DECEMBER 1, 2006 LOCAL GOVERNMENT AND LIBRARY REVENUE DISTRIBUTION TASK FORCE FORWARDS RECOMMENDATIONS TO GOVERNOR AND LEGISLATIVE LEADERSHIP

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1 DECEMBER 1, 2006 PAY BILL FOR COUNTY OFFICIALS NEEDS MORE PUSH County officials need to contact their state legislators urging action be taken yet this year to enact a continuation of annual salary adjustments beyond Without legislative action in December, commissioners and auditors elected this year and taking office in 2007 will be closed out of any salary adjustment in 2009 and Current law specifically provides annual increases in 2007 and These increases are the lesser of 3 percent or the Consumer Price Index. The Ohio Council of County Officials developed a pay raise proposal including a one time adjustment of $3,000 for all county officials and annual increases beginning in 2009 of a straight 3 percent. However, indications around the Statehouse are that if any action is taken, the concept of a raise would not be widely supported. Furthermore, individuals will be lucky if even a continuation of the current law is extended beyond 2008 at this time given the political climate. Lawmakers have said that they have not consistently heard from their county commissioners and auditors as well as other local officials about the need for a pay bill. Therefore, county commissioners and other officials must act now to urge their lawmakers to take action. In addition, encourage your legislators to work with their legislative leadership to address county officials salary adjustments yet this year. Individuals with questions may contact CCAO Executive Director Larry Long or CCAO Staffer Cheryl Subler at (614) or at lllong@ccao.org or csubler@ccao.org. LOCAL GOVERNMENT AND LIBRARY REVENUE DISTRIBUTION TASK FORCE FORWARDS RECOMMENDATIONS TO GOVERNOR AND LEGISLATIVE LEADERSHIP The ten member legislative task force unanimously approved a report that recommends basing the state s three local government funds on a percentage of total tax receipts, as opposed to the percentage of tax sources approach incorporated in existing law. The Local Government and Library Revenue Distribution Task Force was created by the last biennial budget to examine 1

2 sources of state funding for Ohio s three local government funds and to make recommendations that provide for stability and growth in funding levels for Ohio s local governments. Ohio s three state local government funds the Local Government Fund (LGF), the Local Government Revenue Assistance Fund (LGRAF) and the Library and Local Government Support Fund (LLGSF) - have been frozen since July 1, The freeze was instituted to help the state balance its budget during the recession of and has been continued as part of each of the last two state budgets. It is anticipated that Governor-Elect Strickland and the next General Assembly will consider the recommendations in formulating a new policy with respect to the local government funds when crafting the next biennial state budget. The report recommends eliminating the freeze in the three state local government funds effective July 1, 2007 and replacing the existing percentage of tax sources formula with a percentage of tax receipts approach. Essentially, all state tax receipts earmarked for the state general revenue fund, but excluding that portion of the new commercial activity tax (CAT) dedicated to reimbursing local governments for loss of tangible personal property taxes, would have fixed percentages deducted and placed in the three state local government funds for distribution to the county local government funds. Beginning in State Fiscal Year 2008 (July 1, 2007), the report recommends the new funding formula consist of state fiscal year 2007 appropriations plus a 3% increase in funding for all three funds. Assuming this proposed statutory share of GRF receipts had been in place in state fiscal year 07 and assuming the freeze amount plus 3%, the state formula would have been the following: Local Government Fund: 3.26% of GRF Tax Receipts Local Government Revenue Assistance Fund: 0.47% of GRF Tax Receipts Library and Local Government Support Fund: 2.27% of GRF Tax Receipts The State Local Government Fund (LGF) is distributed to 88 county local government funds on the basis of municipal property tax valuation and population. The Local Government Revenue Assistance Fund (LGRAF) is distributed to county funds on the basis of population. Because the freeze has been in place for six years, many counties would experience a decrease in funding even with the aggregate three percent increase due to changes in population and municipal property tax valuation. In order to protect these counties from reductions in funding during the first four years of implementation, the report recommends that no entity receiving funding through LGF or LGRAF funds for SFY 08, 09, 10, or 11 receive less than the amount of such funds received by that entity for SFY07. The four year hold harmless clause was offered by Senator Tim Grendell (R-Chesterland) and adopted by the Task Force on a vote of 6-4 with co-chairs Senator Gary Cates (R-West Chester) and Representative Larry Wolpert (R-Hilliard) along with Representatives Dave Daniels (R- Greenfield) and Joe Uecker(R-Loveland) voting against the amendment. Representatives Wolpert, Daniels and Uecker issued an addendum to the report in which they expressed opposition to the hold harmless provision. In the addendum, they said, We strongly disagree with this recommendation. It is our view that the local governments that would receive less under the new recommended funding formula are areas of the state of Ohio where population shifts warrant less support compared to growing areas where the local governments need proportionally greater increases in funding to provide services to their swelling populations. 2

3 An amendment offered by Senator Kimberly Zurz (D-Uniontown) to insert the words at least to the proposed 3% increase was defeated on a 5 to 5 vote with Senator Grendell (R-Chesterland) joining the aforementioned legislators in opposition. Senators Kimberly Zurz, Teresa Fedor (D- Toledo), and Kirk Schuring (R-Canton) and Representatives Kathleen Chandler (D-Kent) and Allan Sayre (D-Dover) issued an addendum to the report recommending that at least a 3% increase be incorporated into the first year of the new formula and that nothing less a 3% increase to the new formula be considered as a base level. CCAO, the Ohio Municipal League, the Ohio Township Association, the Ohio Library Council and the Ohio Parks & Recreation Association submitted a letter for inclusion in the report that essentially thanked the committee members for their hard work in putting the task force report together. The letter noted the importance of the hold harmless clause in protecting counties from reductions in funding as the new formula is implemented over the next few years. Between calendar year 06 and 07, 42 counties under LGF and 33 counties under LGRAF would receive less funding even with a 3% increase over the base rate if no hold harmless provision is included in the next state budget. While the report is merely a recommendation, CCAO looks forward to working with the 127 th General Assembly and the Strickland/Fisher Administration in addressing local government fund funding in a positive manner. If you have questions about the Task Force s report, please contact CCAO Staffer Brad Cole at (614) or at bcole@ccao.org. DULANEY TESTIFIES ON COUNTY HOSPITAL BILL CCAO staffer Suzanne Dulaney testified as an interested party before the House Health Committee on SB 126, which modifies the laws governing county hospitals. SB 126 is sponsored by Senator Wachtmann (R- Napoleon) Dulaney explained the contentious provisions that were removed in the Senate which allowed CCAO to move from opponent to interested party. She also explained that while county commissioners found several provisions remaining in the bill unnecessary, county commissioners were willing to let the General Assembly decide the best policy position in these areas. Examples of these provisions include set timelines for commissioners to approve the county hospital budget and make appointments to the county hospital board. Dulaney also cautioned against making any changes to the commissioner authority to approve the county hospital budget, which the county hospitals are now seeking as an amendment to the bill. LEGISLATION INTRODUCED TO PROVIDE SPECIFITY TO ISSUE 2 Representative Bill Seitz (R-Cincinnati) has introduced legislation which will help define how State Issue 2 the Minimum Wage Proposal, is to be implemented. Voters in November approved the constitutional amendment increasing Ohio s minimum wage and annually indexing it higher. The amendment also included reporting requirements. House Bill 690 is being reviewed by CCAO Staff and additional information will be forthcoming, as the Association recognizes counties are seeking guidance in complying with the constitutional amendment. 3

4 If you have questions in the meantime, please contact CCAO Staffer John Leutz at (614) or at LAMEDUCK SESSION GENERAL UPDATES Capital Bill: The Capital Projects Legislation is anticipated to be introduced in the coming week. HB 9 Public Records: The Ohio Municipal League provided testimony to the Senate Judiciary- Civil Justice Committee, expressing concerns and providing suggestions. A new version of the bill with various changes is pending, and CCAO will provide more information about those changes in the next issue of the Statehouse Report. (Contact: John Leutz at (614) or at jleutz@ccao.org) HB 187 Civil Service Reform: There appears to be renewed interest in HB 187 on the part of the House. The House Local Government & Urban Revitalization Committee is schedule for a unique hearing on Tuesday morning to accept a new version of the bill. Then on Thursday, during its regularly scheduled hearing time, the Committee is scheduled to take testimony on the sub-bill. A possible vote has been denoted on the Committee s agenda. (Contact: Cheryl Subler at (614) or at csubler@ccao.org) SB 385 Plumbing Inspections by Certified County Building Departments - In response to an adverse legal opinion, SB 385 was introduced by Senator Randy Gardner (R-Bowling Green) to permit counties with building departments and certified plumbing inspectors to enter into agreements with health departments, whereby plumbing inspections could be performed by certified county plumbing inspectors. CCAO met with interested parties this week to build consensus on this concept. Wood County Administrator Andrew Kalmar along with Building Inspector Mike Billmaier attended the meeting along with CCAO Staffer Brad Cole. (Contact: Brad Cole at (614) or at bcole@ccao.org) HB 250 Creation of Student Special Services District CCAO continues to work with other groups opposing this bill to keep it from passing on the House Floor in lame duck. A letter from CCAO outlining the Association s concerns was distributed to Ohio House members this week. HB 250 is sponsored by Representative Jim Trakas (R-Independence). (Contact: Suzanne Dulaney at (614) or at sdulaney@ccao.org) SB 383 (HB 652) Fuel Testing: Senator Cates provided sponsor testimony on his proposal to allow county auditors to conduct a motor fuel quality-testing program. The measure is similar to one pending in the House HB 652, sponsored by Representative Jamie Healy (D-Canton). The measure is supported by the County Auditors Association. CCAO opposes the measure unless additional funding or a funding mechanism (i.e., fee) is provided for this new permissive program, OR commissioners have a role in the decision making process as to whether such a permissive program should be implemented (and thereby funded out of the general fund). (Contact: Brad Cole at (614) or at bcole@ccao.org) SB 116 (HB 180) Mental Health Parity: Sponsored by Senator Bob Spada (R-North Royalton) ( & Representative Jon Peterson (R-Delaware)), the bill prohibits, subject to certain exceptions, discrimination in group health care policies, contracts, and agreements in the coverage provided for the diagnosis, care, and treatment of biologically based mental illnesses. The bill appears to 4

5 be moving, despite opposition from Governor Taft which has spanned beyond this session. (CCAO has not taken a position on this legislation.) HB 443 OMNIBUS OHIO DEPARTMENT OF NATURAL RESOURCES REVISION It has been rumored around the statehouse that aggregate mining legislation (HB 400) and possibly a coal mining bill (HB 488) will be rolled into omnibus legislation revising ODNR. It is CCAO s understanding based on information available as this newsletter goes to print that a substitute version of HB 443 including certain provisions from the aggregate mining legislation (SB 191/HB 400) will be heard by the House Agriculture and Natural Resources Committee on Wednesday, December 6 at 8:30 a.m. in hearing room 116. Controversial provisions in the aggregate mining legislation that would remove the right of referendum on rezonings for aggregate mining facilities as well as additional funding from severance taxes for county and township infrastructure improvements are expected to be removed from the bill. Provisions permitting county engineers and county commissioners to designate haul routes for aggregate mining truck traffic are expected to remain a part of the bill. Removal of the language requiring all applications for aggregate mining permits to be treated as conditionally permitted uses not subject to possible voter initiated referendum will eliminate a major source of opposition to the bill. HB 443 is sponsored by Representative Joe Uecker (R-Loveland).(Contact: Brad Cole at (614) or at bcole@ccao.org) STRICKLAND NAMES LT. GOVERNOR-ELECT FISHER TO HEAD DEPARTMENT OF DEVELOPMENT This week Governor-Elect Ted Strickland announced his plan to appoint Lt. Governor-Elect Lee Fisher to head the Ohio Department of Development. This follows the current practice, as Lt. Governor Bruce Johnson serves in that capacity to Governor Bob Taft. The Strickland/Fisher Transition currently is identifying coordinators to head stakeholder groups for each of the state agencies, to help advise the Transition Team during its preparations. CCAO is seeking to participate in these forums and to convey the importance of a stronger state & county partnership, no unfunded mandates, and specific agency related issues. LEADERSHIP TEAMS CONTINUED TO BE FORGED FOR NEXT SESSION The Senate Republican caucus voted to keep its leadership team, absent one member who is moving to the Ohio House. In electing the five leaders, Senate Republicans opted to not retain a sixth leadership post created in the current General Assembly. The leadership for the 127 th General Assembly will include: Senate President President Pro Tempore Majority Floor Leader Assistant Floor Leader Majority Whip Bill Harris (R-Ashland) Jeff Jacobson (R-Dayton) Randy Gardner (R-Bowling Green) Robert Spada (R-North Royalton) Steve Austria (R-Beavercreek) The Senate Democrats elected a new leader, given that Minority Leader C.J. Prentiss (D- Cleveland) will be termed-out in December. The new team includes: 5

6 Minority Leader Assistant Minority Leader Minority Whip Assistant Minority Whip Teresa Fedor (D-Toledo) Tom Roberts (D-Trotwood) Ray Miller (D-Columbus) Lance Mason (D-Shaker Heights) Senate Democrats also took action to name Mr. Jason Wilson to fill his father s senate seat Senator Charlie Wilson (D-St. Clairsville), who in November was elected to Congress in Governor- Elect Strickland s old district. Senator Wilson currently represents the 30 th District. The Senate Democrats also selected Capri Cafaro to replace Senator Marc Dann (D-Liberty Township) in the 32 nd District. Senator Dann will be departing to serve as Ohio s Attorney General. In the Ohio House, the Democrats kept their leadership team. It consists of the following: Minority Leader Assistant Minority Leader Minority Whip Assistant Minority Whip Joyce Beatty (D-Columbus) Todd Book (D-Portsmouth) Steve Driehaus (D-Cincinnati) Fred Strahorn (D-Dayton) Representative George Distel (D-Conneaut), former Ashtabula County Commissioner, was selected again to serve in the informal role as caucus chairman. The Ohio House Republican Caucus selected its leadership two weeks earlier, and such was reported in the last issue of the Statehouse Report. TUESDAY, DECEMBER 5 House Local & Municipal Government & Urban Revitalization, (Chr. Wolpert, ), Rm. 116, 8:30 am HB 187 CIVIL SERVICE REVIEW (Buehrer) To implement recommendations of the Civil Service Review Commission.--9th Hearing-Substitute & Amendments Senate Insurance, Commerce & Labor, (Chr. Stivers, ), North Hearing Rm., 9:30 am SB 116 MENTAL HEALTH PARITY (Spada) To prohibit, subject to certain exceptions, discrimination in group health care policies, contracts and agreements in the coverage provided for the diagnosis, care and treatment of biologically based mental illnesses.--4th Hearing-All testimony-amendments & Possible vote SB 250 VETERANS COMMISSIONS (Cates) To terminate certain boards of county commissioners' power to appoint additional members to the veterans service commission in their county.--6th Hearing-All testimony House State Government, (Chr. Buehrer, ), Rm. 018, 1:00 pm HB 685 LEGISLATIVE RULE REVIEW (Faber) To revise the procedures for rule-making hearings and for legislative review of proposed rules, to require agencies to pay a fee upon making filings 6

7 for legislative review, and to repeal an obsolete provision for legislative review of rules upon adoption.--2nd Hearing-All testimony HB 690 MINIMUM WAGE IMPLEMENTATION (Seitz) To implement Section 34a, Article II, of the Constitution of the State of Ohio and to declare an emergency--1st Hearing-All testimony House Insurance, (Chr. Smith, G., ), Rm. 017, 2:00 pm HB 180 MENTAL HEALTH INSURANCE (Peterson) To prohibit, subject to certain exceptions, discrimination in group health care policies, contracts, and agreements in the coverage provided for the diagnosis, care, and treatment of biologically based mental illnesses.--3rd Hearing-All testimony Senate Finance & Financial Institutions, (Chr. Carey, ), Finance Hearing Rm., 2:30 pm or after session SB 241 FATHERHOOD PROGRAM FUNDING (Miller, R.) To earmark the TANF Block Grant $10 million in each fiscal year for fatherhood programs and to make an appropriation.--1st Hearing- Sponsor SB 369 MEDICAID BUY-IN (Stivers) To establish the Medicaid Buy-In for Workers with Disabilities Program and a Medicaid program for individuals who exhaust benefits under a qualified long-term insurance policy.--1st Hearing-Sponsor Senate Ways & Means & Economic Development, (Chr. Amstutz, ), South Hearing Rm., 4:00 pm HB 293 HOMESTEAD TAXES (Kilbane) To authorize boards of county commissioners to establish property tax payment linked deposit programs to assist senior citizens and permanently and totally disabled citizens in paying property taxes on their homesteads.--2nd Hearing-Proponent SB 364 HOMESTEAD EXEMPTION (Goodman) To extend the homestead exemption to individuals having annual incomes of $50,000 or less and to change the manner in which the homestead exemption tax reduction is calculated for certain eligible homeowners.--1st Hearing-Sponsor WEDNESDAY, DECEMBER 6 House Health, (Chr. White, J., ), Rm. 018, 9:00 am SB 126 COUNTY HOSPITALS (Wachtmann) To modify the laws governing county hospitals--3rd Hearing-Proponent & opponent -Possible vote Senate Agriculture, (Chr. Mumper, ), South Hearing Rm., 9:00 am SB 383 FUEL TESTING (Cates) To require the Department of Agriculture to establish a motor fuel quality testing program under which county auditors may conduct such testing.--2nd Hearing- Proponent House Elections & Ethics, (Chr. Hughes, ), Taft Rm. (122), 10:30 am HB 592 VOTING RECORDS (Cassell) To provide that any information on a voter verified paper audit trail identifying the time at which a ballot was cast is not a public record and must be redacted 7

8 if the paper audit trail is made available to the public.--1st Hearing-Sponsor Senate Health, Human Services & Aging, (Chr. Coughlin, ), Finance Hearing Rm., 2:30 pm or after session HB 383 CHILD CARE LICENSING (Fessler) To modify the laws pertaining to the licensing of child care providers and the child abuse memorandum of understanding that must be prepared for each county.--2nd Hearing-Proponent & opponent Senate State & Local Government & Veterans Affairs, (Chr. Cates, ), South Hearing Rm., 4:00 pm HB 441 PUBLIC MEEETINGS (Evans, C.) To permit a member of any public body to be present at a meeting by teleconference or interactive video teleconference.--1st Hearing-Sponsor House Transportation, Public Safety & Homeland Security, (Chr. Reinhard, ), McKinley Rm. (121), 4:30 pm HB 652 FUEL TESTING (Healy) To require the Department of Agriculture to establish a motor fuel quality testing program under which county auditors may conduct such testing.--1st Hearing- Sponsor THURSDAY, DECEMBER 7 House State Government, (Chr. Buehrer, ), Rm. 122, 9:30 am HB 606 DOG KENNELS (Hughes) To establish licensing requirements and standards of care for commercial dog kennels, commercial dog intermediaries, animal rescues and animal shelters.--1st Hearing-Sponsor HB 690 MINIMUM WAGE IMPLEMENTATION (Seitz) To implement Section 34a, Article II, of the Constitution of the State of Ohio and to declare an emergency--2nd Hearing-All testimony-possible vote House Local & Municipal Government & Urban Revitalization, (Chr. Wolpert, ), Rm. 018, 11:00 am HB 187 CIVIL SERVICE REVIEW (Buehrer) To implement recommendations of the Civil Service Review Commission.--10th Hearing-All tesitmony-amendments & possible vote HB 684 TOWNSHIP ZONING (Fessler) Relative to township and county telecommunication tower zoning authority.--1st Hearing-Sponsor 8