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SB 450

Make capital appropriations for the biennium ending June 30, 2028

136th Legislature (2025-2026) Introduced by Jerry Cirino

The bill authorizes and structures Ohio’s capital financing for state and local infrastructure, education facilities, and school projects through a comprehensive bond program, fund

Effective 6/15/26
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Bill Summary · SB 450

Overview

  • Bill: SB 450 (136th General Assembly, Ohio)
  • Status: Introduced in Regular Session 2025-2026.
  • Purpose: Make capital appropriations for the biennium ending June 30, 2028, and declare an emergency. The measure amends multiple sections of the Revised Code and references prior the HB 730 (136th GA) and HB 2 (135th GA) as base law for capital financing programs.

Main purpose and intent

  • Authorizes and structures the state's capital financing for infrastructure, education-related facilities, and local subdivision projects through various bond programs and funds.
  • Reaffirms and clarifies the definitions, processes, and governance of capital facilities financing, debt service, and bond proceedings.
  • Establishes and allocates resources for capital improvements at the state and local levels, including schools, infrastructure, and public works.

Key provisions and changes (substantive)

  • Definitions (Sec. 151.01): Clarifies terms related to bond proceedings, bond service funds, capital facilities, costs of capital facilities, debt service, issuing authorities, and related financial instruments.
  • Bond authority and structure (Sec. 151.01; 151.08): Outlines authorized forms of obligations (bonds, notes, including bond anticipation notes and refunding/advance refunding), their purchase, interest, maturity, redemption, and security. Grants authority to issue and secure general obligations of the state for capital facilities.
  • Bond service funds and revenue pledges (Sec. 151.01; 151.07; 151.09; 151.11): Establishes the state capital improvements bond service fund and related trust arrangements. Pledges full faith and credit and designated revenues to debt service. Allows designation of separate accounts and reserves.
  • Certifications and debt service administration (Sec. 151.07; 151.11; 151.08): Requires annual certifications to the Office of Budget and Management for debt service needs and facilitates transfers from pledged revenues if needed to meet debt service.
  • Local capital improvements (Sec. 164.03; 164.08): Divides Ohio into districts for allocating capital improvement financing; creates a revolving loan fund for local projects; outlines allocation formulas by district, county, and per capita calculations, with caps for annual issuances in each program (Sections 164.03–164.08).
  • State capital improvements and programs (Sec. 164.03; 164.08): Creates a state capital improvements fund and a state capital improvements bond service fund to manage debt service for local projects financed through the state.
  • School facilities and aging school accelerator (Sec. 3318.042; 3318.33; 3318.49): Adds and clarifies program authority for aging school accelerator pilot, corrective action, funding mechanisms, and cost-sharing with districts. Establishes criteria for eligibility and district reimbursement schedules.
  • Central State University provisions (Sec. 3343.05; 3343.11): Sets governance and potential facility management structure involving the department of administrative services or another third party.
  • Revenue provisions and related taxes (Sec. 5751.02; 5751.20): Reaffirms commercial activity tax framework and financial flows, including administration and allocations related to higher education and local government funding. Some sections reference prior provisions but maintain alignment with capital financing mechanisms.

Who would be affected

  • State agencies and authorities involved in issuing and managing state general obligation bonds (e.g., Ohio Public Facilities Commission).
  • Local subdivisions (counties, townships, municipalities) participating in capital improvement programs and the revolving loan fund.
  • School districts and joint vocational districts, particularly those undergoing aging facilities projects, aging school accelerator pilots, and corrective action funding.
  • Central State University, regarding governance of facilities and potential transfer of facilities oversight to a state department or third party.
  • Financial institutions and investment managers serving as underwriters, trustees, depositories, and advisers in bond programs.

Procedural and timeline aspects

  • Sets requirements for annual debt service certifications by the issuing authority (by July 15 each fiscal year) and mechanisms for budget office transfers if funds fall short.
  • Establishes caps and multi-year issuance limits for various local-subdivision capital programs, with phase-in and sequential deployment across districts.
  • Creates and reserves funds (state capital improvements fund and bond service fund) to ensure debt service payments without requiring additional annual appropriations.
  • Introduces pilot program timelines for aging school accelerator and corrective action processes, including cost-sharing schedules and potential state reimbursements over a ten-year horizon.

Note: This summary focuses on disclosed substantive provisions and fiscal governance related to capital appropriations and financing.

Compiled from official sources — confirm details with the bill’s official record.

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