Cities & Villages, official magazine of the Ohio Municipal League
The front of the Ohio Statehouse in 2007. Photo by the Ohio Channel.
OPENSION REFORM BILLS INTRODUCED
This week, Ohio Senate leaders made good on their promise to introduce long-awaited legislation aimed at addressing the tenuous financial conditions of Ohio’s five public pension systems. In a bipartisan effort, Ohio Senate President Tom Niehaus (R-New Richmond) and Senate Minority Leader Senator Eric Kearney (D-Cincinnati) introduced the measures in an attempt to ensure retirement funds remain solvent and that health care benefits are retained for Ohio public employees. The two Senate leaders introduced four separate bills, SB 340 that addresses the Ohio Police & Fire Pension Fund (OPFPF); SB 341 addresses the School Employees Retirement System (SERS); SB 342 reflects changes to the State Teachers Retirement System (STRS); SB 343 includes recommended changes to the Public Employees Retirement System (OPERS). The fifth bill to address changes to the Highway Patrol Retirement System remains a work in progress. You can find the analysis for SB 343, the bill that specifically deals with recommendations to OPERS HERE. The League supports the recommendations made to address the solvency issues of the retirement systems and specifically we are working with members of the legislature to address a few items we would like to see altered in the OPERS and OPFPF bills. SEE MORE
OHIO SENATE BEGINS HEARINGS ON THREE MBR BILLS
This week at the Statehouse, the frantic nature of last week gave way to a slower pace this week as the Senate received and began studying three components of the Mid Biennial Review (MBR) approved by members of the Ohio House. The first round of hearings were held this week on HB 487, 508 and the local government piece of the puzzle, 509. On Wednesday, the Senate State & Local Government & Veterans Affairs committee held sponsor and proponent testimony on House Local Government Committee Chairman Terry Blair’s (R-Dayton) HB509. The league submitted a letter to Chairman Jordan and the other members of the Senate State & Local Government & Veterans Affairs committee voicing our support for language in the bill that would raise the competitive bid threshold for cities to $50,000, making the threshold level uniform with villages. In our letter, we also cautioned the committee that we strongly urge members to please not consider adding any proposals that would alter the current LGF distribution formula. The Senate Finance committee has been making quick work of HB487, the original bill that included all the components of the proposed MBR which now deals primarily with state appropriations. On Thursday, a third hearing was held indicating the bill may be ready for a vote as early as next week. Senate leaders have indicated to us that they are interested in moving the three bills through the process before the legislature adjourns for summer recess, which will occur at the end of May. SEE MORE
OHIO HOUSE SENDS THREE COMPONENTS OF THE MBR TO THE SENATE
On Wednesday, members of the Ohio House approved three components of the administration’s Mid- Biennial Review budget package. The three MBR related bills passed on to the Senate were HB508 which makes changes to State taxing procedures, HB509 which addresses changes proposed to the functions of local governments in an effort to make political subdivisions operate more efficiently and HB487 which was the original MBR bill representing all the components of the proposed policy changes before its subsequent dissection into the 10 individual pieces of legislation. HB487 is the vehicle legislation containing all of the appropriations and human services-related provisions and was the source of considerable debate on the House floor. The debate and subsequent offering of amendments was mainly centered upon members of the House who recognize the fact that the State budget is enjoying revenue amounts well over the previously projected levels through generated tax receipts and those members urging that this surplus in revenue be directed towards helping Ohio’s local governments and schools. The representatives seeking the assistance to local governments tried to impress upon their colleagues that their “local partners” are reeling from the disproportionate cuts to through the last biennial budget and that this surplus was a responsible way to assist. It is estimated that by the end of the fiscal year, the State may receive nearly $600 million in additional tax revenues above projections. We join those members of the Ohio House in asking that consideration be given to help our communities to salvage their financial stability and recommit to being a partner to those political subdivisions who deliver the services that all Ohio businesses and residents rely on every day. SEE MORE
LEAGUE DELEGATION ATTENDS TAX UNIFORMITY MEETING
This week representatives from the municipal league including three of our tax administrators attending the third interested party meeting held by Representatives Cheryl Grossman (R-Grove City) and Mike Henne (R-Clayton) to further discuss issues of non uniformity in the application of the municipal income tax. The meeting followed discussion points from our previous meetings on language proposals offered by our municipal representatives that address all the areas of variance, which we all have identified as needing attention, but gives consideration to potential negative effects to our current revenue streams, already depleted by changes in state policy and economic factors. Following the discussion of these language proposals, we were introduced to a few new items that we previously were not aware of being a concern of members of the Municipal Income Tax Uniformity Coalition. We have been asked to consider these new areas, some of which may present considerable difficulty for our members, and return for a fourth interested party meeting in late May, with the exact date yet to be determined. We have yet to receive any information on when the House Ways and Means committee will be holding hearings on the topic of municipal income taxes but expect that information to be available after the House has completed their work on the MBR proposals. SEE MORE
LEGISLATURE RETURNS NEXT WEEK FROM RECESS
The members of the Ohio General Assembly will be returning next week from a two week spring recess, and like many of us who return to the grindstone from time away, there is a multitude of issues ready for their attention. The most active part of the legislature’s agenda will be centered on digesting the components of the Administration’s proposed policy changes included in the Mid Biennial Review (MBR) budget bill. The leaders of the Ohio House have determined the best way to address the vast, wide-ranging policy changes included in the MBR is to separate them into individual pieces of legislation by subject matter. To that end, there are now 10 separate bills that have been introduced and will be assigned to specific committees to vet each subject matter. The current direction of the House leadership is to hold hearings on the separate bills through the remainder of April with the goal to send their completed language suggestions on to the Senate sometime in the beginning of May. The legislature is scheduled to recess for a time this summer, beginning in the last week of May and not to return until after the November elections, so this period coming-up will be extremely busy for our lawmakers. SEE MORE
MID-BIENNIAL REVIEW BUDGET RECEIVES INTENSE SCRUTINY
Members of the Ohio House of Representatives continue the tough sledding that is the review of the massive amount of policy changes including in HB487, Governor Kasich’s spring budget proposal. As the varying committees delve deeper into the bowels of the proposed “management efficiency plan” some legislators are realizing that the sheer breath of policy changes warrant the proposals to be removed from the nearly 3,000 page document and to be considered further as separate legislation. As pieces are separated and considered on a more individual level, House Finance Chairman Ron Amstutz (R-Wooster) has set the close of business today as the deadline for amendments to be submitted to his office by members seeking their own language proposals. This flurry of legislative activity is all being exasperated by the fact that the Ohio General Assembly will be adjourning for the next two weeks to enjoy a spring break. As such, there are a host of changes coming when the legislature reconvenes in mid-April and takes-up whatever form remains as the MBR proposal. Several areas effecting local government in the legislation are being considered to be amended such as the competitive bid limit language, local law enforcement proposals, and several others that are not currently part of the changes found in HB487. We will be sure to report to our members what changes make the review process and become the new proposal to be considered by the Ohio House and then the Senate. SEE MORE
MID-BIENNIAL REVIEW BUDGET BILL GETS FIRST FULL LOOK BY OHIO HOUSE
This week, the Ohio House of Representatives began “unpacking” the components of HB487, legislation sponsored by Finance committee chairman Rep. Ron Amstutz (R- Wooster) which is the Mid-Biennial Review budget. The 2,771 pages of the bill is full of a myriad of proposed policy changes the Kasich administration would like to see enacted before the end of the year. Because of the sheer volume of items represented in the package, House leadership has determined the best way to tackle the hearing process is to divide the subject matters up by individual committee assignments. As such, the Ohio House Criminal Justice, Health & Human Services, State Government & Ethics, Ways & Means, and Local Government committees have all been tasked to vet there assigned areas and report back to the Finance committee the results of their hearings. SEE MORE
REPRESENTATIVES HOLD PRESS CONFERENCE ON UNIFORMITY LEGISLATION
Today at the Ohio Statehouse, Representatives Cheryl Grossman (R-Grove City), Mike Henne (R-Vandalia) and John Barnes (D-Cleveland) held a press conference to announce the formation of the Municipal Income Tax Uniformity Coalition and the goals of the coalition in seeking legislative changes to areas of non uniform practices in the application of local municipal taxes. The members of the coalition seeking changes to municipal tax practices are The Ohio Society of CPA’s, National Federation of Independent Businesses, Ohio Chamber of Commerce, Columbus Chamber of Commerce, Dayton Area Chamber of Commerce, Ohio Home Builders Association, Ohio Truckers Association, Ohio Association of General Contractors, Greater Ohio, Ohio Insurance Institute, Ohio State Medical Association, Ohio Manufacturer’s Association, Ohio Restaurant Association, and the Ohio State Bar Association. SEE MORE
ANTI-ANNEXATION BILL TO BE HEARD TUESDAY
The House Local Government committee has scheduled Am.sub.HB50 for a ninth hearing on Tuesday, March 20 th at 1:30pm in Hearing Room #121. The bill is scheduled for possible amendments and vote by the committee. This legislative initiative currently being considered would restrict private land owner’s ability to manage their property by restricting the use of the 100% owner approved TYPE-II Expedited annexation procedures. We encourage all municipal officials concerned with the effects this measure may have to their communities ability to manage future economic development opportunities and other adverse consequences from such plans to join us in the House Local Government committee Tuesday. SEE MORE
NIEHAUS OPENS DOOR TO PENSION BILL PASSAGE THIS SPRING
Senate President Tom Niehaus (R-New Richmond) said he'll push his chamber to pass pension-reform legislation before the General Assembly's summer break if it can be demonstrated that all parties are in agreement and everyone will support the reforms. Senate President Niehaus has also stated that he feels that the longer we wait to make changes to the pension systems, the more difficult the changes become. SEE MORE
