November 12, 2012
Impact of Ohio’s 2012-13 state budget (HB 153)
Ohio’s budget for 2012 and 2013 cut local government aid by a billion dollars. This means cuts in services we depend on, from road repair and emergency services to crossing guards, senior transportation and child protective services. What are the implications for Gallia County?
The state cut the Local Government Fund to the county, forcing Gallia County to make cuts to jurisdictions within the county. The state also cut direct funding to municipalities, and slashed reimbursements for taxes it had eliminated, taxes that businesses and utilities had paid to local governments. School districts and the public library fund were also cut. Losses in calendar years 2012 and 2013, compared to 2010 and 2011, include, among others:
- Public Library Fund……………………… -$63.0 thousand
- County operations……………………….. -$1.4 million (Includes county undivided fund)
- Schools…………………………………….. -$4.2 million
- Gallipolis………………………………….. -$83.0 thousand
- Rio Grande Community College……….. -$345.0 thousand
Loss to health and human service levies
- Gallia General Health District…………. -$57.0 thousand
- 169 District (MR/DD)…………………… -$197.0 thousand
Notes and Quotes
“The other problem that we are experiencing is, just like the general fund has been cut back on some of the funding that they are receiving, the same thing happened with the fire levy fund. We were receiving reimbursement for personal property taxes that were phased out by the state — they’ve taken that away — so we are getting about $30,000-$40,000 less per year into our fire levy even with the levy being the same as it’s always been. With no change on our part, we’re getting less distributions because of their changes at the state level. That does impact us.” – Annette Landers, Gallipolis City Auditor, from “Fire Chief discusses concerns with the City Commission,” Daily Tribune, June 12, 2012. http://tinyurl.com/bpd2rx7.
“Who it is going to hurt is that citizen who calls in the middle of the night, needing an immediate response when the one deputy who is assigned to the shift is tied up on another call.” –Joe Browning, Gallia County Sherriff, from “Fire chief discusses concerns with City Commission,” Daily Tribune, June 2012. http://tinyurl.com/bpd2rx7.
EMS funding falls; “….$400,000, to me, is not enough money. And I realize that you guys don’t have enough money to give me more money,” Boyer said. – Larry Boyer, Gallia County EMS from “Commission: Boost in EMS funding unlikely,” Daily Tribune, December 2011. http://tinyurl.com/dymk32o.
Gallia County to see 14% across-the-board budget cuts. From “Gallia County Budget Calls For Cuts Across The Board,” WUOB News, December 30, 2011. http://tinyurl.com/cj7q4ls.
NOTES: The current state budget cuts the Local Government Fund to counties, municipalities and townships by 25 percent in the first year and by 50 percent in the second year. This 77-year old state revenue sharing program has, for generations, been essential to helping Ohio communities fund schools, provide services, and lift people out of poverty. The current state budget also phases out most of the tangible personal property tax and public utility property tax reimbursements, which were promised to local governments when the state cut taxes in recent years. These are not the only losses to local governments because of this budget. There are others in specific programs. Here we detail some of the bigger shifts. Change in revenues shown here include:
- Local Government Fund “County Undivided Fund,” which counties share with their cities, townships and villages. We show how much less money the counties are receiving under the current 2-year state budget (for 2012 and 2013) compared to the two years under the prior state budget (which was for 2010 and 2011). Here the funds are shown on a calendar year basis because that is how the tax department forecasts and records their distribution to local governments, and it is how local governments budget. (The state budget is on a fiscal year basis, from July 1 to June 30).
- Local Government “Municipal Direct” allocation from the Local Government Fund that the state gives directly to municipalities with an income tax. This is also shown in terms of funding provided in the calendar years 2012 and 2013 compared to 2010 and 2011.
- Property tax reimbursements promised to local governments during tax reductions enacted earlier in the decade; loss of funding in calendar years 2012 and 2013 is compared to the level of funding provided in 2010 and 2011.
The figures for changes in funding levels are based on data provided by and spreadsheets online at the Ohio Department of Taxation for local government funds and tax reimbursement distributions.