WHAT SHOULD I BE DOING INSTEAD OF THIS?
 
 

State Cuts Contribute to Local Budget Gap

0 Comments · Wednesday, January 8, 2014
Cincinnati might not be facing an operating budget gap in 2015 if it were not for Republican-approved cuts to state aid for local governments.  
by German Lopez 01.06.2014
Posted In: News, City Council, Budget, Governor, State Legislature at 03:07 PM | Permalink | Comments (0)
 
 
city hall

State Cuts Contribute to Local Budget Gap

Republican state officials slashed local government funding in previous budgets

Cincinnati might not be facing an operating budget gap in 2015 if it were not for Republican-approved cuts to state aid for local governments.Following cuts approved by Republican Gov. John Kasich and the Republican-controlled Ohio legislature, Cincinnati officials estimate the city is getting $26 million less in state funding in 2015 than the city did in 2010. At the same time, the city is facing a $21 million operating budget gap in 2015. The reduction in state aid helps explain why the local budget gap remains after several years of council-approved spending cuts and tax hikes. “It sounds like the city is doing a good job,” said Democratic Councilman Chris Seelbach at Monday’s Budget and Finance Committee meeting. “Where we’re seeing these obstacles is these outside sources.” Independent Councilman Christopher Smitherman countered that the cuts to the local government fund and the elimination of the estate tax, both of which drove the reduction in state aid, have been known since 2011 and 2012. “Public policy makers have, in my opinion, continued to make decisions as if those public policy decisions from the governor’s chair or from the state … weren’t in play,” Smitherman said. “This is not new information.” Republican Councilman Charlie Winburn agreed. He said it’s time to stop blaming the governor for the city’s problems and face the reality of reduced revenues.Still, Winburn acknowledged he would be willing to meet with state officials to bring more revenue back to Cincinnati.“Maybe Republicans will be willing to meet with a Republican like me and see if we can bring some money back to Cincinnati,” Winburn said. Republicans at the state level passed cuts to the local government fund as a way to balance the 2012-2013 budget, which faced a projected gap of nearly $8 billion in 2011. They then approved the elimination of the estate tax — often labeled the “death tax” by opponents — in 2012. But with Ohio’s economy slowly recovering from the Great Recession, the state budget looks to be in much better shape. The 2012-2013 budget ended with a $2 billion surplus because of higher-than-expected revenues. Ohio Democrats point to the surplus as evidence the Republican-controlled state government could undo the $1 billion in cuts to local government funding. They argue the cuts have hurt local governments and forced cities to slash basic services, including public safety.
 
 
by German Lopez 03.14.2013
Posted In: News, Economy, Budget, Governor at 12:14 PM | Permalink | Comments (0)
 
 
p.g. sittenfeld.nar

Sittenfeld to Kasich: Restore Local Government Funding

Report found state has cut local government funding by nearly 50 percent since 2010

With the support of local officials from around the state, Cincinnati Councilman P.G. Sittenfeld is launching a website called ProtectMyOhio.com to organize efforts to restore local government funding cut during Gov. John Kasich’s time in office. Speaking during a phone conference today, Sittenfeld, Dayton Commissioner and mayoral candidate Nan Whaley, Columbus Councilman Zach Klein and Toledo Councilman and mayoral candidate Joe McNamara described how state funding cuts have forced cities and counties to cut services. “What we’re really trying to do today is speak up and sound the alarm about the governor’s ongoing raid on the Local Government Fund,” Sittenfeld said. “Over the last four years, the governor has taken away $3 billion in local government funding. This year alone, municipalities across Ohio are going to receive nearly $1 billion less than they previously would have.” He added, “This is the exact same money that cities, villages and townships used to keep cops in the street, staff our fire departments, fix the potholes and some of the other basic services that citizens rightly expect and the local governments are the ones responsible for delivering.” In the past, the Kasich administration has argued the cuts were necessary. When previously asked about cuts to education and other state funding, Rob Nichols, Kasich’s spokesperson, told CityBeat, “The reality is we walked into an $8 billion budget deficit. … We had to fix that.” But the 2014-2015 budget is not under the fiscal pressures Kasich experienced when he took office, and the governor is pursuing $1.4 billion in tax cuts over the next three years, which he argues will help spur small businesses around the state. During the phone conference, local officials said the revenue going to tax cuts would be better used to return funds to local governments.  Sittenfeld says the cuts have left Cincinnati with $12 million less per year. “That is the difference between us having our first police recruit class in nearly six years versus not having it,” he said. “It’s the difference between enduring dangerous fire engine brownouts versus not having to do so.” Klein, who represented Columbus in the call, said the cuts have amounted to nearly $30 million for his city, which he said is enough money to help renovate nearly all the city’s recreation centers, parks and pools. “No one is spared,” Klein said. “Everyone is getting cut across the state, and every neighborhood — no matter if you’re in a small village or in a large city like Columbus, Cleveland, Toledo or Dayton — (is) at some level feeling the effects of the cuts, whether it’s actual cuts in services or what could be investments in neighborhoods.” Klein said the cuts, which have been carried out by a Republican governor and Republican-controlled legislature, contradict values espoused by national Republicans. At the federal level, Republicans typically argue that states should be given more say in running programs like Medicaid, but Ohio Republicans don’t seem to share an interest in passing money down to more local governments, according to Klein. Some state officials have previously argued that it’s not the state’s responsibility to take care of local governments, but Sittenfeld says it’s unfair to not give money back to the cities: “Cincinnati is a major economic engine for the entire state. We’re sending a lot of money to Columbus, so I think it’s fair to say we would like some of that money back. John Kasich doesn’t have to fill the potholes, and John Kasich doesn’t have to put a cop on the street.” Whaley, who represented Dayton in the call, said, “There’s a county perspective on this as well. The counties would certainly say that the unfunded mandates that the state legislature brings down daily are covered by those local government funds. While (state officials) keep on making rules for the counties to administer services and make those efforts, it’s pretty disingenuous to say that (county officials) don’t get a share of the income.”  A Policy Matters Ohio report found the state has cut $1.4 billion from local government funding — nearly half of total funding — during Kasich’s time as governor. The report pinned much of that drop on the estate tax, which was phased out at the beginning of 2013 and would have provided $625.3 million to local governments in the 2014-2015 budget. The estate tax was repealed in 2011 by the Republican-controlled Ohio legislature and Kasich. Cincinnati had structural deficit problems before Kasich took office, but local officials argue the state’s cut have made matters worse. When presenting his 2013 budget proposal, City Manager Milton Dohoney Jr. said the state funding reductions cost Cincinnati $22.2 million in revenues for the year. Kasich’s office did not return CityBeat’s phone calls for this story. Kasich’s latest budget proposal has also been criticized by Republicans and Democrats for tax cuts and education funding plans that benefit the wealthy and expanding Medicaid (“Smoke and Mirrors,” issue of Feb. 20).
 
 
by German Lopez 02.26.2013
Posted In: Budget, News, Governor, Economy at 04:20 PM | Permalink | Comments (0)
 
 
cover-kasich-2

Kasich Cuts Local Government Funding Again

Previous cuts helped cause Cincinnati budget deficit

A new Policy Matters Ohio report found local government funding has been reduced by $1.4 billion since Gov. John Kasich took office, leading to a nearly 50-percent reduction in state funding. The report found local government funding dropped from nearly $3 billion in the 2010 and 2011 fiscal years — the years budgeted by former Gov. Ted Strickland — to about $2.2 billion in the 2012 and 2013 fiscal years — the first two years budgeted by Kasich. The governor’s most recent budget proposal would ensure the continuation of the downward slide, with local government funding dropping down to slightly more than $1.5 billion in the 2014 and 2015 fiscal years, according to the report. Policy Matters concluded new revenue from the state’s casinos and an expanded sales tax would not be enough to outweigh cuts in the Local Government Fund, utility tax reimbursements, tangible personal property reimbursements and the termination of the estate tax. By itself, the estate tax, which was phased out at the beginning of 2013, would have provided $625.3 million to local governments in the 2014-2015 budget, but it was repealed in 2011 by the Republican-controlled Ohio legislature and Kasich. The governor’s office has repeatedly argued that the cuts in Kasich’s first budget were necessary to help balance an $8 billion budget deficit, but the Policy Matters report says improving economic conditions have removed a need for further local government funding cuts: “To encourage growth we need good schools, reliable public safety and emergency services and strong communities. During hard times, state and local policy led to cuts. But further cuts in appropriations for local government are not helping communities. Curtailing local control of local revenues will complicate recovery – as the economy improves, it is time to restore the fiscal partnership between state and community.” When presenting his 2013 budget proposal, City Manager Milton Dohoney Jr. said the state funding reductions cost Cincinnati $22.2 million in revenues for the year. CityBeat previously covered Kasich’s 2014-2015 budget proposal and how it affects taxpayers, schools and Medicaid recipients (“Smoke and Mirrors,” issue of Feb. 20).
 
 

0|1
 
Close
Close
Close