believes you will hire more employees with your Ohio tax savings. They smile at me and put the money in their pockets. One Ohio legislator said he supported the small business deduction because one of his constituents created two jobs with this tax break.

Over the objections of the Ohio House, the Ohio Senate and the administration inserted language in the budget to allow state collection of municipal net profit business tax filings. This unconstitutional provision creates two different sets of laws for the same class of taxpayers and further erodes local control and access to municipal revenue.

The administration and the Ohio Senate inserted this provision in the budget despite thoughtful testimony in the Ohio House that indicated the Ohio Business Gateway (OBG) in Columbus was woefully unprepared to deal with this change in the law.

Ohio cities recently prevailed in the courts with another unconstitutional attack on local zoning ordinances passed in the lame duck session of the General Assembly last fall. We will soon determine if a legal challenge to this new attack on the “Home Rule” provisions of the Ohio constitution will prevail in the courts. If so, I encourage all municipalities to join us in our efforts to overturn this unconstitutional law.

The budget also removes the “throwback” rule for municipalities. Without getting into the weeds, this provision reduces municipal income taxes for certain warehouse/distribution businesses by about 33%. In testimony to the General Assembly, numerous cities across Ohio indicated this provision would create six figure revenue losses culminated by a $1.5 million dollar estimated loss for the City of Akron. While this provision does not significantly affect Oakwood, other cities will inevitably raise their local income tax rates. If we continue to offer a 100% credit for taxes paid to other jurisdictions, this provision will also have a negative effect on Oakwood’s tax base.

In 2012, the General Assembly broke its 75 year covenant with local governments by taking for itself sales tax revenue previously reserved for cities, villages, townships, counties and school districts. Although the total dollar amount is insignificant to their $65 billion annual budget (it was about $50 billion annually with no significant population increase when I became your Mayor eight years ago), the General Assembly and the Governor took about $60 million dollars from the Local Government Fund and gave it to townships and for a State controlled opioid addiction program.

Local governments are on the front line of our opioid addiction problem. It defies belief the State would reduce local funding for this issue. Nor was one word said in Columbus about additional funding for enforcement of our existing laws.

We are honored tonight to have Sheriff Phil Plummer address City Council on the opioid addiction issue and other matters.

Let me be clear, however, the Local Government Fund, as we knew it, is dead!

In 1968, two thirds of our State budget was for public safety and infrastructure. According to the Wall Street Journal, Ohio now spends 43% of its budget on Medicaid and only 14% for K-12 education. The average all other states spend on Medicaid is 28%.

It was Governor Kasich who expanded Medicaid under Obamacare in 2013. At the time, the General Assembly predicted costs would exceed his estimates and, of course, they did. The General Assembly’s current budget provides some common sense cost controls which the Governor vetoed. If the General Assembly does not override his veto, our next Governor will have to decide on whether we want the State to provide for education to our children and provide assistance to poor children and the disabled or to provide free health care for able-bodied adults above the poverty level. Either way, local government support from the State of Ohio will not be in the mix.

I do have positive news to report, which I will provide at the end of our meeting. Thank you for your consideration.”