula to traditional districts and community schools. The formula funds are based on the percentage of Title I funds that a school district receives. Title I funding is distributed based on federal census data, with adjustments for students who leave their traditional district for a community school. A portion of these funds must be set-aside for equitable services for non-public schools. ODE released allocations to traditional districts and community schools on May 4, which are attached to this request. Allocations represent about 85% of Title I awards.

While these funds are allocated using the Title I formula, the allowable uses are not restricted to be used for Title I purposes. The allowable uses of the ESSER funds are fairly broad and include the following:

1. Any allowable activities under existing federal funds including Title funds (ESEA), Special Education (IDEA), Career-Tech (Perkins), and Homeless (McKinney-Vento) grant funding.
2. Coordination of preparedness and response efforts of schools with state and local public health departments, and other relevant agencies, to improve coordinated responses among such entities to prevent, prepare for, and respond to COVID-19.
3. Providing principals and others school leaders with the resources necessary to address the needs of their individual schools.
4. Activities to address the unique needs of low-income children or students, children with disabilities, English learners, racial and ethnic minorities, students experiencing homelessness, and foster care youth.
5. Developing and implementing procedures and systems to improve the preparedness and response efforts of schools.
6. Training and professional development for staff of the school on sanitation and minimizing the spread of infectious diseases.
7. Purchasing supplies to sanitize and clean the facilities of a local educational agency, including buildings operated by such agency.
8. Planning for and coordinating during long-term closures, including for how to provide meals to eligible students, how to provide technology for online learning to all students, how to provide guidance for carrying out requirements for students with disabilities, and how to ensure other educational services can continue to be.
9. Purchasing educational technology (including hardware, software, and connectivity) for students.
10. Providing mental health services and supports.
11. Planning and implementing activities related to summer learning and supplemental after school programs.
12. Other activities that are necessary to maintain the operation of and continuity of services in local educational agencies and continuing to employ existing staff of the local educational agency.

Schools and districts will be able to claim reimbursement for allowable expenditures back to March 13, the date of the federal emergency declaration. On May 15, ODE made an application template available to all districts. Schools and districts can submit applications to ODE beginning May 26. Like all over federal grants from the U.S. Department of Education, funds will be drawn down by school districts on a reimbursement basis. Schools must submit an application, receive approval from ODE, and then submit claims for reimbursement based on the application they submit and allowable uses of the funds. ODE will fast-track applications for schools who need to draw down funds prior to the close of FY20. Many schools will use these funds over the next year, or longer. The period of availability for these funds is through September 30, 2022.

While the formula portion of the grant is most critical to disburse, a significant amount of funding is set-aside for state activities ($48.9 million). These activities include the same allowable uses as the formula funds to school districts, but may take a statewide approach in Ohio's response to COVID-19. ODE is working closely with the Governor's Office and external stakeholders on how best to make use of these funds. Ohio will report to the U.S. Department of Education within 60 on how these funds will be used. Possible uses include supporting a remote K-12 learning infrastructure, supporting the whole child - especially Ohio's most vulnerable students, and immediate costs associated with planning for education recovery and school re-opening. Because Joint Vocational School Districts (JVSDs) and Educational Service Centers (ESCs) do not receive Title I funds, they are not automatically entitled to CARES Act funding. ODE is working to determine how best to support JVSDs and ESCs, who are also working to respond to the pandemic, which may include a portion of the state activity funds.
Attachments Controlling Board Request No.: EDU0100429
Attachment TypeAttachment Description
Catalogue of Federal Domestic Assistance (CFDA) excerpt CFDA Number 84.425D
Subsidy Distribution Information Emergency Relief Fund - Allocation

Fund/Appropriation Request 
Required Information
Controlling Board Request No.: EDU0100429
1. Identify the source of additional revenue (e.g., increase in fee, increase in state or federal grants, etc.).
  New Federal Grant Award funded by The United States Department of Education (USDE).
2. If applicable, explain why creating and/or increasing a new fund and/or line item is more appropriate than depositing the revenue into an existing fund and increasing the appropriation authority of an existing line item.
  Ohio has received $489.2 million from the Coronavirus Aid, Relief and Economic Security (CARES) Act. The new fund is necessary to comply with the federal cash management regulations, which require segregation of federal funds for improved accountability.
Time line: Has the revenue been received? No
When is the revenue expected to become available? Funds will be drawn down as expenses are incurred.
4. For federal funds only, provide the following information:
a. Grant identification number from the Catalog of Federal Domestic Assistance: 84.425D
b. Amount of state matching funds required: 0
c. Source (appropriation line item) of that match: N/A
d. Statutory or executive authority for participation in the program:
U.S. Department of Education Education Stabilization Fund Program Elementary and Secondary School Emergency Relief Fund (ESSER Fund).
  Include a brief summary of the text or a copy of the reference.  
5. How will the additional appropriation and/or cash be used?
  Appropriation will be used to primarily support grants to local school districts as they respond to the COVID-19 pandemic. Grants can be used for a number of allowable uses to support the direct response of the pandemic as well as continuation of services and activities. A portion of the funds will be set-aside to support state level activities and projects.
  Provide the following information below relative to this budgetary adjustment. NOTE: If a new fund and new appropriation authority are being requested, the "Current" and "Requested" columns are not required.
Account Category Account Category Description Current Appropriation Authority Requested Increase in Appropriation Total Appropriation Authority
500   Personal Services - Payroll   $0.00   $0.00   $0.00
510   Purchases Personal Services and Others   $0.00   $15,000,000.00   $15,000,000.00
520   Supplies and Maintenance   $0.00   $0.00   $0.00
530   Equipment   $0.00   $0.00   $0.00
550   Subsidies and Shared Revenue   $0.00   $265,000,000.00   $265,000,000.00
570   Capital Items   $0.00   $0.00   $0.00
590   Judgements, Settlements and Bonds   $0.00   $0.00   $0.00
Other   Other   $0.00   $0.00   $0.00
Total: $0.00 $280,000,000.00 $280,000,000.00
6. For each additional amount shown in the table, provide a short description of what the dollars will be used to accomplish. For example, if increasing a subsidy account category, provide detail on the added recipients or the allocation formula for distribution of moneys. For Account Category 500, respond to specific questions in number 9 below.
Account Category Short Description
510 A portion of the funds may be used to support statewide initiatives and activities.
550 Grant payments to local school districts.
7. Will this transfer be used to maintain current service levels, expand an existing program or activity, or begin a new program? Explain.
  Appropriation will support a new grant to local school districts under the CARES Act and support local school districts as they respond to the COVID-19 pandemic.
8. Based upon the response to number 7, explain how these services or programs would have been funded if this
additional funding were not available.
  The funding is in response for emergency aid necessary to address of the COVID-19 pandemic. While there is not a prohibition to supplant existing expenditures/obligations, we expect much of the funding will be used to cover new expenses schools are facing as a result of the ordered school-building closure and remote learning environments.
9. Account Category 500-Personal Services:
a. Explain why changes are being requested in the personal services account category 500.
b. How many existing staff are being affected by this transfer? 0
What appropriation line item are they currently being paid?  None
c. How would these existing staff have been affected if these additional funds were not available?
d. Will new staff be hired as a result of the additional funds?  No
10.  List any other transfers involving these appropriation line items and/or cash approved by the Controlling Board in the current biennium, including the date and requested amount of the adjustment(s).
ALITransfer DateTransfer AmountCBR Number