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As Introduced
136th
General Assembly
Regular
Session
S. J. R. No. 4
2025-2026
Senator
Brenner
A
J O I N T R E S O L U T I O N
Proposing
to enact Section 12 of Article VIII of the Constitution of the State
of Ohio to
conditionally
authorize the issuance of state obligations to refund pending school
district obligations, to conditionally waive, beginning in 2027, the
requirement that schools levy property taxes to pay debt charges on
their obligations, and to conditionally authorize a treasury fund
that is restricted exclusively to educational purposes.
Be
it resolved by the General Assembly of the State of Ohio,
three-fifths of the members elected to each house concurring herein,
that there shall be submitted to the electors of the state, in the
manner prescribed by law at the general election to be held on
November 3, 2026, a proposal to enact Section 12 of Article VIII of
the Constitution of the State of Ohio to read as follows:
ARTICLE
VIII
Section
12.
(A)(1)
Notwithstanding Section 3 of this article, the General Assembly may
provide by law, subject to the limitations of and in accordance with
this section, for the issuance of bonds and other obligations of the
state to refund obligations issued on or before November 3, 2026, of
school districts, county school financing districts, career-technical
cooperative education districts, regional student education
districts, and partnerships consisting of multiple school districts,
notwithstanding the applicability to those obligations of Section 11
of Article XII of the Constitution of the State of Ohio. This section
shall be implemented in the manner and to the extent provided by the
General Assembly by law, including provision for procedures for
incurring, refunding, retiring, and evidencing state obligations
issued pursuant to this section. Obligations issued under this
section, including obligations issued to refund or retire other
obligations issued under this section, shall mature not later than
the thirty-first day of December of the twentieth calendar year after
the year in which the original obligation to pay was issued or
entered into. The total principal amount of obligations issued under
this section shall be as determined by the General Assembly and shall
not be subject to the limitation provided for in Section 17 of this
article.
(2)
Obligations issued under this section are general obligations of the
state. The full faith and credit, revenue, and taxing power of the
state shall be pledged to the payment of the principal of and premium
and interest and other accreted amounts on outstanding obligations as
they become due (hereinafter called debt service). For the purpose of
the full and timely payment of that debt service, appropriate
provisions shall be made or authorized by law for bond retirement
funds and for the sufficiency and appropriation of excises, taxes,
and revenues so pledged to that debt service, for which purpose no
further act of appropriation shall be necessary notwithstanding
Section 22 of Article II of the Constitution of the State of Ohio,
and provision shall be made or authorized by law for covenants to
continue the levy, collection, and application of sufficient excises,
taxes, and revenues to the extent needed for that purpose. The
obligations and the provisions for the payment of debt service on
them are not subject to Section 11 of Article XII of the Constitution
of the State of Ohio.
(3)
Obligations issued under this section, their transfer, and the
interest, interest equivalent, and other income or accreted amounts
on them, including any profit made on their sale, exchange, or other
disposition, shall at all times be free from taxation within this
state.
(4)
The powers herein granted shall be in addition to and not in
derogation of existing powers of the state.
(B)
Notwithstanding Section 11 of Article XII of the Constitution of the
State of Ohio, a school district, county school financing district,
career-technical cooperative education district, regional student
education district, or partnership consisting of multiple school
districts is not required to levy property tax on or after January 1,
2027, to pay the interest on obligations issued by the district or
partnership.
(C)
The proceeds of any tax on property levied by the state for the
purpose of funding the primary and secondary education of students in
this state shall be paid into a fund of the state treasury that shall
be used solely to fund the primary and secondary education of
students in this state and to which other revenue may be credited.
(D)
The General Assembly shall not issue obligations under the authority
of this section, nor shall division (B) or (C) of this section apply,
unless electors approve the levy of a property tax by the state for
the purpose of funding the primary and secondary education of
students in this state at the general election to be held on November
3, 2026.
EFFECTIVE
DATE
If
adopted by a majority of the electors voting on this proposal, the
enactment of Section 12 of Article VIII of the Constitution of the
State of Ohio shall take immediate effect.