Ohio budget cuts could jeopardize local projects

Dozens of local governments passed their 2011 budgets in the past month, looking ahead to road projects in Kettering and Washington Twp., new development in Centerville and Clayton and tax levies in Trotwood and Bellbrook .

But many cities worry because the cash-strapped state is talking about cutting its Local Government Fund midyear, threatening budgeted projects or staff. Ohio’s LGF provided $30.6 million for Montgomery County jurisdictions in 2010, and more than $5 million each for Miami, Greene and Warren counties.

“If (LGF) is cut, it will hurt all municipalities in the state,” said West Carrollton Finance Director Tom Reilly, whose city gets about $360,000 annually. “It will definitely mean that we need to go back to the drawing board.”

Trotwood, which gets $600,000 annually in LGF money, already has city employees on a furlough program that cuts 10 percent of their pay. Despite that, City Manager Mike Lucking says Trotwood’s May operating levy will be a renewal, rather than a request for more money.

“Our focus is trying to live with our existing revenue,” Lucking said.

But Rob Nichols, spokesman for Gov.-elect John Kasich, said that revenue is not guaranteed in 2011, as Kasich studies how to fill a two-year budget hole of at least $8 billion this spring. “Everything’s on the table,” Nichols said. “(Kasich) has said that over and over.”

Staff writer Marc Katz contributed to this story.

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