“Ohio has too many layers of government and too many taxing authorities. We’re drowning in duplication and taxation because of our concept of being a slave to local control,” Lake County Auditor Chris Galloway said during a working group meeting. “We do not need 610 school districts in the state of Ohio, we need 94.”
Last year, state lawmakers passed roughly $3.8 billion worth of property tax reduction legislation that will be fully realized over three to four years. They eliminated some types of tax levies, curbed unvoted tax increases, gave taxpayers tax credits for overly high taxes they have already paid, beefed up credits in the future and expanded the powers of local budget commissions.
But property owners say taxes are still too high for many Ohioans.
Two statehouse working groups have for the past year thrown out the idea of consolidating local services to cut down on property taxes.. There are 6,000-plus taxing jurisdictions within the state.
Hearings are underway on House Bill 520 which would create a “Blue Ribbon Committee” in each county would be asked to vet ideas to improve efficiency by consolidating services. Committee members would include officials from the county, cities, townships and schools. They would have a year to report their findings to the state.
Former Ashtabula County auditor Rep. David Thomas, who House Republican leadership appointed to shepherd property tax reform, co-sponsored HB 520. He said Erie County officials recently went through this exercise on their own and came up with about 10 tax savings recommendations like combining IT services and pooling healthcare.
“The whole intent of the concept is these are all things that probably the people of Erie County knew, they all said yes we have to kind of do some of these things, but there wasn’t necessarily the political umph or the backing to be able to push for these,” Thomas said.
Thomas told the committee “the only actual mandated thing in this bill is to have a committee and make a report, that’s it.” He said he understands some counties will treat this “as a formality, check a box” but he hopes most use it as an important path to relief for their taxpayers.
Committee member Rep. Sean Brennan, D-Parma, said he thinks it’s a “smart idea” and “I like the fact that there’s not a stick approach, it’s kind of a neutral approach, there’s not a carrot in there either and I think as a state we need to use more carrots to try to encourage consolidation amongst local governments.”
A working group set up last year by Gov. Mike DeWine disagreed with that perspective. Co-chair Pat Tiberi said the only way to effect change and get past local “foolish pride” is “by force and the political will from the legislature, that’s it.”
Thomas told this media outlet he would like the legislature to force the issue but “forced consolidation is a large political hurdle.” He said he hopes at the end of this proposed exercise they can point to some of the suggestions the locals produce to convince lawmakers to act.
Local Government Committee member and former House speaker Rep. Jason Stephens, R-Kitts Hill, pointed out the legislature itself has caused some of the duplicative spending. For instance, he said each county must carve out a half-mill of the county general fund to support veterans services and provide Children Services agencies.
HB 520 co-sponsor Rep. Ty Mathews, R-Findlay agreed this effort is not just about targeting local governments, they must examine “what things are we doing at the state level that are maybe creating these inefficiencies that we can correct on our side.”
There have been three hearings on the bill and two amendments approved regarding the size and scope of the committee, giving the locals more power.
Butler County Commissioner Don Dixon has been one of the loudest voices calling for property tax relief.
He said this latest property tax relief effort is “the weakest, lamest move that I’ve seen made.”
“For them to say they want recommendations, it’s no different than what they’ve done for years and years, it’s like trying to put a necklace on a hog. It’s ugly but they’re going to put a little lipstick on it, pretty it up, try and sell it to the people, big change is coming, we’re working on it, and they do nothing,” Dixon said and later added. “They know how to fix it, they just don’t have the backbone to stand up and do it and take the heat.”
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