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

House Considering 60% Cut in Local Government Assistance.

As you may have read in the media, the Ohio House is currently considering cutting all assistance to local governments and libraries by 60%. Under consideration for insertion in the biennial budget, this cut would reduce aid to local governments and libraries from a projected $2.4 billion to $1 billion over the two years beginning in July. The proposal is clearly pointing to the eventual end of all local government assistance from the state. The cut would apply to the Local Government Fund, the Local Government Revenue Assistance Fund and the Local Government and Library Support Fund. It would also cut the Direct Share checks, which go to those municipalities with income taxes, as that is part of the LGF formula.

The League, in concert with other local government and library groups, is working hard to oppose this proposal. While we appreciate the state’s budget problems, this is hardly the time to pass the state’s problems on to local government. Local government funds have for many decades kept many local problems off the steps of the Statehouse because of this state assistance.

Such a drastic reduction will cause fiscal and political turmoil at the local level that will not spare those in the Statehouse who support this sort of axing of aid. Any honest efforts to fill this gap in funding with tax increases will have to fly under the banner of "Raise Your Local Taxes to Balance the State Budget" and "Raise Your Local Taxes So We Can Keep Our Services Almost the Same." These efforts will not fly and huge municipal and county layoffs will result. For our cities, those layoffs, in large part, will be safety forces at time in which we should not even consider cutting public safety. For hundreds of our villages, these cuts will mean fiscal emergency or worse. The head of the Ohio Township Association believes this proposal would throw up to 800 townships into fiscal emergency. The Library Association believes these cuts would result in the closing of up to 176 library systems.

The League has been busy on this issue, since Speaker Householder floated the idea with us in a private meeting of the affected groups. Since then we have talked to many legislators in both Houses, many municipal officials and dozens of newspapers throughout the state on this issue. Through all of those discussions, we are convinced of one thing: with your continued help at the local level, we can turn this issue around.

Your help in this is critical. You are the League; you are the voice of municipal government that can turn a state fiscal cut into local reality. You can put a human face on the police officers, firefighters, refuse workers and others who will be laid off if these cuts are successful. You can do that by talking to your legislators, your municipal employees and your citizens, personally and through your local media.

Contacting Governor Taft’s office would also be very helpful. The Governor has told the media that "this is no time to cut local government funds." The budget he sent to the House allows for 2% growth in local government assistance in each year of the biennium.

Much of the activity surrounding the budget and these cuts in the House will occur in hearings and caucuses this weekend and early next week. Time is critical on this issue.

Municipal Income Tax Changes Still In Play.

This week, the League staff has been involved in a number of meetings negotiating for a set of municipal income changes that are practical, productive and truly revenue neutral. Meetings with Tax Commissioner Tom Zaino and representatives of our six largest cities and, separately, with representatives of the Cuyahoga Mayors and Managers, have been productive, though there is still much work to do. An all day session with representatives of the business community, the League, the Regional Income Tax Authority, Central Collection Agency and others was less successful, but useful.

Part of our discussion with the Speaker involved the Speaker’s discussion of trying to help local governments with alternative tools for local governments that might take the place of local government funds. While making it clear that we would continue to oppose local government fund cuts, we would work to identify as many of those tools as possible, even though such an effort is filled with many problems. However, we did mention that any change in the municipal income tax that negatively reduced the yield of that tax certainly would not be helpful.

Residency Bill Set for Hearing.

HB 114, the anti-residency, anti-Home Rule, anti-vote of the people bill, is up for another hearing next week (see schedule). It is not scheduled for a vote, but we hope we continue to have testimony opposing this bill by local officials. The municipal officials who testified at the last hearing did a great job.

If you wish to testify and need any background or protocol information, please, don’t hesitate to give us a call.

MONDAY, APRIL 7

HOUSE FINANCE & APPROPRIATIONS, 4 p.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. (Amendments - Possible vote)

TUESDAY, APRIL 8

SENATE STATE & LOCAL GOVT. & VETERAN’S AFFAIRS, 10:30 a.m., Senate Finance Hearing Rm., Chr. Coughlin, Phone: 466-4823.

HB 24 VILLAGE DISSOLUTIONS (Wolpert) Permits the dissolution of a village under certain conditions and limits mayors courts. (1^st Hearing - Sponsor, proponent, opponent & interested party - Substitute bill - Possible vote)

HOUSE STATE GOVERNMENT, 3 p.m., Rm. 122, Chr. Carmichael, Phone: 466-1474.

HB 114 EMPLOYEE RESIDENCY REQUIREMENTS (Flowers) Prohibits political subdivisions from imposing residency requirements on certain employees. (3^rd Hearing - Proponent, opponent & interested party)