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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Gas Tax Passes.

The proposal to raise up to $120 million a year in new gas tax revenues for municipal government passed the Senate this week. The proposal, when fully implemented, would result in a total of $289 million for all local governments and a significant increase in dollars available for state transportation projects. The proposal is included in the biennial budget for the Ohio Department of Transportation, which must be passed and signed by April 1.

Following action by the Senate, the House called for a conference committee to work out the differences between the two houses, as a reaction to the many changes made in the Senate. The conference committee worked through those differences Wednesday and Thursday, followed by a vote to accept the final conference committee report by both houses. The bill now goes to the Governor for his signature.

Governor Taft and ODOT Director Gordon Proctor have played key roles in seeing this legislation through the General Assembly, so it is clear that the Governor will sign this legislation. We appreciate the leadership and effort put forth on this proposal by Governor Taft and Director Proctor. We also would like to thank Representative Steve Buehrer, the sponsor of the bill, and the leadership of both houses, including the chairs of the House Finance Committee and the Senate Highways and Transportation Committee. Without their support and hard work this transportation package could not have been successful.

We will be sending letters of appreciation to all members of the House and Senate who supported this effort. We hope you will do the same for your local members of the General Assembly who voted for this important package.

The first phase of new gas tax revenue will begin July 1.

It’s Never Perfect.

While overall we believe the gas tax legislation passed by the General Assembly is really great, there was one small problem. An amendment was put in the bill in the Senate, which attempts to overturn the effects of an U.S. Supreme Court ruling involving the City of Columbus, and supported by the League. In that decision the Court said that, despite the contention of tow truck operators, the city could regulate tow truck operations within the city, notwithstanding federal deregulation of the trucking industry.

The Senate amendment, which survived the conference committee and final action by the General Assembly, would place regulation of tow trucks under the auspices of the Public Utilities Commission of Ohio and bar all local regulations of tow trucks. The amendment is clearly unconstitutional and, in our view, wrong.

The League has asked Governor Taft for a line-item veto on this portion of the transportation budget. A copy of that letter of request is available on our website at www.omunileague.org.

Local Government Funds.

There are many rumors floating around about the fate of the LGF’s ranging from the retention of the Governor’s proposal to cap growth in the funds to total elimination of the funds.

It is extremely important that members of the House hear from city and village officials this week. The more letters and phone calls the better. The message should be brief: 1) The economy has played havoc with local government budgets just as it has with the state. 2) Preserve the LGF’s because they provide a very important revenue source for municipal operations 3) Describe the basic services you use these dollars for 4) Emphasize what may happen if taken away. Be sure to thank House members for their past support of the LGF’s.

Call for Witnesses.

The House Finance and Appropriations Committee will hold two hearings next week on HB 94 (see committee schedule). This bill makes several changes in the state civil service law, which is followed by many cities throughout Ohio. The changes proposed by HB 94 are very positive, in the League’s view. If you are interested in testifying on this issue, please, let us know and we will provide you with any additional or background information you might need.

Anti-Residency, Anti-Home Rule Bill Heard.

The House State Government Committee heard testimony this week on HB 114, which bars many residency requirements for public employees, including all full time municipal employees. The bill, as introduced, does allow residency requirements which require employees to live in the county or adjacent counties of the political subdivision. We appreciate the testimony given against this anti-Home Rule bill by the many municipal officials who attended this hearing. We also appreciate the continued opposition to this issue expressed this week by the Ohio Association of Police Chiefs.

This bill will not be heard next week because the House will devote most of its energies to the state biennial budget, which is currently set for floor action on April 9. However, the committee is expected to hold a hearing on the bill the following week. A "Possible Vote" by the committee could be scheduled as early as that hearing.

"Tax Reform" Up In the Air.

As you can see in the committee schedule for next week, the House Ways and Means Committee will try to devote a great deal of its time to nailing down a package of "tax reforms" for insertion in the state biennial budget. What that package will look like, and how many changes to the municipal income tax might be included, is still anyone’s guess.

The League and the many municipal officials who have been active on this issue will be spending a great deal of time next week in those hearings and in other meetings trying to make sure that any changes are positive and practical. We will keep you informed on this issue as the specifics begin to gel.

Update on New PERS Employer Schedule.

PERS is working with its employers to ease the pain of the proposed change in the due date for employer pension contributions. One possibility is to continue with the proposed schedule that requires employers to send July 2003 employer pension contributions in at the same time as employee pension contributions, which are due monthly instead of on a quarterly basis.

The 2nd quarter payment for Calendar Year (CY) 2003 (April-June) would then be treated as a "transitional liability" that would not be due at its currently scheduled due date of September 2003. Instead, PERS would allow the your municipality to send in the transitional liability by the end of CY 2004, which in effect gives some short term relief in CY 2003 and allows the employer to catch up in CY 2004.

In short, PERS is proposing a no-fault period between July of this year and December of next year for employers to move from quarterly to monthly employer payments for PERS. If you have thoughts about this potential option, please, let us know.

We will keep you posted as further details develop and continue to appreciate the willingness of PERS to work as partners with its employers on this issue.

HOUSE FINANCE & APPROPRIATIONS, 10 a.m., Rm. 313, Chr. Calvert, Phone: 466-8140.

HB 94 CIVIL SERVICE (Buehrer) Implements the recommendations of the Civil Service Review Commission. (2^nd Hearing - Proponent, opponent & interested party)

HOUSE WAYS & MEANS, 4 p.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. (7^th Hearing - Sales & use taxes - Proponent, opponent & interested party - Possible substitute bill)

HOUSE WAYS & MEANS, 9 a.m., Rm. 122, 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. (8^th Hearing - Sales & use taxes & Personal income tax - Proponent, opponent & interested party - Possible substitute bill - Possible vote)

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

HB 94 CIVIL SERVICE (Buehrer) Implements the recommendations of the Civil Service Review Commission. (3^rd Hearing - Proponent, opponent & interested party)

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

HB 95 BIENNIAL BUDGET (Calvert) Levies taxes and provides for implementation of those levies, makes operating appropriations for the biennium beginning July 1, 2003, and ending June 30, 2005, and provides authorization and conditions for the operation of state programs. (Subcommittee reports)

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. (9^th Hearing - Personal income tax - Proponent, opponent & interested party - Possible substitute bill - Possible vote)

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

HB 95 BIENNIAL BUDGET (Calvert) Levies taxes and provides for implementation of those levies, makes operating appropriations for the biennium beginning July 1, 2003, and ending June 30, 2005, and provides authorization and conditions for the operation of state programs. (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. (9^th Hearing - State tax reform - Possible substitute bill - Possible vote)

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

HB 95 BIENNIAL BUDGET (Calvert) Levies taxes and provides for implementation of those levies, makes operating appropriations for the biennium beginning July 1, 2003, and ending June 30, 2005, and provides authorization and conditions for the operation of state programs. (Proponent, opponent & interested party - Amendments due to chair’s office by 6 p.m.)

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

HB 95 BIENNIAL BUDGET (Calvert) Levies taxes and provides for implementation of those levies, makes operating appropriations for the biennium beginning July 1, 2003, and ending June 30, 2005, and provides authorization and conditions for the operation of state programs. (Proponent, opponent & interested party - If necessary)