State Budget Cuts Funds to Local Governments

The budget proposed by Gov. John Kasich will cut funds to local cities by 25 percent in 2012 and 50 percent in 2013.

Highland Heights was prepared for a cut in the Local Government Fund, although the loss was a little more than anticipated.

Finance Director Anthony L. Ianiro said he factored a 20 percent drop in funding. The budget proposed by Gov. John Kasich calls for a 25 percent cut in 2012 and a 50 percent cut in 2013.

"We didn't know what it would be. We budgeted for a 20 percent reduction. We were close," Ianiro said.

Because the state fiscal year begins July 1, Ianiro said the city will see a 12.5 percent reduction this year, a total of $30,000.

"That's $5,500 in revenues that we will most likely lose (from what was budgeted)," he said.

The city's projected budget for 2011 is $16.3 million.

He said the bigger hit will come next year. If the Local Government Fund is cut as expected, he said the loss will be between $85,000 and $90,000.

Mayfield Heights receives considerably more – about $800,000 a year – so a 25 percent reduction could cost the city $200,000 in revenues, Finance Director Robert Tribby said. The city's general fund budget is $18 million.

Tribby noted that other revenue losses are on the horizon – the county is reappraising properties next year and a decline in home values will mean less in property tax collections in 2013.

"The next couple of years are going to be an interesting time," Tribby said. "But everybody else is in the same proverbial boat."