17% of that amount goes to the school district.  The remaining 83% is divided between the district and the higher education institutions based on where the student takes classes.  

Through ORC 3365, the state sets the price-tag for cost - between $40 - $160 a credit hour.  There are default amounts based on where and how the course is delivered.  If a student takes a college class on the campus or online with the college instructor, the default amount is $160; if the class is in the high school taught by the college instructor, the default is $80; if the class is in the high school taught by a high school teacher credentialed by the college, the default is $40.  

Some area higher education institutions have made agreements with local school districts to accept something other than the default amount established per delivery mode.  For example, a higher education institution might agree to accept $40 per credit hour regardless of delivery mode.  

Also, schools cannot charge students (nor districts) any additional fees or costs.  So, in the past, a higher education institution could collect an application fee from a PSEO student applying to participate.  Now they cannot.   That's important, because students can apply to as many colleges and universities as they want - for free - and those applications need to be processed.  Students need to complete any required placement testing.   Colleges and universities are absorbing these costs.   

The state default amounts are generally much less than what a college or university would receive per credit hour for a fully matriculated student.   

The districts and non public schools with students participating are responsible for textbook costs.  I have a feeling the state will need to examine whether it provides additional funding to districts to help offset these costs.  

Higher education institutions are receiving compensation from the state for educating a district's students.   I would not characterize it as the districts "paying" the colleges.   As I wrote at the beginning, it's a pie that is being divided by the state based on what institutions are educating a student.  

Overall, I think it's a tremendous opportunity for many students and a fantastic way to build partnerships between institutions of higher education and districts.   But I also think it's an incredibly complex program with ramifications that we are only beginning to discuss.