Politics & Government

State Cuts Will Trickle Down to Twinsburg

While most of the budget is funded by local income taxes, state cuts to local funding will have an impact on the city

Although funding from the state accounts for less than 1 percent of Twinsburg’s budget, even cuts to small portions matter, said Finance Director Karen Howse.

“Losing money is losing money,” Howse said. “For that to be something we know we are no longer going to get, it makes a difference.”

Gov. John Kasich's budget proposal would slash payouts to local governments by 25 percent in 2012 and an additional 50 percent in 2013.

If the governor's plan is approved as is, local governments in Ohio would lose $167.1 million in 2012 and $388.2 million in 2013 in funding from the state's Local Government Fund.

Twinsburg receives state funding in two ways. The state’s Local Government Fund distributes revenue to all the cities in Ohio based on what their needs are. In 2010 the city received nearly $288,000 from the fund. Howse said she anticipated the cuts to this fund and scaled it back in the 2011 budget.

“It’s been a discussion item since last year, so we had to factor that in,” Howse said.

The second source is money given to the county by the state to be dispersed to cities within Summit County. Last year the city received about $372,000. Howse said she is unclear how cuts will affect this funding, but will review it in June before the state’s 2012 fiscal year begins in July.

“I thought it would be something inevitable to happen because the state has to balance the budget,” Howse said. “You can’t operate in a deficit so I figured disbursement to cities would be one of the points of attack.”

It's important to remember that Kasich's proposal is just that – a proposal. The Ohio General Assembly will hold hearings and votes on the budget, so it will be changed.

The budget must be passed by July, or an interim budget will be needed.

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