Chapter 3301-92 | Distribution of State Aid

Rule 3301-92-02 | Capital improvement and maintenance fund.

• Effective: November 1, 2026
• Promulgated Under: 119.03

(A) As used in this rule:

(1) "Capital improvements and maintenance" means the acquisition, replacement, enhancement, maintenance or repair of permanent improvements as those terms are defined in this rule.

(2) "Permanent improvement" means a permanent improvement as defined under division (E) of section 5705.01 of the Revised Code.

(3) "Acquisition" means addition of or assuming possession of an asset.

(4) "Replacement" means the substitution of one asset for another of substantially similar value or quality.

(5) "Enhancement" means the modification of an existing asset that increases its value, quality or life expectancy.

(6) "Maintenance or repair" means the act of keeping a permanent improvement in normal working condition. "Maintenance or repair" includes preventative maintenance, periodic repairs and replacement of parts, structural components and other activities needed to maintain the asset but does not include routine janitorial and utility costs. Any non-routine janitorial cost shall be substantiated through a work order.

(B) In each fiscal year, except as provided in division (D) of section 3315.18 of the Revised Code, the school district shall set aside for capital improvements and maintenance, the amount required by division (A) of section 3315.18 of the Revised Code unless the board of education elects, by board resolution, to set aside funds for capital improvements and maintenance in accordance with section 3315.19 of the Revised Code.

The required set aside may be reduced in any fiscal year by any amount received during the same fiscal year from a permanent improvement levy as authorized under section 5705.21 of the Revised Code.

(C) If the board of education elects to set aside funds in accordance with section 3315.19 of the Revised Code, the amount of the set aside shall equal three per cent of all revenues received by the district for operating expenses for the prior fiscal year.

For a city, local or exempted village school district, "all revenues received by the district for operating expenses" means the school district's general fund revenue in the prior fiscal year from property taxes as provided for in Chapter 5705. of the Revised Code plus income taxes as provided in Chapter 5748. of the Revised Code plus funds provided to the district pursuant to Chapter 3317. of the Revised Code plus any amount of this revenue that would have been allocated to the general fund but was allocated to the debt service fund for payment of tax or revenue anticipation notes.

For a joint vocational school district, "all revenues received by the district for operating expenses" means the school district's general fund revenue in the prior fiscal year from property taxes as provided for in Chapter 5705. of the Revised Code plus income taxes as provided for in Chapter 5748. of the Revised Code plus funds provided to the district pursuant to division (B) of section 3317.16 of the Revised Code plus any amount of this revenue that would have been allocated to the general fund but was allocated to the debt service fund or payment of tax or revenue anticipation notes.

(D) The amount set aside for capital improvements and maintenance shall be accounted for within the school district's general fund using a generally accepted accounting method. The school district shall appropriate from the amount set aside for capital improvements and maintenance and maintain appropriate accounting records for amounts expended. Any unexpended balance shall carry forward to the subsequent fiscal year. Any unexpended balance carried forward to the subsequent fiscal year does not reduce the amount of the set aside required by paragraph (B) of this rule. This requirement to set aside an amount for capital improvements and maintenance applies only to those school districts as defined in division (A) of section 3315.18 of the Revised Code.

(E) As part of each school district's annual financial report, the school district shall prepare a supplemental schedule pursuant to reporting procedures prescribed by the auditor of state to demonstrate compliance with this rule. The supplemental schedule shall include the following:

(1) The balance of the set aside carried forward from the previous fiscal year;

(2) The current fiscal year set aside amount;

(3) Qualifying expenditures;

(4) The amount of funding received from a permanent improvement levy as authorized under section 5705.21 of the Revised Code that may reduce the amount of the set aside.

(5) The balance of the set aside carried forward to the subsequent fiscal year.

(6) If a district did not set aside the funds described in paragraph (B) or (C) of this rule, a statement indicating the statutory authority on which it relied.

(F) Restricted revenue including, but not limited to, funding received from e-tech Ohio, state aid for bus purchases and specific state and federal grants may not be used to meet the amount required to be set aside for capital improvements and maintenance.

(G) Acceptable costs for acquisitions, replacements and enhancements of permanent improvements include, but are not limited to: acquisition price; direct materials, labor and overhead incurred during a qualifying project; professional fees necessary to complete a qualifying project; site preparation; demolition or removal of any existing assets; freight and handling; and principal included as part of the cost of a capital lease. Acquisitions, replacements and enhancements of permanent improvements does not include debt service on a long-term debt whose proceeds were used for capital improvements and maintenance.

Last updated November 1, 2026 at 12:00 AM

Supplemental Information

Authorized By: 3301.07, 3315.18
Amplifies: 3315.18, 3315.19
Five Year Review Date: 11/1/2031
Prior Effective Dates: 6/13/2016, 12/1/2022

Rule 3301-92-04 | Reporting financial forecast with current budget information and projections for succeeding years.

• Effective: November 1, 2026
• Promulgated Under: 119.03

(A) Application. The provisions of this rule apply only to city, exempted village, local, and joint vocational school districts.

(B) Definitions.

(1) The term "financial forecast" refers to the consolidated submissions of current fiscal year budget information, three-year projections for the succeeding fiscal years, and any additional information specified by the department or the auditor pursuant to section 5705.391 of the Revised Code and this rule.

(2) The term "current fiscal year budget information" refers to the "appropriations, revenue, and fund balance assumptions contained in the budget adopted by the board" for the current fiscal year and the "current budget information" described in section 5705.391 of the Revised Code.

(3) The terms "three-year forecast" and "three-year projections" are used interchangeably and refer to the "projections of expenditures, revenues, and fund balance for the three succeeding fiscal years" following the current fiscal year and "three-year projections of operational revenues and expenditures" described in section 5705.391 of the Revised Code.

(4) The term "fiscal oversight" refers to the three fiscal declaration categories established under Chapter 3316. of the Revised Code: fiscal caution, fiscal watch, and fiscal emergency.

(5) All references to the "department" refer to the department of education and workforce.

(6) All references to the "auditor" refer to the Ohio auditor of state.

(7) The term "appropriations" means the total amount expendable for the current fiscal year, which includes the expenditures in the appropriation measure adopted by the board of education pursuant to section 5705.38 of the Revised Code, plus any carryover encumbrances. Appropriations establish spending levels that cannot be exceeded without further authorization of the board of education.

(8) "Education management information system (EMIS)" means the integrated system of statewide data collecting, reporting, and compiling for school districts and schools established under section 3301.0714 of the Revised Code.

(C) Submission dates.

(1) The submission deadlines for the financial forecast and updated financial forecast are set forth in division (A) of section 5705.391 of the Revised Code. A board of education may approve and submit its financial forecast or updated financial forecast to the department up to thirty days in advance of the applicable due dates prescribed in division (A) of that section.

(2) Nothing precludes a board of education from filing other updates to its financial forecast at any time in addition to the filings required by division (A) of section 5705.391 of the Revised Code.

(D) Submission requirements. The purpose of this paragraph is to specify the information to be included in each financial forecast and the additional information necessary for the audits, examinations, and analyses conducted by the department or the auditor. Omissions, errors, inaccuracies, or the submission of incomplete information material to the district's financial condition could indicate a potential to incur a deficit and be cause for the district to be subject to fiscal oversight in accordance with Chapter 3316. of the Revised Code.

(1) Each financial forecast consists of two components: the financial data and the notes that provide information necessary to understand the data submission. Each financial forecast shall meet each of the following conditions:

(a) Contain the information prescribed by this rule;

(b) Be in the format prescribed by the department and auditor;

(c) Be approved by the board of education;

(d) Be submitted to the department through EMIS.

(2) All current fiscal year budget information shall meet each of the following conditions:

(a) Include the operational revenues; expenditures, including carryover encumbrances; and unencumbered fund balance for the current fiscal year. This information may, in whole or in part, differ from the current approved appropriation measure adopted by the board of education pursuant to section 5705.38 of the Revised Code. If this information materially differs, the current fiscal year budget information is to include accompanying notes that identify and clearly explain the reason and basis for any such differences;

(b) Use the known operational revenues; expenditures, including carryover encumbrances; and unencumbered fund balance of the district for the preceding fiscal year-end as the basis for the assumptions;

(c) Include accompanying notes for each reported line item that include all of the following information:

(i) The line number for each note;

(ii) A description of the assumptions and key factors used to develop the current fiscal year budget amounts, including the reasoning and basis for each assumption and key factor, such as relevant data, trends, or known factors;

(iii) An explanation of the cause or causes of any significant changes from the year-end actual amounts for the preceding fiscal year and a description of the assumptions and key factors so the reader can understand the reasons for such changes.

(3) All three-year projections shall meet each of the following conditions:

(a) Include projections of operational revenues; expenditures; including carryover encumbrances; and unencumbered fund balance for the three succeeding fiscal years;

(b) Use the known operational revenues; expenditures, including carryover encumbrances; and unencumbered fund balance of the district for the preceding fiscal year and current fiscal year as the basis for the projections;

(c) Include accompanying notes for each reported line item that include all of the following information:

(i) The line number for each note;

(ii) A description of the assumptions and key factors used to develop the projected amounts, including the reasoning and basis for each assumption and key factor, such as relevant data, trends, or known factors;

(iii) An explanation of the cause or causes of any significant changes in amounts from fiscal year to fiscal year and a description of the assumptions and key factors so the reader can understand the reasons for such changes.

(4) The information prescribed in paragraphs (D)(2) and (D)(3) of this rule may be combined in a manner to avoid unnecessary duplication.

(5) The department or the auditor may require any of the following:

(a) Historical financial information;

(b) Information regarding revenues, expenditures, and balances for special, federal, and other funds outside of the general fund, and a description in the notes regarding how funds and activity outside of the general fund may impact general fund activity.

(E) Examinations. The department or the auditor shall examine, at no cost to the district, the financial forecast and determine whether any further fiscal analysis is needed to ascertain whether a district has the potential to incur a deficit during the current fiscal year or the first two years of the three-year projection period and may make recommendations to update a financial forecast submission based on their examination.

(F) Written plan requirements.

(1) A board of education notified under division (A) of section 5705.391 of the Revised Code shall submit a board of education approved written plan to the department to eliminate any deficit in the current fiscal year and avoid the projected future deficits.

(2) All written plans are to be in the format prescribed by the department and contain all of the following information:

(a) A summary narrative describing the district's plan to eliminate the deficit in the current fiscal year and avoid the projected future deficits which demonstrates the board of education's understanding of the fiscal distress reflected in the projections and acknowledges the board of education's responsibility to resolve the forecasted deficits;

(b) A completed written plan workbook using the workbook template provided by the department, unless the board of education requests and the department approves an alternative format;

(c) An explanation of how the board of education will be kept informed on the status of the written plan implementation including the financial reports to be used to monitor and manage the district's financial status.

(3) The department may request the written plan to be submitted through EMIS.

(4) All written plans are due within forty-five days of the date of the notification provided pursuant to division (A) of section 5705.391 of the Revised Code, unless extended by the department. Prior to the due date of the written plan, a board of education may submit, via email, a written request for an extension. The extension request will be approved or disapproved at the discretion of the department.

(5) The department will evaluate written plan submissions and either approve or disapprove the plans. If the initial written plan is disapproved, recommendations to render the written plan acceptable will be provided along with a due date to remedy the identified written plan deficiencies.

(G) Written plan implementation and results monitoring.

(1) If the board of education fails to submit a written plan or does not modify a disapproved plan to render it approvable by the due date established by the department, it may be cause for the district to be subject to fiscal oversight in accordance with Chapter 3316. of the Revised Code.

(2) The department may request the board of education to update the district's financial forecast, including assumptions, to be consistent with the board of education's written plan approved by the department. If the board of education does not update the financial forecast as requested, it may be cause for the district to be subject to fiscal oversight in accordance with Chapter 3316. of the Revised Code.

(3) The department may request evidence the board of education is monitoring the implementation of the written plan. This evidence may include documentation necessary to identify and evaluate the sufficiency of the actions taken by the board to correct the budgetary conditions which prompted the need for the written plan and to determine if fiscal oversight is necessary to prevent further fiscal decline. If the board does not provide evidence, it may be cause for the district to be subject to fiscal oversight in accordance with Chapter 3316. of the Revised Code.

Last updated November 1, 2026 at 12:00 AM

Supplemental Information

Authorized By: 3301.07, 5705.391
Amplifies: 5705.391
Five Year Review Date: 11/1/2031
Prior Effective Dates: 12/1/2022

Rule 3301-92-05 | Certification of adequate revenue.

• Effective: November 1, 2026
• Promulgated Under: 119.03

(A) As used in this rule:

(1) "Qualifying contract" has the same meaning as in section 5705.412 of the Revised Code.

(2) "Financial forecast" has the same meaning as in rule 331-92-04 of the Administrative Code.

(B) 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, each of the following:

(1) Negotiated agreements;

(2) Contracts for benefits;

(3) Construction contracts, if the source of funds is included in the school district's financial forecast under section 5705.391 of the Revised Code.

(C) 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, each of the following:

(1) Qualifying contracts;

(2) Appropriation measures;

(3) Increased salary or wage schedules.

(D) 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 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 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) State reimbursement for property tax credits;

Calculate the average percentage of state reimbursement for property tax allocation credit 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 state reimbursement for property tax credit 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.

(E) A school district may include anticipated proceeds from the issuance of debt as estimated revenue for the purpose of certification.

(F) A school district shall not include either of the following:

(1) Advancements made under section 3316.20 of the Revised Code as a revenue source until the advancement has been approved by the director of education and workforce;

(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.

(G) 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 as follows:

(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.

(2) All information, records, and documentation used to estimate available resources or any change made to the financial forecast 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.

(H) The certification under section 5705.412 of the Revised Code shall be based on the current financial forecast. If the revenue assumptions or the revenue estimates used as a basis for the certificate differ from the current financial forecast, the forecast 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 financial forecast, the forecast must be updated to reflect the new information. Any change to the financial forecast must be approved by the board of education. Each school district shall maintain sufficient documentation to support these changes.

(I) 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 financial 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.

Last updated November 1, 2026 at 12:00 AM

Supplemental Information

Authorized By: 3301.07, 5705.412, 3316.02
Amplifies: 5705.412, 3316.03, 3316.04, 3316.05, 3316.19
Five Year Review Date: 11/1/2031
Prior Effective Dates: 2/13/2004, 1/20/2006