Last Friday, May 10th, I posted an entry regarding Ohio House Bill 5. It was spurred by an email I had received from Josh Mandel directing me to his oped in the Columbus Dispatch. In the Entry, I linked to the House Bill and to varying opinions on the Bill by special interests on both sides of the table.
Ohio needs simpler municipal tax system - Josh Mandel ,Ohio Treasurer - SIKE
After a week of contemplation, I have not changed my mind and believe it is important to oppose House Bill Five. I applaud Josh Mandel for making a stand on the issue, however I think he is wrong on this subject. It seems the State of Ohio is moving toward a more centralized State Government. With this move, there is a power and money grab from local government.This moved started with the defunding of the local government fund, and not allowing local government to have the power to replace funding in alternative ways. From what I understand, this defunding did not cut the State budget, it moved the money around in the budget. I believe this because the State budget has not been reduced, it has actually grown over the past three years.(The biennial general revenue budget grew from $50.7 billion under former Gov. Strickland to Kasich's $55.5 billion plan) This was an attack on Townships, Counties, and Municipalities, in which all local government lost.
Then earlier this year (2013) there was a move to restructure the County Sales tax system by setting the local rate, and distribution. While at the same time expanding sales tax, and increasing the amount going straight to the centralized State Government. The State proposed this while not reducing the amount of mandates on local government, or removing restrictions of not having home rule powers, or allowing for alternative funding options for local services and/or projects. Simultaneously, the State of Ohio supported Medicaid Expansion, which would have created an additional windfall of Sales Tax and Federal dollars recouped by the State.
Then came the Seitz Proposal, which is currently bring thrown around in the Ohio Senate during current State budget talks. This proposal would limit local Government by standardizing the rate and formula in which local government could agree on to distribute local sales tax. Instead of having options for local formulas it would be set by the State, and not take in to consideration the current use of the funding or current local formulas. This proposal looks good because it makes equal number of local government winners and losers, using a scalpel to gain support while stripping local funding in unique and precise ways.
Now with House Bill Five, the State is coming all out after Municipalities, which are Constitutional creations, and somewhat protected from State control. This will hit home because it will directly affect Safety Service, Local Infrastructure, and Economic Development.
Here is the deal plain and simple.
The State of Ohio is expanding its mission and funding it's own policies, aka becoming more centralized. At the same time it has been slowly reducing the amount of local funding. Worse yet, the State has reduced the power and ability for the local government to keep tax dollars locally and fund the projects that local communities need and want. The State continues to mandate local government to perform the same tasks and functions as before, only without money.
Government is simply to provide the community with the services citizens demand. The services include police, fire, streets, lighting, water, trash disposal, jails, courts, engineering and the list goes on and on. This power and money grab will reduce the amount of local services citizens receive, and the State will not fill the void.
This isn't about efficiency, or tax reduction, no matter how good the stump speech sounds. It is about power and money for pet projects of a growing centralized State government. Call a Spade a Spade, and throw local communities a Bone, it's obvious the State already has the Steak.
A few Solutions:
I propose a few simple solutions that the State could provide local government.
Allow local taxing authority with a limit, to all local governments.
Eliminate all unfunded State mandates.
Allow for consolidation County offices within a County with a simple vote of Local Officials.
Allow for mergers of County Government Offices and Agencies between Adjacent Counties.
Allow for easy simple mergers of adjacent Township Governments within a County.
Allow for Mandated Services to be Contracted out to Private firms.
Allow for more Home Rule Power to Local Government.
Highland County Commissioner
Jeremy Shaffer
05/18/2013
