Current through all regulations passed and filed through September 16, 2024
(A) "Qualifying contract" has the same
meaning as in section
5705.412
of the Revised Code. Expenditures that, if they meet the criteria in divisions
(A)(1) and (A)(2) of section
5705.412
of the Revised Code, are to be qualifying contracts include, but are not
limited to:
(1) Negotiated
agreements;
(2) Contracts for
benefits; and
(3) Construction
contracts, if the source of funds is included in the school district's
five-year forecast under section
5705.391
of the Revised Code.
(B)
The events for which each school district shall certify the availability of
revenue pursuant to section
5705.412
of the Revised Code include, but are not limited to:
(1) Qualifying contracts;
(2) Appropriation measures; and
(3) Increased salary or wage
schedules.
(C) For the
purpose of certifying revenue pursuant to section
5705.412
of the Revised Code, a school district may use the following guidelines for
estimating revenue:
(1) Property taxes;
(a) For current year revenues, estimates may
be based on assessed values and effective tax rates.
(b) For future years, revenue growth may be
based on historical patterns including, but not limited to, reappraisal,
updates, unusual growth or declines in valuation, collection rates and
refunds.
(c) Certifications of
appropriation measures under section
5705.412
of the Revised Code shall not anticipate the renewal or replacement of existing
levies nor anticipate the revenue from a new levy.
(d) All other certifications under section
5705.412
of the Revised Code may anticipate the renewal or replacement of existing
levies.
(2) Income
taxes;
(a) Income tax estimates may be based
on estimates provided by the department of taxation.
(b) Certifications of appropriation measures
under section
5705.412
of the Revised Code shall not anticipate the approval to extend a current
income tax beyond its expiration nor anticipate the revenue from a new
levy.
(c) All other certifications
under section
5705.412
of the Revised Code may anticipate the approval to extend a current income tax
beyond its expiration.
(3) State aid;
Estimates may be
based on the most current annual estimate of state funding and historical
patterns and modifications may be made based on changes in average daily
membership, valuation, and other factors that may result in significant
adjustments to funding levels. These other factors include, but are not limited
to, parity aid or other similar programs for which the school district can
reasonably assume continued funding.
(4) Property tax allocation; and
Calculate the average percentage of property tax allocation receipts to
property tax receipts over the prior three fiscal years. For each year of the
certification, multiply estimated property tax receipts by the average
percentage of property tax allocation receipts to calculate the
estimate.
(5) State and
federal grants.
(a) Estimates may include the
continuation of existing programs that are reasonably expected to
continue.
(b) Estimates shall not
include new programs that have not been approved by the granting
authority.
(D) A school district may include anticipated
proceeds from the issuance of debt as estimated revenue for the purpose of
certification.
(E) A school
district shall not include:
(1) Advancements
made under section
3316.20
of the Revised Code as a revenue source until the advancement has been approved
by the superintendent of public instruction; and
(2) As estimated revenue, proceeds from
borrowing under division (H) of section
133.10 of
the Revised Code for purposes of certifying the current year appropriation
measure.
(F) Each school
district shall maintain sufficient documentation to justify each certification
made under section
5705.412
of the Revised Code and must identify the actual date of certification:
(1) Each school district shall maintain a
continuing record of the contracts which have been certified. This record
includes, but is not limited to, vendor name, contract amount, contract amount
allocated by year, purchase order number and date; and
(2) All information, records and
documentation used to estimate available resources or any change made to the
five-year projection including, but not limited to, the current annual estimate
of state funding, property tax calculations, fee schedules and average daily
membership calculations shall be retained by the school district and be made
available to the auditor of state or the independent public accountant at the
time the school district is audited pursuant to section
117.11
of the Revised Code.
(G)
The certification under section
5705.412
of the Revised Code shall be based on the current five-year projection. If the
revenue assumptions or the revenue estimates used as a basis for the
certificate differ from the current five-year projection, the projection needs
to be updated to reflect the new information. If the certificate is associated
with a contract or obligation that results in additional costs or changes in
the expenditure assumptions in the current five-year projection, the projection
must be updated to reflect the new information. Any change to the five-year
projection must be approved by the board of education. Each school district
shall maintain sufficient documentation to support these changes.
(H)
A district
declared to be in fiscal emergency is expected to comply with all requirements
of certification under section
5705.412
of the Revised Code and all requirements of this rule. Additionally, the
financial planning and supervision commission will also review and approve or
disapprove all such certifications. In the event a district is not able to make
the certification required under section
5705.412
of the Revised Code based on the district's most recent five-year forecast
approved by the district board of education and the financial planning and
supervision commission, the certification may be approved by the commission if
the subject matter conforms to the currently approved financial recovery plan
under which the district is operating pursuant to Chapter 3316. of the Revised
Code.
