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Terra Goodnight · March 13, 2015

Budget Briefing: Local Impacts

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After four years of deep funding cuts – estimated at over $1.5 billion over four years – Ohio’s local communities see little relief in Governor Kasich’s proposed 2016-2017 budget.

Key Points:

  • Sweeping tax reform proposed in the budget would affect local tax collections and services supported by sales tax levies.
  • A small portion of new revenue from increased severance taxes on oil and gas drilling is set aside for communities impacted by fracking.
  • The proposal reduces – and in many cases eliminates – reimbursements from the state to communities for revenue lost after state tax reform.
  • Local transit funding remains well below prior levels and the recommendations of an ODOT analysis.

Bottom Line: After four years of cuts, the modest increase in funding for local communities included in the budget depends on passage of Kasich’s controversial tax reform plan. If it fails, a small gain could turn into an additional loss of revenue for Ohio’s cities, towns, villages and counties.

Download our briefing on local impacts of the Kasich budget.

Tagged in these Policy Areas: Ohio State Budget