Ohio Municipal League
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Columbus, Ohio 43215

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John Mahoney
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House Moves Out Budget Bill; Eliminates Municipal Concerns.

The Ohio House passed today its version of a bill to balance Ohio's budget, which faces a $1.5 billion deficit over the next twenty months. This afternoon, the House passed (54-45) on a mostly partisan vote HB 405, which includes cuts in state spending and the closing of some tax exemptions. The final bill, while different in some ways from the Governor's initial proposals, did enjoy support from the administration.

The two issues, which we were most concerned about and which were the subjects of a Tuesday FAX and e-mail Bulletin, were deleted from the bill Tuesday night in the House Finance and Appropriations Committee. Those issues were to recoup from municipal electric communities $49 million in kilowatt-hour taxes and make changes in the dealers in intangible taxes that would have cost the local government funds about $12 million. Both items were deleted from the version of the bill that reached the House floor. Thanks to all municipal officials who made contact with their state representatives on these two issues.

The Budget bill now goes to the Senate for its consideration. Though the Senate is not in full session, the Senate Finance Committee will begin its hearings on HB 405 tomorrow (Thursday) at 1:30 p.m. in the Senate Finance Hearing Room. Though the items of concern were deleted from the final House version, these same issues and others may come up during Senate consideration. Credible rumors have it that some members of the Senate are looking to increase the negative impact on local governments by cutting LGF and LGRAF assistance by as much as 10%. We will keep on top of this and report as soon as something is more definite. In the meantime contact the Senators to let them know that we oppose cuts to these funds. We will keep you informed.

In other news, the House Local Governments and Townships Committee meeting on Wednesday was cancelled, as were most other House committees, due to conflicting caucus meetings of both parties. The House Local Government and Townships Committee was scheduled to hear and possibly vote out HB 258, the bill that would mandate an end to local residency requirements for municipal employees. Currently the House is not scheduled to return until after the first of next year, though that could change depending on what the Senate does with the House's version of the budget corrections bill.

Legislative Bulletin Schedule.