No. 4 February 3, 2006

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

Local Government Funds

As we have previously reported, a Local Government and Library Revenue Distribution Task Force was created in HB 66 (The State’s Biennial Budget Bill). The commission consists of 10 voting members (5 from the Senate and 5 from the House of Representatives) and 5 non-voting members. (Ohio Municipal League, County Commissioners Association, Ohio Township Association, Ohio Library Council and Ohio Parks and Recreation Association).

“The Task Force shall study potential sources of state funding for the Local Government Fund, the Library and Local Government Support Fund, and the Local Government Revenue Assistance Fund that have the capacity to allow for growth in funding levels and to provide stability in funding levels. In addition, the Task Force shall consider changes to the codified funding formulae for the Local Government Fund, the Library and Local Government Support Fund, and the Local Government Revenue Assistance Fund that reflect the reform to Ohio tax code.”

At the December 14, 2005 organizational meeting Representative Larry Wolpert and Senator Gary Cates were elected Co-chairs and Senator Kim Zurz was elected Committee Secretary.

During the second meeting which occurred January 31, 2006, the Committee heard a history of the LGF and LGRAF from Christopher Hall, Ohio Department of Taxation. At the next meeting (as yet unscheduled) the Committee will hear a history of the Library Support Fund.

It has become clear after two meetings that some legislative members are interested in exploring not just funding sources but such issues as:

• changes to the statutory formula for distribution to the county undivided LGF and LGRAF
• changes to procedures for adopting local alternative distribution formulae such as who gets a veto and requiring a periodic review and update of local alternative formulae.

Voting Members

Representative Larry Wolpert

Senator Gary Cates

Senator Tim Grendell

Senator Kirk Schuring

Senator Teresa Fedor

Senator Kim Zurz

Representative David Daniels

Representative Joseph Uecker

Representative Allan Sayre

Representative Kathleen Chandler

Non-Voting Members

Susan Cave, OML

Michael Cochran, OTA

Larry Long, CCAO

Lynda Murray, OLC

Larry Peck, OPRA

Effective Date for SB 82

The effective date for SB 82, the anti-residency bill, is May 1, 2006.

Periodically, the Ohio Department of Commerce sets new thresholds for when the prevailing wage takes effect for both new construction jobs and for renovations. As of January 1, 2006, the threshold for using prevailing wages for new construction jobs is $69,853. That is up from $65,843.

For projects involving reconstruction, enlargement, alteration, repair, remodeling, renovation or painting, the threshold, as of January 1, is $20,955. That is up from $19,752.

It was interesting to us that, recently, the Speaker of the House, Representative Jon Husted told the press that he was unconcerned about the Tax Expenditure Limitation (TEL), put forth by Secretary of State Ken Blackwell. The ballot measure, scheduled for the November ballot, would be just fine for the state because the state kept its expenditures below the caps in the proposal, according to the Speaker. We agree, but we think there might be just a small problem still. It is ironic that this measure “to curb wild and out-of-control state spending,” according to the proponents, no longer concerns some state leaders, while the proposal would insure that no school levy, no municipal tax levy and no children’s service or other county tax levy would ever pass again in Ohio.

Under the proposal, to pass any local tax levy would require a majority vote of all electors in the jurisdiction. Though all other elections in Ohio history require just a majority of voters who vote on Election Day, this proposal actually says a local tax levy of any sort must be passed by a majority of all voters registered in the jurisdiction. It also says that all local tax increases, including unused charter millage that has already been voted upon, must garner this extraordinary majority. No, proponents for the measure say, that’s not what they meant and the courts will figure that out. Oh, really! If the measure passes, we are suppose to trust that the courts will figure out that the proponents were too stupid to write down in a Constitutional amendment what they really meant? We thought “do-overs” were just for children’s game and that mulligans were only allowed in golf!

Thus, a proposal that started as a bromide to end so-called wild state spending will visit its havoc on local government, while many state leaders vow they can live with the measure’s consequences. This tonic for so-called wild state spending will, in fact, guarantee no local tax levy for any legitimate purpose will ever again pass in Ohio, even though no pattern of “wild” local spending has ever been discerned or documented.

No school levies, no MR/DD levies, no park levies, no police levies, and no nothing. It is fascinating that, at times, (oil and gas regulation, red-light cameras, residency, building codes, etc. etc.), state leaders are almost nannyesque in their regard for local government, but when it comes to a proposal that would ruin school districts and all other local governments, they are only concerned for the government they were elected to run.

While we actually and wholeheartedly agree with the Speaker that this measure is not necessary for the regulation of state spending, we would hope that state leaders also remain or become aware of the terrible consequences this measure would have on local governments of all types. We would hate to have the destruction of good public services rest on a reckless and incompetent sentence, penned by someone who obviously doesn’t understand the history of American democracy.

HB 451 MAYOR'S COURTS (Domenick) To eliminate the jurisdiction of a mayor to hear cases in which the person charged has been convicted of or pleaded guilty two or more times to driving under OVI suspension and to increase the penalty for a third or subsequent conviction for driving under OVI suspension. (3rd Hearing-Proponent)

Ohio Retirement Study Council, (Chr. Schneider, 228-1346), Taft Rm. (122), 8:30 a.m.

HB 270 PUBLIC SAFETY RETIREMENT (Willamowski) To create special provisions in the Public Employees Retirement System for public safety officials.

HB 286 LAW ENFORCEMENT RETIREMENT (Willamowski) To include municipal park rangers and township police cadets in the law enforcement division of the Public Employees Retirement System (PERS), to provide for conversion by municipal park rangers and township police cadets of regular PERS service credit to PERS law enforcement service credit, and to create special provisions in the Public Employees Retirement System for public safety officer.