SJR 4: CA: Authorize bonds to refund school debt; create education fund

As Introduced

136th General Assembly Regular Session 2025-2026

S. J. R. No. 4

Senator Brenner

A J O I N T R E S O L U T I O N

Proposing to enact Section 12 of Article VIII of the 1
Constitution of the State of Ohio to conditionally 2
authorize the issuance of state obligations to refund 3
pending school district obligations, to conditionally 4
waive, beginning in 2027, the requirement that schools 5
levy property taxes to pay debt charges on their 6
obligations, and to conditionally authorize a treasury 7
fund that is restricted exclusively to educational 8
purposes. 9
Be it resolved by the General Assembly of the State of 10
Ohio, three-fifths of the members elected to each house 11
concurring herein, that there shall be submitted to the electors 12
of the state, in the manner prescribed by law at the general 13
election to be held on November 3, 2026, a proposal to enact 14
Section 12 of Article VIII of the Constitution of the State of 15
Ohio to read as follows: 16

ARTICLE VIII 17

Section 12. (A)(l) Notwithstanding Section 3 of this 18
article, the General Assembly may provide by law, subject to the 19
limitations of and in accordance with this section, for the 20

S. J. R. No. 4 As Introduced

issuance of bonds and other obligations of the state to refund 21
obligations issued on or before November 3, 2026, of school 22
districts, county school financing districts, career-technical 23
cooperative education districts, regional student education 24
districts, and partnerships consisting of multiple school 25
districts, notwithstanding the applicability to those 26
obligations of Section 11 of Article XII of the Constitution of 27
the State of Ohio. This section shall be implemented in the 28
manner and to the extent provided by the General Assembly by 29
law, including provision for procedures for incurring, 30
refunding, retiring, and evidencing state obligations issued 31
pursuant to this section. Obligations issued under this section, 32
including obligations issued to refund or retire other 33
obligations issued under this section, shall mature not later 34
than the thirty-first day of December of the twentieth calendar 35
year after the year in which the original obligation to pay was 36
issued or entered into. The total principal amount of 37
obligations issued under this section shall be as determined by 38
the General Assembly and shall not be subject to the limitation 39
provided for in Section 17 of this article. 40
(2) Obligations issued under this section are general 41
obligations of the state. The full faith and credit, revenue, 42
and taxing power of the state shall be pledged to the payment of 43
the principal of and premium and interest and other accreted 44
amounts on outstanding obligations as they become due 45
(hereinafter called debt service). For the purpose of the full 46
and timely payment of that debt service, appropriate provisions 47
shall be made or authorized by law for bond retirement funds and 48
for the sufficiency and appropriation of excises, taxes, and 49
revenues so pledged to that debt service, for which purpose no 50
further act of appropriation shall be necessary notwithstanding 51

S. J. R. No. 4 As Introduced

Section 22 of Article II of the Constitution of the State of 52
Ohio, and provision shall be made or authorized by law for 53
covenants to continue the levy, collection, and application of 54
sufficient excises, taxes, and revenues to the extent needed for 55
that purpose. The obligations and the provisions for the payment 56
of debt service on them are not subject to Section 11 of Article 57
XII of the Constitution of the State of Ohio. 58

(3) Obligations issued under this section, their transfer, and the interest, interest equivalent, and other income or accreted amounts on them, including any profit made on their sale, exchange, or other disposition, shall at all times be free from taxation within this state.

(4) The powers herein granted shall be in addition to and not in derogation of existing powers of the state.

(B) Notwithstanding Section 11 of Article XII of the Constitution of the State of Ohio, a school district, county school financing district, career-technical cooperative education district, regional student education district, or partnership consisting of multiple school districts is not required to levy property tax on or after January 1, 2027, to pay the interest on obligations issued by the district or partnership.

(C) The proceeds of any tax on property levied by the state for the purpose of funding the primary and secondary education of students in this state shall be paid into a fund of the state treasury that shall be used solely to fund the primary and secondary education of students in this state and to which other revenue may be credited.

(D) The General Assembly shall not issue obligations under the authority of this section, nor shall division (B) or (C) of

S. J. R. No. 4 As Introduced

this section apply, unless electors approve the levy of a 82
property tax by the state for the purpose of funding the primary 83
and secondary education of students in this state at the general 84
election to be held on November 3, 2026. 85

EFFECTIVE DATE 86

If adopted by a majority of the electors voting on this 87
proposal, the enactment of Section 12 of Article VIII of the 88
Constitution of the State of Ohio shall take immediate effect. 89