To amend sections 3317.01, 5705.31, 5705.32, and 5705.321 and to enact section 5705.60 of the Revised Code to modify the law governing county budget commissions and property taxation.
HB309 revises Ohio’s laws governing county budget commissions, property taxation, and the apportionment of local government and public library funds. The bill amends multiple sections of the Revised Code to update procedures for county budget commission meetings, tax budgets, certification of estimated resources, appeals to the Board of Tax Appeals, and the distribution of county public library fund and undivided local government fund revenues. It also makes conforming changes to school funding language in section 3317.01 and to definitions and procedures used in Chapter 5705.
A major feature of the bill is its treatment of reserve balance accounts and other fund balances. It clarifies when reserve balances in certain accounts are not counted as unencumbered balances or revenue for budget commission purposes, and it preserves the ability of subdivisions to establish reserve accounts for budget stabilization, self-insurance, workers’ compensation, sick leave, vacation leave, and capital projects. The bill also updates how county budget commissions evaluate levy requests, adjust tax rates, and determine whether excess fund balances justify reducing future levies.
HB309 also revises the apportionment rules for county public library fund and local government fund distributions. It preserves the existing default formulas but updates the process for adopting alternative apportionment methods, including approval requirements by county and local governments. For local government fund apportionment, the bill adds a requirement that alternative methods be reviewed at a public hearing in the year after the amendment’s effective date and every five years thereafter, with notice and testimony opportunities for affected subdivisions. It also retains limits on county shares and township minimum shares in smaller counties.
The bill’s impact on state law is broad but technical: it changes how counties and subdivisions prepare budgets, how auditors and budget commissions certify resources and levy amounts, and how funds are allocated among counties, municipalities, townships, schools, and libraries. It would affect county auditors, county budget commissions, school districts, public libraries, townships, municipalities, and other taxing units that rely on Chapter 5705 procedures and local government fund distributions. It also repeals the prior versions of the amended sections and replaces them with updated language.
The overall sentiment appears generally favorable, as reflected by committee and floor votes with substantial majorities in both chambers. The bill moved through the House Ways and Means Committee and later passed the House and Senate with more support than opposition, suggesting broad acceptance of the administrative and fiscal changes. The main points of contention likely center on the bill’s effect on local control over tax levies and fund apportionment, especially the new review process for alternative local government fund formulas and the authority of county budget commissions to scrutinize reserve balances and potentially reduce levies when balances are viewed as excessive.
HB309 would amend numerous provisions in Chapters 3317, 5705, and 5747 of the Revised Code, altering the budgeting, levy-certification, reserve-fund, and fund-distribution rules used by counties and other subdivisions. It would affect county budget commissions, county auditors, school districts, libraries, townships, municipalities, and other taxing units by changing how tax budgets are prepared and reviewed, how reserve balances are treated in budget calculations, and how county public library fund and undivided local government fund moneys are apportioned. The bill also makes conforming changes to school funding administration under section 3317.01 and repeals the prior versions of the amended sections.
The available voting history suggests the bill was generally well received and advanced with clear majorities in both chambers. House and Senate committee votes were favorable, and floor passage votes showed more supporters than opponents, indicating broad bipartisan or cross-party acceptance of the bill’s technical fiscal changes. No committee transcript was provided, so there is no recorded debate to indicate strong public or legislative opposition in the available materials.
The most likely areas of disagreement are the bill’s changes to local fiscal oversight and fund allocation. Local governments may view the expanded role of county budget commissions in reviewing reserve balances, adjusting levies, and evaluating whether balances are unreasonable as a constraint on local budgeting discretion. Another possible point of contention is the revised process for alternative apportionment of county public library fund and local government fund revenues, including the new periodic public review requirement and the approval structure that can affect how money is shared among counties, cities, townships, and libraries. These issues would primarily concern county officials, municipal and township governments, and public library systems.