Barb Runion can sum up the Village of Woodville’s financial situation in two words: “real tight.”

Runion, the village’s clerk-treasurer, like other officials in area municipalities and townships, is bracing for a cut in local government funds from the state, which will result in reductions to the general fund budgets of towns for services ranging from police protection to maintaining cemeteries.

In 2010, Woodville received about $108,254 in local government funds. A 25 percent cut – about $27,063 – would be a tough hit to sustain, she said, particularly when another 25 percent cut in the following fiscal year has been proposed.

“We don’t want to increase any new taxes for residents,” Runion said, reflecting on the economy and a mandated sewer separation project in the village that’s already resulted in higher utility bills for residents.

She said the village will seek renewal in May of a 7.4-mill property tax levy in May instead of asking for a replacement issue that would be based on current property valuations and generate more revenues but cost residents more in taxes.

Village council and the administration are considering making some purchases of equipment for the police department sooner before costs climb and the cuts to the local government funds are enacted.

Ohio returns a portion of several state taxes to counties, municipalities, and townships through the Local Government Fund. Last year, a total of about $590.2 million from the fund helped those entities pay for many types of services.

But distributions from the fund have been dropping as the state’s economy has slowed in recent years. In 2007, for example, distributions were about $108.4 million more than last year.

For Lake Township, the proposed cuts in the state budget could mean a loss of about $40,739 in the fiscal year starting July 1, said Melanie Bowen, who chairs the township board of trustees.

The township received about $162,956 in local government funds in 2010.

Bowen said the reduced funding could be particularly felt in the township’s parks and cemetery, which aren’t supported by separate property tax levies as are other departments such as the police and fire departments and roads.

In the past, the trustees have allocated a good chunk of local government funds to help cover the wages of cemetery and parks personnel as well as the zoning and administrative offices.

Sales of grave plots have also been dropping in recent years, putting a further strain on the township’s cemetery fund. Bowen said.

“We didn’t bring back five seasonal workers last year and we probably won’t this year,” she said. “With the loss of another revenue stream it’s going to be even to tougher to rely on our general fund.”

Walbridge Mayor Dan Wilczynski said he too is bracing for cuts.

The village last year received about $102,009 in local government funds.

“I recognize the need for the state to cut because they cannot spend money they don't have. As such we will work to adjust our budget accordingly with any cuts. We have been successful thus far,” he said.

Even before Gov. John Kasich announced his budget proposal, organizations statewide were forming a coalition to voice concerns over what they consider disproportionate reductions in the LGF.

Members of the Local Government Fund Coalition, which includes the County Commissioners Association of Ohio, Ohio Association of Regional Councils, Ohio Municipal League, Ohio Parks and Recreation Association, and the Ohio Township Association, say fund distributions have dropped due to the poor economy and shouldn’t be further arbitrarily cut.

The state legislature in 2007 streamlined the funding process and established a formula reflecting economic conditions, said Matt DeTemple, executive director of the Ohio Township Association.

“As the state has slipped into its largest economic downturn since the Depression, reduced revenues were expected and fair. Further disproportionate cuts or an alteration of the 2007 formula are unfair and threaten the viability of local communities,” he said.

The village of Gibsonburg in Sandusky County last year received about $94,438 in local government funds while the Village of Genoa in Ottawa County received about $49,205.

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