Fiscal Focus: Libraries

December 20, 2012 by

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Each Fiscal Focus will look at our vision for key areas of public investment in Ohio and provide insight into current budgetary trends for that sector. AllOhioans are impacted by our elected officials’ budget decisions. In 2013, a new two-year state budget will be crafted – this series will provide a comprehensive overview of the major questions and concerns for Ohio’s 2014-15 biennial budget.

“Free libraries maintained by the people are cradles of democracy,
and their spread can never fail to extend and strengthen the democratic                                                                     idea, the equality of the citizen and the royalty of man. They are                                                                                     emphatically  fruits of the true American ideal.”
                                                           Andrew Carnegie ,1903 dedication of the Carnegie Library, Washington, D.C.

Why the Public Should Invest
 Ohioans love our libraries. 86% of Ohioans utilize our library systems each year and 88% of Ohioans ranked their library service as good or excellent. The Columbus and Cuyahoga County systems are consistently ranked as the top two library systems in the country. Our libraries do more than just book and video lending.  They also provide literacy programs for all ages, open meeting space, and crucial Internet access for those trying to find jobs or complete homework without home Internet access. Many individuals in need of public assistance often turn to their libraries first when they don’t know where else to go.

The Current Reality
 Ohioans support the public investment of 251 public library systems with over 700 branches in the state. Ohioans demonstrated this support in November by passing all local property tax levies for libraries! Despite this public support, state support has been cut by almost 25% since 2007. Between 2001-2010, local property taxes have doubled for libraries.  However, property taxes cannot make up for stable state investment, because 80 (32%) public library systems have no local levy revenue and are almost entirely reliant upon the Public Library Fund for their operations.

Ohio public libraries receive their state support through the Public Library Fund (PLF).  In 2012, the state spent $344 million compared to 2001 when the state spent $496.5 million through the PLF. Libraries have responded to these budget cuts by cutting jobs.  In less than a decade, full-time staff has been reduced by 20%. We have already seen hours and services cut in local communities, and many branches are scheduled to close in 2013.

The 2014-15 Budget
 To understand the current budget struggles of the PLF, we need a little history to explain how we arrived where we are. Like many programs, consistent state cuts have left the libraries in a situation where the status quo cannot be maintained and funding must be restored. The PLF is a set formula as a percentage of the General Revenue Fund.

In calendar year 2008, the PLF was set to be 2.22% of total General Revenue Fund (GRF) tax revenues.  When the legislator debated the budget that went into effect in July of 2009, they decided to reduce the amount to 1.97%.  The current budget that began in July of 2011 allocates 95% of those previous levels.  Also, in our current budget the library fund was expected to do more by funding other related programs such as the Library for the Blind and a technology fund.  These are worthwhile investments, but we must recognize that a shrinking pot of money is now expected to do more. Now in our upcoming budget debate, the fund will likely be set at 95% again, which will be 1.87% of the GRF.  Further cuts the to GRF will continue to hurt our library investment.

The GRF receives 44% of its revenue from the Ohio income tax. Any cuts to the income tax rate will reduce the GRF and therefore reduce the Public Library Fund.  In 2005, the legislature passed a tax ‘reform’ package that has reduced the income tax by 21%.  The income tax cut and other reforms cost Ohio $2.5billion a year. This lost revenue could have been invested in preventing cuts to hours, after-school programs, literacy efforts and other valuable public services in which all Ohioans benefit.

Speak Up!
 If you would like to get involved as the state budget nears and our advocacy increases, please follow us on Facebook, Twitter, or sign up for our emails. Please read our past Fiscal Focus articles on K-12 education, state parks, mental health, senior services, or privatization.

If you’re interested in additional information on state parks in the state budget or have any other related question, please contact us.

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Fiscal Focus: Mental Health

December 13, 2012 by

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Each Fiscal Focus will look at our vision for key areas of public investment in Ohio and provide insight into current budgetary trends for that sector. All Ohioans are impacted by our elected officials’ budget decisions. In 2013, a new two-year state budget will be crafted – this series will provide a comprehensive overview of the major questions and concerns for Ohio’s 2014-15 biennial budget.


Why the Public Should Invest
 We should not allow any members of our community to go without the treatment and assistance they need. 1 in 17 Americans live with a severe mental health issue. Un-treated severe mental illness, like schizophrenia, increases the likelihood of homelessness, family dysfunction, inability to maintain stable employment, and other barriers to stability and security. Nationally, untreated mental illness costs more than $100 billion annually. And more important than the money is the human suffering of an individual and their family.

The Current Reality
 The Ohio Department of Mental Health (ODMH) administers the majority of public support of mental health services in Ohio.  In 2010, ODMH directly served 360,000 people through the public mental health system.  Ohio has six regional psychiatric hospitals, but the majority of state services are administered through 50 county level boards that contract with over 400 local agencies to provide diverse services.  Other agencies, like Ohio Department of Alcohol and Drug Addiction Services (ODADAS), have cross over and provide related mental health services.

In 2009, ODMH had a budget of $511.9 million and in 2012; ODMH’s budget is $485 million.  That is more than $26 million less in services that can be provided (not even accounting for inflation).  These funds are spent through the state hospital system and at least a quarter of all of these General Revenue Fund (GRF) dollars are sent to the local level for local boards and their community partners. ODADAS has an additional $60 million budget from the state which comes primarily from the GRF.

The 2014-15 Budget
 The most crucial issue for mental health funding will be the amount of money available in the GRF.  We need to recognize that flat level funding at $485 million is unacceptable. The Governor asked state agencies to prepare two budgets.  The first will be with flat level funding and the second is at a 90% level.  As a result of normal economic inflation, flat level funding is a cut in services available in our communities.  A 90% budget would be especially severe, especially on top of the reductions already seen in recent years.  In 2009, programs were funded at higher levels than they are under either of these plans.

The 50 local boards in Ohio are funded through federal, state, and local revenues.  One upcoming budget issue that will have a direct impact on our mental health services will be Medicaid expansion.  Ohio policymakers have a choice on whether they want to accept a federal expansion of Medicaid or not.  It is important to remember that fewer people covered under Medicaid will mean fewer people that can receive mental health services in our communities.

A second issue that may be contentious in the next budget debate is the planned merger of ODADAS with ODMH.  While the two agencies collaborate on many projects, mergers of agencies can be difficult and program elements can easily be lost in the move. If the state goes through with the merger, they must be cautious to enhance the quality of service.  The reduction of administrative agencies in Columbus cannot translate into a reduction of social workers, service providers and dedicated individuals throughout the state that provide essential services.

Speak Up!
 If you would like to get involved as the state budget nears and our advocacy increases, please follow us on Facebook, Twitter, or sign up for our emails. Please read our past Fiscal Focus articles on K-12 education, state parks, or privatization.

If you’re interested in additional information on state parks in the state budget or have any other related question, please contact us.

Filed Under: One Ohio Now Tagged With: ,

The Return of Reason?

December 11, 2012 by

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This week’s big story is whether Governor Kasich will sell, lease, or in some other way go after quick cash with the turnpike.  Add concerns about further prison privatization, questions about a new school funding formula, and whether or not the Local Government Fund will be slashed even further, and there’s certainly a case to be made that we’re still moving in the wrong direction.

But what I’m intrigued by is what appears to be a growing trend of citizens and advocates speaking out about their concerns – and its not just partisan push back on the party in power, it’s more widespread.  We noted the Farm Bureau’s opposition to the severance tax/income tax swap proposed by the Governor.  Here are residents and small business owners questioning the sale or lease of Ohio’s rest areas.  All across Ohio, as the economy improves ever so slightly, we’re beginning to see reasonable people wondering aloud about how we build a successful present and future in our state that benefits all people.

With the state budget approaching, and news leaking out about its components, hopefully we’ll see the return of reason.  It does not make sense to pawn our state’s assets for short term gain, and giving tax breaks to the wealthy through income tax cuts has not worked so far and should not be our plan moving forward.  We need great public services that lead to stronger communities, and the revenue to pay for those services.  And more and more Ohioans will need to continue to make their voices heard in the 130th General Assembly to ensure the pendulum swings toward a future of fairness.

Filed Under: One Ohio Now

Fiscal Focus: Senior Services

December 6, 2012 by

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Each Fiscal Focus will look at our vision for key areas of public investment in Ohio and provide insight into current budgetary trends for that sector. All Ohioans are impacted by our elected officials’ budget decisions. In 2013, a new two-year state budget will be crafted – this series will provide a comprehensive overview of the major questions and concerns for Ohio’s 2014-15 biennial budget.

 

Why the Public Should Invest
Community support for the elderly is a long held tradition.  We all have personal stories and reasons to care about senior services.  Senior citizens often have wisdom, experiences, and memories that are guiding lessons for the next generation. Ohio is an aging state with almost 1.5 million individuals over the age of 65 and over one million more between 55-64 years old.

The Current Reality
 The Ohio Department of Aging provides many great services throughout Ohio.  They administer programs that provide healthcare and living assistance, and they also administer employment and volunteer programs to help older Ohioans engage in their community. Our diverse senior services are a strong investment because they recognize that each individual has a different set of needs as they age.

Ohio has over 450 senior centers.  Each center is unique in the services that they provide, trying to meet the needs of their local communities.  These centers will provide social programs, transportation, shopping assistance, tax help, and other services.  These programs receive a mix of local, state, and federal funding.

The Local Government Fund (LGF) has seen a 50% cut in the current budget and, despite a growing rainy day fund, these funds have not been restored.  After the cuts in 2011, Van Wert County Council on Aging and the Delphos Senior Citizens’ Center no longer received any state funds through the Area Agency on Aging.  Luckily, local property owners were able to pass two levies in 2011 to keep these programs running.  Other communities have been placed in similar situations.  Ohioans clearly value these services, passing all senior levies in November 2012.  But, not every community feels they have the ability to pass a levy, and have made substantial service cuts due to loss of funds.

In addition to the visible needs of seniors such as physical and health conditions associated with old age, seniors deal with the hidden issues of abuse and depression. The Ohio Coalition for Adult Protective Services reported in May of 2011 that 32 counties lack a social worker with training in adult protective services.  Trained social workers can help our elderly community members report abuse and neglect and stop financial scams.  Adult protective services saw a 7% cut between fiscal years 2011 and 2012.  Social service providers also report that close to 20% of seniors suffer from depression and social isolation is a contributing factor.

The 2014-15 Budget
 In the upcoming budget, senior services will be a topic of consideration as the state discusses more spending cuts. The most notable discussion will center on healthcare policy and whether we should adopt the Medicaid Expansion of the Affordable Care Act (look for a future Fiscal Focus on this topic).

Related to healthcare, some past policies may be revisited. In the last state two-year budget, state programs were modified to increase home health service options over nursing homes.  Home healthcare, when viable, can reduce costs and increase the quality of life for seniors. However, many advocates believe that the 2012-2013 budget lacked the administrative supports to make these program changes successful and rates were cut for providers.  It is possible that we will see efforts to strengthen a system of care by addressing provider rate structures and administrative processes.

In addition to healthcare for seniors, basic services will also see a budget cut. The Ohio Estate Tax is set to expire at the end of this year. Some of the revenue collected is distributed to the local community of the decedent.  It is important to remember that this is a tax that impacts fewer than 8% of Ohioans. Without replacing this revenue somehow in the GRF, local communities will see more cuts to local services.

As Ohio policymakers discuss the impact of another proposed cut to the state income tax, we need to remember that the 2005 tax policy changes cut the income tax by 21% and have cost us over $2.5 billion in annual revenue.  This money could have helped train more social workers in senior care to prevent senior abuse, more programs for senior centers, and the resources to establish higher quality healthcare.

Speak Up!
 If you would like to get involved as the state budget nears and our advocacy increases, please follow us on Facebook, Twitter, or sign up for our emails. Please read our past Fiscal Focus articles on K-12 education, state parks, or privatization.

If you’re interested in additional information on state parks in the state budget or have any other related question, please contact us.

Filed Under: One Ohio Now Tagged With: ,

Farm Bureau Identifies One Bad Trade

December 4, 2012 by

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Some good news if you’re scared of bad trades being considered in Ohio right now:

1) From the Farm Bureau yesterday:

“Farm Bureau voted to oppose an increase in the severance tax solely for the purpose of funding a state income tax reduction. If there is an increase in the severance tax, it should address local government funding, infrastructure needs, local and state economic development and mitigation of negative impacts on local communities and the environment.”

Raising the tax on oil and gas drillers is the right thing to do.  Giving the money away through an income tax cut is a misguided trade of stable revenue for boom and bust resources – particularly when local communities are in so much need right now.

2) Canton’s Mayor Healy II is one of many concerned Ohioans when it comes to House Bill 601, which would reform Ohio’s municipal income tax code.  Healy says it well, stating:

“We have no problem with trying to make the local tax process more uniform,” said Healy. “But in the process, we do not think there ought to be built-in tax breaks and incentives for specific interest groups.”

With the state budget just around the corner, more and more people are starting to closely examine the ideas being proposed by the Governor and our state’s legislators.  Unfortunately, one step forward and two steps back means a bad trade – and there are some big, bad trades being discussed right now.  Hopefully, sound decision making by groups like the Farm Bureau, coupled with thoughtful stories about complex legislation like HB 601 will lead to good policy decisions for all Ohioans.

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