Terra Goodnight · March 13, 2015

Budget Briefing: Local Impacts

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.