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

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

email:
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John Mahoney
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Local Government Groups Testify on Budget Bill.

Local government and library advocates, including the League, testified this week before the Senate Finance and Financial Institutions Committee about the need to keep local government funds intact in the state budget. The Governor’s budget allows up to 2% growth in those funds in each year of the new biennium. The House version freezes those funds at this biennium’s levels. The League’s position, and that of other local government groups, is that such funds ought to be put back on formula and allowed to float with state revenues as those revenues expand or contract.

The League also voiced concern over the provision of the House budget that constrict public agencies from providing public information to the public, if such provision competes with private business. The League also asked that the Senate to follow tradition in the case of the competitive bid limit. In the House version of the budget the county bid limit is raised from $15,000 to $25,000. Should the Senate follow that course, the limit should be raised for all local governments, in the League’s view. Keeping that uniformity in local bid limits has been the practice with such legislation in the past.

This week, Senate leadership continued to express its confidence that the Senate would be able to vote on its version of the budget by June 4, which would allow for most of June to be used for a conference committee over differences with the House. While many of the hard decisions have not been made yet in the Senate, it is probable that the Senate will delink the future of the sales tax increase in the budget from the fate of a ballot issue this fall over whether the state should allow video lottery terminals in Ohio’s seven racetracks. It’s also apparent that the Senate will be looking for more dollars for primary, secondary and higher education than what was included in the House budget.

Note on DUI Change.

We thought we should note, as we have not in the past, that included in the ODOT budget, passed and signed a few week ago, was a lowering of the standard for DUI’s from .10 to .8. This change, which relieves the state of possible federal sanctions, will take effect July 1, 2003.

Update on New OPERS Monthly Reporting Schedule (submitted by OPERS)

Currently, OPERS covered employers are required to remit the employee portion (8.5%) of retirement contributions to OPERS on a monthly basis but the employer portion (13.55%) is not due until 90 days after the end of the quarter. Last October, OPERS sent an Employer Notice to all OPERS covered employers indicating that beginning July 1, 2003, both the employee and employer portion of retirement contributions would be required to be remitted to OPERS on a monthly basis.

The new Defined Contribution Plan options available to eligible members beginning January 1, 2003 were the original impetus for the change in the reporting schedule. In addition, the new reporting schedule slightly improves OPERS' funded status, which takes some of the upward pressure off of contribution rates, which have remained stable since 1977.

For affected employers, however, the new reporting schedule results in employers having to make 14 months worth of OPERS payments in CY 2003 as employers switch to the new monthly reporting schedule and make the one-time catch up of the April, May and June 2003 quarterly payment which is due in September 2003. About 55% of OPERS covered employers are affected by this change in the reporting schedule; the remainder are already remitting the employer contributions to OPERS on a monthly basis.

The Ohio Municipal League and other affected employers have contacted OPERS about the fiscal impact of the change to monthly reporting during this difficult budget time. As a result, the OPERS Board has proposed the following alternative. First, OPERS still intends to require monthly reporting of employer contributions beginning July 1, 2003. In effect, this means that both the employee and employer contributions for July 2003 would be required to be remitted to OPERS in August 2003.

However, in recognition of the difficult fiscal times facing OPERS covered employers, the board has proposed allowing affected employers to treat the April, May, and June 2003 quarterly payment as a "transitional liability that could be paid to OPERS in three monthly installments that are due on or before December 31, 2004, December 31, 2005 and December 31, 2006. This new approach will provide affected OPERS employers with some short term relief since it will allow affected employers to make 11 OPERS payments in CY 2003 instead of 12 payments. The one-time catch-up of the three-month transitional liability would then be spread out over a three-year period where it can be better planned for by affected employers.

As part of this package, OPERS staff will also seek a statutory change to reduce the current penalty for late payment of employer contributions. Currently, the penalty for late payment is 5% of the amount due if the employer contributions are not paid to OPERS within 90 days after the end of a quarterly period. Under the new proposal, the penalty for late payment (beyond the 30 day due date) would be reduced to 1.0% for the first 30 days, 2.5% for the second 30 days, and 5.0% if the employer payment is received more than 60 days after the new monthly due date.

Senate/House Committee Meeting Schedule - Week of May 26, 2003

SENATE FINANCE & FINANCIAL INSTITUTIONS, 9:30 a.m. & 2:30 p.m., Finance Hearing Rm., Chr. Harris, Phone: 466-8086.

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.

Public testimony at both sessions.

HOUSE CIVIL & COMMERCIAL LAW, 9:30 a.m., Rm. 114, Chr. Seitz, Phone: 466-8258.

HB 179 GASOLINE THEFT (Wolpert) Requires a suspension of the driver’s license of a person who causes a motor vehicle to leave the premises of a retail gasoline establishment without full payment for gasoline. (2^nd Hearing - Proponent)

SENATE FINANCE & FINANCIAL INSTITUTIONS, 2:30 p.m., Finance Hearing Rm., Chr. Harris, Phone: 466-8086.

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.

Acceptance of substitute bill. No testimony.

SENATE STATE & LOCAL GOVT. & VETERAN’S AFFAIRS, After session or 2:30 p.m., South Hearing Rm., Chr. Coughlin, Phone: 466-4823.

SB 87 PUBLIC RECORDS (Dann) Requires that a public office or person responsible for public records provide copies of public records within ten days or, if the copies are provided by the United States mail, within fifteen days, after receiving the request. (1^st Hearing - Sponsor)

SENATE FINANCE & FINANCIAL INSTITUTIONS, 9 a.m. & 2:30 p.m., Finance Hearing Rm., Chr. Harris, Phone: 466-8086.

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.

Public testimony on substitute bill.

HOUSE BANKING, PENSIONS & SECURITIES, 10:30 a.m., Rm. 018, Chr. Blasdel, Phone: 466-8022.

HB 187 POLICE & FIRE COLA (T. Patton) Increases the cost of living allowance for certain Ohio Police and Fire Pension Fund members to $540 per year. (1^st Hearing - Sponsor

HB 98 PENSION FUND OPTIONS (Willamowski) Makes changes to the option benefit plans for retirants and the cost-of-living increases in the Public Employees Retirement System, State Teachers Retirement System, and School Employees Retirement System. (5^th Hearing - Proponent, opponent & interested party - Possible vote)

HOUSE MUNICIPAL GOVERNMENT & URBAN REVITALIZATION, 11 a.m., Rm. 122, Chr. Williams, Phone: 644-5085.

SB 18 METRO HOUSING AUTHORITIES (Coughlin) Changes the composition of certain metropolitan housing authorities. (3^rd Hearing - Proponent, opponent & interested party - Possible vote)

SENATE FINANCE & FINANCIAL INSTITUTIONS, 9 a.m. & 2:30 p.m., Finance Hearing Rm., Chr. Harris, Phone: 466-8086.

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.