Bill Text: OH HB504 | 2011-2012 | 129th General Assembly | Introduced
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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Representative Huffman
Cosponsors:
Representatives Blair, Buchy, Cera, Derickson, Duffey, Stebelton, Terhar, Thompson
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 |
13 | |
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) | 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.
| 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 | 344 |
of this section, within one year after the school district's | 345 |
portion is so recalculated | 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 | 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 |