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State Representative Jim Buchy
Ohio
Legislature Backs Innovative Program to Help Local Governments
A few years ago Ohio’s economy was on a downward spiral, our credit
rating was downgraded and our state was in a fiscal mess. When
Governor Kasich took office we balanced the budget which required
making up for an $8 billion dollar budget hole; and we did it without
raising taxes. Making difficult decisions was necessary at this
time. As the economy went down so did local government
funds. Providing unique ways to help the budgets of local
governments has been a priority of all members of state government.
To relieve some of the financial burden on our local communities,
Attorney General Mike DeWine has enabled local municipalities to use
the state’s debt collection service to bring in funding that is justly
owed to local governments but not being paid for any number of
reasons. The leadership of the attorney general resulted in the
legislature joining this commitment.
To carryout this program, state government officials had to focus on
increasing efficiency and only hiring a minimal amount of new
employees. The program is operated at no costs to the local
governments; however, fees generated in the collections process are
circulated into the collections division to fund the program. In
the most recent state budget the legislature ensured the continuation
of the program by enabling the Attorney General’s office to have the
funds necessary for the program and technological advancements.
Since the start of this innovative program, 54 political subdivisions
have enrolled and the state of Ohio has collected more than $3.2
million for local governments and closed over 820,000 accounts of debt
owed to local governments.
It is common for municipalities to have outstanding debt because for
various reasons some residents cannot pay the bills owed to the
community. In some cases the municipality has a debt collection
program managed in the municipal government or they may contract with
an out of town debt collection service. No matter how our
communities have decided to handle debt collection, this service
could have an impact on communities struggling with budget issues.
Because of this program we have been able to recover debt owed to local
governments, which allows them to put that money back into our
communities. In state government we understand the vital role
played by local governments. Continuing to work for ways to reduce
their costs and strengthen their financial position is a benefit to all
Ohioans.
Please give me your opinion on this topic and others in the news this
month by completing an online survey at tinyurl.com/buchyoctober2014.
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