LORAINLORAIN COUNTYCOUNTY REVENUEREVENUE ANALYSISANALYSIS Lorain County Revenue Revenue

% = rates for investment earnings credited to the General Fund

5.06%

2.78 %

2.56%

2.01 % 1.45 % 1.10% 0.94% 1.13% 0.07%

***From 2007 to 2015 there was a decrease in revenue of $49.2 million due to a decline in interest rates *** Conveyance Fees Revenue

Due to the decline in the real estate market beginning in 2008, Lorain County has seen a decrease of approximately $10.8 million to date in revenue from conveyance fees. Recording Fees

Due to the decline in the collection of fees beginning in 2008, Lorain County has seen a decrease of approximately $1.5 million to date in revenue from recording fees. Ohio Housing Trust Fund Ohio Housing Trust Fund (continued)

In 2003, the Ohio Legislature doubled the of recording fees charged by the Lorain County Recorder and the additional fees were to be sent to the State.

By doing this, it created a permanent, dedicated funding source for the Ohio Housing Trust Fund and it was no longer reliant on the Stat e’s general fund. Ohio Housing Trust Fund (continued)

Of the $17.2 million submitted to the State from Lorain County, approximately $164,000 has been sent back and deposited into the general fund for admin .

An estimated $6.7 million of the $17.2 million submitted has come back via grants to assist with homeless shelters, rehab assistance an d transitional housing within the county.

Over $62.5 million has been redirected to the state’s general revenue fund. No data No data for available estimate 2015 state from Actual Estimated e Estimated Actual

$3,500,000 2015 ty by approximately $3.8 $3.8 million** by ty approximately $6,128,796

$3,632,872 2014 $4,578,500

$3,413,086 013 2 $884,606

$788,768 2012 **Actuals fell below state forestimates Coun Lorain State Estimates vs Estimates State Revenu Casino for Receipts Actual $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 Casino Revenue (continued)

In 2009 when voters approved Issue 3, the state estimated that t he casinos would generate at least $643 million in annual casino ta x revenue. (This was prior to the authorization of VLTs )

Since May 2012, an average of $196 million per year in annual ca sino has been collected by the state thru June 2015.

90% of casino tax revenue is distributed to local governments an d school districts and 10% is being shared among state agencies. Casino Revenue (continued)

$78.4 million has gone into the state coffers for:

¢ Casino Control Commission Fund

¢ Ohio State Racing Commission Fund

¢ Law Enforcement Training Fund

¢ Problem Gambling & Addictions Fund

$266 million has gone into the state ’s student fund which has taken the burden off of the state ’s general fund.

The remaining $439 million has been distributed to the 88 counti es and casino host cities. Racetrack/Racino Revenue

In 2009 legislation authorizing VLT (video lottery terminals) op erations in Ohio was passed. Revenues from these machines are not taxed, li ke casino revenues are.

Gross proceeds from VLTs are split between the horse racetrack operators (66.5%) and the Ohio Lottery (33.5%). Profits are then transferred to the State Lottery Education Fund and used to help pay for the state ’s share of education. No funds are distributed to local governments.

Revenue loss for Lorain County due to racetrack gambling is esti mated at $4.8 million since 2012. Racetrack/Racino Revenue (continued) Personal Property & State Reimbursement (CAT Tax) Revenue

The Commercial Activity Tax (CAT) was enacted in 2005. Funds collected by the state were used to make payments to school dist ricts and local governments to mitigate the revenue loss from personal pro perty taxes that the state began to phase out in 2005.

Lorain County received funds collected for the CAT tax from 2005 thru 2010. Reimbursements from the state began to phase out in 2011.

Effective 2013, 50% of CAT tax collections are deposited into th e state ’s general revenue fund, 35% to schools and 15% to local government s. Personal Property & State Reimbursement (CAT Tax) Revenue

***From 2007 to 2015 there was a revenue net loss of $2,736,534.*** Public Utility Revenue

***From 2007 to 2015 there was a revenue net loss of $688,438.*** Public Utility Revenue (continued)

In 2001, the public utility tax was enacted to replace losses to local governments and school districts due to the reduction in tangibl e personal property tax assessment rates.

Currently, 88% is paid into the state ’s general revenue fund, 9% to schools and 3% to local governments. Local Government Revenue Local Government Revenue (continued)

Since 1989, the state has provided local subdivisions with an ad ditional share of state tax revenues based on each county ’s share of the state population.

Between 2001 – 2007, local subdivisions began seeing a freeze as revenue was distributed based on the amount they received during the previous year.

In 2008, the state restructured the local government funds base d on a 3.68% share of all general revenue tax collections vs the older system of revenue sharing that varied based on the tax. Local Government Revenue (continued)

The county ’s share is determined each year based on the county’s population as a share of the total state ’s population.

Due to changes in local government formulas, Lorain County has l ost a total of $48.9 million in revenue since 2003. History of State of Ohio Tax 1935 – Enacted and set at 3%

1967 – Increased to 4%

1981 – Increased to 5%

2003 – Increased to 6%

2005 – Decreased to 5.5%

2013 – Increased to 5.75% State Sales Tax Revenue Lorain County Sales Tax Scenarios

Current/Guaranteed Inside Millage by County

Hancock - 1.5 / Lorain – 1.6 Lorain County Transit Funding

***$4,548,795 in federal funds returned due to lack of local funding*** In Conclusion….

As of July 2015, the State of Ohio has a balance of $2.8 billion in it ’s rainy day fund.

Lorain County, like most other jurisdictions in the state, has $ 0 funds set aside.

Lorain County has lost an estimated $113.7 million in revenue si nce 2003 due to the declining collection of fees and cuts at the State le vel. LORAINLORAIN COUNTYCOUNTY REVENUEREVENUE ANALYSISANALYSIS