State Rep. Janine Boyd (D-Cleveland Heights) announced today that her amendment to raise the local government fund distribution from 1.66 percent currently to 2.25 percent will be offered on the House floor. Local Government funds represent a revenue sharing between the state and local communities that help fund essential safety services and programs.
The local government fund was originally cut in Gov. Kasich’s previous biennium budget and has resulted billions in lost revenues that pay for safety services such as fire and police. According to Policy Matters Ohio’s, local governments have been slashed by almost $1.4 billion dollars for the 2014-15 FY compared to 2010-11 FY. These cuts are slated to be permanent if the House doesn’t act to restore these funds.
“I am pleased that our Democratic leadership in the House will offer my 2.6 percent restoration amendment, among others, today in session,” Rep. Boyd said. “Cities should share in the recovery, since they shared in the pain during the economic downturn.”
The City of Cleveland Heights began to experience the consequences of the State’s cuts in local government funding in fiscal year 2012. In the years leading up to 2012, the City would consistently receive revenues of approximately $2.5 million. However, in 2012, the funding from local government received was $1.7 million.
The funding received in the subsequent fiscal years of 2013 and 2014 was further reduced by additional cuts. In 2013, the City received $1 million, and in 2014 the City received $1.2 million. The City is estimating approximately $1.2 million for fiscal year 2015.
The changes and cuts to local government funding have resulted in the loss of approximately $1.3 million in annual revenues and an accumulated loss of $3.9 million since 2012.