Bill Text: OH HB504 | 2011-2012 | 129th General Assembly | Introduced

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Bill Title: To revise the method for calculating school district equity rankings for classroom facilities assistance and to declare an emergency.

Spectrum: Moderate Partisan Bill (Republican 8-1)

Status: (Introduced - Dead) 2012-04-04 - To Education [HB504 Detail]

Download: Ohio-2011-HB504-Introduced.html

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As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 504

Representative Huffman 

Cosponsors: Representatives Blair, Buchy, Cera, Derickson, Duffey, Stebelton, Terhar, Thompson 

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A BILL

To amend sections 3318.011 and 3318.36 of the Revised

1

Code to revise the method for calculating school

2

district equity rankings for classroom facilities

3

assistance and to declare an emergency.

4

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 3318.011 and 3318.36 of the Revised	5
Code be amended to read as follows:	6

Sec. 3318.011.  For purposes of providing assistance under	7
sections 3318.01 to 3318.20 of the Revised Code, the department of	8
education shall annually do all of the following:	9

(A) Calculate the adjusted valuation per pupil of each city,	10
local, and exempted village school district according to the	11
following formula:	12

The district's valuation per pupil -	13

[$30,000 X (1 - the district's income factor)].	14

For purposes of this calculation:

15

(1) Except for a district with an open enrollment net gain	16
that is ten per cent or more of its formula ADM, "valuation per	17
pupil" for a district means its average taxable value, divided by	18
its formula ADM for the previous fiscal year. "Valuation per	19
pupil," for a district with an open enrollment net gain that is	20
ten per cent or more of its formula ADM, means its average taxable	21
value, divided by the sum of its formula ADM for the previous	22
fiscal year plus its open enrollment net gain for the previous	23
fiscal year.	24

(2) "AverageExcept for a tangible personal property	25
phase-out impacted district, "average taxable value" means the	26
average of the sum of the amounts certified for a district under	27
divisions (A)(1) and (2) of section 3317.021 of the Revised Code	28
in the second, third, and fourth preceding fiscal years. For a	29
tangible personal property phase-out impacted district, "average	30
taxable value" means the average of the sum of the amounts	31
certified for the district under division (A)(1) and as public	32
utility personal property under division (A)(2) of section	33
3317.021 of the Revised Code in the second, third, and fourth	34
preceding fiscal years.	35

(3) "Entitled to attend school" means entitled to attend	36
school in a city, local, or exempted village school district under	37
section 3313.64 or 3313.65 of the Revised Code.	38

(4) "Formula ADM" and "income factor" have the same meanings	39
as in section 3317.02 of the Revised Code.	40

(5) "Native student" has the same meaning as in section	41
3313.98 of the Revised Code.	42

(6) "Open enrollment net gain" for a district means (a) the	43
number of the students entitled to attend school in another	44
district but who are enrolled in the schools of the district under	45
its open enrollment policy minus (b) the number of the district's	46
native students who are enrolled in the schools of another	47
district under the other district's open enrollment policy, both	48
numbers as certified to the department under section 3313.981 of	49
the Revised Code. If the difference is a negative number, the	50
district's "open enrollment net gain" is zero.	51

(7) "Open enrollment policy" means an interdistrict open	52
enrollment policy adopted under section 3313.98 of the Revised	53
Code.	54

(8) "Tangible personal property phase-out impacted district"	55
means a school district for which the taxable value of its	56
tangible personal property certified under division (A)(2) of	57
section 3317.021 of the Revised Code for tax year 2005, excluding	58
the taxable value of public utility personal property, made up	59
eighteen per cent or more of its total taxable value for tax year	60
2005 as certified under that section.	61

(B) Calculate for each district the three-year average of the	62
adjusted valuations per pupil calculated for the district for the	63
current and two preceding fiscal years;	64

(C) Rank all such districts in order of adjusted valuation	65
per pupil from the district with the lowest three-year average	66
adjusted valuation per pupil to the district with the highest	67
three-year average adjusted valuation per pupil;	68

(D) Divide such ranking into percentiles with the first	69
percentile containing the one per cent of school districts having	70
the lowest three-year average adjusted valuations per pupil and	71
the one-hundredth percentile containing the one per cent of school	72
districts having the highest three-year average adjusted	73
valuations per pupil;	74

(E) Determine the school districts that have three-year	75
average adjusted valuations per pupil that are greater than the	76
median three-year average adjusted valuation per pupil for all	77
school districts in the state;	78

(F) On or before the first day of September, certify the	79
information described in divisions (A) to (E) of this section to	80
the Ohio school facilities commission.	81

Sec. 3318.36.  (A)(1) As used in this section:

82

(a) "Ohio school facilities commission," "classroom	83
facilities," "school district," "school district board," "net	84
bonded indebtedness," "required percentage of the basic project	85
costs," "basic project cost," "valuation," and "percentile" have	86
the same meanings as in section 3318.01 of the Revised Code.	87

(b) "Required level of indebtedness" means five per cent of	88
the school district's valuation for the year preceding the year in	89
which the commission and school district enter into an agreement	90
under division (B) of this section, plus [two one-hundredths of	91
one per cent multiplied by (the percentile in which the district	92
ranks minus one)].	93

(c) "Local resources" means any moneys generated in any	94
manner permitted for a school district board to raise the school	95
district portion of a project undertaken with assistance under	96
sections 3318.01 to 3318.20 of the Revised Code.	97

(d) "Tangible personal property phase-out impacted district"	98
has the same meaning as in section 3318.011 of the Revised Code.	99

(2) For purposes of determining the required level of	100
indebtedness, the required percentage of the basic project costs	101
under division (C)(1) of this section, and priority for assistance	102
under sections 3318.01 to 3318.20 of the Revised Code, the	103
percentile ranking of a school district with which the commission	104
has entered into an agreement under this section between the first	105
day of July and the thirty-first day of August in each fiscal year	106
is the percentile ranking calculated for that district for the	107
immediately preceding fiscal year, and the percentile ranking of a	108
school district with which the commission has entered into such	109
agreement between the first day of September and the thirtieth day	110
of June in each fiscal year is the percentile ranking calculated	111
for that district for the current fiscal year. However, in the	112
case of a tangible personal property phase-out impacted district,	113
the district's priority for assistance under sections 3318.01 to	114
3318.20 of the Revised Code and its portion of the basic project	115
cost under those sections shall be determined in the manner	116
prescribed, respectively, in divisions (B)(3)(b) and (E)(1)(b) of	117
this section.	118

(B)(1) There is hereby established the school building	119
assistance expedited local partnership program. Under the program,	120
the Ohio school facilities commission may enter into an agreement	121
with the school district board of any school district under which	122
the school district board may proceed with the new construction or	123
major repairs of a part of the school district's classroom	124
facilities needs, as determined under sections 3318.01 to 3318.20	125
of the Revised Code, through the expenditure of local resources	126
prior to the school district's eligibility for state assistance	127
under those sections and may apply that expenditure toward meeting	128
the school district's portion of the basic project cost of the	129
total of the school district's classroom facilities needs, as	130
determined under sections 3318.01 to 3318.20 of the Revised Code	131
and as recalculated under division (E) of this section, that are	132
eligible for state assistance under sections 3318.01 to 3318.20 of	133
the Revised Code when the school district becomes eligible for	134
that assistance. Any school district that is reasonably expected	135
to receive assistance under sections 3318.01 to 3318.20 of the	136
Revised Code within two fiscal years from the date the school	137
district adopts its resolution under division (B) of this section	138
shall not be eligible to participate in the program established	139
under this section.	140

(2) To participate in the program, a school district board	141
shall first adopt a resolution certifying to the commission the	142
board's intent to participate in the program.	143

The resolution shall specify the approximate date that the	144
board intends to seek elector approval of any bond or tax measures	145
or to apply other local resources to use to pay the cost of	146
classroom facilities to be constructed under this section. The	147
resolution may specify the application of local resources or	148
elector-approved bond or tax measures after the resolution is	149
adopted by the board, and in such case the board may proceed with	150
a discrete portion of its project under this section as soon as	151
the commission and the controlling board have approved the basic	152
project cost of the district's classroom facilities needs as	153
specified in division (D) of this section. The board shall submit	154
its resolution to the commission not later than ten days after the	155
date the resolution is adopted by the board.	156

The commission shall not consider any resolution that is	157
submitted pursuant to division (B)(2) of this section, as amended	158
by this amendment, sooner than September 14, 2000.	159

(3) For purposes of determining when a district that enters	160
into an agreement under this section becomes eligible for	161
assistance under sections 3318.01 to 3318.20 of the Revised Code,	162
the commission shall use one of the following as applicable:	163

(a) Except for a tangible personal property phase-out	164
impacted district, the district's percentile ranking determined at	165
the time the district entered into the agreement under this	166
section, as prescribed by division (A)(2) of this section;	167

(b) For a tangible personal property phase-out impacted	168
district, the least of (i) the district's percentile ranking	169
determined at the time the district entered into the agreement	170
under this section, as prescribed by division (A)(2) of this	171
section, (ii) the district's current percentile ranking under	172
section 3318.011 of the Revised Code, or (iii) for a project	173
approved for fiscal year 2013, the district's percentile ranking	174
under the alternate equity list prescribed by Section 3 of .....B.	175
..... of the 129th general assembly.	176

(4) Any project under this section shall comply with section	177
3318.03 of the Revised Code and with any specifications for plans	178
and materials for classroom facilities adopted by the commission	179
under section 3318.04 of the Revised Code.	180

(5) If a school district that enters into an agreement under	181
this section has not begun a project applying local resources as	182
provided for under that agreement at the time the district is	183
notified by the commission that it is eligible to receive state	184
assistance under sections 3318.01 to 3318.20 of the Revised Code,	185
all assessment and agreement documents entered into under this	186
section are void.	187

(6) Only construction of or repairs to classroom facilities	188
that have been approved by the commission and have been therefore	189
included as part of a district's basic project cost qualify for	190
application of local resources under this section.	191

(C) Based on the results of on-site visits and assessment,	192
the commission shall determine the basic project cost of the	193
school district's classroom facilities needs. The commission shall	194
determine the school district's portion of such basic project	195
cost, which shall be the greater of:	196

(1) The required percentage of the basic project costs,	197
determined based on the school district's percentile ranking;	198

(2) An amount necessary to raise the school district's net	199
bonded indebtedness, as of the fiscal year the commission and the	200
school district enter into the agreement under division (B) of	201
this section, to within five thousand dollars of the required	202
level of indebtedness.	203

(D)(1) When the commission determines the basic project cost	204
of the classroom facilities needs of a school district and the	205
school district's portion of that basic project cost under	206
division (C) of this section, the project shall be conditionally	207
approved. Such conditional approval shall be submitted to the	208
controlling board for approval thereof. The controlling board	209
shall forthwith approve or reject the commission's determination,	210
conditional approval, and the amount of the state's portion of the	211
basic project cost; however, no state funds shall be encumbered	212
under this section. Upon approval by the controlling board, the	213
school district board may identify a discrete part of its	214
classroom facilities needs, which shall include only new	215
construction of or additions or major repairs to a particular	216
building, to address with local resources. Upon identifying a part	217
of the school district's basic project cost to address with local	218
resources, the school district board may allocate any available	219
school district moneys to pay the cost of that identified part,	220
including the proceeds of an issuance of bonds if approved by the	221
electors of the school district.	222

All local resources utilized under this division shall first	223
be deposited in the project construction account required under	224
section 3318.08 of the Revised Code.	225

(2) Unless the school district board exercises its option	226
under division (D)(3) of this section, for a school district to	227
qualify for participation in the program authorized under this	228
section, one of the following conditions shall be satisfied:	229

(a) The electors of the school district by a majority vote	230
shall approve the levy of taxes outside the ten-mill limitation	231
for a period of twenty-three years at the rate of not less than	232
one-half mill for each dollar of valuation to be used to pay the	233
cost of maintaining the classroom facilities included in the basic	234
project cost as determined by the commission. The form of the	235
ballot to be used to submit the question whether to approve the	236
tax required under this division to the electors of the school	237
district shall be the form for an additional levy of taxes	238
prescribed in section 3318.361 of the Revised Code, which may be	239
combined in a single ballot question with the questions prescribed	240
under section 5705.218 of the Revised Code.	241

(b) As authorized under division (C) of section 3318.05 of	242
the Revised Code, the school district board shall earmark from the	243
proceeds of a permanent improvement tax levied under section	244
5705.21 of the Revised Code, an amount equivalent to the	245
additional tax otherwise required under division (D)(2)(a) of this	246
section for the maintenance of the classroom facilities included	247
in the basic project cost as determined by the commission.	248

(c) As authorized under section 3318.051 of the Revised Code,	249
the school district board shall, if approved by the commission,	250
annually transfer into the maintenance fund required under section	251
3318.05 of the Revised Code the amount prescribed in section	252
3318.051 of the Revised Code in lieu of the tax otherwise required	253
under division (D)(2)(a) of this section for the maintenance of	254
the classroom facilities included in the basic project cost as	255
determined by the commission.	256

(d) If the school district board has rescinded the agreement	257
to make transfers under section 3318.051 of the Revised Code, as	258
provided under division (F) of that section, the electors of the	259
school district, in accordance with section 3318.063 of the	260
Revised Code, first shall approve the levy of taxes outside the	261
ten-mill limitation for the period specified in that section at a	262
rate of not less than one-half mill for each dollar of valuation.	263

(e) The school district board shall apply the proceeds of a	264
tax to leverage bonds as authorized under section 3318.052 of the	265
Revised Code or dedicate a local donated contribution in the	266
manner described in division (B) of section 3318.084 of the	267
Revised Code in an amount equivalent to the additional tax	268
otherwise required under division (D)(2)(a) of this section for	269
the maintenance of the classroom facilities included in the basic	270
project cost as determined by the commission.	271

(3) A school district board may opt to delay taking any of	272
the actions described in division (D)(2) of this section until the	273
school district becomes eligible for state assistance under	274
sections 3318.01 to 3318.20 of the Revised Code. In order to	275
exercise this option, the board shall certify to the commission a	276
resolution indicating the board's intent to do so prior to	277
entering into an agreement under division (B) of this section.	278

(4) If pursuant to division (D)(3) of this section a district	279
board opts to delay levying an additional tax until the district	280
becomes eligible for state assistance, it shall submit the	281
question of levying that tax to the district electors as follows:	282

(a) In accordance with section 3318.06 of the Revised Code if	283
it will also be necessary pursuant to division (E) of this section	284
to submit a proposal for approval of a bond issue;	285

(b) In accordance with section 3318.361 of the Revised Code	286
if it is not necessary to also submit a proposal for approval of a	287
bond issue pursuant to division (E) of this section.	288

(5) No state assistance under sections 3318.01 to 3318.20 of	289
the Revised Code shall be released until a school district board	290
that adopts and certifies a resolution under division (D) of this	291
section also demonstrates to the satisfaction of the commission	292
compliance with the provisions of division (D)(2) of this section.	293

Any amount required for maintenance under division (D)(2) of	294
this section shall be deposited into a separate fund as specified	295
in division (B) of section 3318.05 of the Revised Code.	296

(E)(1) If the school district becomes eligible for state	297
assistance under sections 3318.01 to 3318.20 of the Revised Code	298
based on its percentile ranking under division (B)(3) of this	299
section, the commission shall conduct a new assessment of the	300
school district's classroom facilities needs and shall recalculate	301
the basic project cost based on this new assessment. The basic	302
project cost recalculated under this division shall include the	303
amount of expenditures made by the school district board under	304
division (D)(1) of this section. The commission shall then	305
recalculate the school district's portion of the new basic project	306
cost, which shall be one of the following as applicable:	307

(a) Except for a tangible personal property phase-out	308
impacted district, the percentage of the original basic project	309
cost assigned to the school district as its portion under division	310
(C) of this section;	311

(b) For a tangible personal property phase-out impacted	312
district, the least of (i) the percentage of the original basic	313
project cost assigned to the school district as its portion under	314
division (C) of this section, (ii) the percentage of the new basic	315
project cost determined under section 3318.032 of the Revised Code	316
using the district's current percentile ranking under section	317
3318.011 of the Revised Code, or (iii) for a project approved for	318
fiscal year 2013, the percentage of the new basic project cost	319
determined under section 3318.032 of the Revised Code using the	320
district's percentile ranking under the alternate equity list	321
prescribed by Section 3 of ....B. ..... of the 129th general	322
assembly. The	323

The commission shall deduct the expenditure of school	324
district moneys made under division (D)(1) of this section from	325
the school district's portion of the basic project cost as	326
recalculated under this division. If the amount of school district	327
resources applied by the school district board to the school	328
district's portion of the basic project cost under this section is	329
less than the total amount of such portion as recalculated under	330
this division, the school district board by a majority vote of all	331
of its members shall, if it desires to seek state assistance under	332
sections 3318.01 to 3318.20 of the Revised Code, adopt a	333
resolution as specified in section 3318.06 of the Revised Code to	334
submit to the electors of the school district the question of	335
approval of a bond issue in order to pay any additional amount of	336
school district portion required for state assistance. Any tax	337
levy approved under division (D) of this section satisfies the	338
requirements to levy the additional tax under section 3318.06 of	339
the Revised Code.	340

(2) If the amount of school district resources applied by the	341
school district board to the school district's portion of the	342
basic project cost under this section is more than the total	343
amount of such portion as recalculated under this division (E)(1)	344
of this section, within one year after the school district's	345
portion is so recalculated under division (E)(1) of this section	346
the commission may grant to the school district the difference	347
between the two calculated portions, but at no time shall the	348
commission expend any state funds on a project in an amount	349
greater than the state's portion of the basic project cost as	350
recalculated under this division (E)(1) of this section.	351

Any reimbursement under this division shall be only for local	352
resources the school district has applied toward construction cost	353
expenditures for the classroom facilities approved by the	354
commission, which shall not include any financing costs associated	355
with that construction.	356

The school district board shall use any moneys reimbursed to	357
the district under this division to pay off any debt service the	358
district owes for classroom facilities constructed under its	359
project under this section before such moneys are applied to any	360
other purpose. However, the district board first may deposit	361
moneys reimbursed under this division into the district's general	362
fund or a permanent improvement fund to replace local resources	363
the district withdrew from those funds, as long as, and to the	364
extent that, those local resources were used by the district for	365
constructing classroom facilities included in the district's basic	366
project cost.	367

(3) A tangible personal property phase-out impacted district	368
shall receive credit under division (E) of this section for the	369
expenditure of local resources pursuant to any prior agreement	370
authorized by this section, notwithstanding any recalculation of	371
its average taxable value.	372

Section 2. That existing sections 3318.011 and 3318.36 of the	373
Revised Code are hereby repealed.	374

Section 3. (A) As used in this section, "equity list" means	375
the school district percentile rankings calculated under section	376
3318.011 of the Revised Code.	377

(B) Not later than thirty days after the effective date of	378
this section, the Department of Education shall create an	379
alternate equity list for fiscal year 2012, for use in funding	380
projects for fiscal year 2013, by recalculating each school	381
district's percentile ranking under section 3318.011 of the	382
Revised Code and shall certify the alternate equity list to the	383
Ohio School Facilities Commission. For this purpose, the	384
Department shall recalculate each school district's percentile	385
ranking using the district's "average taxable value" as that term	386
is defined in the version of section 3318.011 of the Revised Code,	387
as it results from the amendments to that section enacted by this	388
act.	389

(C) The Commission shall use the alternate equity list	390
certified under division (B) of this section to determine the	391
priority for assistance under sections 3318.01 to 3318.20 of the	392
Revised Code for fiscal year 2013 for each school district that	393
has not previously been offered funding under those sections.	394
However, no district that already has been offered assistance	395
under those sections for fiscal year 2012 prior to the	396
Commission's receipt of the alternate equity list shall be denied	397
the opportunity for assistance under those sections for that	398
fiscal year.	399

(D) Notwithstanding any provision of Chapter 3318. of the	400
Revised Code to the contrary, for each school district that	401
receives the Commission's conditional approval of the district's	402
project under sections 3318.01 to 3318.20 of the Revised Code for	403
fiscal year 2013, the district's portion of the basic project cost	404
shall be the lesser of the following:	405

(1) The amount required under section 3318.032 of the Revised	406
Code calculated using the percentile in which the district ranks	407
on the alternate equity list certified under division (B) of this	408
section;	409

(2) The amount required under section 3318.032 of the Revised	410
Code calculated using the percentile in which the district ranks	411
on the original equity list for fiscal year 2012.	412

Section 4. This act is hereby declared to be an emergency	413
measure necessary for the immediate preservation of the public	414
peace, health, and safety. The reason for such necessity is to	415
prevent delays in classroom construction projects by school	416
districts that had substantial amounts of tangible personal	417
property valuation before the tax on tangible personal property	418
was phased out. Therefore, this act shall go into immediate	419
effect.	420