Ohio Municipal League
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Columbus, Ohio 43215

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John Mahoney
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OML LEGISLATIVE BULLETIN

Ohio Senate Continues Consideration of Gas Tax.

The Senate Highways and Transportation Committee continued its consideration of the ODOT budget and the proposal that would mean up to a $289 million increase in gas tax revenues for local government this week. The proposal would mean up to an 88% increase in gas tax revenues for municipalities when fully implemented in 2005.

The League testified in favor of the measure before the committee this week. While the proposal is expected to pass the Senate next week, there are still rumblings of ideas that could derail the measure.

Various versions of an idea floating about the Senate would amend the measure to include a provision that would only allow jurisdictions which had approved all the local permissive license taxes, available under state law, to receive their portion of the new state gas tax dollars. Given that those permissive license fees only make sense for larger counties, municipalities and townships, this idea is a little more complicated than some may think. We believe this idea is losing favor quickly, but your help in making problems associated with this idea clear to your member(s) of the Senate would be helpful.

In Ohio, we have 400 villages with populations under 1000. All of those villages could, of course, raise their local permissive fee, but to what end? What could they promise local voters for this new fee? Better service? Not really.

If all 400 villages raised the permissive fee by $5, it would raise enough money to garner, on average, $2000 for each village. Usually, you justify a new tax with the promise of new or improved service. In this case, you would have village officials telling their constituents that they really need this new tax, so they could fix 6 more potholes a year.

Permissive fees make sense for larger jurisdictions and they have been very helpful in that regard. However, we do have to take statewide action every few years because, without it, we have too many jurisdictions who either can’t politically or practically raise or dedicate the money locally to ensure that Ohio’s integrated system of transportation remains healthy and usable in every area of the state.

The Ohio General Assembly bridles every time Washington demands that the state does something in order to receive money needed for some program. This idea is Columbus doing the same thing that Washington does.

There are those in the General Assembly who don’t like this idea. There are others still who think any policy in this area ought to be positive, not punitive. They need your help.

Call for Witnesses.

On Tuesday of next week, the House State Government Committee will hear proponent and opponent testimony on HB 114, which bars municipalities from having residency requirements for municipal employees (see Committee schedule). If you or someone else from your community wishes to testify against this anti-Home Rule measure, please, give us a call, should you need more background or information on this bill.

Thanks.

On behalf of the League’s Board of Trustees and staff, thanks go out to all those municipal officials who could take the time to make the League’s Legislative Luncheon a great success. We also appreciate the many legislators who stopped by to have lunch with their municipal officials.

Senate/House Committee Meeting Schedule - Week of March 24, 2003

MONDAY, MARCH 24