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OML LEGISLATIVE BULLETIN No. 3 February 7, 2003 PLEASE CIRCULATE THIS BULLETIN TO YOUR COUNCIL, DEPARTMENT HEADS & STAFF Budget Fix Bill on Fast Track. The third "budget correction" bill of this biennium is on track for quick action in the Ohio House. The bill (HB 40) was introduced and heard for the first time this week. House Leadership has said the bill would be amended in House Finance Committee on Tuesday of this coming week and voted out of the House on Wednesday. The bill as introduced mirrors the Governor's proposals to double the taxes on all alcoholic beverages and raise the tax on a pack of cigarettes by 45 cents to a dollar a pack. The bill also includes the Governor's proposal to slash $30 million in local government funds in the last two to three months of this biennium, which ends June 30. As reported to our e-mail subscribers earlier this week, such a cut would precede a July "reconciliation" of the Local Government Funds and Local Government Revenue Assistance Funds that is estimated at about $30 million. This corrective bill is meant to buoy up the state's revenues to fill a deficit in this biennial budget of $720 million, according to the administration's estimates.And now, as they say, the rest of the story. Thursday evening, House Republicans hammered out what is being reported as their alternative to the Governor's budget fix. Reportedly, that fix would lower the estimated size of the deficit to $531 million. The House plan would reach its goal of filling that budget hole through reductions in spending, accelerated collection of sales taxes from some businesses and consideration of a temporary (two months) sales tax increase, if needed, later in the biennium. The plan would not include any cigarette or alcohol tax increases. Consistent with House's past support of local government funding, the plan would also eliminate the Governor's proposal to cut local government funds. Obviously, the situation with this bill is very fluid. The Governor is sticking by his proposal. The Senate is working on its own set of ideas. And the House will not finalize its version of the bill until a majority caucus on Tuesday. However, the Speaker, The Senate President and the Governor are apparently talking and everyone seems intent on getting this bill out before the end of the month. You can help a great deal by contacting your House and Senate members and telling them you support the idea floating about the House of eliminating the $30 million cut in local government assistance. The problems that cut will cause will only compound municipal budgets that will get hit again with a $30 million reconciliation in July. And the picture gets no better when you look at the Governor's new biennial budget, which caps growth for local government funds at 2%. Gas Tax Numbers We have obtained from the state a printout of what each city and village would receive should Governor Taft's proposal for increases in the gas tax pass in the General Assembly. At its peak, beginning in 2007, cities and villages, on average, would see an increase of about 88% over FY 2001 gas tax dollars. The printout is available on our website (omunileague.org). You will need Microsoft Excel or, perhaps, another spreadsheet to access that file. Brownfield Training What is a Brownfield? If you do not know the answer and would like to, feel free to attend a training seminar sponsored by the Ohio EPA. The program is free and will be held at different locations around the state and on three different dates in February. All the information that you will need about "Brownfield Basic Training For Local Governments" can be found on our website. The address for the League is www.omunileague.org. Once you log on, all you need to do is click on Brownfield Basic Training. Email Bulletin Just a reminder. If you haven't signed up for getting the Bulletin by e-mail, it's never too late. Especially during the state's budget process, we will be sending out not only our Friday Bulletin to e-mail subscribers, but other information as needed through the week. That's not something we can do by regular mail. You simply get more information, quicker by signing up for the e-mail Bulletin. To sign up just e-mail us your name, municipality and whether you currently receive the Bulletin by regular mail. E-mail this information to omunileague2@copper.net. Correction to MFOA Newsletter The municipal finance officers should have received a February, 2003 MFOA Newsletter this week. In it was an incorrect conference date. The Spring MFOA Conference will be April 23-25, 2003. Committee Schedule for the week of February 10, 2003 TUESDAY, FEBRUARY 11 SENATE FINANCE & FINANCIAL INSTITUTIONS , 1:30 p.m., Finance Hearing Rm., Chr. Harris, Phone: 466-8086.The committee also will receive presentations from Office of Budget and Management Director Tom Johnson and Tax Commissioner Tom Zaino regarding Governor Taft’s proposal to balance the FY02-03 budget. HOUSE FINANCE & APPROPRIATIONS, 1:30 p.m., Rm. 313, Chr.
Calvert, Phone: 466-8140. WEDNESDAY, FEBRUARY 12 HOUSE COUNTY & TOWNSHIP GOVERNMENT, 10 a.m., Rm. 121, Chr.
Wolpert, Phone: 466-9690. HOUSE FINANCE & APPROPRIATIONS, 1:30 p.m. or after session,
Rm. 313, Chr. Calvert, Phone: 466-8140. THURSDAY, FEBRUARY 13 COMMITTEE TO STUDY STATE & LOCAL TAXES, 9:30-11:30 a.m.,
Senate Finance Hearing Rm., Chr. Tom Zaino, State Tax Commissioner. SENATE FINANCE & FINANCIAL INSTITUTIONS, 10 a.m. session,
Finance Hearing Rm., Chr. Harris, Phone: 466-8086. HOUSE FINANCE & APPROPRIATIONS, 1:30 p.m., Rm. 313, Chr.
Calvert, Phone: 466-8140. |
