FY23 Reimbursement for the Phase-out of Tangible Personal Properties and Public Utility Deregulation

The phase-out of the Tangible Personal Properties (TPP) and the Public Utility Deregulation (PUD) reimbursement continues in FY23. The calculation and distribution methodology for these reimbursements follow the provisions enacted in S. B. 208 of the 131st General Assembly.
The following details the calculation and distribution methodologies for reimbursements in FY23 and beyond. Some aspects of the reimbursement calculations are rooted in FY16 and FY17. For additional information and context, please visit prior year reimbursement narratives. The only remaining reimbursements in FY23 are for Fixed Rate Operating Expense levy losses and Fixed Sum Debt Purpose Levy losses. All other reimbursements have been phased out. For questions about other reimbursements – please consult prior year reimbursement narratives.

Fixed Rate Operating Expense Levy Loss Reimbursement (FY16 to as long as levies are in place)

ORC Section 5709.92(C)(2) provides that in FY18 and the subsequent fiscal years, reimbursements shall be made to school districts and joint vocational school districts based on the positive difference obtained by subtracting from the FY17 reimbursement for Fixed Rate Current Operating levy losses, an amount equal to 1/16 of 1% of the 3-year average total taxable valuation of the district for TY14, TY15 and TY16. For each ensuing fiscal year, the exact same amount is to be subtracted from the latest annual calculation of the Fixed Rate Current Operating levy reimbursement to come up with the annual reimbursement for that year. So, in FY23, 1/16 of 1% of the 3-year average total taxable valuation of the district for TY14, TY15 and TY16 is subtracted from the FY22 reimbursement amount and so on.
FY23 Amount=FY22 Amount–{(0.0625*0.01)*[(Total Value TY16+Total Value TY15+Total Value TY14)/3]}
This calculation will continue until the reimbursement amount goes negative.

Fixed Sum Debt Purpose Reimbursement (FY16 to as long as the levies are in place)

ORC Section 5709.92(E)(1) provides that from FY16 this reimbursement will be distributed as Fixed Sum Debt Purpose reimbursement and will be comprised of 100% of the FY15 combined PUD and TPP reimbursements for such levy losses.
Distribution of the reimbursements in each fiscal year is scheduled for the last Wednesday in November and May. If a levy on the basis of which local losses have occurred and subsequently reimbursements were calculated on, ceases to exist (expired, repealed or changed purpose) the reimbursements will be adjusted accordingly to reflect the levy changes. Sometimes these adjustments occur in mid fiscal year, after the November and before the May distributions and as a result the distributions for these months would differ. 
View the FY23 reimbursements broken down by levy type for traditional school districts. In addition, view projections for the reimbursement amounts for FY24 and FY25 based on provisions of S. B. 208.
You can direct your questions to James Comeaux at james.comeaux@education.ohio.gov.

Last Modified: 9/1/2023 5:11:41 PM