UNION — City of Union Council passed a resolution Monday “strongly” opposing Ohio Governor John Kasich’s proposed 2017-2018 budget, which proposes centralized collection of net profit tax returns.
According to city officials, the proposed budget also contains other provisions related to the municipal income tax that would cause a substantial loss of revenue needed to support the health, safety, welfare and economic development efforts of all Ohio municipalities.
The legislation, Resolution 17-02, was added to the meeting agenda at the last minute as approved by council.
“The mayor and I were at a Mayor’s and Manager’s meeting last Wednesday night at the City of Piqua and this was circulated by the executive director asking that all municipalities get their mayors and councils to adopt a resolution in opposition to the governor’s budget for 2017-2018,” said City Manager John Applegate. “The biggest part of it deals with the centralized collection of income tax money. I want to tell you, more than 570 communities in the state of Ohio collect income tax and this is another devastating blow to us all.”
Applegate cited the effect of the local government fund being gutted and the elimination of the estate tax that cost the city a little over $200,000 a year.
“This is just another move that I think is ill conceived,” Applegate stated. “It’s not right, especially since we are a charter community and there are certain rights given to us by the Constitution of the state of Ohio. Reading through the resolution it speaks of some of the highlights of what is being proposed. There is a potential that if it does get adopted we will probably be asked to contribute towards a legal fund to file suit against the governor.”
Applegate said this was the first shot Ohio communities would be firing in opposition to the governor’s proposed budget. He also told Mayor Michael O’Callaghan that the city would be preparing a letter to send along with the resolution to Governor Kasich. Copies of the letter and resolution would also be sent to State Senator Sherrod Brown and State Representative Mike Henne.
Applegate added that he was at roundtable meeting Monday morning with 15 city managers present and they recommended the adoption of the resolution to oppose the governor’s budget, opposition of which is statewide.
Council unanimously passed the resolution in one reading.