Proposed State Budget Would Translate to Fewer Projects, Cuts in New Equipment

Gov. John Kasich's proposed state budget funding for local governments would be cut by about $555 million, which has city administrators looking at ways to cut back on expenses.

Westlake receives $800,000 of its approximately $70 million budget per year from the state on average. Under the proposed budget, the city would see $200,000 less next year and $400,000 less in 2012 from Ohio's local government fund.

“It’s not a huge amount, but it is a drop,” said Finance Director Prashant Shah.

Shah said that new equipment like the city’s recent purchase of vehicles for the Recreation and Police Departments might have wait a little longer in the future.

“Next time the buying process comes around and the $200,000 line isn’t in our budget, we’ll have to make them last,” he said. “If we have to cut expenses, projects will be the first thing we look at, and buying less equipment.”

But nothing is yet set in stone, and Shah said he and other city officials are planning to keep talking as more information becomes available.

"We're waiting to see how much we lose," he said. “We haven’t come up with a complete plan.”

Shah said the city isn’t clear on what will happen to the commercial activity tax, which adds $400,000 to the city’s revenue each year.

The tax, which takes a percentage of a business’s gross receipts, was implemented to replace the tangible personal property tax. Under Kaish’s proposed budget, funding from the tax will be cut for both local governments and schools.

“We knew that was coming down the road,” Shah said. “The good thing is that the city has a history of planning. We have some critical projects over the next five to seven years. We’re trying to prioritize these projects. Maybe a curb or a water line can wait.”

Shah said the city is in good financial standing going into the new fiscal year, with a surplus large enough to cover three to four months of expenses.

“If something happens to the economy, we don’t have to shut down,” Shah said. “We’ve worked hard to get where we are.”