OH HB216

Forgives a school district's debt to the Solvency Assistance Fund when it voluntarily consolidates with another district and is completely dissolved, provided five conditions are met.

Required conditions for debt forgiveness: the debt must be 33-100% of the transferring district's operating budget (capped at $10 million); the district must have been in fiscal emergency for the previous two fiscal years; the acquiring district must be in the same or contiguous county; the acquiring district must voluntarily accept the transfer; and the acquiring district must submit a five-year solvency projection.

The acquiring district assumes all other debts and obligations of the transferring district except the Solvency Assistance Fund debt, which is canceled upon meeting the conditions.

The transferring district's board of education is abolished and the district is dissolved upon completion of the transfer.

The Director of Budget and Management may transfer available funds from the general revenue fund to replace any forgone Solvency Assistance Fund amounts.