Tax Data Series

Tax Data Series: Local Government Funds

County Undivided Government Funds
Amounts Distributed within Counties by County Budget Commissions, by Subdivision or Subdivision Class, Calendar Year 2005

Table LG-3 shows the total amount of money distributed within each county from its County Undivided Local Government Fund (CULGF) during 2005, by subdivision class. In calendar year 2005, the total amount distributed was $615.8 million; this includes a municipal (cities and villages) distribution of $327.2 million and a township distribution of $55.0 million while the counties retained $222.3 million. The amount received by each individual city and village from each CULGF is shown in Table LG-5. The total amount distributed to all cities for 2005 was $296.9 million while the village total was $30.3 million.

Figures shown in Tables LG-3 and 5 are derived from surveys filed by county auditors with the Ohio Department of Taxation. Two counties did not submit calendar year 2005 data for this report; previous year’s information was used in place.

Each of Ohio's 88 counties has a CULGF. The county receives money for this fund from two sources: (1) a portion of the state local government fund, which receives 4.2 percent of the revenue from state income, sales, use, public utility, kilowatt hour and corporate franchise taxes; and (2) state-collected intangible taxes paid by dealers in intangibles. Beginning in July 2001, however, the "percentage of revenue" funding mechanism and the fund allocation formula to counties were suspended. In calendar year 2005, each CULGF received the same amount from the state local government fund that it received in calendar year 2004. All of the money received by a CULGF is distributed within the county to eligible subdivisions: municipalities, townships, park districts, and county government itself.

Monthly distributions to all subdivisions of all CULGF monies are based on percentage shares determined by the County Budget Commission. Those percentage shares may be arrived at according to the "statutory" method, which is designed to yield a distribution reflecting the respective "needs" of the various governmental units. This method calls for a review of each subdivision's proposed expenditure requests and a review of its various revenue sources, according to specific statutory guidelines. In most counties, budget commissions apportion under "alternative" methods which include factors other than, or in addition to, "needs." Beginning in July 2005, however, the “alternative” and “statutory” methods were temporarily superseded by the percentage shares used during the prior year (HB66, 126th General Assembly).

For additional data concerning amounts allocated from the State Local Government Fund to each county for budget commission distribution and directly to each municipality levying an income tax, see Tables LG-1 & LG-2.