By JAN McLAUGHLIN
BG Independent News
After years of fiscal “belt tightening” by the state, Bowling Green is expected to lose more Local Government Funding under a new formula for how dollars are divvied up.
But after hearing the rationale for the new process, Bowling Green City Council voted Monday evening to sign on to the new formula.
“It’s not ideal. Frankly, I don’t like it,” said council member Greg Robinette. But the statutory option is worse, he said. “That’s a lose-lose.”
Council President Mark Hollenbaugh agreed.
“It’s the best of no good choices,” he said.
To explain the new process for determining where Wood County’s share of Local Government Funds will go each year, Wood County Auditor Matt Oestreich walked council members through the proposed changes.
The state provides a Local Government Fund to its 88 counties based on population. Then the budget commissions for each county work with local jurisdictions to determine how the funds should be divided up.
These funds – which total about $4.2 million next year for Wood County – support essential public services, such as public safety, infrastructure maintenance, and public health.
While county government is allowed to take 50% of the Local Government Funds, Wood County traditionally takes about 32%.
Because the Ohio Revised Code sets an intricate process for distributing the funds, including complex formulas – 87 of the counties have opted to use alternative methods.
In Wood County, the distribution formula was last set by the budget commission (made up of the county auditor, prosecutor and treasurer) in 1988. That formula assigned 17.9% of the state funding to go to Bowling Green.
Because of recent changes in law, the political subdivisions in each county are required to review and approve their alternative formula. The most common formula – used in Wood County – is based on populations in each city, village and township.
The Wood County Budget Commission in November determined the formula to be used here for the next five years, with the following points:
- The percentages set in 1988 will remain for 2025, so the city’s budget won’t change.
- In 2026, the distribution will be a blended rate between the 2025 and 2027 percentages.
- For 2027 and after, the formula moves with the population, with an additional 1% for Bowling Green and Perrysburg for municipal courts.
Bowling Green’s current 17.9% equates to $765,619 in the 2025 budget. With the proposed formula, BG’s share drops to 16.85% in 2026, then further to 15.38% in 2027 and beyond. With the municipal court percentage added in, BG settles out at 16.4%.
The actual dollar amounts are unknown, since the Local Government Fund is determined annually by the state. However, based on today’s numbers, the city would lose about $65,000 annually in 2027 and beyond.
“Any reduction is concerning,” BG Municipal Administrator Lori Tretter said after Monday’s meeting. “But we understand the county budget commission trying to come up with a predictable formula.”
This alternative method of dividing the funds must be approved by the Wood County Commissioners, Bowling Green which is the county’s biggest city, and a majority of the remaining municipalities and townships.
Failure to secure enough support means the county would have to use the statutory method, rejected by all but one county.
“We recognize that this change will not result in a revenue gain for everyone. However, continuing a 36-year-old distribution method with no objective pattern or documented basis is unsustainable,” said a statement by the county budget commission.
