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 Clermont County?

The state cut the Local Government Fund to the county, forcing Clermont 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.......................... -$213.0 thousand
• County operations............................ -$8.4 million           (includes LGF County Undivided Fund)
• Schools........................................... -$16.8 million
• Batavia............................................ -$85.0 thousand
• Miami Township.............................. -$1.3 million
• Union Township.............................. -$1.6 million
• Milford........................................... -$604.0 thousand
• Central Joint Fire/EMS District......... -$168.0 thousand
• Clermont County Parks..................... -$61.0 thousand

Loss to health and human service levies

• County child services........................ -$502.0 thousand
• County mental health....................... -$1.7 million
• County senior services...................... -$666.0 thousand
• County park services......................... -$60.0 thousand

Notes and quotes

In May of this year, the Batavia Local School District, under pressure to save over $1 million to balance its budget, began to consider options that would bring money into the county or would allow it to spend less. The treasurer for the district, Michael Ashmore, came up with 24 items that would likely assist in this process. The list included limiting minor improvements, saving money on health insurance and reducing repairs to buildings. They hoped to enact these changes without requiring anyone to lose their job. From Bednarski, Kristin. “Batavia to save $1 million.” The Clermont Sun. May 24, 2012. http://tinyurl.com/cfyc76w.

For county parks, budget cuts mean that there will be staffing reductions, visitor center hours curtailed and fees raised. From “Autumn 2012 Newsletter.” Clermont County Park District.  September 2012. http://tinyurl.com/bl9wabn.

At Southwest Ohio Workforce Board, budget cuts forced consolidation, change of fiscal agent, and staffing changes.  From Levingston, Chelsey.  “Workforce Investment Board looks for new leaders.” Fairfield Echo. August 13, 2012.  http://tinyurl.com/dxfrbtm.

Changes at Amelia High School as budget cuts sink in: The Creative Arts and Design school was terminated, effective the 2009-2010 school year, due to budget cuts, as well as Math and Science Technology Academy, World Studies School, Business and Technology School being cut effective 2011-2012 School year. From “Amelia High School.” Public School Review. http://tinyurl.com/bug64sm.

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 based on the fiscal year, July 1 through 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.  The 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.