More state cuts will hamper public services, report says
Posted June 24, 2015 in Press Releases
Ohio budget would take more revenue from local communities.
For immediate release
Contact: Wendy Patton, 614.221.4505
The proposed state budget for fiscal years 2016 and 2017 includes funding cuts for local communities that will take a toll on basic public services, according to a new report by Policy Matters Ohio. “New cuts proposed in the state budget will hurt local services like safety, emergency services, road maintenance and recreation,” said Wendy Patton, report author. “Instead of funding new mandates and restoring cuts, the state is cutting deeper and diverting funds from one set of strapped communities for another.” In the last decade, the legislature phased out local property taxes on tangible personal property (machinery, equipment, furniture, fixtures) of businesses and utilities. The state committed to reimburse schools, local levies and local governments for the loss of revenues during a transitional period; the theory was that the tax cuts would spur economic development. A decade later, the recovery has not happened. But the Kasich administration proposed elimination of tax reimbursements, and the House and Senate support the cut in their respective budget proposals. In addition, $41 million from the state’s Local Government Fund will be redistributed among jurisdictions or used for new initiatives. Cuts and diversions in the budget for 2016-17 compared to the current two-year budget period, include:
- $35.9 million less in tax reimbursements