School Bond and Tax Elections in Ohio

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School Bond and Tax Elections in Ohio School bond and tax elections in Ohio occur under two circumstances: To exceed the levy limit cap To issue new bonding.

Laws affecting school finance Ohio bond issue In Ohio, a ballot measure is required in order to issue new bonds for new construction and capital improvements. Before any ballot measure can be placed for bonds, the bonds must be approved by the Ohio School Facilities Commission. [1] Ohio is one of two states that requires school districts to get approval from a state government agency in order to have a ballot question to issue new bonds, the other state is Michigan. The ballot question requirement for bond issues was approved by the Ohio Legislature in 2003. A school district must undergo an assessment on its facility needs and how much state aid would be needed from the Ohio School Facilities Commission. Also, school districts must have their adjusted valuation per pupil calculated. [2] This is a key benchmark in approving bond measures; school districts that have the lowest adjusted valuation per pupil are given the most consideration towards getting ballot measures for bond issues approved. [3] Under Ohio law, school districts must seek approval for bonds if a school district exceeds the ten mill limit or uses earmarked proceeds of a facility improvements tax that is levied by the school district when declared in the resolution. For bond issues, the tax levy increase rate must not be less than one-half mill for each one dollar of valued property for a period of twenty-three years and that the proceeds of the tax shall be used to pay the cost of maintaining the classroom facilities included in the project.[4] If a school district gets necessary voter approval, then the school district must enter into an agreement with the Ohio School Facilities Commission for the sale and issuance of the bonds. Once the school board approves the agreement then bonds can be issued. Under Ohio law, school districts can ask for the bonds to be issued in installments depending on their financial needs.[5]

http://ballotpedia.org/School_bond_and_tax_elections_in_Ohio


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