About 167 residential facilities in Ohio serve approximately 7,000 youth on any given day. Youth are placed in residential facilities because they have committed a crime or have behavioral problems. An "education provider" operates an on-grounds school in most facilities. Because of ongoing concerns about education funding for youth in these facilities, the Legislative Committee on Education Oversight asked the Legislative Office of Education Oversight to conduct a study of the issue. Research shows that there is no "system" for funding education programs in residential facilities. The amount of funding education providers receive varies widely because they have access to different sources of state and local funding. The education programs in over 100 facilities are not required to follow any education standards. Recommendations include evaluating the Private Treatment Facility Pilot Project, developed in 1993, to determine its effectiveness and whether its funding and monitoring processes should apply to all residential facilities in Ohio, convening a task force to recommend a new education funding system, and improving communication between residential facilities and the Ohio Department of Education. Appendices contain a descriptive list of residential facilities, a map showing their locations, and education program criteria for private residential treatment facilities. (RT)