Terra Goodnight · November 20, 2014
House Bill 5: Impact Analysis
Understanding the cumulative financial impact of House Bill 5 in the context of the last four years of funding cuts to local communities
Changes proposed in House Bill 5, legislation pending in the Ohio General Assembly, could result in a substantial reduction in resources for hundreds of Ohio communities that levy an income tax, and could lead to further budget consequences such as service cuts and tax increases. When combined with the significant loss of revenue that municipalities are already facing as a result of policy changes enacted by Governor Kasich and the legislature over the past four years, the potential impact to Ohio communities is staggering.
We estimate the statewide impact to communities from House Bill 5 if it passes at over $82 million per year. When considered along with the cuts to municipalities already enacted over the past four years, we found that Ohio cities and villages will be coping with nearly half a billion dollars less in their annual budgets to provide services. For some Ohio communities, the reduction in resources exceeds 20% of their annual budgets, and will be difficult to absorb without tax increases or major cuts in services.
Read the report: “House Bill 5: Impact Analysis”
Read the press release: “HB 5 Continues Assault on Local Services, Pushes Total Cut to Communities to $495 Million a Year”
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