Districts are required to set aside funds for capital improvement and maintenance per ORC Sections 3315.18 and 3315.19. Districts can choose from two different approaches.
requires boards of education of city, exempted village, local and joint vocational school districts to establish a capital and maintenance fund for capital improvement and project maintenance purposes. Each board of education is required to deposit into this fund from their school district's revenues, an amount that equals 3%, or another percentage if established by the auditor of state, of the preceding year’s statewide average base cost per pupil as defined in ORC 3317.02 multiplied by their previous year’s student enrollment. Money received from a permanent improvement levy may replace general revenues to meet the requirements of 3315.18. Money deposited into the fund shall be used solely for acquisition, replacement, enhancement and maintenance or repair of permanent improvements as those terms are defined in ORC Section 5705.01. Any money in this fund that is not used in the fiscal year shall carry forward to the next fiscal year.
Section 3315.18(D) provides some exceptions:
- If a district is in fiscal emergency, the district may deposit less than 3% into this fund or make no deposit at all.
- If a district is in fiscal watch or fiscal caution, it may apply to ODE for a waiver from the requirement of depositing 3%. ODE may grant a different percentage to be deposited or may altogether waive the requirement of any deposit if it can be demonstrated that this will result in financial hardship on the district.
- Once in every three consecutive fiscal years, any school district may apply to ODE for a waiver from the requirements of this section if it can be demonstrated that the requirements of the law will result in reduction or elimination of important academic programs in the district.
Under Section 3315.19
districts must set aside 3% of their prior year base revenue where base revenue consists of the prior year property taxes, any income taxes and the state foundation aid for regular student population. Should the district choose this method for establishing a capital improvement and maintenance fund, the local board must notify the auditor of state by September 30th
that the district intends to comply with the provisions of former Section 3315.18.
To assist school districts with the set-aside calculations we provide the calculations under both methodologies. A spreadsheet below contains worksheets showing both approaches. The Section 3315.18
worksheet provides set-aside calculation with the relevant factors used in the calculation. The Section 3315.19
worksheet shows the state portion of the base revenue on the basis of which the fund may be established under the provisions of this section.
Please direct your questions to James Comeaux via James.Comeaux@education.ohio.gov
Last Modified: 8/8/2023 1:53:19 PM