How Gov. John Kasich’s proposed second budget — which includes tax cuts for business owners and consumers — will affect local governments won’t be known until local finance directors have a chance to dive deep into the numbers.

Proposed changes to the state’s tax code will create a more business-friendly environment that will lead to job creation, according to the governor.

Butler County Commissioner Don Dixon said it appears the governor’s plan is “moving in the right direction.” He said the county is now on a path to live within its means and to begin paying off debt.

“What we have to be careful is that the state doesn’t continue to cut from local government funds and send us a bunch of mandates we can’t afford,” Dixon said.

West Chester Twp. Trustee Catherine Stoker said she was “mystified” by Kasich’s budget proposal and its significant tax cuts. She said that decrease to the state’s general fund will have a yet-to-be-determined impact on local distributions.

“Where’s he going to get the money for maintaining roads, Medicaid and funding schools?” Stoker said. “I’m waiting for the other foot to drop.”

Stoker said it was after Kasich’s last biennial budget that the township lost about $6 million in state funding each year due to reductions to the tangible personal property tax, local government fund and property taxes, and elimination of the estate tax.

“We’ve already lost a lot, and that’s just West Chester, not the other 100 communities combined, and we still have to provide the same services,” Stoker said.

Fairfield Finance Director Mary Hopton said she has only seen the summary of the proposals and won’t know exactly what to make of the budget until the actual legislation is studied.

“There’s nothing that would directly be taking money from us, but with the sales tax, they’re moving away from personal property to service. With public utilities being taxable, we may have to pass that on to our residents,” Hopton said.

“It’s very broad stuff. It depends on how detailed the legislation is. I have more questions right now,” she said.

Butler County Commissioner T.C. Rogers also said he needed to look further into the details of the two-year budget plan, but just like the state, Butler County is on the path to make changes.

Rogers said if significant funding cuts are made to local governments as in the past few years, cuts must also come at the state level.

“I do know that that has been happening,” Rogers said.

Warren County Commissioner Dave Young said Kasich “is doing what he thinks is right.”

“I like the fact that he’s basically a bull in a budget shop,” he said. “He comes in and does what is necessary and he doesn’t necessarily care what a lot of opinions are.”

Young said the most appealing part of the plan for Warren County and the state as a whole was lowering taxes for small businesses to help them cut the cost of doing business.

“Typically, when you see cut taxes, you see increased business activity,” Young said. “Hopefully, the pie in Ohio will continue to grow. Even though you’re cutting tax rates, as that pie grows by attracting more businesses in, making it more business friendly, that’s going to benefit everybody.”

Middletown City Manager Judy Gilleland and Mayor Larry Mulligan, Hamilton City Manager Joshua Smith, and Trenton City Manager John Jones said they have not yet reviewed the governor’s budget or its summary.