JANUARY 9, 2009

LOCAL GOVERNMENT REFORM COMMISSION MEMBERS DEBATE MISSION, RESEARCH compiled from Gongwer

Some underlying tensions between different governmental entities already were evident during the inaugural meeting of the Commission on Local Government Reform & Collaboration on Monday. The panel is charged with the sensitive and challenging task of recommending ways to streamline 's multi-layered local government system.

Underscoring the varied opinions among panelists themselves, they even voiced differences over whether the first order of business should be to focus on devising a mission statement or to launch into research.

A resolution by Ohio State University's John Glenn School of Public Affairs to provide research for the Commission became the subject of debate when Ohio Township Association Executive Director Mike Cochran said he was blindsided by the offer. "That's going to cause the greatest amount of disagreement between us - if people are getting communications and having in-depth discussions while leaving some people out," he said.

Mr. Cochran said he was concerned that OSU's offer would give academics too much say over the direction of the commission and he endorsed a suggestion from Co-Chairman Troy for the panel to create a mission statement before pursuing research. "A lot of people sitting around this table, myself included, have preconceived ideas," he said. "I think we need to have a heart- to-heart among ourselves."

Former House member Larry Wolpert, who co-authored implementing legislation, said the University previously had expressed interest in assisting the panel in its work and was reaching out to other state institutions to get involved in the effort. He said the Commission's mission already was clear in the statute: "to recommend ways to restructure and streamline" local government offices and services to increase efficiency and effectiveness.

Studying the cost of providing local government services in Ohio is necessary for the panel to identify ways to improve the system, Mr. Wolpert said, suggesting the Commission seek an unspent $160,000 appropriation from last session to fund the research. The Commission elected Lake County Commissioner Daniel Troy and Lucas County Auditor Anita Lopez to serve as co-chairs.

Commissioner Troy requested that members devise Commission objectives that are within the language of the enabling legislation during the next meeting so the panel could agree to a concise mission statement.

Obtaining consensus among different local government entities would be critical for lawmakers to take the Commission's report seriously, he said. "The General Assembly doesn't like to play referee - they don't want to take sides."

In addition to Commissioner Troy, Mr. Cochran, Mr. Wolpert, and Ms. Lopez, the Commission includes the following members: Mark Mallory, Mayor; Martin Jenkins, Organizational Resource Group; Dan Foley Montgomery County Commissioner; Jennifer Economus, Ohio School Board Association; Lynda Murray, Ohio Library Council; Tim Downing, Attorney, Ulmer and Berne, Office; Chester Jourdan, Executive Director, Mid-Ohio Regional; Robert Roland, Day Ketterer Limited; Tom Weidman, Market Master International; and Charleta Tavares, Columbus Councilwoman.

Members agreed to meet at 10:30 on the fourth Friday of each month and scheduled the next meeting for Jan. 30. The Commission's final report is due July 1, 2010.

9-1-1 FUNDING - CONTINUES…

SB 129, which included the 9-1-1 funding provisions, cleared the Legislature during the “lame duck” session and was signed by the Governor on December 30. An emergency clause was included as a part of the bill, so the collection of the monthly surcharge will continue uninterrupted although it will be at a lower rate.

There is no question that legislators heard from their commissioners on this issue. The CCAO staff wants to thank you for staying on top of this issue, keeping this issue on the minds of the legislators, and convincing them of the importance of continuing 9-1-1 funding.

The 9-1-1 provisions in SB 129 include all of the following:

1. A reduction of the monthly surcharge on wireless cell phones from 32 cents to 28 cents.

2. An extension of the sunset provision for another 4 years. The surcharge will now expire on December 31, 2012.

3. Increasing the minimum annual amount that each county receives from $25,000 to $90,000.

4. Beginning March 1, 2009, limiting to five the number of wireless PSAPs per county that can be funded with surcharge revenue.

As a note, if your county currently funds more than 5 wireless PSAPs, the county will be required to make a county plan amendment prior to March 1, 2009, in order to comply with the funding restriction established by Sub SB 129. Such a plan amendment appropriately would be considered a "necessary adjustment" to the county 9-1-1 plan as described in ORC Section 4931.45(A)(8). Consequently, ORC 4931.45(C)(2) must be followed and the board of county

2 commissioners must call a meeting of the 9-1-1 planning committee for the purpose of considering an addendum to the county plan, which can be approved by a majority vote of the 9-1-1 planning committee.

STATE REVENUES COME UP SHORT AGAIN; SALES TAX INTAKE DROPS IN DECEMBER as reported in Gongwer

State tax collections in December missed estimates by $24.5 million even though the Office of Budget and Management recently revised its projections based on the historic proportions in the economic slump. Most of that deficit was caused by another dip in sales tax intake, which was $26.4 million, or nearly 4%, under last month's updated projections.

Those downward revenue estimates prompted Gov. Ted Strickland's administration to order a third round of budget adjustments of $640 million and boosted the total of biennium budget repairs to $1.9 billion.

The latest hit to state coffers coincided with a stream of dismal retail sales reports that reflected the poor showing over the holiday shopping period and in turn prompted another Wall Street skid. Columbus-based Limited Brands, Inc., for example, reported a 10% drop in sales over the five weeks ending Jan. 3 compared to the same period a year ago.

Also on Thursday, the latest bad economic news came from a U.S. Labor Department report that the number of people receiving unemployment benefits across the nation rose to 4.6 million, the highest since November 1982. Unemployment claims have swamped the Ohio Department of Job and Family Services, where registrants have been met with delays in call-in and online services. On Thursday, the agency announced extended Wednesday-Saturday call center hours until further notice.

Total state tax revenue in December was $1.529 billion, or 1.6% below the revised OBM estimates. Aside from the non-auto sales tax category, most other taxes hit the agency's new marks or were under the estimates slightly. Based on the new estimates, the fiscal year-to-date tax revenue collections of $8.44 billion are 0.3% less than OBM anticipated as of last month.

STRICKLAND JOINS GOVERNORS IN ASKING FOR $1 TRILLION FEDERAL BAILOUT FOR STATES

Gov. Ted Strickland was one of several big state governors to get in line behind banks, auto companies, and insurers Friday in asking the federal government to help bail them out of a deepening financial morass.

Mr. Strickland joined New Jersey Gov. Jon Corzine, Wisconsin Gov. Jim Doyle, New York Gov. David Paterson, and Massachusetts Gov. Deval Patrick on a teleconference with reporters to describe their federal spending wish list to President-elect Barack Obama.

As state budget revenues have sagged deeper and deeper over the past several months, governors have increased their request for federal assistance: they are now asking for a $1 trillion package. In addition to previous requests for infrastructure investments and help with Medicaid and other social services, the governors added education spending to their list of needs from the federal government.

3 If Ohio doesn't get significant federal aid, the state will have to reduce spending in the upcoming biennial budget to about 75% of current levels, Gov. Strickland said. The Governor has already ordered about $1.9 billion in reductions for the current biennium. While governors support the massive infrastructure spending that President-elect Obama has proposed, states' social safety nets are frayed and in need of federal repair, he said. "We aren't crying wolf here. These are real dire circumstances we're facing here today," he said. "If we don't get this federal assistance... the least among us will suffer greatly."

Gov. Doyle said states have made considerable progress in improving their education systems in recent years, but risk backsliding during the recession unless the federal government provides $250 billion for pre-Kindergarten through higher education spending. "The future of this country really rests on a strong education system," he said.

In addition to the $250 billion request for education spending, Gov. Corzine said states are seeking the following:

• $350 billion to jumpstart so-called "shovel-ready" infrastructure construction projects in sectors such as transportation, water, sewer, school, and technology. • $250 billion in "counter-cyclical aid" to shore up social services, such as an increased federal Medicaid match, more funding for unemployment compensation, food stamps, Temporary Assistance for Needy Families, and child care. • $150 billion for "middle class tax cuts."

YOUTH SERVICES DEPARTMENT TO CLOSE MARION, DELAWARE CORRECTIONAL FACILITIES as reported in The Columbus Dispatch

The Department of Youth Services said Thursday it is closing a youth detention center in Marion and a residential treatment facility in Delaware in budget-cutting moves prompted by the downturn in the state's financial situation.

Director Thomas Stickrath said the decision to shutter the Marion Juvenile Correctional Facility and Delaware's Freedom Center would save the agency an estimated $24 million per year. "The decision to close a facility is never easy, the significance of this announcement on the employees and communities affected was not taken lightly," he said. "We have a tremendous workforce at these facilities, and I pledge to do what I can to connect our employees with resources that can help to lessen the impact of the closures."

The Marion center, built in 1999, employs 302 people and has 176 residents. The Freedom Center, built in 1956, employs 29 and houses 18 people. Those living at the facilities will be transferred to other DYS centers.

The Ohio Civil Service Employees Association questioned the moves, particularly given the conclusions of a recent independent report that found the system overcrowded and understaffed.

OCSEA officials who work for DYS also raised concerns about the impact of transferring Marion detainees to other centers. "The type of youth that have been adjudicated to Marion are the some of the most violent youth in the system and gang activity is prevalent," said Annie Person, a juvenile correctional officer in Circleville and the union's DYS Assembly president. "

4 The number of DYS inmates has fallen from 1,843 in 2007 to 1,555 last year. Gov. Ted Strickland said later Thursday there were no further plans at present to close additional institutions.

STRICKLAND VETOES ELECTIONS, MILITARY BONUS, FILM TAX CREDIT MEASURES as reported in Gongwer

Gov. Ted Strickland as expected vetoed three measures on Tuesday that his administration had declined to endorse in the waning days of the 127 th General Assembly, including an update to election laws and a military veteran bonus plan financed with rainy day funds.

In completing the processing of dozens of pieces of legislation Tuesday, Mr. Strickland did not spring any surprises. The Governor had promised to veto the bonus measure (HB 649), saying he preferred a bond-backed approach (SJR 5) that had been blocked by former Speaker , now a state senator.

Secretary of State Jennifer Brunner, a fellow Democrat, had testified against a plan to eliminate an overlap of early voting and registration periods that also included several other election law updates (SB 380).

The Strickland administration also had relayed its opposition to a $100 million tax credit program for the movie industry (HB 196).

However, the Governor signed a slew of other lame duck measures on Tuesday. Among them was legislation to do the following:

• Revise adoption laws (HB 7).

• Expand booster seat requirements (HB 320).

• Prohibit indiscriminate state database searches (HB 648).

• Update the process for obtaining mine permits (SB 386).

• Create a pilot "land bank" program in Cuyahoga County to address foreclosed and abandoned properties (SB 353).

Veto Explanation: Gov. Strickland largely reiterated his previously stated reasons for opposing the three vetoed bills.

In his veto message on the elections measure, for example, he said: "The bill addresses issues that are too complex and controversial to properly address in a lame duck session....In my judgment, many of the provisions are overbroad and may make elections administration even more difficult, potentially limit opportunities for Ohio citizens to vote and expose the Secretary of State's office and boards of elections to the risk of new and costly lawsuits."

The Ohio Association of Election Officials had supported the provisions in the bill, however Secretary of State Jennifer Brunner was in opposition. She said in a statement that Mr. Strickland's veto was "in the best interests of Ohioans."

5 Mr. Strickland cited the state's precarious budget circumstance and other objections in explaining his veto of the moviemaker tax credit program that had been sought mostly by Cleveland interests due to a promise to use the city's aging convention center for film production.

"The experience of other states suggests that the return on investment with a film tax credit is a weak 14 to 20 cents on the dollar, making the credit a very expensive means of creating jobs," he said.

The Governor said of the military stipend plan, "The people of Ohio have a long history of providing bonuses to Ohio veterans through bonding and this symbol of support, and the more responsible method of financing it, should be continued today. I remain committed to working with the Ohio General Assembly and the Treasurer of State to bond this important benefit for our Ohio veterans."

The GOP proposal had directed the use of up to $200 million from the state's Budget Stabilization Fund to pay for the bonuses.

BOYCE, CORDRAY SWORN IN AS NEW STATE TREASURER, ATTORNEY GENERAL as reported in the Columbus Dispatch

The void in state government that began last May with the forced resignation of Attorney General Marc Dann has been filled. Yesterday, state Treasurer Richard Cordray was sworn in as Ohio's 49th Attorney General and Columbus City Councilman Kevin L. Boyce was sworn in as the state's 47th Treasurer.

Barring other resignations, Cordray and Boyce round out a group of statewide officeholders who will serve through 2010. Three of the five statewide executive officeholders (Cordray, Boyce, and Secretary of State Jennifer Brunner) are from Franklin County.

Cordray, 49, a Democrat, defeated two opponents in the November election to serve the remaining two years of Dann's term. In December, Strickland named Boyce, 37, also a Democrat, to serve the remaining two years of Cordray's term. "Today, we welcome into office two great public servants," Strickland said yesterday. "They have long devoted themselves to the betterment of their communities and their state."

Strickland and other officials said Cordray's experience as a private lawyer, a litigator in the attorney general's office and treasurer of Franklin County and Ohio make him uniquely qualified for the state's top legal office. "I dare say there is no Attorney General in the country right now as prepared and as qualified to be attorney general," said Lt. Gov. Lee Fisher, who hired Cordray as State Solicitor when Fisher had the office from 1991 to 1994.

Cordray did not lay out a policy agenda during his speech. He alluded to the misbehavior at the heart of the scandal that pushed Dann, a fellow Democrat, from office. "At all times in the attorney general's office, we will treat one another with respect and professionalism, and we will treat all Ohioans the same way," he said.

Boyce set the stage for his two-year stint by recalling his childhood when he asked his grandmother, Melba Crews, to help him with some money to buy a new pair of sneakers he wanted. Crews said she would, Boyce recalled -- and promptly took him to the local grocery

6 store to apply for a job. "I know that Ohioans work hard for their money, and every day that I'm in the treasurer's office will be a day that Ohioans' tax dollars are put to work for the state in the safest possible ways," he said. Boyce will fill out the remaining two years of Cordray's term.

HOUSE, SENATE CONVENE 128TH GENERAL ASSEMBLY As reported in Gongwer Former Speaker Jon Husted bade new House Speaker Armond Budish "good luck" as the Chamber's gavel transferred from Republican to Democratic hands for the first time in 14 years on Monday.

Meanwhile, Senate President Bill Harris (R-Ashland), entering his last two years in the Chamber, essentially passed the gavel onto himself after convening the process as the Senate's leader in the 127 th General Assembly.

Both chambers received a number of new members. The new members are as follows

New House Members:

• Rep. Richard Adams (R-Troy) replaces term-limited Diana Fessler in the 79 th District.

• Rep. Ron Amstutz (R-Wooster), a former senator and House member, replaces term-limited Jim Carmichael, who won election as Wayne County Commissioner, in the 3 rd District.

• Rep. Nan Baker (R-Westlake) defeated incumbent Jennifer Brady in the 16 th District.

• Rep. Troy Balderson (R-Zanesville) replaces term-limited Jim Aslanides in the 94 th District.

• Rep. Terrence Blair (R-Washington Twp.) replaces term-limited John White in the 38 th District.

• Rep. Terry Boose (R-Norwalk) replaces Thomas Heydinger in the 58 th District.

• Rep. David Burke (R-Marysville) replaces term-limited Tony Core, who won election as Logan County Commissioner, in the 83 rd District.

• Rep. John Carney (D-Columbus) replaces term-limited Rep. Jim Hughes, who won election as state senator, in the 22 nd District.

• Rep. Tim Derickson (R-Oxford) replaces term-limited Rep. Shawn Webster in the 53 rd District.

• Rep. Denise Driehaus (D-Cincinnati) replaces term-limited Rep. , who won election to Congress in the 31 st District.

• Rep. Nancy Garland (D-New Albany) defeated incumbent Jim McGregor in the 20 th District.

• Rep. Cheryl Grossman (R-Grove City) replaces term-limited Larry Wolpert in the 23 rd District.

• Rep. Bob Hackett (R-London) replaces Chris Widener, who won election to the state Senate in the 84 th District.

7 • Rep. David Hall (R-Killbuck) replaces , who won election as state senator, in the 97 th District.

• Rep. Marian Harris (D-Columbus) replaces term-limited Larry Flowers in the 19 th District.

• Rep. (R-Powell) replaces term-limited Jon Peterson, who won election as Delaware County Treasurer in the 2 nd District.

• Rep. Peggy Lehner (R-Kettering) replaces former Speaker Jon Husted, who won election to the Senate in the 37 th District.

• Rep. Ron Maag (R-Lebanon) replaces term-limited Michele Schneider in the 35 th District.

• Rep. Jarrod Martin (R-Beavercreek) replaces term-limited Kevin DeWine, Deputy Director of the , in the 70 th District.

• Rep. Jeff McClain (R-Upper Sandusky) replaces term-limited Steve Reinhard in the 82 nd District.

• Rep. Mike Moran (D-Hudson) defeated appointed incumbent Richard Nero in the 42 nd District.

• Rep. Seth Morgan (R-Huber Heights) replaces term-limited Arlene Setzer in the 36 th District.

• Rep. Dennis Murray (D-Sandusky) replaces term-limited Chris Redfern, the Chairman, in the 80 th District.

• Rep. Matt Patten (D-Strongsville) defeated Colleen Grady in the 18 th District and replaces , who won election to the Senate.

• Rep. Debbie Phillips (D-Athens) replaces Jimmy Stewart, who won election as state senator, in the 92 nd District.

• Rep. Connie Pillich (D-Montgomery) replaces appointee Andrew Ciafardini in the 28 th District formerly held by Jim Raussen.

• Rep. Raymond Pryor (D-Huntington Twp.) defeated John Schlichter in the 85 th District.

• Rep. Margaret Ann Ruhl (R-Mt. Vernon) replaces term-limited Thom Collier in the 90 th District.

• Rep. Mark Schneider (D-Mentor) defeated Carol-Ann Schindel in the 63 rd District.

• Rep. Todd Snitchler (R-Uniontown) replaces term-limited John Hagan in the 50 th District.

• Rep. Peter Stautberg (R-Cincinnati) replaces term-limited in the 34 th District.

• Rep. W. Carlton Weddington (D-Columbus) replaces term-limited Joyce Beatty in the 27 th District.

• Rep. Roland Winburn (D-Dayton) replaces term-limited Fred Strahorn in the 40 th District.

8 New Senate Members:

• Sen. Joe Schiavoni (D-Youngstown) was appointed to replace , who won election to Congress in the 33 rd District.

• Sen. Bob Gibbs (R-Lakeview), a former House member, replaces term-limited Ron Amstutz, who won election to the House in the 22 nd District.

• Sen. Karen Gillmor (R-Tiffin), a former state Senator, replaces term-limited Larry Mumper in the 26 th District.

• Sen. Jim Hughes (R-Columbus), a former House member, replaces , who lost a bid for Congress in the 16 th District.

• Sen. Jon Husted (R-Kettering), the former House speaker, replaces appointee Peggy Lehner in the 6 th District seat formerly held by term-limited Jeff Jacobson.

• Sen. Jimmy Stewart (R-Albany), a former House member, replaces Joy Padgett in the 20 th District.

• Sen. Chris Widener (R-Springfield), a former House member, replaces Steve Austria, who won election to Congress in the 10 th District.

COMMITTEE SCHEDULE:

Wednesday, January 28

House Session , (Chr. Budish , 466-3357), House Chamber, 11:30 am

• Joint session for governor's state of the state address begins at noon

Senate Session , (Chr. Harris , 466-4900), Senate Chamber, 11:30 am

• Joint session for governor's state of the state address begins at noon

Wednesday, February 18

House Session , (Chr. Budish , 466-3357), House Chamber, 1:30 pm Senate Session , (Chr. Harris , 466-4900), Senate Chamber, 1:30 pm

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