STATE AND COUNTY LOCAL GOVERNMENT FUNDS:
Amounts Distributed to Counties and Eligible Municipalities, Calendar Year 2013
In calendar year 2013, approximately $357.5 million was distributed from the State local government fund (LGF) with $28.4 million distributed directly to municipalities levying income taxes and $329.1 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). Note that one-half of Columbiana County’s distribution is redirected to their fiscal agent for repayment of a loan. The figures shown here are inclusive of that redirected distribution.
Table LG-1 shows the total revenues distributed to each county undivided local government fund from the LGF. The total amount distributed from the fund in calendar year 2013 was $328.0 million. Table LG-2 shows the amount distributed to each municipality in 2013. Of the $28.4 million total, $26.4 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 received 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.
Prior to August 2011, the LGF received an amount equal to 3.68 percent of tax revenue received by the state General Revenue Fund during the preceding month. For the August 2011 through June 2013 period, the LGF received a designated percentage of the specific dollar amounts received by the fund during the fiscal year 2011 (July 2010 through June 2011) “base year” period. 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 fiscal year 2012, the county undivided local government funds also received a specific dollar amount that partially mitigated that year’s net funding reduction; furthermore, in fiscal years 2012 and 2013 smaller counties benefit from a minimum distribution provision.
Beginning in July 2013 the “percentage of revenue” funding approach went back into effect. In July 2013, a one-time calculation of new funding percentages was performed. The new funding percentage replaced the 3.68 percent rate that was in statute. The new funding percentage was obtained by dividing fiscal year 2013 LGF deposits by total GRF tax revenues received during fiscal year 2013. This percentage was determined to be 1.66 percent.
For a detailed report on the LGF, view this link.
For additional information on recent changes to the LGF, view this link.
Figures shown were compiled from records of the Ohio Department of Taxation.