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OHIO MUNICIPAL LEAGUE No. 19 September 20, 2002 PLEASE CIRCULATE THIS BULLETIN TO YOUR COUNCIL, DEPARTMENT HEADS & STAFF Municipal Budget Numbers Worst in a Decade. Since 1985, The National League of Cities has sponsored a large and detailed survey to measure the fiscal conditions of America’s cities. This year, the survey outlined the specifics of the obvious. For the first time in a decade the majority of the cities surveyed said that their fiscal conditions are worse now than they were in 2001. Of the 308 cities surveyed, 55% of the cities reported that they were not as able to meet their community’s financial needs in 2002 as they were in 2001. 67% of the cities responding expect their budget problems to be worse in 2003. The financial problems cut across all city sizes. From the smallest cities to the largest cities in the survey, the majority in each category of size reports that they are less able to keep up with their community’s financial needs this year. The same is not the case for cities when measured by region. 61% of Midwest cities report they are less able to meet their community’s financial needs this year. That is the largest majority of any region in the country. The survey also found that in projecting the performance of the four municipal taxes most often used, projecting the performance of the income tax accurately was the most difficult. Projecting the performance of the property tax was the easiest. On the expenditure side, cities reported that the cost of health care benefits, employee wages, infrastructure needs, inflation of prices on municipally needed products and meeting public safety needs as the primary items pushing up the size of municipal budgets. The survey is a reflection of what many of our members are going through today, cities and villages alike. Many of your unavoidable costs, such as the rising costs of health care benefits and public safety obligations, are going up at the same time as the income tax, the primary source of municipal general fund money in Ohio, is going flat or in a negative direction. While reserve or rainy day funds peaked for municipalities in 2001 to their highest level since 1985, many of those funds are depleted or greatly reduced and will not be available in 2003. Being in the region of the country that is finding the current economy the most challenging and relying on the one municipal revenue source (income tax) that is the hardest hit by the economy ought to be enough problems for our members. However, those problems are compounded by the tenuous promise of future state aid through the local government funds. Those funds have been diminished by the performance of state taxes, but efforts to cut the funding of LGF and L-GRAF have failed so far. What will happen to those funds in the future is anyone’s guess, but given the state’s fiscal problems, such as projections that the state will begin its next fiscal year facing a deficit of $4 billion or more, the future of those funds could be very dark. It is important in this election season, when both incumbents and challengers are making the rounds back home, that you talk to those seeking election to the General Assembly and statewide office about the fiscal condition of your municipality and the need for continued support from the state. Certainly, that support includes the continuation of the local government funds, but also there is a need to not eliminate the Estate Tax without the state making up the revenues losses that would be incurred by municipal and township governments. It also includes continued state support through infrastructure funding and adequate gas tax and license revenue sharing. OPENING LUNCHEON - Wednesday, October 2 Please make a point to join with us to welcome ARCHIE GRIFFIN, Assistant Athletic Director at Ohio State University, former Ohio State half back and two time Heisman Trophy Winner, as the featured speaker. EARLY ARRIVAL - Wednesday, October 2 Reception at the Center for Science and Industry (COSI) and tour of the Ocean and I-O Technology areas. Buses will be provided. WORK SESSIONS AND EXHIBITS Be sure you visit both. There is something for everyone. HOTEL ACCOMMODATIONS All of the sessions will be held at Hyatt Regency Hotel and Conference Center. Overnight accommodations have been blocked at the Hyatt Regency. You must reserve your room directly with the Hyatt Regency and they have extended the cut-off date for reservations at our convention rate, so call the Hyatt Regency at 614/463-1234 and ask for the OML Block for room reservations. Valet parking is $21.00 for 24 hrs. with in and out privileges, may be billed with Hyatt Regency Hotel bill. Convention Center and lot parking is $14.00 overnight and $11.00 per day (may not be billed with Hyatt Regency Hotel bill). ANNUAL BUSINESS MEETING The annual business meeting of the League will take place Thursday afternoon. During this important meeting, one-half of the Board members will be elected for a two-year term. Nominations should be submitted by September 20, 2002 MUNICIPAL LEADERSHIP TRAINING Module VI, Municipal Leadership Skills & Team Building, Media Relations will be conducted Friday, October 4 beginning at noon. A box lunch will be provided. Register separately through forms on the web site or call our office and request a registration form. OML REGISTRATION Everyone attending must register. A form follows to assist you in choosing which days you will attend. This form is to be returned directly to the OML offices. |
