The OML met with the Governor's staff this morning (2-10-05) to discuss their final decisions on the budget. They have decided to include in the Governor's budget a freeze on local government funds (based on this FY's distributions) until January, 2006. In January, they plan to cut all local government funds by 20% for cities and counties, 10% for villages and townships and 5% for libraries. Those cuts would be in effect for the rest of the biennial budget (June 30, 2007). We will continue to oppose these outrageous cuts and the structure of those cuts throughout the legislative process.

The Governor's budget will not include any changes in the municipal income tax and would keep the estate tax intact through June 30, 2007. The budget does include an elimination of the tangible personal property tax, but includes a "hold-harmless" schedule and dollars for losses to local governments caused by the elimination.

The budget also includes a $2.75 a ton state tipping fee. That money would be used to get Ohio EPA entirely off the state GRF budget. The fee, in part, would also constitute an additional municipal general fund contribution to balancing the state budget and paying for state tax breaks.

We will have more details about the budget in Friday's Bulletin. At least with this fight, we now know for certain where we start.