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State Board of Education Approval Not Necessary for Revenue-Sharing Agreements Which Do Not Involve Territory Transfers Between School Boards

In Beachwood City Sch. Dist. Bd. of Educ. v. Warrensville Heights City Sch. Dist. Bd. of Educ., 2020-Ohio-4459, 2020 Ohio App. LEXIS 3334, an Ohio court of appeals determined that boards of education have the power to contract with one another under R.C. 3313.17, and based on the plain language of R.C. 3311.06(D)(3), revenue-sharing agreements that are not incident to a transfer of territory do not need approval from the Ohio Board of Education. The court opined that by not executing a territory transfer the school district seeking enforcement of the revenue-sharing agreement “did not circumvent the statutory scheme – it was simply not required to follow it.” As a result, the court of appeals reversed the trial court’s decision which concluded that R.C. 3311.06 required the parties to acquire the state board of education’s approval to make the agreements enforceable. The court also held that the agreements at issue were not required to include fiscal certificates pursuant to R.C. 5705.41 and 5705.412. The court reasoned that these statutes are only applicable for the expenditure of money whereas the revenue-sharing agreement involved obtaining funds, not spending funds.

To read this case, click here.

Authors: Matthew John Markling and the McGown & Markling Team.

Note: This blog entry does not constitute – nor does it contain – legal advice. Legal jurisprudence is like the always changing Midwestern weather. As a result, this single blog entry cannot substitute for consultation with a McGown & Markling attorney. If legal advice is needed with respect to a specific factual situation, please feel free to contact a McGown & Markling attorney.

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