Ohio Municipal League
175 South Third Street
Suite 510
Columbus, Ohio 43215

614-221-4349 Office
614-221-4390 Fax

email:
Legislative Inquiries
John Mahoney
General Inquiries
info@omunileague.org

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OML E- BULLETIN
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OML LEGISLATIVE BULLETIN

Recalculating the LGF Loss

This may be an ongoing process, but we have new projections of the loss in local government funds. These projections relate to action taken by the Senate in HB 40, the budget fix bill, and the state’s estimates of the losses stemming from the reconciliation of funds to take place in July. The Senate’s version of HB 40 was sent to the Governor this week, when the House, following hours of caucus debate, decided on Tuesday to concur in Senate amendments in a close 52-44 vote.

The Senate in HB 40 allowed the Governor to cut all local government funds by $30 million in this biennium, which ends June 30. However, in what we suppose was an effort to hold off that cut as long as possible to see if it was necessary, the Senate’s language limits the Governor to making that cut in June only. That means that the entire cut would be made in June and affect your July local government funds checks.

Further the state has updated its estimate of what it must cut from the July checks to reconcile actual revenues with estimated dollars sent out to local governments over the past few months. Unfortunately, that estimated reconciliation is now at $53 million, up from the earlier estimate we gave you of $30 million.

These changes from our earlier reports mean that we can now expect the state to cut all local government funds payments in July by $83 million ($30 million cut stemming from HB 40 and $53 million stemming from reconciliation). That means that the entire local government funds checks in July will equal $35 million. Unless something changes again, that means that your revenues from the July LGF, L-GRAF and direct municipal check should be equal to about 29% of last July’s checks.

Call for Witnesses

Anyone who has questions, concerns or objections to some or all of the municipal income tax changes proposed by the Committee to Study State and Local Taxes are urged to come and testify before the House Ways and Means Committee. The Committee will meet on Thursday, March 6 at 10:00 a.m. in House Hearing Room 121. The committee will take proponent, opponent and interested party testimony on HB 58, which right now only contains a directive to undertake tax reform including the "reform" of municipal income taxes.

It is important that municipalities make a strong showing at this committee hearing.

Gas Tax Package on Front Burner

A vote up or down is expected soon in the House on the Ohio Department of Transportation’s biennial budget. That budget contains the Governor’s proposal for a gas tax package, which the League supports. When fully implemented, that package would increase local revenues from the gas tax by $289 million a year.

The House Finance subcommittee is expected to send to the full House Finance Committee a version of that budget next week. The full committee is expected to finish its consideration of the bill prior to an expected floor vote by the entire House on March 12.

HOUSE FINANCE & APPROPRIATIONS, 1:30 p.m., Rm. 313, Chr. Calvert, Phone: 466-8140.

HB 87 TRANSPORTATION BUDGET (Buehrer) Makes appropriations for programs related to transportation and public safety for the biennium beginning July 1, 2003 and ending June 30, 2005 and provides authorization and conditions for the operation of those programs. (2^nd Hearing - Report of subcommittee)

HOUSE FINANCE & APPROPRIATIONS, 9 a.m. (If necessary), Rm. 313, Chr. Calvert, Phone: 466-8140.

HB 87 TRANSPORTATION BUDGET (Buehrer) Makes appropriations for programs related to transportation and public safety. (3^rd Hearing - Proponent, opponent & interested party)

SENATE WAYS & MEANS & ECONOMIC DEVELOPMENT, 9:30 a.m., Finance Hearing Rm., Chr. Amstutz, Phone: 466-7505.

Testimony on the municipal income tax reform options included in the report of the Committee to Study State and Local Taxes.

SENATE JUDICIARY ON CIVIL JUSTICE, 11 a.m., North Hearing Rm., Chr. Goodman, Phone: 466-8064.

SB 30 COMMUNITY IMPROVEMENT CORPORATIONS (Mumper) Expands the powers of a community improvement corporation, on behalf of a political subdivision and based on an agreement with the political subdivision, to do all things necessary or convenient to carry out the purposes and take any actions consistent with the purposes of the Community Improvement Corporation Law. (2^nd Hearing - Proponent, opponent & interested party)

HOUSE WAYS & MEANS, 10 a.m., Rm. 121, Chr. Kilbane, Phone: 466-0961.

HB 58 TAX REFORM DIRECTIVE (Kilbane) Directs the General Assembly in its deliberations regarding the enactment of reforms of the state’s tax laws. (1^st Hearing - Sponsor, proponent, opponent & interested party - Limited to municipal income tax)

HOUSE FINANCE & APPROPRIATIONS, 1:30 p.m. (If necessary), Rm. 313, Chr. Calvert, Phone: 466-8140.