MONDAY, FEBRUARY 26, 2001
Library files state funding freeze under 'upsetting'
By Erik Burriss
Staff Writer
Of all the bodies that would be affected by the governor's proposed freeze on spending from the state's local assistance funds, the libraries are the most upset.
Gov. Taft's proposed budget for Ohio's fiscal years 2001 and 2002 would hold the monthly payments from the Local Government, Library and Local Government Support and Local Government Revenue Assistance funds at their fiscal year 2000 levels. The state's fiscal year runs from July 1 to June 30.
Currently, the three funds each receive a set fraction of the state's sales, use, public utilities excise, corporate franchise, intangible and personal income taxes, so the amount of money handed out locally is dependent on the economy. The governor's proposal would change all that.
"They are messing with the law," said Pat Hilmer, director of the Tiffin-Seneca Public Library.
Of the library's $1.43-million in expenditures last year, $1.26 million came from the state assistance fund. Salaries made up the 54 percent of the libraries expenses, operating costs were another 25 percent, while new materials used up 21 percent, Hilmer said.
The state's economy is expected to grow 3.3 percent this year, said Samuel Nemes, the chief economist in the Ohio Office of Budget and Management. The state should see a similar increase in revenue, he said. A 3-percent increase in payments to the Tiffin-Seneca Public Library would raise the total funds received this year by more than $37,000. This figure is consistent with estimates from the Seneca County Auditor's Office. Since most local budgets begin in January, the proposed freeze would take effect in the middle of their fiscal year.
To offset the effects of inflation on a non-expanding budget, the library will likely spend less money on new materials, Hilmer said.
"Always, when there are budget reductions we look at materials: books, magazines, videos," she said.
The library would also likely cancel plans to add a computer lab and may reduce or cancel Sunday hours if the General Assembly approves the governor's proposal, she said.
Seneca County and Tiffin officials are less concerned with the proposal.
"It probably won't hurt that much," Mayor Bernie Hohman said. "It can't, because we don't get that much."
Last year, the city received just under $600,000 from the funds. The county took in just under $1.5 million. The county auditor estimated Tiffin would receive just over $635,000 this year while the county would get just over $1.6 million.
County Administrator Bob Anderson echoed the mayor's feelings, pointing out that a small increase based on a such a small fraction of the county's total budget would not have a great effect on the county. However, the Seneca County Commissioners passed a resolution opposing the freeze two weeks ago.
Taft proposed the freeze in January, saying that the current economic slowdown will result in the tightest budget the state has seen in a decade.
The projected 3.3-percent expansion of the economy in 2001 stands in contrast to the 4-and-5-percent expansion the state has seen in recent years, Nemes said.
"That's a pretty significant drop," the economist said.
Seneca County's three representatives in the General Assembly are evenly split on the proposal.
State Sen. Larry Mumper, R-Marion, opposes the idea outright. While he agrees the budget will be tight, the Legislature should look carefully at what fiscal corners to cut.
"If the bill is passed and goes into effect in July, the counties would already have made budgets anticipating an increase," the former Marion County commissioner said.
On the other hand, State Rep. Rex Damschroder, R-Fremont, supports the idea, but pointed out that it is just a proposal so far.
"The governor had to start someplace," Damschroder said. "It's either raise taxes or cut some funding. Somebody's got to make some hard choices."
State Rep. Steve Reinhard, R-Bucyrus, is undecided.
"We don't want to see any cuts in local funding, but we may need to tighten."