fy 2012/2013 budget overview

COUNTY COMMISSIONERS ASSOCIATION OF OHIO

FY 2012/2013BUDGET OVERVIEW


User NotePlease note the page numbers following various sections of this powerpoint. This page number corresponds with the associated page number in your budget overview.

The overview and powerpoint can be found on the CCAO website at www.ccao.org

In addition, CCAO is producing numerous county advisory bulletins to provide commissioners even greater detail on numerous budget provisions contained within the powerpoint.

http://www.ccao.org/


RevenuesLOCAL GOVERNMENT FUND (LGF)TANGIBLE PERSONAL PROPERTY (TPP) & UTILITY REIMBURSEMENTSCASINO REVENUE


Local Government Fund


Local Government Fund Estimated loss of LGF to local governments:

$129 million in SFY 12 $406 million in SFY 13 $535 million over biennium

CY distributions from the LGF: $650 million in CY 10 $648.2 million in CY 11 $465 in CY 12 $185.5 million first six months of CY 13

All dealers in intangible tax redirected to state GRF in 2012 - annual loss of $11 million to LGF

(p. 7-9)


Local Government Fund Budget replaces percentage of tax

revenues received by state GRF each month with: 75% of SFY 2011 base year allocations in

SFY 2012 50% of SFY 2011 allocations in SFY 2013

Budget proposes to reset to percentage of revenue approach in SFY 14 based on dividing SFY 13 LGF deposits by total SFY 13 tax revenues. (The “reset” may be revised by next state budget.)


Local Government Fund Three factors affect level of cuts particularly in

SFY 12 25% cut first applied beginning in August 2011 –

state revenue growth reflected in LGF distributions for first seven months of calendar year

From August 2011 through June 2012 all 88 county undivided local government funds to receive proportionate share of additional $ 50 million

During SFY 12 and SFY 13 each county undivided local government fund will receive no less than the smaller of $750,000 or the amount received during SFY 2011


Local Government Fund Minimum distribution provision provides

additional distributions of $1.3 million in SFY 12 and $5.1 million in SFY 13

Counties affected by this minimum distribution provision include: Adams, Brown, Carroll, Fayette, Gallia, Hardin, Harrison, Henry, Highland, Hocking, Holmes, Jackson, Meigs, Monroe, Morgan, Morrow, Noble, Paulding, Perry, Pike, Van Wert, Vinton, and Wyandot.

$50 million supplement and the minimum distribution provisions do not apply to portion of LGF distributed directly to qualifying municipalities


Local Government Fund

2009 2010 2011 2012$0

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

LGF Funding

Dollars Year

Year


TPP & Utility Reimbursement


TPP & Utility Reimbursement Total estimated combined budgetary loss to

schools and local governments from accelerated phase out of tangible personal property (TPP) and public utility replacement payments is $587 million in SFY 2012 and $845 million in SFY 2013. Savings to state are equivalent amounts.

In CY 2010, counties received reimbursements from both sources of $297 million. Under state budget, reimbursements will be reduced to $165 million in SFY 12 and $110 million in SFY 2013

(p. 9-10)


TPP & Utility Reimbursement Savings to the state from accelerated

reductions in reimbursements to counties form both sources (TPP & Utility) was estimated to be roughly $100 million per year in SFY and SFY 13.

These savings to the state are in addition to savings the state realizes as a result of the gradual phase out of TPP and Utility Payments under prior law.

Losses to counties would be an equivalent amount.


TPP & Utility Reimbursement Budget accelerates phase-out of

reimbursement for lost TPP and public utility tangible property taxes

TPP was eliminated by tax reform (2005), full reimbursement with Commercial Activity Tax (CAT) (2006-2010), old law provided phase down 2011-2018,

Electric and natural gas deregulation occurred in 1999 and 2000, kilowatt hour tax (KWH)and natural gas (MCF) tax created, in part to reimburse local governments for lost revenues


TPP & Utility Reimbursement In 2010, 100% of CAT devoted to local

reimbursement for lost TPP, 70% schools, 30% other local governments

Under state budget, by 2020, 100% of CAT dedicated to State GRF

In 2010, 63% of kilowatt- hour (KWH) tax dedicated to state, 37% dedicated to schools and local governments

Under state budget, in 2012, 88% of KWH dedicated to state, 12% of KWH dedicated to local governments, by 2030, 100% dedicated to state


TPP & Utility Reimbursement Prior to state budget 69% of MCF

revenues dedicated to schools, 31% dedicated to other local governments

In 2012 under budget, 100% of MCF tax dedicated to state GRF(approx. $66 million)

Beginning with second payment in 2011, reimbursement payments are phased out for TPP and utility property, but phase out is limited to no more than 2% of total resources each year


TPP & Utility Reimbursement For counties, for purposes of the phase

out, qualifying levies are broken into five service functions: mental health and developmental disabilities, public health, senior services, children services, and other county levies, which includes county general fund

The phase out schedule for each of the five is calculated independently


TPP & Utility Reimbursement For the four defined services, total resources

are: Sum of their 2010 reimbursements under TPP

and utility property Collection year 2010 real and public utility

property taxes Rollback and homestead reimbursements

For the other category, total resources are: Resources mentioned above Base county sales tax (Excluding additional

county sales tax) county share of LGF for 2010


TPP & Utility Reimbursement Beginning with the second payment in 2011,

reimbursements are phased out at a rate of 2% of total resources each year

The 2% per year reduction is calculated and applies separately to TPP and Public Utility Personal Property so local jurisdictions could lose up to 4% in any given year until payments cease

The three payments per year under TPP reimbursement are reduced to two, one payment for 1/7 is still made in May with the August and October payments combined in to a single 6/7ths November 20th payment. The treasurer has until December 31 to ensure the payment is received by local jurisdictions.

The Public Utility Personal Property payments are made by February 28th and August 31st of each year.


TPP & Utility Reimbursement If in any year the payment is less than 2% of

total resources, then no payment is made In 2013, the budget suspends the phase

down of reimbursements for entities that are still receiving reimbursements (essentially any county service function with more than a 6% reliance on either TPP or Utility Personal Property reimbursement). The accelerated phase down may be resumed or changed with next state budget.


TPP & Utility Reimbursement Many service functions do not have more

than a 6% reliance on either TPP or public utility reimbursement and thus payments will be phased out by CY 2013

For example, TPP reimbursement will be phased out for all but 6 counties with respect to “other service function” which includes county general fund

For public utility property reimbursement, all but 3 counties will be phased out in “other service function” by CY 2013


TPP & Utility Reimbursement All local governments have until June 20, 2013

to make sure that the classification and amount of reimbursement payments are accurate before TPP and Public Utility payments become final.

If you have concerns or questions regarding any property tax levy listed on the Department of Taxation website, please email: [email protected]

For additional data, please use the following link to the Department website:http://tax.ohio.gov/channels/government/phase out.stm

mailto:[email protected]

http://tax.ohio.gov/channels/government/phase%20out.stm

http://tax.ohio.gov/channels/government/phase%20out.stm


Casino Revenue


Casino RevenueCounties receive 51% of “gross casino revenue”

As appropriated by HB 156 Calendar year 2012 -- $44 million January-June 2013 -- $69 million

If Video Lottery Terminals (VLTs) – reduce by 27% Calendar year 2012 -- $32 million January-June 2013 -- $49 million

Dept of Taxation’s (TAX) October 2009 report on the casino ballot issue

(p.11-12)


Casino Revenue - Assumptions TAX’s Distribution:

CY 2012 – April, July, and October distribution Jan-June 2013 – January and April distribution

Distributions are for the 3 previous months

Casinos begin operation: Toledo & Cleveland – March 2012 Cincinnati & Columbus – February 2013

TAX’s estimates regarding operating capacity


Casino Revenue – Distributions County Share shown on chart

Takes TAX’s estimated amount disbursed from Fund 5JG0 – Gross Casino Revenue County Fund

Divides total by Ohio 2010 census population Multiplies by each county’s 2010 population Reduces the 8 largest counties by 50%

If largest city in the county has a population in excess of 80,000 that city receives one-half of that county’s allocation


Other HighlightsGeneral Government and OperationsHealth and Human ServicesJobs, Economic Development, and InfrastructurePublic Safety and Criminal JusticeAgriculture and Rural AffairsTaxation and Finance


General Government and OperationsState Health Care PoolSelf-Insurance ProgramsWellnessCounty Recorder TrainingPublic Record Retention and Lawsuit Reform


State Health Care PoolORC Sections 9.901; 305.171

To be mandatory, or not to be mandatory? Charts a path DAS must take in exploring and possible creating pools. DAS has authority to make pools mandatory should they be established.Exemptions from HypotheticallyMandatory Pools: Self-insured entities w/TBD “best practices” Consortiums w/TBD “best practices” A “more financially advantageous” alternative

(p.25-26)


Self- Insurance ProgramsORC Section 9.833

Public Individual SI employers no longer exempt from: Evaluation by a certified actuary Reserving funds as actuarially deemed necessary; and

reporting annually to AOS. Establishing a special fund for reserves by resolution

New for Everyone: Requirement for certified audited financial statement Contract with a CPA for preparation of written

evaluations (p.26)


WellnessORC Section 3901.56

Insurers, including “public employee benefit plans,” now explicitly authorized to offer a wellness or health improvement program that provides rewards or incentives to encourage participation.

Note: CCAO still pursing wellness and Sec 125 authority under ORC Sec 305.171 in HB 225 to clarify authority to make programs eligible for fringe benefits.

(p.27)


County Recorder Training Join Sheriff, Auditors, Coroners, Treasurers (Engineer, Prosecutors,

and Judges)

8 Hours of continuing education approved by the Ohio Recorders’ Association

Newly Elected-15 hours in 1st year, 8 hours each subsequent.

Commissioners shall approve reasonable amount for registration fees, lodging and meal expenses, travel expenses.

Non-compliance= “Failure to complete” notice (for informational purposes only).

(p. 27)


Public Record Retention and Lawsuit Reform RC-2’s dictate when to send OHS an RC-3 AG can train on retention schedule

Limits cumulative total amount for wrongful destruction suit to $10K

Attorney Fees limited to $10K “First Past the Post” provision. 5 Year Statute of Limitations No recovery if request was a pretext

(p. 28)


State Government Re-Organization Plan DAS to develop recommendations. Report by January 1, 2012 (p.29)

Ohio Constitutional Modernization Commission Commission authorized by Speaker Batchelder Bill (HB 188) Budget provides $50K a year for the operation of the Commission

1) a preparatory body to determine whether a convention should one be called

2) a revisory body to advise the legislature with respect to needed changes.

Commission will consist of 32 members, 3 appointed by each caucus leader of each chamber, the 12 members then appointing an additional 20 members (p.29)


Health and Human ServicesCounty JFS, CSEA, and Children Services GRFCounty TANF AllocationsDevelopmental DisabilitiesBehavioral HealthCounty HomesHHS- On the Horizon


Health and Human ServicesCounty JFS, CSEA and Children Services GRF Across-the-board 10% GRF cut: ok, but for

Adoption Assistance Cost shift of $7M! – averted during deliberations

Child Support Enforcement Proposed 15% state GRF cut Loss of federal incentive match left large $ gap

$15M less local dollars= $45M total loss (counting fed match) State agreed to invest $7M year for total of $21M w/ fed match.

County TANF Allocations Proposed: $211M/year ($80M/yr, or 28% cut) Final Result: $ 236M/year (55M/yr, or 19% cut) Counties under pressure to make work participation rate in FFY12 or

risk $$ sanction.(p.33-34)

COUNTY COMMMISSIONERS ASSOCIATION OF OHIO

Developmental Disabilities County boards received approximately a 30%

cut in state subsidies compared to SFY11 levels.

2010 2011 2012 20130

102030405060708090

100

Tax Equity*County Board SubsidiesFamily Support SvcsResidentail Support Svcs


Behavioral Health Medicaid match $$ now provided by state

instead of local boards; intent to free up more $$ for non-Medicaid eligible individuals in need. (p.37-38)

Funding

*Charts courtesy of OACBHA


County Homes Changes in Long Term Care Funding

Several changes under principle of “rebalancing” long term care.Home/Community Care Institution Care +6% in 2013 (42%) -6% in 2013 (58%)

Franchise fee – no change in current status of county homes (despite efforts by some, which will continue.)

-Joint Legislative Cmte for Long-Term Services and Supports(p.36)


HHS - On the Horizon Medicaid eligibility determinations and

the impact on county human service delivery systems.

Help Me Grow Funding changes and their impact:

administrative funding service delivery and eligibility (Part C)

Bureau for Children with Medical Handicaps (BCMH) – proposal to increase county spending likely to continue in the future.


Jobs, Economic Development, and InfrastructureEconomic Development


Economic Development “Invest Ohio” – personal income tax credit

Invest in a “small business enterprise” employment base of 50 in OH or majority of US employees in OH business test – less than $50 million in assets or $10 million in sales

Credit is 10% of qualifying investment $1 million maximum allowable in a biennium

Program Extensions: Job Retention Tax Credit – December 2013

$20 million payroll / $5 million capital investment Incumbent Worker Training

$6,000 per year / 33% employer or employee paid Rapid Outreach Grants

Infrastructure improvements by political subdivisions Enterprise Zone Extension – Oct 15, 2012 (p.40-41)


Economic Development Regional Transit Authority membership

Political subdivision membership in certain RTAs RTA must levy property tax and include county of at least

400,000 population Ballot issue by November 5, 2013 Question of joining or leaving Action effective 6 months after certification of ballot issue

Study - expansion of RTA outside its territorial boundaries Conducted by Ohio Public Transit Authority

Must consult with CCAO, OML, and OTA Report due to GA and Governor by December 31, 2011(p.


Prevailing Wage State Projects exempted from prevailing

wage: Job Ready Sites program Ohio Rail Development Commission Energy resource development projects Projects receiving funding from DOD

ORC Chapters 122, 165, or 166

(p.39)


E-Check – June 2017

County sewer district – transfer of assets to a municipality by mutual agreement Any part of water supply or sanitary facilities that are

connected to the municipality's facilities Water supply or sanitary facilities that are located within the

district and within or annexed to the municipal corporation

Ohio Housing Study Committee 7 Members - Auditor, Directors of Commerce, Development,

2 House/ 2 Senate members Report by March 31, 2012 Purpose – review policies, programs, and partnerships of

Ohio Housing Finance Agency (OHFA)


Public Safety and Criminal JusticeIndigent DefenseCommunity Corrections Act FundingDRC Reorganization and HB 86 – Sentencing Reform


Indigent Defense Biennium reimbursement rate of 35% “Cost” to counties:

$74.8 million in FY ‘11 $83.9 million in FY ’12 $86.8 million in FY ‘13

State GRF contribution: $12.6 million in FY ’11 – 31% $3.0 million in FY ’12 – 7% $3.6 million in FY ’13 – 8%

Reliance on Indigent Defense Support Fund(p.47)


Community Corrections Act Funding Prison diversion – 407 line item – up $3.4

million Increased from $22.4 to $25.8 million each year

Jail diversion – 408 line item – up $3.6 million Increased from $11.3 to $14.9 million each year

Net gain in CCA funding = $7 million per year(p.48)


Community Corrections Act Funding Where is it going????

Elimination of APA staff to assist with pre-sentence investigation and report writing $1.3 million per year to common pleas courts

“Justice Reinvestment” initiatives Probation Improvement Grant Probation Incentive Grant


DRC Reorganization andHB 86 – Sentencing Reform APA presentence activities - 48 counties Bureau of Adult Detention eliminated

Jail inspection program lost – now self-report New requirements for probation departments Non-violent F4s and 5s – no longer to prison

Protection to keep them out of jail Infrastructure for community based

corrections(p.48-49)


DYS funding RECLAIM - $30 million per year Youth Services Grants - $16.7 million per year

Corrections Commission membership

Township/municipal joint police districts

Commission on Dispute Resolution abolished

Disposal of forfeited firearms/ordnance Sheriff can sell to licensed firearms dealer


Agriculture and Rural AffairsSoil and Water MatchConservation Program Delivery Task Force


Soil and Water Match $9.6 M for biennium. Approx. 80% match.

Sources of Funding:GRF $2.9 MTire Fees $3.5 MCDD Fees $1.2 MMSW Fees $3.3 M*

Conservation Program Delivery Task Force“Examine methods for improving services and removing impediments to organizational management and explore opportunities for sharing services across all levels of government” (p.53-54)


Taxation and FinanceFiscal DistressAOS CostsDTAC FundsTax Amnesty


Fiscal Distress New yellow flag status: Fiscal Caution Fiscal Watch will require a financial

recovery plan w/in 120 days Fiscal Emergency will require a 5-year

forecast as a part of the financial recovery plan

(p.55)


AOS Audits Enables the AOS to cost allocate its

employees’ expenses, including vacation & sick leave time, when calculating audit costs

Subsequent rule filed for audit hourly rate of $41

(p.56)


Delinquent Tax & Assessment Collection Funds Budget divides DTAC Fund into 2 separate

funds, one for expenses of county treasurer and the other for county prosecutor

Prior law required half of the money in each county’s fund to be appropriated to the treasurer and half to prosecutor

Purposes for which the money may be used remain the same

(p. 56-57)


Delinquent Tax and Assessment Collection Funds Treasurer and prosecutor may ask

auditor by October 20 for following year to suspend deposits of delinquent tax collection money if balances reach three times preceding years deposits


Tax Amnesty Budget requires Tax Commissioner to

administer a tax amnesty program – May 1 to June 15, 2012 (other dates apply to use tax)

Amnesty applies to:Personal income taxSales and useCorporate franchiseEstateMotor fuel

Cigarette Commercial activity tax (CAT)

Natural gas exciseDealers in intangiblesLocal taxes

County & transit authority sales taxesSchool district income taxes

(p. 57)


Tax Amnesty for Use Tax Use tax amnesty program begins

October 1, 2011, ends May 1, 2013 Requires payment of all use taxes owed

on or after January 1, 2009 Permits use tax payment plan to last 7

years Waives interest and civil and criminal

penalties for taxpayers that qualify Prohibits waiver of interest and penalties

for taxpayer that registers for payment of use tax before June 1, 2011


Local Government Innovation Fund Furloughs Modified Work Week Public Notice Reform Quarterly Spending Plans Centralized Services Shared Services Health Districts Public Construction Reform Prevailing Wage Data Boards County Human Service funding Flexibility Local Court Filing Fees Inmate Medical Care Debt Collection Assistance by AG Coroner Fees

TOOLS


Local Government Innovation Fund(ORC Sections 189.01-189.10)

Local Government Innovation Program will provide grants and loans to foster collaboration and cooperation

$45 million available

Administered by Ohio Department of Development

Overseen by 15 member Local Government Innovation Council

(p.10)


Local Government Innovation Fund(ORC Sections 189.01-189.10)

Members of the Council

Director of Development Director of Budget and Management Auditor of State Two members State Senators Two members of the Ohio House of Representatives One member recommended by the Ohio Municipal League One member recommended by CCAO One member recommended by the Ohio Township Association One member recommended by the Ohio Chamber of Commerce One member recommended by the Ohio School Boards Association One member recommended by an Ohio-based advocacy group selected by

Governor; One member who is recommended by an Ohio-based foundation selected by

Governor; One member with expertise in local government issues appointed by the

chancellor of the board of regents.


Local Government Innovation FundResponsibilities of the Council To establish a competitive loan and grant

program To establish criteria for loans and grants by 12-

31-11 To award loans and grants to political

subdivisions To take such other actions, in consultation with

DOD, to implement the program


Local Government Innovation FundEligible Political Subdivisions Counties Townships Municipalities School Districts Other body corporate and politic responsible for governmental

activities in a geographic area smaller than that of the state including a county hospital commission, a municipal board of hospital commissioners or trustees, a county or regional planning commission, a joint planning council, an interstate regional planning commission, a port authority, a council of governments, an emergency planning district, a joint emergency medical services district, a fire and ambulance district, a joint interstate emergency planning district, a county or joint county solid waste management district, a community school, the county or counties served by a community or district CBCF


Local Government Innovation FundCriteria for Grants and Loans

One political subdivision must provide matching funds Matching funds may be provided by private entity

Other criteria may include: Expected return on investment, based on the ratio of expected

savings Number of participating entities Probability of the proposal's success % of local matching funds available Ability to replicate the proposal in other political subdivisions If the proposal is part of a larger consolidation effort If the proposal is to implement performance audit recommendations If the applicant has successfully completed an innovation project in

the past


Local Government Innovation FundApplication Process

Criteria for grants to be established by 12-31-11 Proposals submitted to District Public Works

Integrating Committee District Committee submits to DOD with advisory

comments DOD transmits to Council—evaluation to start by 3-1-

12 Council evaluates proposals and awards grants and

loans First awards by 7-1-12. Subsequent awards quarterly


Local Government Innovation FundOther Conditions of the Program Up to 20% of funds may be awarded as grants for

use in process improvement or implementation Loans may be used for the purchase of equipment,

facilities, or systems or for implementation costs An individual political subdivision may receive not

more than $100,000 and not more than $500,000 per project —for both grants and loans


Local Government Innovation FundOther Conditions of the Program

Loans made to be repaid by recipients using savings achieved from the innovation project.

At least 30% must go political subdivisions, except counties, with less than 50.000 population or to counties with a population of less than 130,000

At least 30% must go to political subdivisions,

except counties, with more than 50,000 population or to counties with a population of 130,000 or more


Furloughs Re-establishes automatic authority for non-

voluntary furloughs, up to 80 hours in SFY 12 & 13 By appointing authority for non-bargaining

employees After SFY 13, can conduct on basis of lack of funds

or reasons of economy or jurisdiction in fiscal watch/emergency

Guidance:http://www.ccao.org/LinkClick.aspx?link=Archives+MJ%2f2009+Furlough+Seminar+Handout.pdf&tabid=387&mid=1022&language=en-US

(p.15)

http://www.ccao.org/LinkClick.aspx?link=Archives+MJ/2009+Furlough+Seminar+Handout.pdf&tabid=387&mid=1022&language=en-US






Modified Work Week Automatic authority in SFY 12 & 13 After SFY 13, can conduct on basis of lack of

funds or reasons of economy or jurisdiction in fiscal watch/emergency

By appointing authority for non-bargaining employees, though can be applied differently among employees based on relevant distinctions

Allows reduction up to 50% of usual hours worked

(p. 15)


Public Notice Reform State Public Notice Website

No Cost to Post; Online submittals Newspaper of general circulation modified Use of Inserts Government Rate Alternative Publication Option (7.16)

One Full Publication Print Summary Publication and Post on State

Public Notice Website(p. 20)


Quarterly Spending Plans(ORC Section 5705.392)

Current Law

Commissioners may, as a part of appropriation resolution, include a quarterly spending plan

Quarterly spending plan includes an amount for each line item that may be spent during each quarter of the year

Quarterly spending plan applies only to the county general fund, not special funds

(p.16)


Quarterly Spending PlansCurrent Law

If quarterly spending plan is adopted, it must be done for all offices in the general fund and not for individual offices.

If a quarterly spending plan is adopted, it is the basis for certification of availability of funds by the county auditor under ORC 5705.41(D)

Also applies to an amended or supplemental appropriation resolution


Quarterly Spending PlansNew LawThe general authority specified above remains unchanged, but now a quarterly spending plan may be adopted and apply to any office and from any fund in the county treasury, IF The office has spent or encumbered more than

60% of the appropriation for personal services during the first 6 months Quarterly spending plan applies to 2nd half of year and

during any subsequent year,


Quarterly Spending PlansNew Law

OR

The office has spent 110% or more of the appropriation for personal services during the previous year The 110% threshold is based on the original permanent

appropriation resolution and not any supplemental appropriations for personal services

The quarterly spending plan remains in effect for two years or until the elected official is no longer in office


Quarterly Spending PlansNew Law Notification Requirement

Commissioners must give written notice to elected official if it intends to adopt a quarterly spending plan Must be send 30 days before adoption of spending plan Regular first class mail or personal service Must include copy of proposed quarterly sending plan

Official may meet with board of commissioners during a regular session to comment, express concerns, or ask questions


Centralized Services(ORC Section 305.23)

General Inside of the County ORC Section 305.23 authorizes county

commissioners to establish centralized service programs for a number of administrative and operational functions common to multiple county offices. The vision is that by combining certain functions into a centralized service, taxpayer dollars would be saved and greater efficiency and would result.

(p.16)


Centralized ServicesTypes of Centralized Services The following services may become centralized

under the new law:

Purchasing Printing Transportation Vehicle maintenance Human resources Revenue collection Mail operation


Centralized ServicesCounty Offices Impacted

County Commissioners County Auditor County Treasurer County Engineer County Recorder Prosecuting Attorney Sheriff Coroner County Park District Veterans Service Commission Clerk of the Juvenile Court

Clerks of Court for all divisions of the common pleas court including the clerk of the court of common pleas, clerk of a county-operated municipal court, and clerk of a county court.

Any agency, department, or division under the authority of, or receiving funding in whole or in part from, any of those county offices.


Centralized ServicesExemptions

Purchases for contract services made by the county recorder from the “Recorder’s Equipment Fund”, if the fund has been established pursuant to ORC Section 317.321.

Purchases of software used by the county recorder.

Purchases by the county auditor from the Real Estate Assessment Fund (REA) established under ORC Section 325.31.

Purchases from the sheriff’s or prosecutor’s Furtherance of Justice Funds (FOJ) established under ORC Sections 325.071 and 325.12.


Centralized ServicesExemptions Purchases of financial software used by the county auditor.

The printing of county property tax bills.

The collection of any taxes, assessments, and fees collected by the county treasurer.

The law also includes a general exemption from using centralized services. Does not authorize commissioners to have control or authority over funds received directly by a county office under another section of the Revised Code, or to control, or have authority regarding, the expenditure or use of such funds.


Centralized ServicesProcedure to Establish Centralized Services

Commissioners adopt resolution to establish one or more centralized services applying to one or more county offices After adoption copy of resolution must be sent to impacted

county offices within 10 days of adoption by clerk Notice must be given to impacted county offices before

adoption of resolution

No specific time limit in statue for required notice Recommend 2 week and accomplish notice by adoption of

resolution of intent Notice must include a statement on rationale and estimated

savings for establishing the centralized service


Centralized ServicesProvision of Centralized Services by Other County Offices

Law does not require or anticipate commissioners to be responsible for the provision of centralized services to other county offices.

Law authorizes other county offices to serve as the agent and responsible party for administering any of the centralized services

Commissioners may request another county office to serve as the responsible party for administration of a centralized service


Centralized ServicesProvision of Centralized Services by Other County Offices

Commissioners may not require the office to perform this function unless the office consents.

If another county office agrees to administer a centralized service the office enter into an agreement with the commissioners


Centralized ServicesContents of Resolution Implementing Centralized Services Name of county office that will be the agent

and responsible party for administering a centralized service

If agent is not the commissioners, the name of county office that will be the responsible party that has entered into an agreement with the commissioners

A list of the county offices required to use the centralized services


Centralized ServicesContents of Resolution Implementing Centralized Services

A list of which centralized service each county office must use.

A list of rates and charges the county office must pay for the centralized services

Date when county offices must begin using the centralized service or services

Commissioners’ clerk must send a copy of the resolution to each county office specified in the resolution. Must be sent not later than 10 days after adoption


Centralized ServicesStatutory Provisions Relating to Centralized Human Resource Function

Law contains a definition that clearly defines what functions among county offices may be centralized

Human resource functions that may be centralized include: Civil service Employee benefits administration Collective bargaining Labor relations Risk management Workers' compensation Unemployment compensation Human resource functions required by state or federal law.

(Equal Employment Opportunity, ADA, COBRA, and FLSA)



Human resources functions do not include the ability to:

Require county offices to conform to classification plan Require county offices to conform to a compensation plan

Require county offices to use position descriptions

Require county offices to use an organizational structure



No authority is granted to:

Determine the compensation of any employee

Determine the salary ranges of positions in a county office Determine the number of employees in a county office Determine the terms of employment of any employee in a county office

The county office must still comply with the aggregate appropriation for salaries or personal services set in the appropriation resolution



A centralized human resource operation also may not exercise powers related to the following employment related activities:

Hiring Qualifications Evaluation Suspension Demotion Disciplinary action Layoffs, furloughs, modified work week schedule Termination


Shared Services Outside of the County

ORC Section 307.15 is current law and applies to the authority of the board of county commissioners

ORC Section 9.482 is new law and applies to virtually all political subdivisions

(p.18)


Shared ServicesCurrent Law Authority (ORC 307.15)

Current law allows commissioners to enter into an agreement with the legislative authority of the following political subdivisions:

Municipalities Townships Port authorities Water or sewer districts School districts Library districts Health Districts Park districts Soil and water conservation districts Other boards of county commissioners Other taxing districts



Agreement may empower commissioners to undertake and exercise any power, perform any function, or render any service, on behalf of the contracting subdivision that the other subdivision is authorized to exercise, perform or render

If county contracts with other subdivision, that subdivision may exercise any power, perform any function, or render any service, on behalf of the county that the county may exercise, perform, or render

Includes the same powers as the contracting subdivision possess including powers necessary or incidental to the performance of the contract if such powers exist for either contracting entity

Two boards of commissioners may by contract create a joint agency

to exercise any power, perform any function, or render any service



If agreement does not provide which officer, office, department, agency, or authority, performs the responsibilities of the contract, the commissioners determine and assign such powers and duties

No agreement or no joint agency may contract for investment powers and functions, or may render any investment service on behalf of a contracting subdivision or other county

No agreement may provide for the levying of taxes on behalf of, a contracting subdivision unless approved by a majority of the electors of the contracting subdivision


Shared ServicesNew Law Authority (ORC 9.482)

New law authority appears to be based or current county authority with following exceptions:

Definition of political subdivisions county may contract with may be slightly broader—all subdivisions subject to sovereign immunity law—ORC Section 2744.01

Does not prohibit a political subdivision from entering into an agreement to collect, administer, or enforce any tax on behalf of another political subdivision


HEALTH DEPARTMENT OFFICE SPACE Budget as introduced and passed by the House contained a

provision phasing out the county general fund responsibility to provide office space for a general health district

This provision removed by the Senate and did not survive in Conference Committee

Budget enacts ORC 3709.341 that allow commissioners to donate or sell property, buildings, and furnishings to health districts—general or combined

Deed conveying property must include a reverter clause to address what happens if the health district later sells the property donated or sold by commissioners

(p.15)


Public Construction Reform Eliminates requirement that multiple

prime contracting be used for public improvements.

Provides public authorities with 4 options: Multiple prime contracting method Construction Manager at Risk (CMAR) Design Build General contractor as sole prime

contractor(p.19)


Public Construction Reform Advantages of eliminating multiple

prime mandate: Simplifies contracting by limiting number

of construction companies owner deals with to one company

Shifts construction contract risk away from owner

Improves project coordination, saves time, and has potential to save public dollars


Prevailing Wage Thresholds for public buildings increased

New construction $125,000 – Sept 29, 2010 $200,000 – Sept 29, 2011 $250,000 – Sept 29, 2012 and beyond

Reconstruction $38,000 – Sept 29, 2010 $60,000 – Sept 29, 2011 $75,000 – Sept 29, 2012 and beyond

(p.19-20)


Prevailing Wage Public Improvements still covered

Road, bridge, sewer, ditch projects Current thresholds

New construction - $78,258 Reconstruction - $23,447

Adjusted biennially by Director of Commerce


Prevailing Wage Projects exempted from prevailing wage:

Completed solely with donated labor Port authorities Urban redevelopment corporations


Data Processing Boards Budget permits BOCC to adopt resolution

requiring county automatic data processing board to assume duties of county records commission county microfilming board

If combined board is established, all county elected officials and a common pleas judge serve on board (two board of elections officials also may serve on board)

(p.17-18)


Data Processing Boards County auditor is administrator of expanded

board Data board may establish centralized and

decentralized operations for various functions Data board, with BOCC approval, may contract

with federal, state, local and other agencies for services

Data board shall establish charges for services and charge county offices for services


County Human Service Funding Flexibility Mandated Share flexibility

Reduction in mandated share ceiling; now 105%, compared to $110%

TANF Title XX

Ability to transfer $$ from PA Fund to Children Services Fund or CSEA Fund

(p.15)


Local Court Filing Fees Seeking oversight/transparency Generally spent by a Court order with an

appropriation or annual report Court computerization/legal research Mediation or dispute resolution

Exceptions: Clerk’s office computerization and common

pleas special projects – court order and appropriation

Municipal and County courts special projects and probate court fees – court order

(p.23)


Inmate Medical Care Medicaid reimbursement rate currently

for county jails and state correctional facilities

Now included: Corrections Commissions Municipalities Townships

(p.21)


Debt Collection Assistance by the Attorney General Debt payable to a political subdivision Outstanding for 45 days Submit request to collect to the AG AG must agree to collect - ORC 131.02 Process:

AG sends notice to “debtor” Shall assess interest/May add collection cost Collects or takes to judgment/execution

Can agree to compromise/payments/add fees(p.22)


Coroner Witness Fees Civil case - party must subpoena coroner “Expert testimony” is compensated Coroner files statement with court

Serve a copy on each party Indicate fee and how it was calculated Party subpoenaing must pay within 30 days

Hourly rate of Class 8 Salary = $58.33 Amount charged:

Deposition = hourly rate = $58.33 Trial or hearing = hourly rate x 6 = $349.97

(p.22)

fy 2012/2013 budget overview

Documents

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dividing sfy

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lgf distributions

budget overview fy

local governments

state grf

months of cy