Geauga County Commissioners will not implement “piggyback” tax exemptions outlined in House Bill 96, following feedback from taxing entities across the county.
Geauga County Commissioners will not implement “piggyback” tax exemptions outlined in House Bill 96, following feedback from taxing entities across the county.
On Oct. 16, Commissioner Carolyn Brakey and Geauga County Auditor Chuck Walder sent a letter to various entities seeking input on a tax relief option included in HB 96, Ohio’s operating budget. The exemptions would supplement state homestead and owner-occupied property tax credits by reducing property tax disbursements.
Entities were asked to provide feedback on the legislation by Nov. 17.
A majority of those who responded opposed the exemptions or expressed concern about the implications, according to feedback letters.
Huntsburg Township officials said it would provide little relief, while Claridon Township officials worried it could compromise the quality of operations.
Geauga County Public Library officials said cuts would force them to scale back services, reduce programming and potentially shorten hours.
Many entities said they need to seek levies earlier than expected if the piggyback provision passed.
Representatives from school boards, townships, the city of Chardon, the library, the Geauga County Board of Mental Health and Recovery Services and the Geauga County Board of Developmental Disabilities packed the Nov. 18 commissioners meeting to offer in-person comment.
Walder Explains
Walder began the discussion by apologizing for sending the letter signed “Geauga County Commissioners” rather than “Commissioner,” noting Brakey had redlined the issue.
The error was highlighted in the previous week’s meeting by former Commissioner Walter “Skip” Claypool, who said a commissioner should not act alone on behalf of the board.
Walder said he owned the mistake and hoped it would not overshadow the discussion.
Brakey contacted him in September about the potential ramifications of the provision, Walder said, noting other counties were implementing it “blindly.”
Commissioner Jim Dvorak reached out after Lake County implemented the exemptions, he added.
Walder and Brakey discussed it extensively and presented it at a Geauga County Township Association meeting, after which they decided to send the letter since townships represent fewer than half of the affected entities, Walder said.
Over a third of the entities that received the letter responded, he said.
“I am an advocate of the taxpayers and I believe our seniors are absolutely deserving of tax relief. I don’t think anyone here is questioning that our disabled veterans should have immediate tax relief,” Walder said. “Likewise, I think everyone in Geauga who lives in their home as a principal resident, they deserve tax relief.”
However, the devil is in the details, he added.
“If we’re trying to provide them tax relief, which could ultimately cause more tax, we’re working in a circular mentality,” he said. “We’re not fixing the problem that’s before us. In fact, there are some aspects of House Bill 96’s piggyback which could result in exactly new taxes being added because revenue was lost, or a renewal of a levy earlier than was anticipated, resulting in more tax.”
Brakey said her gut reaction was that the legislation was not right for Geauga County. She also found reducing voter-approved levies off-putting.
Communication Breakdown
Commissioner Ralph Spidalieri’s concerns extended beyond the “s” at the end of “commissioners” in the letter.
“I learned that this letter was out from many of the different board members of the school boards across the county that had reached out to me basically based on the simple fact that — their comment was that they’re constantly disrespected in the budget commission meetings, they’re hesitant to try to reach out to somebody,” Spidalieri said.
He said he did not receive copies of the feedback letters until the day before the meeting.
Brakey said letters were coming in up until yesterday and they had been addressed to her because she sent the original.
Spidalieri said they were addressed to the commissioners’ office and he and Dvorak are both commissioners.
He emphasized a need for more transparency.
“This board is not run by one person,” he said.
“I’m the only one that does homework,” Brakey replied. “This was part of my homework process.”
Part of her decision-making process is obtaining additional information, she said.
Walder added the discussion was being reduced to the “s” error and Spidalieri’s perspective may align with other counties that have “shot from the hip.”
Spidalieri rejected that notion, reiterating transparency is the best policy.
Walder said he answers every question his office receives about HB 96 and does not force-feed that information to the rest of the organization.
“And Ralph, I’ll be clear with you, I would agree with you that your and my communication is less than perfect,” Walder said. “But, as we both know, it’s a two-way street.”
Entities Respond
Public comment followed, with every speaker expressing concern about the piggyback provision.
“The issues we are seeing are a direct result of the systemic failure of the Ohio Legislature to fully fund the fair school funding formula, resulting in a shift in responsibility to the residential taxpayers and not the strawman arguments being offered in Columbus,” Chardon Schools Superintendent Mike Hanlon said, referring to the formula used to fund schools in Ohio.
Ohio schools are not flush with cash, he said, adding Ohio rates 45th in state support of public education and over the last 20 years, funding increased an average of less than 1% annually, adjusted for inflation.
Residential taxpayers now shoulder about 70% of school funding, up from 47% in 1991, he added.
West Geauga Schools’ loss would be about $864,000 annually, Superintendent Nancy Benincasa said.
“It would diminish the value of voter-approved levies, commitments our community made to maintaining strong schools, which would … likely require additional levies to make up for that lost revenue,” she said. “It could introduce unexpected financial instability, making it harder to sustain programming and services that our students are counting on.”
Kenston Schools has been building cash reserves at the encouragement of the Geauga County Budget Commission to delay the need for another operating levy as long as possible, Superintendent Bruce Willingham said.
This exemption would jeopardize that progress, with over $900,000 in estimated loss, immediately pushing the district into deficit spending, he said.
Families are already stretched thin and the ability to pass levies is fragile, Willingham said.
Both Kenston and Chardon said the exemptions would force them to ask for a levy sooner.
Geauga Public Health Administrator Adam Litke said GPH has already cut as much as possible, while GCPL Director Kris Carroll noted the library has already taken a funding hit with the state budget bill.
At some point, you cannot do what you’re supposed to do, Litke said.
After everyone’s input, commissioners unanimously voted not to implement the provisions for either the owner-occupied credit or homestead exemption from HB 96.
The room erupted into applause following the vote.
