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(136th General Assembly)
(Substitute
House Bill Number 309)
AN
ACT
To amend sections 3317.01,
5705.31, 5705.32, and 5705.321 and to enact section 5705.60 of the
Revised Code to modify the law governing county budget commissions
and property taxation.
Be
it enacted by the General Assembly of the State of Ohio:
Section
1.
That
sections 3317.01, 5705.31, 5705.32, and 5705.321 be amended and
section 5705.60 of the Revised Code be enacted to read as follows:
Sec.
3317.01.
As
used in this section, "school district," unless otherwise
specified, means any city, local, exempted village, joint vocational,
or cooperative education school district and any educational service
center.
This
chapter shall be administered by the department of education and
workforce. The department of education and workforce shall calculate
the amounts payable to each school district and shall certify the
amounts payable to each eligible district to the treasurer of the
district as provided by this chapter. Certification of moneys
pursuant to this section shall include the amounts payable to each
school building, at a frequency determined by the department, for
each subgroup of students, as defined in section 3317.40 of the
Revised Code, receiving services, provided for by state funding, from
the district or school. No moneys shall be distributed pursuant to
this chapter without the approval of the controlling board.
The
department shall, in accordance with appropriations made by the
general assembly, meet the financial obligations of this chapter.
Moneys
distributed to school districts pursuant to this chapter shall be
calculated based on the annual enrollment calculated from the three
reports required under section 3317.03 of the Revised Code and paid
on a fiscal year basis, beginning with the first day of July and
extending through the thirtieth day of June. In any given fiscal
year, prior to school districts submitting the first report required
under section 3317.03 of the Revised Code, enrollment for the
districts shall be calculated based on the third report submitted by
the districts for the previous fiscal year. The moneys appropriated
for each fiscal year shall be distributed periodically to each school
district unless otherwise provided for. The department, in June of
each year, shall submit to the controlling board the department's
year-end distributions pursuant to this chapter.
Except
as otherwise provided, payments under this chapter shall be made only
to those school districts in which:
(A)
The school district, except for any educational service center and
any joint vocational or cooperative education school district, levies
for current operating expenses at least twenty mills
,
unless the school district is levying less than that amount due to a
reduction in collections made under division (D) of section 5705.31
of the Revised Code or division (A) of section 5705.32 of the Revised
Code relating to a declaration made by the board under division (E)
of section 5705.29 of the Revised Code
.
Levies for joint vocational or cooperative education school districts
or county school financing districts, limited to or to the extent
apportioned to current expenses, shall be included in this
qualification requirement. School district income tax levies under
Chapter 5748. of the Revised Code, limited to or to the extent
apportioned to current operating expenses, shall be included in this
qualification requirement to the extent determined by the tax
commissioner under division (C) of section 3317.021 of the Revised
Code.
(B)
The school year next preceding the fiscal year for which such
payments are authorized meets the requirement of section 3313.48 of
the Revised Code, with regard to the minimum number of hours school
must be open for instruction with pupils in attendance, for
individualized parent-teacher conference and reporting periods, and
for professional meetings of teachers.
A
school district shall not be considered to have failed to comply with
this division because schools were open for instruction but either
twelfth grade students were excused from attendance for up to the
equivalent of three school days or only a portion of the kindergarten
students were in attendance for up to the equivalent of three school
days in order to allow for the gradual orientation to school of such
students.
A
board of education or governing board of an educational service
center which has not conformed with other law and the rules pursuant
thereto, shall not participate in the distribution of funds
authorized by this chapter, except for good and sufficient reason
established to the satisfaction of the department and the state
controlling board.
All
funds allocated to school districts under this chapter, except those
specifically allocated for other purposes, shall be used to pay
current operating expenses only.
Sec.
5705.31.
The
county auditor shall present to the county budget commission the
annual tax budgets submitted under sections 5705.01 to 5705.47 of the
Revised Code, together with an estimate prepared by the auditor of
the amount of any state levy, the rate of any school tax levy as
previously determined, the tax commissioner's estimate of the amount
to be received in the county public library fund, the tax rates
provided under section 5705.281 of the Revised Code if adoption of
the tax budget was waived under that section, and such other
information as the commission requests or the tax commissioner
prescribes.
The
budget commission shall examine such budget and, if the taxing
authority is a board of education that has elected to include
projections pursuant to division (E) of section 5705.391 of the
Revised Code, shall examine such projections. Using the budget and,
if applicable, included projections, the budget commission shall
ascertain the total amount proposed to be raised in the county for
the purposes of each subdivision and other taxing units in the county
and the need for those amounts. Except as otherwise provided in this
section, the county budget commission may reduce the amount to be
raised by any levy pursuant to section 5705.32 of the Revised Code.
The
commission shall ascertain that the following levies have been
properly authorized and, if so authorized, shall approve them without
modification:
(A)
All levies in excess of the ten-mill limitation
in
the first year they are levied,
unless
the
levy is the renewal of an existing tax or
the
subdivision or taxing unit requests an amount requiring a lower rate
for the succeeding fiscal year. Such a request for an amount
requiring a lower rate applies only to the succeeding fiscal year
unless the subdivision or taxing unit expressly states that the
request is permanent.
(B)
All levies for unsatisfied debt charges, including levies that remain
necessary to pay notes issued for emergency purposes;
(C)
The levies prescribed by division (B) of sections 742.33 and 742.34
of the Revised Code;
(D)
Except as otherwise provided in this division, a minimum levy within
the ten-mill limitation for the current expense and debt service of
each subdivision or taxing unit, which shall equal two-thirds of the
average levy for current expenses and debt service allotted within
the fifteen-mill limitation to such subdivision or taxing unit during
the last five years the fifteen-mill limitation was in effect unless
such subdivision or taxing unit requests an amount requiring a lower
rate for the succeeding fiscal year, or if it expressed its intent to
forgo collections from such a levy under division (E) of section
5705.29 of the Revised Code. Such a request for an amount requiring a
lower rate applies only to the succeeding fiscal year unless the
subdivision or taxing unit expressly states that the request is
permanent.
Except
as provided in section 5705.312 of the Revised Code, if the levies
required in divisions (B) and (C) of this section for the subdivision
or taxing unit equal or exceed the entire minimum levy of the
subdivision as fixed, the minimum levies of the other subdivisions or
taxing units shall be reduced by the commission to provide for the
levies and an operating levy for the subdivision. Such additional
levy shall be deducted from the minimum levies of each of the other
subdivisions or taxing units, but the operating levy for a school
district shall not be reduced below a figure equivalent to forty-five
per cent of the millage available within the ten-mill limitation
after all the levies in divisions (B) and (C) of this section have
been provided for.
If
a municipal corporation and a township have entered into an
annexation agreement under section 709.192 of the Revised Code in
which they agree to reallocate their shares of the minimum levies
established under this division and if that annexation agreement is
submitted along with the annual tax budget of both the township and
the municipal corporation, then, when determining the minimum levy
under this division, the auditor shall allocate, to the extent
possible, the minimum levy for that municipal corporation and
township in accordance with their annexation agreement.
Divisions
(A) to (D) of this section are mandatory, and commissions shall be
without discretion to reduce such minimum levies except as provided
in such divisions.
If
any debt charge is omitted from the budget, the commission shall
include it therein.
Sec.
5705.32.
(A)
As
used in this section:
(1)
"Unnecessary collections" mean collections from a tax
beyond the reasonably anticipated financial needs of the taxing
authority for the specific purposes of the tax after accounting for
current fund balances, projected expenditures, and other available
funding sources.
(2)
"Excessive collections" mean collections from a tax in an
amount or at a rate that exceeds what is required to provide services
at a level that is consistent with statutory obligations.
(B)
The
county budget commission shall adjust the estimated amounts required
from the general property tax for each fund, as shown by the tax
budgets or other information required to be provided under section
5705.281 of the Revised Code, so as to bring the tax levies required
therefor within the limitations specified in sections 5705.01 to
5705.47 of the Revised Code, for such levies. The commission may
revise and adjust the estimate of balances and receipts from all
sources for each fund and shall determine the total appropriations
that may be made therefrom.
If
a taxing unit declared its intent to forgo all or a portion of
collections under division (E) of section 5705.29 of the Revised
Code, the commission shall adjust the rate of each levy as required
to result in that reduction in collections.
(B)
(C)
Except as otherwise provided in section 5705.31 of the Revised Code,
the county budget commission may adjust the estimated amounts
required from the general property tax for each fund, as shown by the
tax budgets or other information required to be provided under
section 5705.281 of the Revised Code, so as to bring the tax levies
required therefor within levels the commission finds reasonable and
prudent to avoid unnecessary or excessive collections. Before
reducing the amount or rate of any tax pursuant to this division, the
commission shall provide the taxing authority of the levying taxing
unit and the levying taxing unit an opportunity to present, at a
public hearing, information either considers relevant to the
questions of if and to what extent the levy should be reduced.
If
the county budget commission adjusts amounts from any tax levied by a
taxing unit that is not a qualifying subdivision, the adjustment
shall be subject to both of the following:
(1)
No levy shall be reduced below the level that would cause it to
collect less than what the levy collected in the preceding year,
unless funds are available from reserve balance accounts,
nonexpendable trust funds, or carryover amounts to offset a reduction
below that level, and the budget commission shall consider reserve
balance accounts, nonexpendable trust funds, and carryover amounts
for that purpose;
(2)
No levy may be reduced under division (B) of this section to a level
that would cause a school district subject to division (A) of section
3317.01 of the Revised Code to levy less than twenty mills for
current operating expenses as required by that division.
(D)
The
commission shall fix the amount of the county public library fund to
be distributed to each board of public library trustees that has
qualified under section 5705.28 of the Revised Code for participation
in the proceeds of such fund. The amount paid to all libraries in the
county from such fund shall never be a smaller per cent of the fund
than the average of the percentages of the county's classified taxes
that were distributed to libraries in 1982, 1983, and 1984, as
determined by the county auditor. The commission shall base the
amount for distribution on the needs of such library for the
construction of new library buildings, parts of buildings,
improvements, operation, maintenance, or other expenses. In
determining the needs of each library board of trustees, and in
calculating the amount to be distributed to any library board of
trustees on the basis of its needs, the commission shall make no
reduction in its allocation from the fund on account of additional
revenues realized by a library from increased taxes or service
charges voted by its electorate, from revenues received through
federal or state grants, projects, or programs, or from grants from
private sources.
(C)
(E)
Notwithstanding the fact that alternative methods of financing such
needs are available, after fixing the amount to be distributed to
libraries, the commission shall fix the amount, if any, of the county
public library fund to be distributed to each board of township park
commissioners, the county, and each municipal corporation in
accordance with the following:
(1)
Each municipal corporation in the county shall receive a per cent of
the remainder that equals the per cent that the county auditor
determines the classified property taxes originating in such
municipal corporation in 1984 were of the total of all of the
county's classified property taxes in 1984. The commission may deduct
from this amount any amount that the budget commission allows to the
board of township park commissioners of a township park district, the
boundaries of which are coextensive with or contained within the
boundaries of the municipal corporation.
(2)
The county shall receive a per cent of the remainder that equals the
per cent that the county auditor determines the classified property
taxes originating outside of the boundaries of municipal corporations
in the county in 1984 were of the total of all of the county's
classified property taxes in 1984. The commission may deduct from
this amount any amount that the budget commission allows to the board
of township park commissioners of a township park district, the
boundaries of which are not coextensive with or contained within
those of any municipal corporation in the county.
(D)
(F)
The commission shall separately set forth the amounts fixed and
determined under divisions
(B)
(D)
and
(C)
(E)
of this section in the "official certificate of estimated
resources," as provided in section 5705.35 of the Revised Code,
and separately certify such amount to the county auditor who shall be
guided thereby in the distribution of the county public library fund
for and during the fiscal year. In determining such amounts, the
commission shall be guided by the estimate certified by the tax
commissioner and presented by the auditor under section 5705.31 of
the Revised Code, as to the total amount of revenue to be received in
the county public library fund during such fiscal year.
(E)(1)
(G)(1)
At least five days before the date of any meeting at which the budget
commission plans to discuss the distribution of the county public
library fund, it shall notify each legislative authority and board of
public library trustees, county commissioners, and township park
commissioners eligible to participate in the distribution of the fund
of the date, time, place, and agenda for the meeting. Any legislative
authority or board entitled to notice under this division may
designate an officer or employee of such legislative authority or
board to whom the commission shall deliver the notice.
(2)
Before the final determination of the amount to be allotted to each
subdivision from any source, the commission shall permit
representatives of each subdivision and of each board of public
library trustees to appear before it to explain its financial needs.
(F)
(H)
If any public library receives and expends any funds allocated to it
under this section for the construction of new library buildings or
parts of buildings, such library shall be free and open to the
inhabitants of the county in which it is located. Any board of
library trustees that receives funds under this section and section
5747.48 of the Revised Code shall have its financial records open for
public inspection at all reasonable times.
Sec.
5705.321.
(A)
As used in this section:
(1)
"City, located wholly or partially in the county, with the
greatest population" means the city, located wholly or partially
in the county, with the greatest population residing in the county;
however, if the county budget commission on or before January 1,
1998, adopted an alternative method of apportionment that was
approved by the city, located partially in the county, with the
greatest population but not the greatest population residing in the
county, "city, located wholly or partially in the county, with
the greatest population" means the city, located wholly or
partially in the county, with the greatest population whether
residing in the county or not, if this alternative meaning is adopted
by action of the board of county commissioners and a majority of the
boards of township trustees and legislative authorities of municipal
corporations located wholly or partially in the county.
(2)
"Participating political subdivision" means a municipal
corporation or township that satisfies all of the following:
(a)
It is located wholly or partially in the county.
(b)
It is not the city, located wholly or partially in the county, with
the greatest population.
(c)
Public library fund moneys are apportioned to it under the county's
alternative method or formula of apportionment in the current
calendar year.
(B)
In lieu of the method of apportionment of the county public library
fund provided by division
(C)
(E)
of section 5705.32 of the Revised Code, the county budget commission
may provide for the apportionment of the fund under an alternative
method or on a formula basis as authorized by this section.
Except
as otherwise provided in division (C) of this section, the
alternative method of apportionment shall have first been approved by
all of the following governmental units: the board of county
commissioners; the legislative authority of the city, located wholly
or partially in the county, with the greatest population; and a
majority of the boards of township trustees and legislative
authorities of municipal corporations, located wholly or partially in
the county, excluding the legislative authority of the city, located
wholly or partially in the county, with the greatest population. In
granting or denying approval for an alternative method of
apportionment, the board of county commissioners, boards of township
trustees, and legislative authorities of municipal corporations shall
act by motion. A motion to approve shall be passed upon a majority
vote of the members of a board of county commissioners, board of
township trustees, or legislative authority of a municipal
corporation, shall take effect immediately, and need not be
published.
Any
alternative method of apportionment adopted and approved under this
division may be revised, amended, or repealed in the same manner as
it may be adopted and approved. If an alternative method of
apportionment adopted and approved under this division is repealed,
the county public library fund shall be apportioned among the
subdivisions eligible to participate in the fund, commencing in the
ensuing calendar year, under the apportionment provided in divisions
(B)
(C)
and
(C)
(D)
of section 5705.32 of the Revised Code, unless the repeal occurs by
operation of division (C) of this section or a new method for
apportionment of the fund is provided in the action of repeal.
(C)
This division applies only in counties in which the city, located
wholly or partially in the county, with the greatest population has a
population of twenty thousand or less and a population that is less
than fifteen per cent of the total population of the county. In such
a county, the legislative authorities or boards of township trustees
of two or more participating political subdivisions, which together
have a population residing in the county that is a majority of the
total population of the county, each may adopt a resolution to
exclude the approval otherwise required of the legislative authority
of the city, located wholly or partially in the county, with the
greatest population. All of the resolutions to exclude that approval
shall be adopted not later than the first Monday of August of the
year preceding the calendar year in which distributions are to be
made under an alternative method of apportionment.
A
motion granting or denying approval of an alternative method of
apportionment under this division shall be adopted by a majority vote
of the members of the board of county commissioners and by a majority
vote of a majority of the boards of township trustees and legislative
authorities of the municipal corporations located wholly or partially
in the county, other than the city, located wholly or partially in
the county, with the greatest population, shall take effect
immediately, and need not be published. The alternative method of
apportionment under this division shall be adopted and approved
annually, not later than the first Monday of August of the year
preceding the calendar year in which distributions are to be made
under it. A motion granting approval of an alternative method of
apportionment under this division repeals any existing alternative
method of apportionment, effective with distributions to be made from
the fund in the ensuing calendar year. An alternative method of
apportionment under this division shall not be revised or amended
after the first Monday of August of the year preceding the calendar
year in which distributions are to be made under it.
(D)
In determining an alternative method of apportionment authorized by
this section, the county budget commission may include in the method
any factor considered to be appropriate and reliable, in the sole
discretion of the county budget commission.
(E)
On the basis of any alternative method of apportionment adopted and
approved as authorized by this section, as certified by the auditor
to the county treasurer, the county treasurer shall make distribution
of the money in the county public library fund to each subdivision
eligible to participate in the fund, and the auditor, when the amount
of those shares is in the custody of the treasurer in the amounts so
computed to be due the respective subdivisions, shall at the same
time certify to the tax commissioner the percentage share of the
county as a subdivision. All money received into the treasury of a
subdivision from the county public library fund in a county treasury
shall be paid into the general fund and used for the current
operating expenses of the subdivision.
(F)
The actions of the county budget commission taken pursuant to this
section are final and may not be appealed to the board of tax
appeals, except on the issues of abuse of discretion and failure to
comply with the formula.
Sec.
5705.60.
(A)
As used in this section, "qualifying fixed-sum levy" means
a tax levied on property at whatever rate is required to produce a
specified amount of tax money, including a tax levied under section
5705.199 of the Revised Code, but not including a tax levied in
excess of the ten-mill limitation to pay debt charges.
(B)
Each year, the tax commissioner shall determine by what amount, if
any, the rate of a qualifying fixed sum levy must be changed for the
levy to produce the levy's specified amount of money for the current
tax year. The tax commissioner shall certify the amount determined
for each fixed-sum levy to the appropriate county auditor by the
first day of September.
(C)
Each county auditor to whom a rate change is certified under division
(B) of this section shall apply the adjusted rate for the current tax
year.
Section
2.
That
existing sections 3317.01, 5705.31, 5705.32, and 5705.321 of the
Revised Code are hereby repealed.
Speaker
___________________ of the House of Representatives.
President
___________________ of the Senate.
Passed
________________________, 20____
Approved
________________________, 20____
Governor.
The section numbering of law
of a general and permanent nature is complete and in conformity with
the Revised Code.
Director, Legislative
Service Commission.
Filed
in the office of the Secretary of State at Columbus, Ohio, on the
____ day of ___________, A. D. 20____.
Secretary of State.
File
No. _________ Effective Date ___________________