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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No. 16                               June 30, 2005

PLEASE CIRCULATE THIS BULLETIN TO YOUR COUNCIL,  DEPARTMENT HEADS & STAFF

Budget Passes; Issue 2 Stalls.

Last week, the House and Senate sent to the Governor the new biennial state budget (HB 66). Included in the budget is funding for all local government and library funds at the “freeze” level. All local governments and libraries will receive the same amount of state aid, per month, over the next two years as they have received the last two years. The bill also includes the establishment of a task force, including a representative of the League, to study potential sources of revenues for the future funding of the local government funds. The Governor will sign the budget bill by June 30.

In other action, the Ohio House failed to put together the 60 votes necessary to place State Issue 2, now coupled with the “Third Frontier” high-tech and research program and a new “jobs-ready” industrial site grant program, on the November ballot. A session for both Houses is tentatively scheduled for August 2 in case enough votes for the issue become available over the summer. The deadline for placing Issue 2 on the ballot is August 10.

Also included in the final budget are:

The addition of one mayor, selected from a short list provided by the League, to the Board of Building Standards and the state committee charged with developing a state residential building code for one-, two- and three-family homes.

A cut in the state estate tax that will result in an estimated reduction of 15% per year in revenues from that tax for township and municipal governments.

A requirement that all cities and counties with over 100,000 population submit to the Auditor of State, by October 1of this year, a report on the efforts, past and future, of those cities and counties to consolidate services for the purpose of saving money.

The removal of the sunset clauses, found in the House version of the budget, related to the establishment of area-wide tax increment financing districts.

Full elimination of the state tangible personal property tax on inventory, machinery, and equipment, furniture and fixtures. This provision includes full reimbursement for schools and local governments for losses from this provision for five years. Reimbursement continues thereafter on a proportionally reduced level for an additional ten years.

Bans the local regulation of the packaging, labeling, storage, distribution and use of fertilizer and seed.

An increase of the solid waste tipping fee by $1.50 per ton.

A new court cost on all moving violations of up to $5 which can be imposed by the county commissioners of all counties containing 55 or more law enforcement agencies (Cuyahoga County only). Such court fees, which would apply that cost to mayor’s courts, are to be used by the county to pay for “regional criminal justice information systems.”

We hope you will talk to your legislators, especially your members of the House, about their concerns and thoughts about State Issue 2 during July. We all know how important the renewal of the state’s infrastructure bond issue is to all of our members. In conjunction with other groups, we will be working throughout the month to end the stalemate that is currently keeping Issue 2 from the ballot.

Other Legislation.

SB 82, which would ban residency requirements for municipal employees, passed the Senate 19-13, just prior to the summer recess. We do not expect significant activity on this bill until the House returns in September or October.

HB 56, which would ban the use of “red-light” cameras by all law enforcement agencies, received no hearings in the Senate prior to recess. Again, on this bill we expect no significant activity over the summer.

Please Mark Your Calendars

The Ohio Municipal League Annual Conference will be held October 5-7, 2005 in downtown Columbus at the  Greater Ohio Convention Center with a block of rooms reserved at the Hyatt Regency hotel adjoining the Convention Center.