The bill establishes the Nonchartered Educational Savings Account Program in Ohio, set to commence in the 2026-2027 school year. It introduces new definitions related to the program, such as "participating school," "scholarship account," and "resident district," and allows parents to create educational savings accounts for their children to purchase educational goods and services, including tuition at nonchartered nonpublic schools. The treasurer of state will administer the program, with funding transferred from the department of education and workforce. The bill also outlines the application process for parents, mandates record-keeping for participating schools, and includes provisions for due process in cases of noncompliance.

Additionally, the bill modifies existing laws regarding school funding calculations, particularly focusing on Average Daily Membership (ADM) metrics and introducing new definitions and funding mechanisms for various educational units, including a nonchartered educational savings account unit. It specifies the calculation of scholarship amounts based on family income and mandates that the department of education and workforce handle these calculations. The bill also introduces a nonrefundable tax credit for taxpayers with dependents attending nonchartered nonpublic schools, while appropriating $51 million from the General Revenue Fund for foundation funding for students in fiscal year 2027. Overall, the legislation aims to enhance educational options for families while ensuring accountability and compliance with educational standards.

Statutes affected:
As Introduced: 3317.02, 3317.022, 3317.03, 5747.75