CCAO, counties continue outreach with Senate budget amendment deadline looming

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1 May 10, 2013 CCAO, counties continue outreach with Senate budget amendment deadline looming This week CCAO continued to up the lobbying and grassroots efforts with Senate members as the deadline for budget amendments, May 16 th, is fast approaching. CCAO s priority issues in the legislation remain the Local Government Fund (LGF), opposition to the recorder special fund proposal, and funding to county JFS departments to aid in the implementation of a new Medicaid eligibility determination system. (Please find attached a one-pager on CCAO priority issues within the budget that has been shared with legislators.) The CCAO Policy Staff would like to thank those numerous counties who have weighed in with their respective Senators, Members of the Senate Finance Committee, and Senate Leadership on these issues. Call to Action!! on following issues: LGF Funding Recorder Special Fund Implementation of new Medicaid system We continue to strongly encourage commissioners, council members, and county executives who may have yet to reach out to these members to do so as soon as possible. Please do not hesitate to contact CCAO Policy Staff for sample resolutions or letters to send to Senators on these issues. In addition, below are a few talking points on our priority issues. LGF Funding- With regard to the Local Government Fund, CCAO continues to believe that the LGF received a disproportionate cut from the prior state budget (HB 153), and some of these revenues should be restored. As you know, the last state budget (HB 153) cut funding to the Local Government Fund (LGF) by 50% over the biennium. While counties recognized that they needed to accept some of the cuts that were necessary in order to balance the substantial shortfall in the last state budget, CCAO believes that the 50% cut to the LGF was disproportionate to what was an overall 17% state budget shortfall. 1

2 Working with the County Auditors Association of Ohio (CAAO) to come up with a funding percentage that reflected the state s 17% funding shortfall, CCAO and CAAO believe that the percentage of tax receipts allocated to the LGF should be increased from 1.69% to 2.52%, and that 2.52% appropriately restores the disproportionate funding reduction. This partial restoration of LGF cuts would result in an increase to the LGF of approximately $177 million in SFY 14 and $184 million in SFY 15, or approximately $361 million during the biennium. CCAO also supports the Administration s proposal to continue the small county hold harmless provision that benefits 23 of our smallest counties. However, this hold harmless provision is not separately funded out of the state budget, but instead is funded out of revenues allocated under the new formula and comes off the top of LGF funding. Thus, the small county hold harmless provision is funded at the expense of the other 65 counties. CCAO asks members to consider an additional appropriation to fund the small county hold harmless provision separately. CCAO estimates the cost to the state of this provision to be between $5 and $6 million per year. Finally, CCAO is asking the members to maintain the local process for distributing LGF dollars within certain counties. A proposal to change the statutory formula for the county undivided LGF along with the process for adopting an alternative statutory formula is being suggested by Senator Seitz. This proposal likely would negatively impact 54 counties. Recorder Special Equipment Fund- HB 59 also contains language that alters the nature of the county recorder s equipment fund from a permissive special fund, approved by the board of the county commissioners, to a mandatory fund upon the request of the recorder. In addition, language provides that any funding received under the technology proposal does not diminish the duty of the board of county commissioner to provide funding for the expenses incurred by, and the personnel necessary for the county recorder to perform the duties of office. CCAO strongly opposes this abrogation of commissioners budget and appropriating authority. The board of county commissioners represents the appropriate discretion for making such appropriations. As the duly elected budget authority for counties, commissioners are entrusted with ensuring not only the efficient use of taxpayer dollars, but also that the use of dollars represents the proper prioritization of limited county resources. In addition, CCAO finds the proposed language prohibiting commissioners from diminishing their duty to fund the recorder an unnecessary attempt to set a new arbitrary funding standard that likely will lead to costly litigation. The current recourse of a writ of mandamus is a sufficient remedy under law. Funding for implementation of new Medicaid system- County JFS departments are concerned with the increased workload resulting from the transition to a new Medicaid eligibility determination system. While there are plans also to use the new system for food assistance and cash assistance eligibility in calendar year 2015, for at least a year, counties will be running two systems (the existing CRIS-E system and the new MAGI system), which, simply put, means twice the work for caseworkers. CCAO asks members to consider an additional $5-6 million a year to help with these expected costs. 2

3 Below is contact information for Senate leadership as well as members of the Senate Finance Committee. Senate Leadership: Senate President Keith Faber (R) (614) Minority Leader Eric Kearney (D) (614) Pres. Pro Tem Chris Widener (R) (614) Min. Floor Ldr. Joe Schiavoni (D) (614) Maj. Floor Leader Tom Patton (R) (614) Minority Whip Nina Turner (D) (614) Maj. Whip Larry Obhof (R) (614) Asst. Min. Whip Edna Brown (D) (614) Members of the Senate Finance Committee: Sen. Scott Oelslager (R), Chair (614) Sen. Tom Sawyer (D), Ranking (614) Sen. Bill Coley (R), Vice (614) Sen. Joe Schiavoni (D) (614) Sen. Dave Burke (R) (614) Sen. Shirley Smith (D) (614) Sen. Randy Gardner(R) (614) Sen. Charleta Tavares (D) (614) Sen. Jim Hughes (R) (614) Sen. Shannon Jones (R) (614) Sen. Frank LaRose (R) (614) Sen. Tom Patton (R) (614) Sen. Bob Peterson (R) (614) Abbuhl makes the case for LGF restoration On Wednesday, Tuscarawas County Commissioner Chris Abbuhl spoke before the Senate Finance General Government Subcommittee, chaired by former Fayette County Commissioner Bob Peterson (R- Sabina) on local government funding in HB 59 (Commissioner Abbuhl s testimony is attached to this week s Statehouse Report). Commissioner Abbuhl offered appreciation that the proposed budget has the Local Government Fund (LGF) returned to a percentage of tax receipts formula, but asked for the members to consider the restoration of LGF from the 50% cut enacted in the prior budget (HB 153). Commissioner Abbuhl, Intern Giles Immel, and Auditor Larry Lindberg 3

4 The commissioner noted that the steady decline of local government funds to Tuscarawas County from $1.75 million in 2008 to $820,000 in 2013 represents a 53% reduction and foregone LGF funding over the five year period of approximately $2.3 million. State funding reductions and declining interest revenues have led to a loss of approximately $11.4 million in the county general fund budget over the past five years. Commissioner Abbuhl noted the Tuscarawas County Commissioners have had to address these shortfalls in funding by taking such measures as closing the County Home, reductions on capital projects, restricting appropriations for personnel and cut back on assistance to economic development. In requesting the Members to consider a restoration of local government funding, the commissioner reminded the committee of the Local Government Fund legacy, dating to 1934, of partnership to provide services to all of the constituents that (the state and local governments) collectively serve in Ohio. Said Commissioner Abbuhl, I believe that each community in Ohio is vital to our overall success as a state. All of our communities are essential in strengthening the economic climate, that builds from within, that ultimately secures our future as Ohio citizens. Medicaid Expansion conversation continues in Legislature While both House and Senate leaders have made it clear they do not intend to take up Medicaid Expansion in their budget deliberations, the House already has formally begun a review of the Medicaid program and possible expansion through the Healthier Ohio Working Group. The Ohio Medicaid Expansion Alliance is continuing to encourage legislators to act in the near term on some type of Medicaid expansion, though the group is also discussing the possibility of a ballot initiative should the legislature not take action. Speaker Bill Batchelder commented to reporters this week, after the workgroup meeting, that he hopes the working group will identify suggestions of what ought to be done in a medical plan that would be appropriate to the people of the state of Ohio, he said. And we don t believe that the plan that is in front of us, as a result of the Governor s reference, is appropriate. Much of the House s working group meeting focused on a presentation from Ohio Office of Health Transformation Director Greg Moody and Office of Medicaid Director John McCarthy. They spoke about the myriad of reforms already made to Ohio s Medicaid system to help contain costs while providing vital services. The Healthier Ohio Working Group, comprised of members from the House Finance Health and Human Services and Agriculture and Development Subcommittees as well as House Finance Committee leadership, is slated to meet again next week to hear presentations on both relevant highlights from Ohio s 1995 bipartisan welfare reform enactment, and advancements in telemedicine services and its potential to save costs, such as avoiding overuse of emergency room services. 4

5 Senator Dave Burke (R-Marysville) will be leading the Senate s review of Medicaid expansion, which has yet to begin given the flurry of budget activity in the Chamber. For more information on this issue, please contact CCAO Policy Analyst Laura Abu-Absi at labu-absi@ccao.org. Legislation of Interest SB 121 FIREARM SPECIFICATIONS (Hughes, J., LaRose, F.) To amend sections and enact sections of the Revised Code to double the mandatory prison term for an offender who is convicted of a firearm specification and previously has been convicted of a firearm specification; to similarly double the period of authorized or mandatory commitment to the Department of Youth Services of a delinquent child who is guilty of a firearm specification and previously has been adjudicated a delinquent child for committing an act that would constitute a violation of a firearm specification if committed by an adult; to prohibit violent career criminals from knowingly acquiring, having, carrying, or using any firearm or dangerous ordnance; and to require a mandatory prison term for a violent career criminal convicted of committing a violent felony offense while armed with a firearm. Upcoming Legislative Committee Calendar Tuesday, May 14 Senate Session, (Chr. Faber, K., ), Senate Chamber, 1:30 pm House Transportation, Public Safety & Homeland Security, (Chr. Damschroder, R., ), Rm. 122, 1:30 pm SB 5 CALL LOCATIONS (Brown, E., Manning, G.) To require wireless service providers to provide call location information to law enforcement officers or agencies in certain emergency situations. -- 2nd Hearing-All testimony House State & Local Government, (Chr. Blair, T., ), Rm. 121, 3:00 pm HB 6 PROCEDURE AUDITS (Thompson, A.) To create an agreed-upon procedure audit for certain eligible political subdivisions and to eliminate the Auditor of State s exemption from filing a rule summary and fiscal analysis with proposed rules. --4th Hearing-Proponent-Possible amendment & vote HB 72 COUNTY RECORDS (Brenner, A.) To modernize and make other changes regarding how the county recorder's office maintains records. --4th Hearing-Possible amendment & vote HB 10 FISCAL CONTINUING EDUCATION (Hagan, C.) To establish education programs and continuing education requirements for the fiscal officers of townships and municipal corporations, to establish procedures for removing those fiscal officers, county treasurers, and county auditors from office, and to create fiscal accountability requirements for public schools, counties, municipal corporations, and townships. --1st Hearing-Sponsor 5

6 HB 118 BOND ISSUES (Roegner, K.) To revise the ballot language requirements for bond issues. --1st Hearing-Sponsor House Finance & Appropriations, (Chr. Amstutz, R., ), Rm. 313, 3:00 pm This is a meeting of the Healthier Ohio Working Group to review highlights from Ohio s 1995 bipartisan welfare reform enactment and advancements in telemedicine services and its potential to save costs, such as avoiding overuse of emergency room services. Wednesday, May 15 Senate Finance: General Government Sub., (Chr. Peterson, B., ), Senate Finance Hearing Rm., 10:00 am Panel: Fresh Water Algal Blooms in Lake Erie and inland lakes Senate Session, (Chr. Faber, K., ), Senate Chamber, 1:30 pm House Session, (Chr. Batchelder, B., ), House Chamber, 1:30 pm House Judiciary, (Chr. Butler, J., ), Rm. 121, 3:00 pm HB 141 MUNICIPAL COURTS (Damschroder, R.) To abolish the Fostoria Municipal Court and the Tiffin Municipal Court, to create the Tiffin-Fostoria Municipal Court, and to declare an emergency. --3rd Hearing-All testimony-possible vote SB 7 MENTAL HEALTH (Widener, C., Beagle, B.) To require that a court report certain information to the local law enforcement agency for entry into the appropriate National Crime Information Center file if the court approves the conditional release of a person found incompetent to stand trial or not guilty by reason of insanity or orders a person convicted of an offense of violence to receive mental health treatment and to name this act the Deputy Suzanne Hopper Act. --3rd Hearing-All testimony 6

7 Priority Items: Am. Sub. HB Partial Restoration of Local Government Funds Restore the Local Government Fund (LGF) to make the disproportionate cut sustained in the current biennium proportionate to what the state received, which was a 17% cut. Thus, CCAO requests that the percentage of state GRF revenues allocated to the LGF be changed from the Administration and House s proposed 1.69% to 2.52%. (The ratio was 3.68% in 2008.) CCAO requests that the hold harmless provision, which exempts the 23 smallest counties from receiving severe cuts in their LGF allocations, be funded out of additional dollars rather than the minimal growth proposed to the LGF. 2. Eliminate the House-added provision enabling the Recorder s Special Fund be Mandatory (LOCCD9) The House adopted an amendment that would make the county recorder s special fund - the equipment fund -- mandatory should it be requested by the recorder. Currently, commissioners have discretion over whether or not this special fund is warranted. The bill could enable county revenue be earmarked and, thus, create an unfunded mandate on the county general fund as it would redirect revenue currently going to the county general fund to the recorder s special fund. In addition, the proposal provides that the establishment of the fund does not diminish the duty of the board of county commissioner to provide funding for the expenses incurred by, and the personnel necessary for the county recorder to perform the duties of office. CCAO finds the proposed language prohibiting any diminishing funding an unnecessary attempt to set new arbitrary funding standard that will likely lead to costly litigation. 3. Increase funding to county JFS departments to help fund the implementation of a new Medicaid eligibility determination system. $10M/year of GRF would draw down an additional $10M/year of federal funds. By January 1, 2014 counties must have a new Medicaid eligibility determination system, per federal law. While eventually the new system will include determinations for other public assistance programs, like cash and food assistance, for CY14 county JFS departments will be working with two different systems, and may need to do twice the work as a result. Additional administrative dollars will help counties manage the implementation of the new system and minimize confusion for customers. 4. Maintain the local process for distributing LGF dollars within certain counties. A proposal to change the statutory formula for the county undivided Local Government Funds (LGF) along with the process for adopting an alternative statutory formula is being suggested by Senator Seitz. His proposal likely would negatively impact 54 counties, positively help 4 counties, and have no impact on 30 counties. CCAO requests that such a change not be added to HB 59. Other Requested Items 1. Remove authority for TIF funds to pay for township public safety expenses. (LOCCD8) 2. Modify the process of changing the size of behavioral health boards to provide for county commissioner input, given county commissioners are the primary appointing authority. And, remove change in ratio of local versus state appointments to local boards.

8 Supported Provisions 1. Combined levy option for Extension, soil & water, and ag society (LOCCD14) added by House. 2. Sale of real property by cities to counties (LOCCD17) added by House. 3. Removal of multi-county health levy proposal by House. (DOHCD19) CCAO does not oppose concept but opposed language as written. 4. Various sales & use tax provisions, generally. (TAXCD60) (TAXCD61)(TAXCD66)(TAXCD67) Additional Provisions 1. CCAO continues to review the data collection provisions added by the House. (DASCD46) 2. Additional appropriation and a study for the Clean Ohio Fund added by the House. (DNRCD33 & LSCCD5) CCAO continues to review the study proposal. 3. CCAO continues to review the Lake Facilities Authorities provision added by the House. (TAXCD68)

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