FY 2012/2013
BUDGET
OVERVIEW
COUNTY COMMISSIONERS
ASSOCIATION OF OHIO
User Note
Please note the page numbers following various sections
of this powerpoint. This page number corresponds with
the associated page number in your budget overview.
The overview and powerpoint can be found on the CCAO
website at www.ccao.org
In addition, CCAO is producing numerous county advisory
bulletins to provide commissioners even greater detail on
numerous budget provisions contained within the
powerpoint.
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Revenues
LOCAL GOVERNMENT FUND (LGF)
TANGIBLE PERSONAL PROPERTY (TPP) & UTILITY
REIMBURSEMENTS
CASINO REVENUE
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Local Government Fund
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Local Government Fund

Estimated loss of LGF to local governments:




CY distributions from the LGF:





$129 million in SFY 12
$406 million in SFY 13
$535 million over biennium
$650 million in CY 10
$648.2 million in CY 11
$465 in CY 12
$185.5 million first six months of CY 13
All dealers in intangible tax redirected to state
GRF in 2012 - annual loss of $11 million to LGF
(p. 7-9)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Local Government Fund
 Budget
replaces percentage of tax
revenues received by state GRF each
month with:


75% of SFY 2011 base year allocations in SFY
2012
50% of SFY 2011 allocations in SFY 2013
 Budget
proposes to reset to percentage
of revenue approach in SFY 14 based on
dividing SFY 13 LGF deposits by total
SFY 13 tax revenues. (The “reset” may be
revised by next state budget.)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Local Government Fund
 Three
factors affect level of cuts particularly in
SFY 12



25% cut first applied beginning in August 2011 –
state revenue growth reflected in LGF distributions
for first seven months of calendar year
From August 2011 through June 2012 all 88 county
undivided local government funds to receive
proportionate share of additional $ 50 million
During SFY 12 and SFY 13 each county undivided
local government fund will receive no less than
the smaller of $750,000 or the amount received
during SFY 2011
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Local Government Fund



Minimum distribution provision provides
additional distributions of $1.3 million in SFY 12
and $5.1 million in SFY 13
Counties affected by this minimum distribution
provision include: Adams, Brown, Carroll,
Fayette, Gallia, Hardin, Harrison, Henry,
Highland, Hocking, Holmes, Jackson, Meigs,
Monroe, Morgan, Morrow, Noble, Paulding,
Perry, Pike, Van Wert, Vinton, and Wyandot.
$50 million supplement and the minimum
distribution provisions do not apply to portion of
LGF distributed directly to qualifying
municipalities
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Local Government Fund
Millions
LGF Funding
$700
$600
$500
$400
$300
$200
$100
$0
2009
2010
2011
2012
Year
Dollars
Year
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
TPP & Utility Reimbursement
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
TPP & Utility Reimbursement


Total estimated combined budgetary loss to
schools and local governments from
accelerated phase out of tangible personal
property (TPP) and public utility replacement
payments is $587 million in SFY 2012 and $845
million in SFY 2013. Savings to state are
equivalent amounts.
In CY 2010, counties received reimbursements
from both sources of $297 million. Under state
budget, reimbursements will be reduced to
$165 million in SFY 12 and $110 million in SFY
2013
(p. 9-10)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
TPP & Utility Reimbursement
 Savings
to the state from accelerated
reductions in reimbursements to counties
form both sources (TPP & Utility) was
estimated to be roughly $100 million per
year in SFY and SFY 13.
 These savings to the state are in addition
to savings the state realizes as a result of
the gradual phase out of TPP and Utility
Payments under prior law.
 Losses to counties would be an equivalent
amount.
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
TPP & Utility Reimbursement



Budget accelerates phase-out of
reimbursement for lost TPP and public utility
tangible property taxes
TPP was eliminated by tax reform (2005), full
reimbursement with Commercial Activity Tax
(CAT) (2006-2010), old law provided phase
down 2011-2018,
Electric and natural gas deregulation
occurred in 1999 and 2000, kilowatt hour tax
(KWH)and natural gas (MCF) tax created, in
part to reimburse local governments for lost
revenues
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
TPP & Utility Reimbursement
 In
2010, 100% of CAT devoted to local
reimbursement for lost TPP, 70% schools,
30% other local governments
 Under state budget, by 2020, 100% of CAT
dedicated to State GRF
 In 2010, 63% of kilowatt- hour (KWH) tax
dedicated to state, 37% dedicated to
schools and local governments
 Under state budget, in 2012, 88% of KWH
dedicated to state, 12% of KWH
dedicated to local governments, by 2030,
100% dedicated to state
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
TPP & Utility Reimbursement
 Prior
to state budget 69% of MCF revenues
dedicated to schools, 31% dedicated to
other local governments
 In 2012 under budget, 100% of MCF tax
dedicated to state GRF(approx. $66
million)
 Beginning with second payment in 2011,
reimbursement payments are phased out
for TPP and utility property, but phase out
is limited to no more than 2% of total
resources each year
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
TPP & Utility Reimbursement
 For
counties, for purposes of the phase
out, qualifying levies are broken into five
service functions: mental health and
developmental disabilities, public health,
senior services, children services, and
other county levies, which includes
county general fund
 The phase out schedule for each of the
five is calculated independently
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
TPP & Utility Reimbursement

For the four defined services, total resources
are:




Sum of their 2010 reimbursements under TPP and
utility property
Collection year 2010 real and public utility
property taxes
Rollback and homestead reimbursements
For the other category, total resources are:



Resources mentioned above
Base county sales tax (Excluding additional
county sales tax)
county share of LGF for 2010
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
TPP & Utility Reimbursement




Beginning with the second payment in 2011,
reimbursements are phased out at a rate of 2% of
total resources each year
The 2% per year reduction is calculated and applies
separately to TPP and Public Utility Personal Property
so local jurisdictions could lose up to 4% in any given
year until payments cease
The three payments per year under TPP
reimbursement are reduced to two, one payment for
1/7 is still made in May with the August and October
payments combined in to a single 6/7ths November
20th payment. The treasurer has until December 31 to
ensure the payment is received by local jurisdictions.
The Public Utility Personal Property payments are
made by February 28th and August 31st of each year.
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
TPP & Utility Reimbursement


If in any year the payment is less than 2% of
total resources, then no payment is made
In 2013, the budget suspends the phase down
of reimbursements for entities that are still
receiving reimbursements (essentially any
county service function with more than a 6%
reliance on either TPP or Utility Personal
Property reimbursement). The accelerated
phase down may be resumed or changed
with next state budget.
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
TPP & Utility Reimbursement
 Many
service functions do not have more
than a 6% reliance on either TPP or public
utility reimbursement and thus payments
will be phased out by CY 2013
 For example, TPP reimbursement will be
phased out for all but 6 counties with
respect to “other service function” which
includes county general fund
 For public utility property reimbursement,
all but 3 counties will be phased out in
“other service function” by CY 2013
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
TPP & Utility Reimbursement



All local governments have until June 20, 2013
to make sure that the classification and
amount of reimbursement payments are
accurate before TPP and Public Utility
payments become final.
If you have concerns or questions regarding
any property tax levy listed on the
Department of Taxation website, please
email: TPP@tax.state.oh.us
For additional data, please use the following
link to the Department website:
http://tax.ohio.gov/channels/government/ph
ase out.stm
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Casino Revenue
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Casino Revenue
Counties receive 51% of “gross casino revenue”

As appropriated by HB 156



Calendar year 2012 -- $44 million
January-June 2013 -- $69 million
If Video Lottery Terminals (VLTs) – reduce by 27%


Calendar year 2012 -- $32 million
January-June 2013 -- $49 million

Dept of Taxation’s (TAX) October 2009 report on the casino
ballot issue
(p.11-12)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Casino Revenue - Assumptions

TAX’s Distribution:


CY 2012 – April, July, and October distribution
Jan-June 2013 – January and April distribution


Distributions are for the 3 previous months
Casinos begin operation:


Toledo & Cleveland – March 2012
Cincinnati & Columbus – February 2013

TAX’s estimates regarding operating capacity
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Casino Revenue – Distributions
 County




Share shown on chart
Takes TAX’s estimated amount disbursed from
Fund 5JG0 – Gross Casino Revenue County Fund
Divides total by Ohio 2010 census population
Multiplies by each county’s 2010 population
Reduces the 8 largest counties by 50%
 If
largest city in the county has a population in
excess of 80,000 that city receives one-half of that
county’s allocation
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Other Highlights
General Government and Operations
Health and Human Services
Jobs, Economic Development, and Infrastructure
Public Safety and Criminal Justice
Agriculture and Rural Affairs
Taxation and Finance
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
General Government and
Operations
State Health Care Pool
Self-Insurance Programs
Wellness
County Recorder Training
Public Record Retention and Lawsuit Reform
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
State Health Care Pool
ORC Sections 9.901; 305.171
To be mandatory, or not to be mandatory?


Charts a path DAS must take in exploring
and possible creating pools.
DAS has authority to make pools
mandatory should they be established.
Exemptions from Hypothetically
Mandatory Pools:



Self-insured entities w/TBD “best practices”
Consortiums w/TBD “best practices”
A “more financially advantageous” alternative
(p.25-26)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Self- Insurance Programs
ORC Section 9.833
Public Individual SI employers no longer exempt from:
 Evaluation by a certified actuary
 Reserving funds as actuarially deemed necessary;
and reporting annually to AOS.
 Establishing a special fund for reserves by resolution
New for Everyone:
 Requirement for certified audited financial statement
 Contract with a CPA for preparation of written
evaluations
(p.26)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Wellness
ORC Section 3901.56
Insurers, including “public employee benefit
plans,” now explicitly authorized to offer a
wellness or health improvement program that
provides rewards or incentives to encourage
participation.
Note: CCAO still pursing wellness and Sec 125 authority
under ORC Sec 305.171 in HB 225 to clarify authority to
make programs eligible for fringe benefits.
(p.27)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
County Recorder Training

Join Sheriff, Auditors, Coroners, Treasurers (Engineer,
Prosecutors, and Judges)

8 Hours of continuing education approved by the Ohio
Recorders’ Association

Newly Elected-15 hours in 1st year, 8 hours each subsequent.

Commissioners shall approve reasonable amount for
registration fees, lodging and meal expenses, travel expenses.

Non-compliance= “Failure to complete” notice (for
informational purposes only).
(p. 27)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Public Record Retention and
Lawsuit Reform







RC-2’s dictate when to send OHS an RC-3
AG can train on retention schedule
Limits cumulative total amount for wrongful
destruction suit to $10K
Attorney Fees limited to $10K
“First Past the Post” provision.
5 Year Statute of Limitations
No recovery if request was a pretext
(p. 28)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO

State Government Re-Organization Plan
DAS to develop recommendations.
Report by January 1, 2012

Ohio Constitutional Modernization Commission


1)
2)
(p.29)
Commission authorized by Speaker Batchelder Bill (HB 188)
Budget provides $50K a year for the operation of the Commission
a preparatory body to determine whether a convention should one be
called
a revisory body to advise the legislature with respect to needed
changes.
Commission will consist of 32 members, 3 appointed by each caucus leader
of each chamber, the 12 members then appointing an additional 20
members
(p.29)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Health and Human
Services
County JFS, CSEA, and Children Services GRF
County TANF Allocations
Developmental Disabilities
Behavioral Health
County Homes
HHS- On the Horizon
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Health and Human Services
County JFS, CSEA and Children Services GRF

Across-the-board 10% GRF cut: ok, but for


Adoption Assistance
 Cost shift of $7M! – averted during deliberations
Child Support Enforcement


Proposed 15% state GRF cut
Loss of federal incentive match left large $ gap


$15M less local dollars= $45M total loss (counting fed match)
State agreed to invest $7M year for total of $21M w/ fed match.
County TANF Allocations



Proposed: $211M/year ($80M/yr, or 28% cut)
Final Result: $ 236M/year (55M/yr, or 19% cut)
Counties under pressure to make work participation rate in FFY12
or risk $$ sanction.
(p.33-34)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Developmental Disabilities

County boards received approximately a 30% cut
in state subsidies compared to SFY11 levels.
100
Tax Equity*
80
County Board
Subsidies
Family Support
Svcs
Residentail
Support Svcs
60
40
20
0
2010
2011
2012
2013
COUNTY COMMMISSIONERS ASSOCIATION
OF OHIO
Behavioral Health

Medicaid match $$ now provided by state
instead of local boards; intent to free up more $$
for non-Medicaid eligible individuals in need. (p.37-38)
 Funding
*Charts courtesy of OACBHA
COUNTY COMMMISSIONERS ASSOCIATION
OF OHIO
County Homes

Changes in Long Term Care Funding
Several changes under principle of “rebalancing”
long term care.
Home/Community Care
+6% in 2013 (42%)

Institution Care
-6% in 2013 (58%)
Franchise fee – no change in current status of
county homes (despite efforts by some, which will
continue.)
-Joint Legislative Cmte for Long-Term Services and Supports
(p.36)
COUNTY COMMMISSIONERS ASSOCIATION
OF OHIO
HHS - On the Horizon


Medicaid eligibility determinations and the
impact on county human service delivery
systems.
Help Me Grow

Funding changes and their impact:
administrative funding
 service delivery and eligibility (Part C)


Bureau for Children with Medical Handicaps
(BCMH) – proposal to increase county spending
likely to continue in the future.
COUNTY COMMMISSIONERS ASSOCIATION
OF OHIO
Jobs, Economic Development,
and Infrastructure
Economic Development
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Economic Development

“Invest Ohio” – personal income tax credit

Invest in a “small business enterprise”



Credit is 10% of qualifying investment


employment base of 50 in OH or majority of US employees in OH
business test – less than $50 million in assets or $10 million in sales
$1 million maximum allowable in a biennium
Program Extensions:

Job Retention Tax Credit – December 2013


Incumbent Worker Training


$6,000 per year / 33% employer or employee paid
Rapid Outreach Grants


$20 million payroll / $5 million capital investment
Infrastructure improvements by political subdivisions
Enterprise Zone Extension – Oct 15, 2012
(p.40-41)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Economic Development

Regional Transit Authority membership

Political subdivision membership in certain RTAs





RTA must levy property tax and include county of at least
400,000 population
Ballot issue by November 5, 2013
Question of joining or leaving
Action effective 6 months after certification of ballot issue
Study - expansion of RTA outside its territorial boundaries

Conducted by Ohio Public Transit Authority
Must consult with CCAO, OML, and OTA
 Report due to GA and Governor by December 31, 2011
(p.

COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Prevailing Wage
 State
Projects exempted from prevailing
wage:
 Job
Ready Sites program
 Ohio Rail Development Commission
 Energy resource development projects
 Projects receiving funding from DOD

ORC Chapters 122, 165, or 166
(p.39)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO

E-Check – June 2017

County sewer district – transfer of assets to a
municipality by mutual agreement



Any part of water supply or sanitary facilities that are
connected to the municipality's facilities
Water supply or sanitary facilities that are located
within the district and within or annexed to the
municipal corporation
Ohio Housing Study Committee



7 Members - Auditor, Directors of Commerce,
Development, 2 House/ 2 Senate members
Report by March 31, 2012
Purpose – review policies, programs, and partnerships
of Ohio Housing Finance Agency (OHFA)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Public Safety and Criminal
Justice
Indigent Defense
Community Corrections Act Funding
DRC Reorganization and HB 86 – Sentencing Reform
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Indigent Defense


Biennium reimbursement rate of 35%
“Cost” to counties:




State GRF contribution:




$74.8 million in FY ‘11
$83.9 million in FY ’12
$86.8 million in FY ‘13
$12.6 million in FY ’11 – 31%
$3.0 million in FY ’12 – 7%
$3.6 million in FY ’13 – 8%
Reliance on Indigent Defense Support Fund
(p.47)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Community Corrections Act
Funding
 Prison

Increased from $22.4 to $25.8 million each year
 Jail

diversion – 407 line item – up $3.4 million
diversion – 408 line item – up $3.6 million
Increased from $11.3 to $14.9 million each year
 Net
gain in CCA funding = $7 million per year
(p.48)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Community Corrections Act
Funding
 Where

is it going????
Elimination of APA staff to assist with presentence investigation and report writing
 $1.3

million per year to common pleas courts
“Justice Reinvestment” initiatives
 Probation
Improvement Grant
 Probation Incentive Grant
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
DRC Reorganization and
HB 86 – Sentencing Reform
 APA
presentence activities - 48 counties
 Bureau of Adult Detention eliminated

Jail inspection program lost – now self-report
 New
requirements for probation departments
 Non-violent F4s and 5s – no longer to prison

Protection to keep them out of jail
 Infrastructure
for community based corrections
(p.48-49)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
 DYS


funding
RECLAIM - $30 million per year
Youth Services Grants - $16.7 million per year
 Corrections
Commission membership
 Township/municipal
 Commission
 Disposal

joint police districts
on Dispute Resolution abolished
of forfeited firearms/ordnance
Sheriff can sell to licensed firearms dealer
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Agriculture and Rural
Affairs
Soil and Water Match
Conservation Program Delivery Task Force
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Soil and Water Match


$9.6 M for biennium.
Approx. 80% match.
Sources of Funding:
GRF
Tire Fees
CDD Fees
MSW Fees
$2.9 M
$3.5 M
$1.2 M
$3.3 M*
Conservation Program Delivery
Task Force
“Examine methods for improving services and removing
impediments to organizational management and explore
opportunities for sharing services across all levels of
government”
(p.53-54)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Taxation and Finance
Fiscal Distress
AOS Costs
DTAC Funds
Tax Amnesty
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Fiscal Distress
 New
yellow flag status: Fiscal Caution
 Fiscal Watch will require a financial
recovery plan w/in 120 days
 Fiscal Emergency will require a 5-year
forecast as a part of the financial
recovery plan
(p.55)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
AOS Audits
 Enables
the AOS to cost allocate its
employees’ expenses, including vacation
& sick leave time, when calculating audit
costs
 Subsequent rule filed for audit hourly rate
of $41
(p.56)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Delinquent Tax & Assessment
Collection Funds
 Budget
divides DTAC Fund into 2 separate
funds, one for expenses of county
treasurer and the other for county
prosecutor
 Prior law required half of the money in
each county’s fund to be appropriated to
the treasurer and half to prosecutor
 Purposes for which the money may be
used remain the same
(p. 56-57)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Delinquent Tax and
Assessment Collection Funds
 Treasurer
and prosecutor may ask auditor
by October 20 for following year to
suspend deposits of delinquent tax
collection money if balances reach three
times preceding years deposits
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Tax Amnesty
 Budget
requires Tax Commissioner to
administer a tax amnesty program – May
1 to June 15, 2012 (other dates apply to
use tax)
 Amnesty applies to:
Personal income tax
Natural gas excise
Sales and use
Dealers in intangibles
Corporate franchise
Local taxes
Estate
County & transit authority sales
Motor fuel
taxes
Cigarette
School district income taxes
Commercial activity tax (CAT)
(p. 57)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Tax Amnesty for Use Tax
 Use
tax amnesty program begins October
1, 2011, ends May 1, 2013




Requires payment of all use taxes owed on
or after January 1, 2009
Permits use tax payment plan to last 7 years
Waives interest and civil and criminal
penalties for taxpayers that qualify
Prohibits waiver of interest and penalties for
taxpayer that registers for payment of use
tax before June 1, 2011
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
TOOLS
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Local Government Innovation Fund
Furloughs
Modified Work Week
Public Notice Reform
Quarterly Spending Plans
Centralized Services
Shared Services
Health Districts
Public Construction Reform
Prevailing Wage
Data Boards
County Human Service funding Flexibility
Local Court Filing Fees
Inmate Medical Care
Debt Collection Assistance by AG
Coroner Fees
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Local Government Innovation Fund
(ORC Sections 189.01-189.10)

Local Government Innovation Program will
provide grants and loans to foster collaboration
and cooperation

$45 million available

Administered by Ohio Department of
Development

Overseen by 15 member Local Government
Innovation Council
(p.10)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Local Government Innovation Fund
(ORC Sections 189.01-189.10)
Members of the Council

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Director of Development
Director of Budget and Management
Auditor of State
Two members State Senators
Two members of the Ohio House of Representatives
One member recommended by the Ohio Municipal League
One member recommended by CCAO
One member recommended by the Ohio Township Association
One member recommended by the Ohio Chamber of Commerce
One member recommended by the Ohio School Boards Association
One member recommended by an Ohio-based advocacy group selected by
Governor;
One member who is recommended by an Ohio-based foundation selected by
Governor;
One member with expertise in local government issues appointed by the
chancellor of the board of regents.
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Local Government Innovation Fund
Responsibilities of the Council
 To
establish a competitive loan and grant
program
 To establish criteria for loans and grants by 12-3111
 To award loans and grants to political
subdivisions
 To take such other actions, in consultation with
DOD, to implement the program
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Local Government Innovation Fund
Eligible Political Subdivisions





Counties
Townships
Municipalities
School Districts
Other body corporate and politic responsible for governmental
activities in a geographic area smaller than that of the state
including a county hospital commission, a municipal board of
hospital commissioners or trustees, a county or regional planning
commission, a joint planning council, an interstate regional
planning commission, a port authority, a council of governments,
an emergency planning district, a joint emergency medical
services district, a fire and ambulance district, a joint interstate
emergency planning district, a county or joint county solid waste
management district, a community school, the county or counties
served by a community or district CBCF
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Local Government Innovation Fund
Criteria for Grants and Loans
One political subdivision must provide matching funds

Matching funds may be provided by private entity
Other criteria may include:








Expected return on investment, based on the ratio of expected
savings
Number of participating entities
Probability of the proposal's success
% of local matching funds available
Ability to replicate the proposal in other political subdivisions
If the proposal is part of a larger consolidation effort
If the proposal is to implement performance audit
recommendations
If the applicant has successfully completed an innovation project in
the past
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Local Government Innovation Fund
Application Process






Criteria for grants to be established by 12-31-11
Proposals submitted to District Public Works
Integrating Committee
District Committee submits to DOD with advisory
comments
DOD transmits to Council—evaluation to start by 31-12
Council evaluates proposals and awards grants
and loans
First awards by 7-1-12. Subsequent awards
quarterly
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Local Government Innovation Fund
Other Conditions of the Program

Up to 20% of funds may be awarded as grants for
use in process improvement or implementation

Loans may be used for the purchase of equipment,
facilities, or systems or for implementation costs

An individual political subdivision may receive not
more than $100,000 and not more than $500,000
per project —for both grants and loans
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Local Government Innovation Fund
Other Conditions of the Program

Loans made to be repaid by recipients using
savings achieved from the innovation project.

At least 30% must go political subdivisions, except
counties, with less than 50.000 population or to
counties with a population of less than 130,000

At least 30% must go to political subdivisions,
except counties, with more than 50,000
population or to counties with a population of
130,000 or more
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Furloughs
Re-establishes automatic authority for nonvoluntary furloughs, up to 80 hours in SFY 12 & 13
 By appointing authority for non-bargaining
employees
 After SFY 13, can conduct on basis of lack of
funds or reasons of economy or jurisdiction in
fiscal watch/emergency
 Guidance:
http://www.ccao.org/LinkClick.aspx?link=Archives
+MJ%2f2009+Furlough+Seminar+Handout.pdf&tab
id=387&mid=1022&language=en-US

(p.15)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Modified Work Week




Automatic authority in SFY 12 & 13
After SFY 13, can conduct on basis of lack of
funds or reasons of economy or jurisdiction in
fiscal watch/emergency
By appointing authority for non-bargaining
employees, though can be applied differently
among employees based on relevant
distinctions
Allows reduction up to 50% of usual hours
worked
(p. 15)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Public Notice Reform

State Public Notice Website





No Cost to Post; Online submittals
Newspaper of general circulation modified
Use of Inserts
Government Rate
Alternative Publication Option (7.16)


One Full Publication Print
Summary Publication and Post on State Public
Notice Website
(p. 20)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Quarterly Spending Plans
(ORC Section 5705.392)
Current Law

Commissioners may, as a part of appropriation resolution,
include a quarterly spending plan

Quarterly spending plan includes an amount for each line
item that may be spent during each quarter of the year

Quarterly spending plan applies only to the county general
fund, not special funds
(p.16)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Quarterly Spending Plans
Current Law

If quarterly spending plan is adopted, it must be
done for all offices in the general fund and not for
individual offices.

If a quarterly spending plan is adopted, it is the
basis for certification of availability of funds by the
county auditor under ORC 5705.41(D)

Also applies to an amended or supplemental
appropriation resolution
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Quarterly Spending Plans
New Law
The general authority specified above remains
unchanged, but now a quarterly spending plan may
be adopted and apply to any office and from any
fund in the county treasury, IF

The office has spent or encumbered more than 60%
of the appropriation for personal services during the
first 6 months

Quarterly spending plan applies to 2nd half of year and
during any subsequent year,
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Quarterly Spending Plans
New Law
OR

The office has spent 110% or more of the
appropriation for personal services during the
previous year

The 110% threshold is based on the original permanent appropriation
resolution and not any supplemental appropriations for personal
services

The quarterly spending plan remains in effect for two years or until
the elected official is no longer in office
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Quarterly Spending Plans
New Law Notification Requirement

Commissioners must give written notice to elected
official if it intends to adopt a quarterly spending
plan




Must be send 30 days before adoption of
spending plan
Regular first class mail or personal service
Must include copy of proposed quarterly sending
plan
Official may meet with board of commissioners
during a regular session to comment, express
concerns, or ask questions
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Centralized Services
(ORC Section 305.23)
General
 Inside of the County
 ORC Section 305.23 authorizes county
commissioners to establish centralized service
programs for a number of administrative and
operational functions common to multiple
county offices. The vision is that by combining
certain functions into a centralized service,
taxpayer dollars would be saved and greater
efficiency and would result.
(p.16)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Centralized Services
Types of Centralized Services
 The following services may become centralized
under the new law:







Purchasing
Printing
Transportation
Vehicle maintenance
Human resources
Revenue collection
Mail operation
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Centralized Services
County Offices Impacted











County Commissioners
County Auditor
County Treasurer
County Engineer
County Recorder
Prosecuting Attorney
Sheriff
Coroner
County Park District
Veterans Service Commission
Clerk of the Juvenile Court


Clerks of Court for all divisions
of the common pleas court
including the clerk of the
court of common pleas, clerk
of a county-operated
municipal court, and clerk of
a county court.
Any agency, department, or
division under the authority
of, or receiving funding in
whole or in part from, any of
those county offices.
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Centralized Services
Exemptions

Purchases for contract services made by the county
recorder from the “Recorder’s Equipment Fund”, if
the fund has been established pursuant to ORC
Section 317.321.

Purchases of software used by the county recorder.

Purchases by the county auditor from the Real
Estate Assessment Fund (REA) established under
ORC Section 325.31.

Purchases from the sheriff’s or prosecutor’s
Furtherance of Justice Funds (FOJ) established
under ORC Sections 325.071
andCOMMISSIONERS
325.12. ASSOCIATION OF
COUNTY
OHIO
Centralized Services
Exemptions
 Purchases of financial software used by the county auditor.

The printing of county property tax bills.

The collection of any taxes, assessments, and fees
collected by the county treasurer.

The law also includes a general exemption from using
centralized services. Does not authorize commissioners to
have control or authority over funds received directly by a
county office under another section of the Revised Code,
or to control, or have authority regarding, the expenditure
or use of such funds.
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Centralized Services
Procedure to Establish Centralized Services

Commissioners adopt resolution to establish one or more
centralized services applying to one or more county offices


After adoption copy of resolution must be sent to impacted
county offices within 10 days of adoption by clerk
Notice must be given to impacted county offices before
adoption of resolution



No specific time limit in statue for required notice
Recommend 2 week and accomplish notice by adoption of
resolution of intent
Notice must include a statement on rationale and estimated
savings for establishing the centralized service
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Centralized Services
Provision of Centralized Services by Other County
Offices

Law does not require or anticipate commissioners to
be responsible for the provision of centralized
services to other county offices.

Law authorizes other county offices to serve as the
agent and responsible party for administering any of
the centralized services

Commissioners may request another county office to
serve as the responsible party for administration of a
centralized service
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Centralized Services
Provision of Centralized Services by Other County Offices

Commissioners may not require the office to
perform this function unless the office
consents.

If another county office agrees to administer
a centralized service the office enter into an
agreement with the commissioners
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Centralized Services
Contents of Resolution Implementing Centralized
Services
 Name
of county office that will be the agent
and responsible party for administering a
centralized service
 If agent is not the commissioners, the name of
county office that will be the responsible party
that has entered into an agreement with the
commissioners
 A list of the county offices required to use the
centralized services
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Centralized Services
Contents of Resolution Implementing Centralized
Services




A list of which centralized service each county
office must use.
A list of rates and charges the county office must
pay for the centralized services
Date when county offices must begin using the
centralized service or services
Commissioners’ clerk must send a copy of the
resolution to each county office specified in the
resolution. Must be sent not later than 10 days
after adoption
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Centralized Services
Statutory Provisions Relating to Centralized Human Resource
Function
Law contains a definition that clearly defines what functions
among county offices may be centralized
Human resource functions that may be centralized include:








Civil service
Employee benefits administration
Collective bargaining
Labor relations
Risk management
Workers' compensation
Unemployment compensation
Human resource functions required by state or federal law.
(Equal Employment Opportunity, ADA, COBRA, and FLSA)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Centralized Services
Statutory Provisions Relating to Centralized Human
Resource Function
Human resources functions do not include the ability to:

Require county offices to conform to classification plan

Require county offices to conform to a compensation
plan

Require county offices to use position descriptions

Require county offices to use an organizational structure
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Centralized Services
Statutory Provisions Relating to Centralized Human Resource Function
No authority is granted to:

Determine the compensation of any employee

Determine the salary ranges of positions in a county office

Determine the number of employees in a county office

Determine the terms of employment of any employee in a county
office
The county office must still comply with the aggregate appropriation
for salaries or personal services set in the appropriation resolution
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Centralized Services
Statutory Provisions Relating to Centralized Human Resource
Function
A centralized human resource operation also may not
exercise powers related to the following employment related
activities:








Hiring
Qualifications
Evaluation
Suspension
Demotion
Disciplinary action
Layoffs, furloughs, modified work week schedule
Termination
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Shared Services
 Outside
of the County
 ORC
Section 307.15 is current law and
applies to the authority of the board of
county commissioners
 ORC
Section 9.482 is new law and applies
to virtually all political subdivisions
(p.18)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Shared Services
Current Law Authority (ORC 307.15)
Current law allows commissioners to enter into an agreement
with the legislative authority of the following political
subdivisions:











Municipalities
Townships
Port authorities
Water or sewer districts
School districts
Library districts
Health Districts
Park districts
Soil and water conservation districts
Other boards of county commissioners
Other taxing districts
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Shared Services
Current Law Authority (ORC 307.15)

Agreement may empower commissioners to undertake and
exercise any power, perform any function, or render any
service, on behalf of the contracting subdivision that the
other subdivision is authorized to exercise, perform or render

If county contracts with other subdivision, that subdivision
may exercise any power, perform any function, or render any
service, on behalf of the county that the county may
exercise, perform, or render

Includes the same powers as the contracting subdivision
possess including powers necessary or incidental to the
performance of the contract if such powers exist for either
contracting entity

Two boards of commissioners may by contract create a joint
agency to exercise any power, perform any function, or
render any service
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Shared Services
Current Law Authority (ORC 307.15)

If agreement does not provide which officer, office,
department, agency, or authority, performs the
responsibilities of the contract, the commissioners
determine and assign such powers and duties

No agreement or no joint agency may contract for
investment powers and functions, or may render any
investment service on behalf of a contracting subdivision or
other county

No agreement may provide for the levying of taxes on
behalf of, a contracting subdivision unless approved by a
majority of the electors of the contracting subdivision
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Shared Services
New Law Authority (ORC 9.482)
New law authority appears to be based or current
county authority with following exceptions:

Definition of political subdivisions county may
contract with may be slightly broader—all
subdivisions subject to sovereign immunity law—
ORC Section 2744.01

Does not prohibit a political subdivision from
entering into an agreement to collect, administer,
or enforce any tax on behalf of another political
subdivision
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
HEALTH DEPARTMENT OFFICE SPACE

Budget as introduced and passed by the House contained
a provision phasing out the county general fund
responsibility to provide office space for a general health
district

This provision removed by the Senate and did not survive in
Conference Committee

Budget enacts ORC 3709.341 that allow commissioners to
donate or sell property, buildings, and furnishings to health
districts—general or combined

Deed conveying property must include a reverter clause to
address what happens if the health district later sells the
property donated or sold by commissioners
(p.15)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Public Construction Reform
 Eliminates
requirement that multiple prime
contracting be used for public
improvements.
 Provides public authorities with 4 options:




Multiple prime contracting method
Construction Manager at Risk (CMAR)
Design Build
General contractor as sole prime
contractor
(p.19)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Public Construction Reform
 Advantages
mandate:



of eliminating multiple prime
Simplifies contracting by limiting number of
construction companies owner deals with
to one company
Shifts construction contract risk away from
owner
Improves project coordination, saves time,
and has potential to save public dollars
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Prevailing Wage
 Thresholds

for public buildings increased
New construction
 $125,000
– Sept 29, 2010
 $200,000 – Sept 29, 2011
 $250,000 – Sept 29, 2012 and beyond

Reconstruction
 $38,000
– Sept 29, 2010
 $60,000 – Sept 29, 2011
 $75,000 – Sept 29, 2012 and beyond
(p.19-20)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Prevailing Wage
 Public

Improvements still covered
Road, bridge, sewer, ditch projects
 Current


thresholds
New construction - $78,258
Reconstruction - $23,447
 Adjusted
biennially by Director of Commerce
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Prevailing Wage
 Projects



exempted from prevailing wage:
Completed solely with donated labor
Port authorities
Urban redevelopment corporations
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Data Processing Boards
 Budget
permits BOCC to adopt resolution
requiring county automatic data
processing board to assume duties of


county records commission
county microfilming board
 If
combined board is established, all
county elected officials and a common
pleas judge serve on board (two board of
elections officials also may serve on
board)
(p.17-18)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Data Processing Boards




County auditor is administrator of expanded
board
Data board may establish centralized and
decentralized operations for various functions
Data board, with BOCC approval, may
contract with federal, state, local and other
agencies for services
Data board shall establish charges for services
and charge county offices for services
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
County Human Service
Funding Flexibility

Mandated Share flexibility

Reduction in mandated share ceiling; now
105%, compared to $110%

TANF Title XX

Ability to transfer $$ from PA Fund to Children
Services Fund or CSEA Fund
(p.15)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Local Court Filing Fees


Seeking oversight/transparency
Generally spent by a Court order with an
appropriation or annual report



Court computerization/legal research
Mediation or dispute resolution
Exceptions:


Clerk’s office computerization and common
pleas special projects – court order and
appropriation
Municipal and County courts special projects
and probate court fees – court order
(p.23)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Inmate Medical Care
 Medicaid
reimbursement rate currently for
county jails and state correctional facilities
 Now



included:
Corrections Commissions
Municipalities
Townships
(p.21)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Debt Collection Assistance by
the Attorney General





Debt payable to a political subdivision
Outstanding for 45 days
Submit request to collect to the AG
AG must agree to collect - ORC 131.02
Process:

AG sends notice to “debtor”
Shall assess interest/May add collection cost
 Collects or takes to judgment/execution


Can agree to compromise/payments/add fees
(p.22)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO
Coroner Witness Fees



Civil case - party must subpoena coroner
“Expert testimony” is compensated
Coroner files statement with court





Serve a copy on each party
Indicate fee and how it was calculated
Party subpoenaing must pay within 30 days
Hourly rate of Class 8 Salary = $58.33
Amount charged:


Deposition = hourly rate = $58.33
Trial or hearing = hourly rate x 6 = $349.97
(p.22)
COUNTY COMMISSIONERS ASSOCIATION OF
OHIO