From the Columbus Dispath Politics:
http://www.dispatchpolitics.com/live/content/local_news/stories/2009/01/01/copy/downspin.ART_ART_01-01-09_B1_0UCD56Q.html?adsec=politics&sid=101Thursday, January 1, 2009 3:28 AM
By Dean Narciso and Jim Woods
THE COLUMBUS DISPATCH
Local governments will receive nearly 7 percent less in state funding than they expected weeks ago, according to a recent notice from the Ohio Department of Taxation.....
The state's allocation is based on a formula designed to distribute state revenues fairly to Ohio's 88 counties, which in turn disperse money monthly to cities and townships.
"When times are good, we have a system that shares those good times," Kohlstrand said. "When times are not so good, we have a system where everyone feels it."
Currently, 3.7 percent of all state tax revenues, or about $699 million, is shared with local governments, Kohlstrand said. Ohio also distributes tax money to 251 library systems.
"The lag is typically anywhere from 18 months to two years and it's related in large part to the lag in property-tax collections," wrote Michael A. Pagano and Christopher W. Hoene in a report for the National League of Cities.
Townships also will be affected. The Ohio Township Association is telling its members to budget at least 8 percent to 10 percent less for the new year "as the economic conditions are likely to worsen rather than get better."