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TEL/TABOR
9/11/06 - It's Official: Constitutional TEL is Dead
6/14/06 - Constitutional TEL Compared With Statutory TEL
5/30/06 - Legislature Passes TEL Bill
5/22/06 - TEL Could Be Removed From Ballot
Overview (updated 1/3/06)
Printer friendly version of Overview and FAQ
Ohio's 251 public libraries are “open to all” providing free access to books, music, computers, resources, and information to all Ohioans. The Ohio Library Council and members of the library community are concerned about an issue on the November 2006 ballot that could jeopardize access to Ohio's free and public libraries.
Secretary of State and candidate for Governor Ken Blackwell has authored the Tax and Expenditure Limitation (TEL)/Taxpayer's Bill of Rights (TABOR) constitutional amendment. This amendment will appear on the November 2006 ballot as a result of a petition drive. Although the simple political rhetoric of this proposal may be appealing to some, the passage of this amendment will be disastrous for Ohio public libraries.
On November 2, 2005, Colorado voters approved a five-year moratorium on the state's TABOR. Colorado is the only state to have implemented such a restrictive constitutional spending limitation causing local governments to continually lose revenue from the state with no ability to make up the lost revenue. Since the passage of the TABOR in 1992, Colorado's local governments went to the ballot numerous times asking voters to approve increased spending. Rural local governments had an even harder time getting increased spending ballot issues passed. It was nearly impossible for local governments in Colorado to save money for emergencies because the amendment counted reserves as expenditures and, therefore, provided a disincentive to place revenue in a reserve account. The effects of the TABOR have been dramatic. Colorado now ranks last in child immunizations, near last in terms of percentage of gross product reinvested in higher education, and the state's roads and bridges are in severe need of repair.
If Ohioans approve a similar TEL/TABOR Constitutional Amendment currently proposed by Secretary of State Ken Blackwell, the expenditure limitation placed on local governments would cut the very programs and services that residents want and depend upon. Services such as police, fire, EMS, and public libraries will all be affected. Education, human services, parks, and prisons will be affected as well.
The defeat of the TEL/TABOR is a top priority in 2006 for the Ohio Library Council. The OLC will be working with a coalition of other local government associations, business groups, community leaders, and many, many others to defeat this misguided constitutional amendment.
It is important to understand the impact that this will have on each library. The OLC will be providing more information and materials to help educate library staff and patrons during the months ahead. If you have questions, please contact Lynda Murray , Director of Government and Legal Services.
Public libraries have an important role in every community to provide accurate information to their patrons. Public libraries are supported by tax dollars, and therefore must make sure that the information they provide does not attempt to influence a voter, only inform a voter.
People who work in public libraries or support public libraries, however, can and should exercise their right to express their opinions, during hours when they are not being employed by the library.
The following chart identifies the impact of this amendment on Ohio public libraries. The left column is the actual language from the proposed constitutional amendment. Only language that is specific to public libraries is included in this overview. The right column explains the impact this language will have on public libraries.
| Actual TEL/TABOR Constitutional Language |
Impact on public libraries
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Section 14 (D) Local Government Fund. A local government fund is hereby created in the state treasury for the purpose of providing a minimum level of state funding to political subdivisions. |
Although this language does not specifically call for the elimination of the current Library and Local Government Support Fund (LLGSF), the general assembly, facing huge cuts in the state budget because of the TEL/TABOR, will certainly vote to eliminate it. |
Each fiscal year, moneys equal to not less than five percent of the aggregate state expenditures for the preceding fiscal year shall be appropriated to the local government fund by the general assembly. |
Any limited growth for local governments under this TEL/TABOR will be a year behind any state growth. Currently, the percentage of the state budget that goes to local government, NOT INCLUDING SCHOOLS, is more like 7.25%. This would be a substantial reduction. |
Which moneys shall be distributed by the treasurer of state from the local government fund proportionally to each county in at least two equal installments by not later than the end of the fiscal year, in accordance with legislation enacted by the general assembly. |
All of the money “earmarked” for ALL local governments, including public libraries, will be sent to the county. The county will distribute the money to each of the political subdivisions. Money will be distributed to the counties by a formula determined by the general assembly. Local governments include police, fire, EMS, schools, municipalities, villages, counties, mental health boards, etc. |
All moneys appropriated to the local government fund pursuant to this subsection shall be subject to the expenditure limitation as provided in subsection (A) of this section. |
The Local Government Fund cannot increase more than the “allowable rate”—Midwest Rate of Inflation plus the rate of population change or 3.5%, whichever is greater. Even though the fund may have this rate of minimal increase, there is no guarantee that the rate of increase will be passed along by the counties to the local political subdivisions. Pressures for police, fire, and other safety services will likely take precedence over public libraries. |
Section 14 (E) Tax and Spending Limitations on Political Subdivisions. (1) No political subdivision of the state shall
(a) increase aggregate political subdivision expenditures for a fiscal year by an amount that exceeds the aggregate political subdivisions expenditures for the previous fiscal year beyond the allowable rate for a political subdivision,
(b) levy a new tax, or
(c) increase the rate of an existing tax, without first obtaining the approval of a majority of electors in that political subdivision. |
The same spending limit placed on state spending is imposed on political subdivisions, including public libraries…the previous year expenditure plus Midwest Rate of Inflation and rate of population change. The only way spending can be increased beyond the spending limit is by going to the ballot and getting a majority of all of the registered voters to approve the spending increase, pass a new levy, or increase an existing levy.
Note: Passing a ballot issue by a majority of all registered voters—not just a majority of those voting in the election—is almost impossible considering the number of registered voters vs. voter turn out. Ohio has an abysmal record in maintaining current voting records. In addition, there is no language that permits public libraries to go on the ballot except for levies. |
(E) (2) The general assembly, by legislation, shall provide a mechanism to adjust the amount of the limitations as provided in subsection (E)(1) as a result of any subsequent annexation, creation of a new political subdivision, or any consolidation or change in the boundaries of a political subdivision. |
If political subdivisions, like libraries, consolidate, the general assembly will recalculate their expenditure limitation for the following fiscal year. |
(F) Definitions. As used in this section: (1) “Aggregate political subdivision expenditures” means the sum of all expenditures made by a political subdivision, except that “aggregate political subdivision expenditures” shall not include expenditures of moneys (a) received from the federal or state government, (b) for refunds of any kind, (c) received as grants, gifts, donations or bequests which are to be expended for purposes specified by the donor, or |
LSTA grant money and other federal money, Gates grants and other grant money, private donations, and bequests are not included in the expenditure limitation, as long as they are used for the purposes stated by the donor. State “grant” money (e.g., Department of Education READ grant) is not subject to the expenditure limitation, but state money coming through the local government fund IS subject to the expenditure limitation. The ability of libraries to save money for some future building or rainy day fund will be a thing of the past …libraries may be able to save for it, but they won't be able to spend it. It will be impossible to save for and then purchase a new circulation system, without a vote of the electors. |
(d) made pursuant to an ordinance resolution which (i) authorizes temporary expenditures for the sole purpose of providing relief directly related to an emergency, (ii) specifically identifies by appropriation item the amount and purpose of each temporary expenditure and the specific source of the revenue necessary to fund each temporary expenditure and the specific source of the revenue necessary to fund that expenditure, (iii) limits the temporary expenditure to the amount and specific purpose identified in the ordinance or resolution, (iv) provides for the expenditure of all federal, state or other funds for the emergency, and (v) receives the affirmative vote of not less than three-fifths of the member of the legislative authority of that political subdivision |
Expenditures for emergency situations like a fire or flood may exceed the spending limitation. However, they require a three-fifths vote by the legislative authority of that political subdivision. This means that the taxing authority (school board, county commissioners, etc.) of the public library would have to pass this authorization. |
(7) “Political subdivision” means any county, municipality, village, township, education district, library district, other special district, or any other taxing district of the state which is directly supported by tax funds. |
This amendment “earmarks” 5% of state revenue for local governments, but includes schools, fire, police, EMS, public hospitals, mental health boards and many others not included in the current distribution of local government funds. |
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