06/25/09 See updated information on Save Ohio Libraries
(http://www.olc.org/SaveOhioLibraries.asp)
07/06/05 Budget Update Web Cast (July 12)
The OLC will present a final budget Web cast on Tuesday, July 12 at 2:00 p.m. This program will cover the funding of the LLGSF during the next biennium, the committee to study the future of local government funding, the elimination of the tangible personal property tax, the permissive language on fees for non-print services, the $100,000 appropriation for filtering reimbursement (OPLIN), and several non-budget items that include the proposed Blackwell TEL amendment and changes in the county law library funding that may impact the LLGSF. If you have questions that you want answered, you can e-mail them to Lynda Murray prior to the presentation until July 11, or you can e-mail her during the presentation. Click here to access the Web cast.
07/06/05 Governor Approves 2006-2007 State Budget
Governor Taft signed House Bill 66, the FY 2006 - 2007 biennium budget, into law on Thursday, June 30. The OLC had requested that the Governor veto the language that permits public libraries to charge fees for non-print services. The Governor did NOT veto that section. The OLC Government Relations Committee will consider whether the OLC should pursue eliminating this language in a separate bill. Libraries that currently charge a fee for any non-print service (note: does not apply to late fines or fees), regardless of whether it is referred to as a fee, should obtain a vendor's license and begin to collect sales tax. Questions should be directed to Lynda Murray at lmurray@olc.org or (614) 416-2258.
06/24/05 Budget Bill Passes and Awaits Governor's Signature
The FY '06 - '07 Biennium Budget bill (Amended Substitute House Bill 66) has passed the Ohio General Assembly and has been sent to the Governor for his signature. Under Ohio law, the Governor has the opportunity to veto any line item in the budget. The complete budget document is available at http://www.legislature.state.oh.us/Journals.cfm?GenAssem=126 Click on the June 21, 2005 journal entry,
(The Ohio General Assembly Web site has encountered technical difficulties in posting the June 21, 2005 journal entry. They are working to post the document.) and the language for the library freeze begins on page 1053 of the document.
The Library and Local Government Support Fund (LLGSF) will not receive the proposed 5% cut. The Ohio Library Council is sending a letter to legislators thanking them for keeping library funding at the current levels. A copy of the letter is available at http://www.olc.org/pdf/BudgetThankYou.pdf .
Below is a summary of the items in the budget that have direct impact on public libraries.
Budget Bill Summary:
1. The LLGSF is frozen at 2004 levels through the end of the biennium (June 2007). The budget language "freezes" the allocation to the LLGSF month-by-month - each month will get the same amount of money received in that month 2004.
The budget language also adopted the language of the previous budget bill which distributes the money freeze dollars, but each June checks to see if the formulary distribution would have provided less. If it would have provided less, then the Department of Taxation will make a "correction" in the July distribution. The OLC has concerns about this language because this budget bill also includes language that reduces the personal income tax. The first personal income tax reduction begins July 2005. The amount of that reduction is 4.2%. Because total income tax revenues are climbing, that will offset the rate cut and so the LLGSF freeze dollars will not exceed the formula distribution through July 2006. However, the personal income tax rates will be reduced by 8.4% beginning July 2006. This reduction could substantially reduce the total income tax revenue to below the freeze distribution, triggering the need for a "correction" in the July 2007 distribution.
The OLC is not recommending any immediate action on this. After six months to a year under the new income tax plan, the OLC will be better able to determine the impact of the tax reform on the LLGSF in the current biennium.
2. The Ohio General Assembly has formed a committee to review the source of funding for the LLGSF and the other two funds that provide money to local governments. This is a new committee comprised of 10 legislators and a representative from each of the five associations that represent the local government fund recipients. The association representatives are non-voting members of the committee. The purpose of this committee is to review and reconsider the funding sources for local governments. For many years the three local government funding formulas were considered "trust funds" and off limits to the legislators and the vagaries of the state budget process. However, local governments have not been on formula since 2001, and it is time to reconsider the effectiveness of these funds. This is of particular importance to public libraries since their statutory formula is based on 5.7% of the personal income tax, and HB 66 provides a 21% cut to the personal income tax by 2008.
This committee is to make its recommendations to the General Assembly by June 2006. The committee will sunset in December 2006. The OLC hopes that the Speaker and the President of the Senate appoint legislators who are familiar and supportive of local government and can also be helpful in getting any legislation recommended by the committee passed in the General Assembly.
3. This budget language includes an additional $100,000 to the OPLIN line item. This money is established to provide for some reimbursement to local public libraries for the costs associated with providing filtered Internet access. This language does not require filtered Internet access.
4. The budget bill permits public libraries to charge fees for non-print materials. This is an amendment that was first offered by Rep. Bill Seitz (R-Cincinnati) in the House version of the budget bill. The Senate eliminated this amendment in their version of the bill, but it was included by the Conference Committee in the final version of the bill. The OLC believes that these fees undermine the commitment to providing FREE public library service. These fees will be subject to sales tax. Although the fee language is permissive and does not actually require fees, there is a concern that legislators believe this newly created revenue stream will provide the General Assembly the opportunity to reduce the state's financial commitment to public libraries. The Ohio Library Council is sending a letter to the Governor requesting that he veto the line item in the budget that permits public libraries to charge fees for non-print materials. A copy of the letter is available at http://www.olc.org/pdf/Veto062305.pdf .
5. The budget bill eliminates the tangible personal property tax and provides funds to hold harmless local governments and public libraries from the impact of this change on local levies through 2018. This is another piece of the major tax reform measures included in this legislation. The current tangible personal property tax (tax on commercial furniture and fixtures, manufacturing machinery and equipment, retail inventory, and manufacturing inventory) will be eliminated over a four-year phase-in period, beginning July 2005. The state will provide money to cover the losses to those political subdivisions that have voted millage approved prior to September 2005. That millage will be held 100% harmless until 2010. Hold harmless funding will continue on a reduced formula through 2018. The existing millage that is renewed or replaced after September 2005 will also be held harmless.
06/13/05 Additional Budget Dollars May Restore LLGSF
The House and Senate announced on June 9 that it is their intention to restore funds to local governments, including libraries. Additional revenues identified by the Office of Budget and Management will be available for the state budget. Although the announcement did not specify the extent of the restoration of funds, the OLC is continuing to work on this issue. A copy of the press release issued jointly by the House and Senate is available at http://www.olc.org/pdf/legislative060905.pdf .
06/06/05 Senate Passes State Budget Bill
The Ohio Senate passed its substitute budget bill early Thursday, June 2, following a rather contentious debate on several issues, including local government funding. The bill will go back to the House this week and, assuming it is rejected, will go to conference committee for compromise and finalization by the end of the month.
The final version of the Senate budget retained many of the proposals recommended by the Senate Finance Committee or that were in the omnibus amendment bill offered on the Senate floor, including:
- Removing permissive language for public libraries to charge fees for non-print materials;
- Transferring $5 million to the LLGSF to fund the continuation of the freeze through 2005 (this is not new money for the LLGSF, just a technical amendment to make sure the spread sheets actually balance);
- Establishing $100,000 in new money in the OPLIN line item to provide money to public libraries to offset the costs of purchasing filters;
- Creating the Joint Legislative Tax Reform Impact Study Committee to study issues related to the CAT (Corporate Activity Tax) and the TPP (Tangible Personal Property) phase-out and replacement funds; and
- Adding one non-voting member to the Local Government and Library Revenue Distribution Task Force from the County Commissioners' Association, the Ohio Library Council, the Ohio Municipal League, the Ohio Township Association, and the Ohio Parks and Recreation Association.
Public library funding
will remain frozen at 2004 levels through December 2005, and then will be reduced by 5% beginning in January 2006 and continuing through June 2007.
Personal income tax (the source of the LLGSF) will be cut 21% over the next five years (4.2% per year) - impacting libraries if the LLGSF returns to formula in July 2007.
The OLC will provide updates as information from the conference committee becomes available.
05/12/05 Senate Finance Committee Testimony
Members of the public library community and representatives from the other local government organizations presented testimony regarding library and local government funding to the Ohio Senate Finance Committee on May 12.
Testimony by Jennifer Thompson, Director, Chillicothe and Ross County Public Library
Testimony by Lynda Murray, Director of Government and Legal Services, OLC
05/05/05 Updated Talking Points (the items in green are specifically related to public libraries)
05/03/05 Library Supporters Ask Ohio Legislators to Handle With Care: Please Protect Library Funding
More than 450 library supporters, staff, and trustees attended the OLC's Legislative Day 2005 on April 27 to meet with legislators about protecting library funding.
Participants met at the Columbus Renaissance Hotel for an overview of the proposed state budget (House Bill 66) and its impact on public library funding and then met with legislators and/or their staff members throughout the day. Attendees delivered packages of material to the legislators that highlighted the importance of the public libraries and their value to the communities they serve. They focused their discussions with legislators on several key areas:
- Library Funding - Continue the current level of public library funding (freeze at 2004 levels), instead of the proposed 5% reduction, and develop a trigger mechanism in the budget that would allow for some redistribution of any unanticipated growth in state revenue to be shared with the local government funds.
- Local Government Fund Committee – Establish a committee that includes representatives from local government organizations, libraries, and the Ohio General Assembly to work on developing a long-term strategy to fund libraries and local governments.
- Tangible Property Tax - Hold local governments and libraries harmless permanently from the proposed elimination of the tangible personal property tax.
- Free materials at Public Libraries - Keep all public library materials and services free for Ohioans and request the removal of budget language that allows usage fees for non-print materials or services.
At the Legislative Day luncheon, Jackie Shaw, Director of the Sylvester Memorial Wellston Public Library, presented the OLC's Andrew Carnegie Award to Senator John Carey (R-Wellston) in recognition of his support of the ideals and challenges to public libraries.
“He knows libraries, he uses libraries, and he supports libraries,” said Shaw. “I can think of no one more worthy of this award [ Andrew Carnegie Award ] than Sen. John Carey. Through his support, libraries have improved and expanded services.”
Thank you to everyone who attended the OLC's Legislative Day 2005!
This is still an extremely important time to have library trustees, community leaders, and business supporters contact legislators. Information regarding the state budget deliberations changes frequently, so visit the OLC Web site ( www.olc.org/protectlibraryfunding.asp ) often to find the most current update.
For a copy of the brochure distributed at OLC's Legislative Day, please go to http://www.olc.org/plf_HandleWithCare.asp .
04/18/05 Ohio House Passes Budget Bill
The Ohio House of Representatives passed its version of the 2006-2007 state biennium budget (House Bill 66) on April 12, 2005. This version of the budget includes several important elements that affect Ohio public libraries including:
- Continued library funding freeze for 2005;
- 5% cut in library funding in 2006 and 2007;
- 21% cut in personal income tax;
- 100% cut in tangible property tax;
- Permission for libraries to charge for audiovisual materials; and
- Establishment of a committee to study the future of local government funding that includes only legislators.
The budget bill will be deliberated in the Ohio Senate Finance Committee until the end of May. The Senate hearing for the local government portions of the budget bill including public libraries is currently scheduled for May 12. The OLC is expecting the Senate to vote on June 1.
Once the budget bill passes the Senate, it will be sent to a Conference Committee made up of three members from both the House and the Senate to work out the differences between the two versions of the budget bill.
The OLC recommends that libraries focus their mailings and letters/e-mails from patrons to Senate members at this time. However, libraries should still remain in contact with House members who will vote on the final bill.
Library directors should continue to send materials that show the value of public libraries and ask the Senate to:
- Continue the current level of public library funding, instead of the proposed 5% reduction;
- Work with libraries and local government representatives to develop a long-term strategy to fund libraries and local governments;
- Develop a trigger mechanism in the budget that would allow for the redistribution of any unanticipated growth in state revenue to be shared with the local government funds;
- Hold local governments harmless permanently from the tangible personal property tax elimination; and
- Keep public library materials free to Ohioans – even audiovisual materials.
This is an extremely important time to have library trustees, community leaders, and business supporters contact legislators. Information regarding the state budget deliberations changes frequently, so visit the OLC Web site www.olc.org/protectlibraryfunding.asp often to find the most current update.
04/07/05 Local Government Fund Overview
04/06/05 OLC Legislative Day 2005
The Ohio Library Council Legislative Day 2005 is scheduled for Wednesday, April 27 at the Columbus Renaissance Hotel, 50 North 3rd Street, Columbus, a half block north of the Statehouse. This important annual event brings together library supporters and legislators to discuss important issues facing public libraries.
The OLC has sent invitations to all state legislators, guests from Governor Taft's office, and the State Library of Ohio Board members, inviting them to attend the luncheon and participate in the day's activities.
A registration form and corresponding materials have been sent to all library directors. Library staff must register by April 20 . No payment is due prior to Legislative Day. The OLC will bill each library for their reservations made by April 20. To register click on the electronic registration form at http://www.olc.org/pdf/LegDay2005RegistrationForm.pdf .
If you have any questions, please contact Lynda Murray at lmurray@olc.org or the OLC office at (614) 416-2258. The OLC looks forward to seeing library staff in Columbus on April 27, and, as usual, wear something red in order to be easily identified as library supporters.
03/23/05 Letter to Ohio House Requesting Committee to Study Local Government Funding
03/17/05 House Testimony on behalf of the Ohio Library Council
03/17/05 Local Government Fund Press Conference
More than 350 people attended a press conference on March 16 at the Ohio Statehouse in support of Ohio's local government funds. Library staff members stood alongside firefighters, police officers, county commissioners, parks employees, and representatives from Ohio's cities, villages, and townships urging legislators to restore Ohio's local government funds.
A coalition of five organizations that are supported by Ohio's library and local government funds asked legislators to maintain current local government funding and form a commission to look at the future of local government funding. The commission, which would include representatives from the House, Senate, and the local government coalition, would be charged with making recommendations on providing a stable, permanent, and predictable funding formula for local government funds that provides for reasonable growth over time.
Stephen Hedges, Director of the Nelsonville Public Library system, spoke on behalf of Ohio's public libraries during the press conference stating, “Librarians are now struggling to stop the continuing deterioration of our public library funding. We are encouraging our legislators to end the erosion of the LLGSF. But even more important, we must motivate the legislature to stabilize library funding and move it to firmer financial ground.”
Hedges was joined by Kerry Metzger, Tuscarawas County Commissioner; Don Plusquellic, Mayor of Akron; Brad Core, Amanda Township Trustee (Allen County); and Larry Peck, Deputy Director of Franklin County Metro Parks.
The local government fund coalition includes the following organizations: the County Commissioners Association of Ohio, the Ohio Municipal League, the Ohio Township Association, the Ohio Library Council, and the Ohio Parks and Recreation Association.
03/16/05 Local Government Fund Press Conference News Release
03/16/05 Library Fact Sheet Distributed at Press Conference
03/16/05 Speech by Stephen Hedges, Director of the Nelsonville Public Library system
02/24/05 Call To Action:
Immediately contact your member of the Ohio House of Representatives (not the Senate) and Governor Bob Taft. The House of Representatives will conclude hearings on the budget on March 17, take a two week Easter recess and return April 4 to introduce their substitute proposal. To identify and contact your legislator, click on http://capwiz.com/olc/
Urge your trustees, Friends, and patrons to make contact as well.
Message on Public Library Funding:
Public libraries have done our part during the past three years to help bail the state out of its budget crisis by enduring our own budget cuts in excess of 8%. Public libraries and the millions of patrons who use their services can accept a temporary freeze, only if the state commits to developing a reasonable, stable, and predictable mechanism to fund the libraries and local governments that provide essential services to all of Ohio's citizens.
Talking/Writing Points:
- Libraries provide essential services for our communities.
- Public libraries have been “off formula” since 2001.
- Between 2001 and 2004, public libraries have taken an 8.3% reduction in funding.
- The Governor's proposal includes an additional 5% funding reduction.
- This is more than 13% reduction in funding since 2002. At the close of this next biennium budget, public libraries will be “off formula” for almost six years.
- The personal income tax reduction proposal will impact public libraries in the next biennium, if the expectation is that we will return to the formula. It is impossible to determine what that impact will be, since libraries cannot reliably project income tax reviews that far into the future, but the Governor's own estimates are 21% reduction in personal income tax revenue. This means a 21% reduction in library funding.
- For those libraries that have passed local levies, the reduction in personal property tax base further erodes library funding. The Ohio Department of Taxation estimates that this will reduce property tax base by 75% (using 2005 as the base) by 2010.
