(A)Within one hundred twenty days after the first meeting of a school district financial planning and supervision commission, the commission shall adopt a financial recovery plan regarding the school district for which the commission was created. During the formulation of the plan, the commission shall seek appropriate input from the school district board and from the community. This plan shall contain the following:
(1)Actions to be taken to:
(a)Eliminate all fiscal emergency conditions declared to exist pursuant to division (B) of section3316.03of the Revised Code;
(b)Satisfy any judgments, past-due accounts payable, and all past-due and payable payroll and fringe benefits;
(c)Eliminate the deficits in all deficit funds, except that any prior year deficits in the capital and mai
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(A) Within one hundred twenty days after the first meeting of a school district financial planning and supervision commission, the commission shall adopt a financial recovery plan regarding the school district for which the commission was created. During the formulation of the plan, the commission shall seek appropriate input from the school district board and from the community. This plan shall contain the following:
(1) Actions to be taken to:
(a) Eliminate all fiscal emergency conditions declared to exist pursuant to division (B) of section3316.03of the Revised Code;
(b) Satisfy any judgments, past-due accounts payable, and all past-due and payable payroll and fringe benefits;
(c) Eliminate the deficits in all deficit funds, except that any prior year deficits in the capital and maintenance fund established pursuant to section3315.18of the Revised Code shall be forgiven;
(d) Restore to special funds any moneys from such funds that were used for purposes not within the purposes of such funds, or borrowed from such funds by the purchase of debt obligations of the school district with the moneys of such funds, or missing from the special funds and not accounted for, if any;
(e) Balance the budget, avoid future deficits in any funds, and maintain on a current basis payments of payroll, fringe benefits, and all accounts;
(f) Avoid any fiscal emergency condition in the future;
(g) Restore the ability of the school district to market long-term general obligation bonds under provisions of law applicable to school districts generally.
(2) The management structure that will enable the school district to take the actions enumerated in division (A)(1) of this section. The plan shall specify the level of fiscal and management control that the commission will exercise within the school district during the period of fiscal emergency, and shall enumerate respectively, the powers and duties of the commission and the powers and duties of the school board during that period. The commission may elect to assume any of the powers and duties of the school board it considers necessary, including all powers related to personnel, curriculum, and legal issues in order to successfully implement the actions described in division (A)(1) of this section.
(3) The target dates for the commencement, progress upon, and completion of the actions enumerated in division (A)(1) of this section and a reasonable period of time expected to be required to implement the plan. The commission shall prepare a reasonable time schedule for progress toward and achievement of the requirements for the plan, and the plan shall be consistent with that time schedule.
(4) The amount and purpose of any issue of debt obligations that will be issued, together with assurances that any such debt obligations that will be issued will not exceed debt limits supported by appropriate certifications by the fiscal officer of the school district and the county auditor. If the commission considers it necessary in order to maintain or improve educational opportunities of pupils in the school district, the plan may include a proposal to restructure or refinance outstanding debt obligations incurred by the board under section3313.483of the Revised Code contingent upon the approval, during the period of the fiscal emergency, by district voters of a tax levied under section718.09,718.10,5705.194,5705.21,5748.02,5748.08, or5748.09of the Revised Code that is not a renewal levy, or a levy under section5705.199of the Revised Code, and that will provide new operating revenue. Notwithstanding any provision of Chapter 133. or sections3313.483to3313.4810of the Revised Code, following the required approval of the district voters and with the approval of the commission, the school district may issue securities to evidence the restructuring or refinancing. Those securities may extend the original period for repayment, not to exceed ten years, and may alter the frequency and amount of repayments, interest or other financing charges, and other terms of agreements under which the debt originally was contracted, at the discretion of the commission, provided that any loans received pursuant to section3313.483of the Revised Code shall be paid from funds the district would otherwise receive under Chapter 3317. of the Revised Code, as required under division (E)(3) of section3313.483of the Revised Code. The securities issued for the purpose of restructuring or refinancing the debt shall be repaid in equal payments and at equal intervals over the term of the debt and are not eligible to be included in any subsequent proposal for the purpose of restructuring or refinancing debt under this section.
(5) An evaluation of the feasibility of entering into shared services agreements with other political subdivisions for the joint exercise of any power, performance of any function, or rendering of any service, if so authorized by statute.
(B) Any financial recovery plan may be amended subsequent to its adoption. Each financial recovery plan shall be updated annually.
(C) Each school district financial planning and supervision commission shall submit the financial recovery plan it adopts or updates under this section to the director of education and workforce for approval immediately following its adoption or updating. The director shall evaluate the plan and either approve or disapprove it within thirty calendar days from the date of its submission. If the plan is disapproved, the director shall recommend modifications that will render it acceptable. No financial planning and supervision commission shall implement a financial recovery plan that is adopted or updated on or after April 10, 2001, unless the director has approved it.
Last updated October 14, 2025 at 5:42 PM