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| To amend sections 131.43 and 131.44 and enact | 1 |
| sections 131.441 and 131.442 of the Revised Code | 2 |
| to create the Local Government Job Fund in the | 3 |
| state treasury to provide funding to local | 4 |
| governments for job creation, maintenance, and | 5 |
| retention programs; to require the Director of | 6 |
| Budget and Management, in any year that the state | 7 |
| unemployment rate exceeds six percent, to transfer | 8 |
| the amount, if any, that would be transferred to | 9 |
| the Budget Stabilization Fund or the Income Tax | 10 |
| Reduction Fund to the Local Government Job Fund; | 11 |
| and to amend the version of section 131.44 of the | 12 |
| Revised Code that is scheduled to take effect June | 13 |
| 1, 2013, to continue the provisions of this act on | 14 |
| and after that effective date. | 15 |
| Section 1. That sections 131.43 and 131.44 be amended and | 16 |
| sections 131.441 and 131.442 of the Revised Code be enacted to | 17 |
| read as follows: | 18 |
| Sec. 131.43. There is hereby created in the state treasury | 19 |
|
the budget stabilization fund. | 20 |
| unemployment rate, as measured by the director of job and family | 21 |
| services, is less than six per cent, it is the intent of the | 22 |
| general assembly to maintain an amount of money in the budget | 23 |
| stabilization fund that amounts to approximately five per cent of | 24 |
| the general revenue fund revenues for the preceding fiscal year. | 25 |
|
The governor shall include in the state budget | 26 |
| submits to the general assembly under section 107.03 of the | 27 |
| Revised Code proposals for transfers between the general revenue | 28 |
| fund and the budget stabilization fund for the ensuing fiscal | 29 |
| biennium. The balance in the fund may be combined with the balance | 30 |
| in the general revenue fund for purposes of cash management. | 31 |
| Sec. 131.44. (A) As used in this section: | 32 |
| (1) "Surplus revenue" means the excess, if any, of the total | 33 |
| fund balance over the required year-end balance. | 34 |
| (2) "Total fund balance" means the sum of the unencumbered | 35 |
| balance in the general revenue fund on the last day of the | 36 |
| preceding fiscal year plus the balance in the budget stabilization | 37 |
| fund. | 38 |
| (3) "Required year-end balance" means the sum of the | 39 |
| following: | 40 |
| (a) Five per cent of the general revenue fund revenues for | 41 |
| the preceding fiscal year; | 42 |
| (b) "Ending fund balance," which means one-half of one per | 43 |
| cent of general revenue fund revenues for the preceding fiscal | 44 |
| year; | 45 |
| (c) "Carryover balance," which means, with respect to a | 46 |
| fiscal biennium, the excess, if any, of the estimated general | 47 |
| revenue fund appropriation and transfer requirement for the second | 48 |
| fiscal year of the biennium over the estimated general revenue | 49 |
| fund revenue for that fiscal year; | 50 |
| (d) "Capital appropriation reserve," which means the amount, | 51 |
| if any, of general revenue fund capital appropriations made for | 52 |
| the current biennium that the director of budget and management | 53 |
| has determined will be encumbered or disbursed; | 54 |
| (e) "Income tax reduction impact reserve," which means an | 55 |
| amount equal to the reduction projected by the director of budget | 56 |
| and management in income tax revenue in the current fiscal year | 57 |
| attributable to the previous reduction in the income tax rate made | 58 |
| by the tax commissioner pursuant to division (B) of section | 59 |
| 5747.02 of the Revised Code. | 60 |
| (4) "Estimated general revenue fund appropriation and | 61 |
| transfer requirement" means the most recent adjusted | 62 |
| appropriations made by the general assembly from the general | 63 |
| revenue fund and includes both of the following: | 64 |
| (a) Appropriations made and transfers of appropriations from | 65 |
| the first fiscal year to the second fiscal year of the biennium in | 66 |
| provisions of acts of the general assembly signed by the governor | 67 |
| but not yet effective; | 68 |
| (b) Transfers of | 69 |
| fiscal year to the second fiscal year of the biennium approved by | 70 |
| the controlling board. | 71 |
| (5) "Estimated general revenue fund revenue" means the most | 72 |
| recent such estimate available to the director of budget and | 73 |
| management. | 74 |
| (B)(1) Not later than the thirty-first day of July each year, | 75 |
| the director of budget and management shall determine the surplus | 76 |
| revenue that existed on the preceding thirtieth day of June and | 77 |
| transfer from the general revenue fund, to the extent of the | 78 |
| unobligated, unencumbered balance on the preceding thirtieth day | 79 |
| of June in excess of one-half of one per cent of the general | 80 |
| revenue fund revenues in the preceding fiscal year, the following: | 81 |
| (a) In years when the state unemployment rate, using the most | 82 |
| recently calculated annual rate as measured by the director of job | 83 |
| and family services, is six per cent or greater, to the local | 84 |
| government job fund created in section 131.441 of the Revised Code | 85 |
| an amount equal to the surplus revenue. | 86 |
| (b) In years when division (B)(1)(a) of this section does not | 87 |
| apply, as follows: | 88 |
| (i) First, to the budget stabilization fund, any amount | 89 |
| necessary for the balance of the budget stabilization fund to | 90 |
| equal five per cent of the general revenue fund revenues of the | 91 |
| preceding fiscal year; | 92 |
| | 93 |
| hereby created in the state treasury, an amount equal to the | 94 |
| surplus revenue. | 95 |
| (2) Not later than the thirty-first day of July each year, | 96 |
| the director shall determine the percentage that the balance in | 97 |
| the income tax reduction fund is of the amount of revenue that the | 98 |
| director estimates will be received from the tax levied under | 99 |
| section 5747.02 of the Revised Code in the current fiscal year | 100 |
| without regard to any reduction under division (B) of that | 101 |
| section. If that percentage exceeds thirty-five one hundredths of | 102 |
| one per cent, the director shall certify the percentage to the tax | 103 |
| commissioner not later than the thirty-first day of July. | 104 |
| (C) The director of budget and management shall transfer | 105 |
| money in the income tax reduction fund to the general revenue | 106 |
| fund, the local government fund, and the public library fund as | 107 |
| necessary to offset revenue reductions resulting from the | 108 |
| reductions in taxes required under division (B) of section 5747.02 | 109 |
| of the Revised Code in the respective amounts and percentages | 110 |
| prescribed by division (A) of section 5747.03 and divisions (A) | 111 |
| and (B) of section 131.51 of the Revised Code as if the amount | 112 |
| transferred had been collected as taxes under Chapter 5747. of the | 113 |
| Revised Code. If no reductions in taxes are made under that | 114 |
| division that affect revenue received in the current fiscal year, | 115 |
| the director shall not transfer money from the income tax | 116 |
| reduction fund to the general revenue fund, the local government | 117 |
| fund, and the public library fund. | 118 |
| Sec. 131.441. There is hereby created in the state treasury | 119 |
| the local government job fund. The fund shall consist of transfers | 120 |
| made to the fund under section 131.44 of the Revised Code. | 121 |
| Interest earned on money in the fund shall be credited to the | 122 |
| fund. | 123 |
| Money in the fund shall be used to fund job creation, | 124 |
| maintenance, and retention programs and for other purposes related | 125 |
| to increasing employment in the state. | 126 |
| Sec. 131.442. Not later than thirty days after a transfer to | 127 |
| the local government job fund is made under section 131.44 of the | 128 |
| Revised Code, the director of budget and management shall transfer | 129 |
| the following: | 130 |
| (A) To the undivided local government fund of each county, an | 131 |
| amount from the local government job fund proportional to the | 132 |
| amount distributed to each county from the local government fund | 133 |
| under division (B) of section 5747.50 of the Revised Code; | 134 |
| (B) To the general fund of each municipal corporation that | 135 |
| receives money from the local government fund, an amount from the | 136 |
| local government job fund proportional to the amount distributed | 137 |
| to each municipal corporation from the local government fund under | 138 |
| division (C) of section 5747.50 of the Revised Code. | 139 |
| Section 2. That existing sections 131.43 and 131.44 of the | 140 |
| Revised Code are hereby repealed. | 141 |
| Section 3. That the version of section 131.44 of the Revised | 142 |
| Code that is scheduled to take effect on June 1, 2013, be amended | 143 |
| to read as follows: | 144 |
| Sec. 131.44. (A) As used in this section: | 145 |
| (1) "Surplus revenue" means the excess, if any, of the total | 146 |
| fund balance over the required year-end balance. | 147 |
| (2) "Total fund balance" means the sum of the unencumbered | 148 |
| balance in the general revenue fund on the last day of the | 149 |
| preceding fiscal year plus the balance in the budget stabilization | 150 |
| fund. | 151 |
| (3) "Required year-end balance" means the sum of the | 152 |
| following: | 153 |
| (a) Five per cent of the general revenue fund revenues for | 154 |
| the preceding fiscal year; | 155 |
| (b) "Ending fund balance," which means one-half of one per | 156 |
| cent of general revenue fund revenues for the preceding fiscal | 157 |
| year; | 158 |
| (c) "Carryover balance," which means, with respect to a | 159 |
| fiscal biennium, the excess, if any, of the estimated general | 160 |
| revenue fund appropriation and transfer requirement for the second | 161 |
| fiscal year of the biennium over the estimated general revenue | 162 |
| fund revenue for that fiscal year; | 163 |
| (d) "Capital appropriation reserve," which means the amount, | 164 |
| if any, of general revenue fund capital appropriations made for | 165 |
| the current biennium that the director of budget and management | 166 |
| has determined will be encumbered or disbursed; | 167 |
| (e) "Income tax reduction impact reserve," which means an | 168 |
| amount equal to the reduction projected by the director of budget | 169 |
| and management in income tax revenue in the current fiscal year | 170 |
| attributable to the previous reduction in the income tax rate made | 171 |
| by the tax commissioner pursuant to division (B) of section | 172 |
| 5747.02 of the Revised Code. | 173 |
| (4) "Estimated general revenue fund appropriation and | 174 |
| transfer requirement" means the most recent adjusted | 175 |
| appropriations made by the general assembly from the general | 176 |
| revenue fund and includes both of the following: | 177 |
| (a) Appropriations made and transfers of appropriations from | 178 |
| the first fiscal year to the second fiscal year of the biennium in | 179 |
| provisions of acts of the general assembly signed by the governor | 180 |
| but not yet effective; | 181 |
| (b) Transfers of appropriations from the first fiscal year to | 182 |
| the second fiscal year of the biennium approved by the controlling | 183 |
| board. | 184 |
| (5) "Estimated general revenue fund revenue" means the most | 185 |
| recent such estimate available to the director of budget and | 186 |
| management. | 187 |
| (B)(1) Not later than the thirty-first day of July each year, | 188 |
| the director of budget and management shall determine the surplus | 189 |
| revenue that existed on the preceding thirtieth day of June and | 190 |
| transfer from the general revenue fund, to the extent of the | 191 |
| unobligated, unencumbered balance on the preceding thirtieth day | 192 |
| of June in excess of one-half of one per cent of the general | 193 |
| revenue fund revenues in the preceding fiscal year, the following: | 194 |
| (a) In years when the state unemployment rate, using the most | 195 |
| recently calculated annual rate as measured by the director of job | 196 |
| and family services, is six per cent or greater, to the local | 197 |
| government job fund created in section 131.441 of the Revised Code | 198 |
| an amount equal to the surplus revenue. | 199 |
| (b) In years when division (B)(1)(a) of this section does not | 200 |
| apply, as follows: | 201 |
| (i) First, to the budget stabilization fund, any amount | 202 |
| necessary for the balance of the budget stabilization fund to | 203 |
| equal five per cent of the general revenue fund revenues of the | 204 |
| preceding fiscal year; | 205 |
| | 206 |
| hereby created in the state treasury, an amount equal to the | 207 |
| surplus revenue. | 208 |
| (2) Not later than the thirty-first day of July each year, | 209 |
| the director shall determine the percentage that the balance in | 210 |
| the income tax reduction fund is of the amount of revenue that the | 211 |
| director estimates will be received from the tax levied under | 212 |
| section 5747.02 of the Revised Code in the current fiscal year | 213 |
| without regard to any reduction under division (B) of that | 214 |
| section. If that percentage exceeds thirty-five one hundredths of | 215 |
| one per cent, the director shall certify the percentage to the tax | 216 |
| commissioner not later than the thirty-first day of July. | 217 |
| (C) The director of budget and management shall transfer | 218 |
| money in the income tax reduction fund to the general revenue | 219 |
| fund, the local government fund, and the public library fund as | 220 |
| necessary to offset revenue reductions resulting from the | 221 |
| reductions in taxes required under division (B) of section 5747.02 | 222 |
| of the Revised Code in the respective amounts and percentages | 223 |
| prescribed by division (A) of section 5747.03 and divisions (B) | 224 |
| and (C) of section 131.51 of the Revised Code as if the amount | 225 |
| transferred had been collected as taxes under Chapter 5747. of the | 226 |
| Revised Code. If no reductions in taxes are made under that | 227 |
| division that affect revenue received in the current fiscal year, | 228 |
| the director shall not transfer money from the income tax | 229 |
| reduction fund to the general revenue fund, the local government | 230 |
| fund, and the public library fund. | 231 |
| Section 4. That the existing version of section 131.44 of | 232 |
| the Revised Code that is scheduled to take effect June 1, 2013, is | 233 |
| hereby repealed. | 234 |
| Section 5. Sections 3 and 4 of this act shall take effect | 235 |
| June 1, 2013. | 236 |