Local Government Funds
State & Local Government Funds
Distributions to Counties and Municipalities, Calendar Year
Approximately $663.5 million was distributed from the local
government fund (LGF) and the dealer in intangibles tax (DIT)
in 2010, with $52.0 million distributed directly to
municipalities levying income taxes and $611.5 million
distributed to the 88 county undivided local government
funds. The allocation of the total between the municipal and
county portions is determined using a statutory formula
(Section 5747.50, Ohio Revised Code).
Table LG-1 shows the total revenues received by each county
undivided local government fund from both the LGF and DIT.
The total amount distributed from the fund in calendar year
2010 was $598.0 million while the DIT amounted to $13.5
million. Thus, the total amount of all county undivided local
government funds was $611.5 million. LG-2 shows the amount
distributed to each municipality in 2010. Of the $52.0
million total, $48.4 million was distributed to cities and
the remainder to villages.
In calendar year 2008, a new funding mechanism was instituted
for the state’s LGF. With this change, the LGF receives
a designated percentage of total state General
Revenue Fund (GRF) tax revenues. Under prior statutory law,
the LGF received a share of specifically designated state tax
revenue sources, not total state GRF tax revenues.
During each month of calendar year 2010, the LGF received an
amount equal to 3.68 percent of tax revenue received by the
state General Revenue Fund during the preceding month. The
amount of money deposited in the LGF in a particular month is
distributed during that month by the Department of Taxation
to both the 88 county undivided local government funds and to
the municipalities that qualify for a direct distribution.
In addition to the revenues received from the LGF, each
county undivided LGF also received five-eighths of the taxes
paid by dealers in intangibles in the county. These combined
LGF and DIT revenues were then distributed by county budget
commissions to eligible subdivisions within the county
(municipalities, townships, park districts, and the county
government itself). For the distribution of these funds among
the subdivisions, see tables LG-3 and LG-5.
Most recently, the enacted fiscal year 2012-2013 biennial
budget (Am. Sub. H.B. 153, 129th General Assembly) made
important changes to the LGF. For the August 2011
through June 2013 period, the budget temporarily replaces the
LGF’s “percentage of revenue” funding method. Instead of
receiving allocations tied to the amount of GRF tax revenue
received each month, the LGF receives a designated percentage
of the specific dollar amounts received by the fund during
the fiscal year 2011 (July 2010 through June 2011) “base
In fiscal year 2012, the county undivided local government
funds shall also receive a specific dollar amount that
partially mitigates that year’s net funding reduction;
furthermore, in fiscal years 2012 and 2013 smaller counties
shall benefit from a minimum distribution provision.
Beginning in July 2013 the “percentage of revenue” funding
approach goes back into effect. In July 2013, a one-time
calculation of new funding percentages is to be performed.
The new funding percentage shall replace the 3.68 percent
rate that was in statute. The new funding percentage will be
obtained by dividing fiscal year 2013 LGF deposits by total
GRF tax revenues received during fiscal year 2013.
For a detailed report on the changes to the LGF as enacted by
the FY12-13 state operating budget, view this link:
Figures shown were compiled from records of the Ohio
Department of Taxation.