REPRESENTATIVES Setzer, Clancy, Goodman, Husted, Kearns, Webster, Carmichael, Lendrum, Schmidt, Seaver

To amend section 118.022 of the Revised Code to

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authorize the Auditor of State to declare a fiscal

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watch when the projected fiscal year-end deficit of

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a municipal corporation, county, or township

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exceeds one-twelfth of its general fund revenue

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from the preceding fiscal year.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 118.022 of the Revised Code be	7
amended to read as follows:	8

Sec. 118.022.  (A) Any one of the following conditions	9
constitutes grounds for a fiscal watch:	10

(1) The existence of either of the following situations:

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(a) All accounts that were due and payable from the general	12
fund of a municipal corporation, county, or township at the end of	13
the preceding fiscal year that had been due and payable for at	14
least thirty days at the end of the fiscal year or to which a	15
penalty was added for failure to pay by the end of the fiscal	16
year, less the year-end balance in the general fund, exceeded	17
one-twelfth of the general fund budget for that year.	18

(b) All accounts that were due and payable at the end of the	19
preceding fiscal year from all funds of the municipal corporation,	20
county, or township and that had been due and payable for at least	21
thirty days at the end of the fiscal year or to which a penalty	22
was added for failure to pay by the end of the fiscal year, less	23
the year-end balance in the general fund and in the respective	24
special funds available to pay suchthose accounts, exceeded	25
one-twelfth of the available revenues during the preceding fiscal	26
year, excluding nonrecurring receipts, of the general fund and of	27
all special funds from which suchthose accounts are payable.	28

(2) The aggregate of deficit amounts of all deficit funds at	29
the end of the preceding fiscal year, less the total of any	30
year-end balance in the general fund and in any special fund that	31
may be transferred as provided in section 5705.14 of the Revised	32
Code to meet suchthat deficit, exceeded one-twelfth of the total	33
of the general fund budget for that year and the receipts to those	34
deficit funds during that year other than from transfers from the	35
general fund.	36

(3) At the end of the preceding fiscal year, moneys and	37
marketable investments in or held for the unsegregated treasury of	38
the municipal corporation, county, or township, minus outstanding	39
checks and warrants, were less in amount than the aggregate of the	40
positive balances of the general fund and those special funds, the	41
purposes of which the unsegregated treasury is held to meet, and	42
suchthat deficiency exceeded one-twelfth of the total amount	43
received into the unsegregated treasury during the preceding	44
fiscal year.	45

(4) Based on an examination of the financial forecast	46
approved by the legislative authority of a municipal corporation,	47
county, or township, the auditor of state certifies that the	48
general fund deficit at the end of the current fiscal year will	49
exceed one-twelfth of the general fund revenue from the preceding	50
fiscal year.	51

(B) As used in this section, "accounts" includes, but is not	52
limited to, final judgments, fringe benefits payments due and	53
payable, and amounts due and payable to persons and other	54
governmental entities, and including any interest and penalties	55
thereonon those judgments, payments, or amounts. Accounts that	56
are due and payable do not include any account, or portion thereof	57
of any account, that is being contested in good faith.	58

Section 2. That existing section 118.022 of the Revised Code	59
is hereby repealed.	60