County auditor receives state estimate for local government fund

Shelley Terry, Star Beacon, Ashtabula, Ohio
·2 min read

Jul. 28—JEFFERSON — The Ashtabula County Auditor's Office on Wednesday received the state estimate for the local government fund (LGF) for 2024.

The state budget increased the percentage of LGF from 1.66 percent to 1.70 percent. This funding is the percentage of state income tax that gets redistributed to local governments.

However, the state also cut the income tax for Ohio residents. The result is an estimated $879 million less in state income revenue for fiscal year 2024.

"This means, that our estimate for local government funds in 2024 is roughly 5 percent less than what you received from the state LGF in 2023," County Auditor David Thomas said in an email to local government officials Tuesday.

Ashtabula County's 5 percent cut is a combination of less income tax money, and the portion of LGF going to smaller counties with a new, higher, guaranteed minimum LFG amount of roughly $800,000, he said. In total Ashtabula County is expected to receive $3,037,993 in LGF for 2024 which is split between all cities, villages, townships, the County MetroParks, and Ashtabula County.

"With less state funds and higher costs for roads and equipment, this is one reason why many townships and villages are needing to ask for more levies," Thomas said. "So in a sense, income tax cuts and sales tax holidays are shifting the tax burden from those revenue sources on to property taxes at the local level."

Thomas points to the state income tax cut as a positive for job growth and making Ohio more competitive for the future. Most Ohioans will see a State Income Tax of 2.75 percent with additional changes including a reduction in the number of tax brackets and those making above $100,000 at 3.75 percent.

The state also will allow for those making less than $26,050 in income to have no state income tax and all wage earners to not be taxed on their first $26,050 of wages.

"This income tax amounts to nearly $1 billion in tax cuts for Ohioans," said Thomas. "That's a ton more money in people's pockets and will make us more competitive in the future."

Thomas cautions however that tax cuts from the state will mean less revenue to local governments which may cause more levy requests and higher property taxes:

"If the state just passes along these cuts to local governments instead of reducing spending at the state level, it is more of a tax shift than the state government tightening its belt."