FACTS ABOUT OHIO’S LOCAL GOVERNMENT FUND

• The Ohio sales tax took effect in 1935 as a way to raise revenue for the state and help local governments provide essential services to their residents.
• In their first budget (FY 2011-12), Gov. Kasich and his allies in the General Assembly cut state funding to local governments (roughly $1 billion). 
• HB 119, which was passed by the 127th General Assembly in 2007, restructured state revenue; tying local government funds to state funds, ensuring that everyone shared in the sacrifice during the subsequent recession, with the promise of benefitting from good times as well.
• The 129th General Assembly passed HB 153, the first budget under Governor Kasich. In HB 153 LGF was no longer set as a percentage of revenue and was instead cut significantly.
• HB 153 limited LGF funding in FY 2012 to 75% of FY 2011 distributions and this amount was lowered to just 50% in FY 2013
• Governor Kasich’s second budget, HB 59, currently pending in the General Assembly, does not restore any of his previous cuts to local government funding
• Local governments receive $200 million less in the FY2014-2015 than they did in FY12 and FY13
• After looking at all of the cuts from the Kasich administration, $1.4 billion less revenue in FY 2013-14 than in FY 2010-11 is realized
• At the same time, GRF Tax Revenues, which fund the Local Government Fund, are forecasted by the Legislative Service Commission to increase 30.8% in 2014 from their levels in 2010.
• Since Governor Kasich took office, voters in communities across Ohio have been asked to approve over 220 new and/or additional local ballot measures specifically to increase funding for public safety services.
• Since 2010 the number of State employees has decreased by 2200 (1.4% of workforce) and the number of local government employees has decreased by 29,200 (5.7% of workforce).