Funding cuts not so scary, yet

Governor Kasich released his recommendations for the Ohio state biennial budget last week. Here’s a summary article from the Columbus Dispatch. Kasich is recommending a 5% funding cut for public libraries, and apparently that is a much better deal than libraries were expecting from Kasich. Lynda Murray of the Ohio Library Council gave another webcast about the budget last week, which had lots of useful info for anyone interested in the current state of public library funding in Ohio. Apparently, some were expecting cuts of 15-50%, forced consolidations, and a new formula for the Public Library Fund distributions – and evidently, Kasich has not called for any of that. Of course, the show’s not over yet. These are just the governor’s “recommendations.” The Ohio House and Senate still have until the end of June to duke it out over the details, so we’re not out of the woods yet.

Murray reminded everyone to be as non-partisan as possible, since public libraries are traditionally supported by both Republicans and Democrats in various ways. “We’re Switzerland,” she said. 🙂

Kasich did propose some changes to the Ohio Public Employees Retirement System (OPERS) that could be problematic, according to this OPERS blog post. Kasich proposes that instead of the 10/14 split currently in effect (employee contributes 10%, employer contributes 14%), to change it to an even 12/12. This is a problem because it causes two bits of Ohio law work against each other: state pension funds must be able to pay their “unfunded liabilities” within 30 years; but employee contributions can only be put towards that employee’s pension, while this “unfunded liabilities” bit is one of the things covered by the employers’ contributions. So if the employee’s part is increased and the employer part is decreased, that extends the timeline necessary to cover the “unfunded liabilities.” (If I’m understanding this correctly, I guess you could think of it like a car loan – if you start making smaller payments, it’s going to take longer to pay off.) So anyway – don’t know how they’re going to handle that, but it sounds like something’s got to give (either the proposal or the law) in order for it to legally work out.

I haven’t heard much about SB 5 (the collective bargaining bill) lately. I suppose all this business with Japanese earthquake and Libyan civil war is making the collective bargaining disputes look like small potatoes to the media outlets – as it probably should! but nonetheless the media hysteria has died down a bit. I think the hearings are still going on in Ohio; I’m sure we’ll hear more when the thing either passes or fails. I know we haven’t heard the last of SB 5.

One response to “Funding cuts not so scary, yet

  1. Update: Here is an article from the Columbus Dispatch on 3/22 discussing the public pension problem. They start off with an example using a mortgage; guess I was okay with my car loan analogy.

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