BOE asks for override of budget veto

The Board of Education of the New Richmond Exempted Village School District passed a resolution at its September 21 meeting asking legislative representatives to sponsor and pass override legislation to Ohio Gov. John Kasich’s veto of PUTPP Reimbursements for FY17 which will cost the district more than $700,000. 

PUTPP Reimbursements are payments Ohio makes to public school districts for local tax losses resulting from deregulation of public utility industry in 2001 that culminated in the lowering of the assessment rates of some public utility tangible properties from 88% to 25%. New Richmond originally received $8.1 million per year but has lost $1 million per year prior to the current biennial budget.

NREVSD treasurer Mike Mowery said New Richmond will lose $720,000 in 2016-17, and should the state continue to phase out PUTPP reimbursements at an estimated 10% per year, New Richmond could see its deregulation payments decrease to $4.7 million in 2019/20.

The Board resolution: 
Resolution Calling on New Richmond Exempted Village School District Legislative Representatives to Sponsor and Promote Override Legislation to the Gubernatorial Veto of PUTPP Reimbursements for FY17. 

WHEREAS, New Richmond Exempted Village School District once derived more than 8.1 million dollars per year from the PUTTP component of our tax base; and

WHEREAS, The State of Ohio, in recognition of the fact that a local tax was, in fact, confiscated, committed to reimburse school districts for the value of that tax; and

WHEREAS, As of FY15, The State of Ohio was still reimbursing New Richmond Exempted Village School District a reduced amount of approximately 7.1 million dollars per year; and
WHEREAS, The Ohio House of Representatives and Representative Doug Green voted to maintain a PUTPP supplement to total state aid for FY16 and FY17 in HB64, the 2016-2017 Biennial Budget; and
WHEREAS, The Ohio Senate, and Senator Joe Uecker voted to maintain a PUTPP supplement to total state aid for FY 16 and FY 17 in HB64, the 2016-2017 Biennial Budget; and

WHEREAS, The Ohio House and the Ohio Senate confirmed their intentions by voting for the Conference Committee Report; and

WHEREAS, The Governor of the State of Ohio revoked the intended funding via the Line Item Veto provision of the Ohio Constitution; and

WHEREAS, The Ohio Constitution allows for the legislature to override gubernatorial vetoes through the legislative process.

 NOW, THEREFORE, BE IT RESOLVED, that the New Richmond Exempted Village School District Board of Education calls on our primary legislative representation, Representative Doug Green and Senator Joe Uecker to introduce and sponsor legislation to override the gubernatorial veto and restore the PUTPP reimbursement hold harmless provision for FY17; and

BE IT FURTHER RESOLVED, that the New Richmond Exempted Village School District Board of Education will send a copy of this Resolution to the President of the Board of Education and Treasurer of similarly situated school districts materially harmed by the line item veto; and

BE IT FURTHER RESOLVED, that our Representatives introduce legislation in their respective chambers that will allow New Richmond Exempted Village School District and similarly situated districts to capture the losses associated with the confiscation of the PUTPP tax in permanent law.