4/5/11 OLC Reviewing Impact of State Budget Proposals
HB 153, the legislative language for the Governor's biennium budget, was released late last week. OLC staff and its consultants are continuing to analyze all of the bill's provisions that could potentially impact public libraries and the Public Library Fund distribution. A more detailed analysis will be provided within the next few days.
The complete 3,200-page document is available online. The budget language that references the proposed distribution of the Public Library Fund begins on page 2767. The OLC's initial review of the language indicates that the FY2012-13 PLF distribution will be 5% less than the FY2011 distribution. Also, the funding for both OPLIN and the Library Services to the Blind and Physically Disabled will come from the PLF, but at this time it does not appear to be supplemented by transfers from the General Revenue Fund as is the case in the current state budget.
The language regarding the Tangible Personal Property Tax replacement fund remains unclear. It appears that the proposal will eliminate TPPT reimbursements for all political subdivisions currently receiving reimbursement, including libraries with levies approved before September 2005, where the reimbursement is equal to or less than 2% of the library's total operating expenses in 2010.
For libraries whose TPPT is more than 2% of their total 2010 operating expenses, the reimbursement would continue but it would be reduced by 2% each year until all TPPT reimbursements are eliminated. For example, if the TPPT is equal to 10% of a library's operating expenses in 2010, the TPPT reimbursement would be completely eliminated in five years. The OLC is currently conferring with the Ohio Department of Taxation for clarification of the language.
The hearings on the state budget will continue for the next few weeks. The projected timeline for the budget to be sent to the Ohio Senate is the end of the month. The hearing where the OLC will present testimony on behalf of Ohio's public libraries has not been confirmed. OLC members should continue to watch Access and the OLC website for updates on the state budget.
