Comments by Catherine Turcer, Common Cause Ohio 

Before the Joint Committee on Agency Rule Review

On the Ohio Ethics Commission (ORC 101.352)

The Ohio Ethics Commission is on the agenda today because there are concerns about the commission’s decision-making about Financial Disclosure Statements.

Charter schools are projected to receive more than $1 billion from the state this school year. There are 342 charter schools in our state. The public deserves more transparency and accountability around this significant and growing sector of the state’s publicly financed schooling system. Establishing a clear financial disclosure requirement for charter schools is not outside the authority— in law and by rule— of the Ohio Ethics Commission.

Financial Disclosure Statements enable the public to identify conflicts of interest, thus fostering accountability: The filings remind filers who are responsible for how tax dollars are spent that they need to separate their own financial interests from their public responsibilities and avoid conflicts of interest. 

O.R.C. 102.02(A) specifically lists several types of public officials who must file – including setting a population minimum for traditional public school board members of 12,000 students. Additionally, O.R.C. 102.02(A) requires all superintendents and business managers or treasurers to file yearly Financial Disclosure Statements, regardless of district size. 

However, the Ohio Ethics Commission has long standing authority to determine what entities must file financial disclosure statements under O.R.C. 102.02(B) which provides that the Ohio Ethics Commission “using the rule-making procedures of Chapter 119 of the Revised Code, may require any class of public officials or employees under its jurisdiction not specifically excluded by this section whose positions involve. . . expenditure of public funds . . . to file an annual statement.” 

Through 119 rulemaking, Ohio Administrative Code 102-5-05 provides that Financial Disclosures Statements can be required by vote of the Ohio Ethics Commission. The governing authorities of community or charter schools are considered public bodies under existing precedent, Cordray v. Int’l Preparatory School, 2010-Ohio-6136 and thus can be regarded as entities that the Ohio Ethics Commission can appropriately include in those who should be required to file Financial Disclosure statements.   

Although this statement has focused on a specific situation, it’s important to note that the law and the rules promulgated provide the Ohio Ethics Commission with the independence to vote and establish requirements for Financial Disclosure Statements to ensure ethical standards in other areas of government. Thank you for this opportunity to speak with you today.