5/4/07 House Approves Budget Bill
In an unprecedented 97-0 vote, the Ohio House of Representatives approved its version of the state's $52.1 billion two-year budget on May 1. Amended Substitute House Bill 119 included the Governor's proposal to change the name and source of the state's funding of public libraries.
The Governor's proposed budget bill establishes the Local Libraries Fund (LLF), a change from the Library and Local Government Support Fund (LLGSF), to make clear that the purpose of this fund is to support public libraries. The funding source for the LLF will be 2.2% of the General Revenue Fund (GRF) taxes. These changes are slated to take place in January 2008. Public library funding will remain frozen under the current LLGSF through the remainder of 2007.
Since 1985, public libraries have been funded through a percentage of personal income tax revenues. With the erosion and recent cuts in personal income taxes, it was necessary for the Governor and legislature to find a new source of library funding. The new funding source broadens the base of library funding to all General Revenue tax revenues, not just personal income tax. The change in funding is projected to generate $462.8 million for public libraries in calendar year 2008, and $464.9 million in 2009.
The OLC and other organizations representing local government entities proposed one of the 800 amendments that were submitted to the House version of the budget bill. The amendment requested that the new funding plan start in July 2007 and that libraries receive an immediate increase in funding of up to 3% to help offset some of the losses over the past six years. The amendment was not accepted by the House Finance Committee.
The budget bill moves to the Ohio Senate for hearings throughout the month of May. The OLC will provide testimony on behalf of Ohio 's public libraries and work with the Senate Finance Committee on amendments to the bill.
There may be changes proposed by the House, Senate, and Conference Committee to the Governor's proposal. Therefore, the OLC will post new information about the status of the state budget on the OLC Web site (www.olc.org) as it becomes available.
