Label
Councilwoman Moline
Title
Supporting Congressional legislation that provides relief and lost revenue replacement for Local Government on Frontline of Coronavirus Pandemic; and declaring an emergency.
Summary
WHEREAS, local governments in the State of Ohio have been especially hard hit by the economic strain of the COVID-19 pandemic; and
WHEREAS, Ohio is one of the few states where cities rely on income tax proceeds as their main funding source and in the midst of the sharpest job loss since the Great Depression, Cities in Ohio are some of the most fiscally impacted in the nation; and
WHEREAS, under the proposed Congressional bill the local relief fund would be split 50/50, half committed to cities, towns and villages, and half committed to counties:
* Of the portion allocated for cities, towns, and villages, 70% would go to Community Development Block Grant (CDBG) entitlement communities using the CDBG formula through the Department of Housing and Urban Development (HUD) to allocate the funding.
* The remaining 30% for cities, towns, and villages would be sent to states, which would be required to sub-allocate the entire amount within 30 days to all non-entitlement communities in the state based on population.
* The portion of emergency fiscal assistance for counties would be allocated across all counties based on population. The exception to that formula is that a current CDBG entitlement county would receive its entitlement amount if it is higher than what that county would receive under an allocation based on population.
WHEREAS, Local governments would be able to use this federal support to help address costs associated with lost revenues and response to the pandemic, in an effort to help avoid cuts to essential services and local tax and fee increases. This proposed formula for local fiscal aid is intended to be incorporated into a larger legislative package that will also include fiscal assistance for state and tribal...
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