Local Governments to See Funding Cut Under New State Budget

The new state budget shouldn't dramatically affect the city of Brecksville—at least not right now.

“Most of these reductions are steps,” said Finance Director Virginia Price.

The city is expecting a reduction in the local government fund for the 2012 fiscal year, and that number will be cut in half by fiscal year 2013, Price said. That fund doesn’t make up much of the city’s overall revenue, but a number of changes in the budget will add up.

According to The Columbus Dispatch, Gov. John Kasich signed the state budget bill shortly before 8 p.m. Thursday night, about four hours before fiscal year 2012 went into effect. The two-year budget includes a variety of changes that will affect residents across the state. 

Mayor Jerry N. Hruby said the budget is challenging, but noted that the cuts will be shared by everyone in the state. He doesn’t want to increase taxes on the city’s residents, and he said the city has made cuts in recent years across all departments. 

“We’re ready to face the challenge,” he said.

Price said she did not anticipate further cuts in the city or changes in services for residents. The city will continue to look for different ways to do things, she said, and the mayor and the economic director have been trying to attract businesses to the area to make up the revenue rather than making more cuts. The city already had a hiring freeze, she said, and noted that the government has been “very conservative” with its spending.

The city of Brecksville’s budgeted revenue for 2011 is $14,246,686, Price said in an email. The city’s budget year begins with the calendar year, unlike the state, which begins in July. The city is expecting to receive $316,411 in local government funds for fiscal year 2011—which just ended—$228,110 for fiscal year 2012 and $176,602 in fiscal year 2013. 

All of the calculations are still just estimates, Price said. 

The biggest change to the city’s revenue will be the loss of the estate tax. Price said that figure fluctuates year to year, but that the five-year average for Brecksville has been about $450,000 a year. That tax is scheduled to stay in place until 2013, when it will be ended, Price said. 

“When combined with all the others, it adds up,” she said.