Politics & Government

Give and Take Away: Solon Awaiting State Budget Changes

Some proposals could cut revenues to Solon while others could save the city money

Solon already expects to lose about $561,000 in basic state aid during the next two years.

But other proposals in the budget could affect Solon's revenue, either in a negative or positive way. Mayor Susan Drucker talked about some of them during last week's finance committee meeting.

Gov. John Kasich is trying to repeal Ohio's estate tax, and the House version of the state budget includes a provision that would abolish this tax in 2013.

Find out what's happening in Solonwith free, real-time updates from Patch.

Drucker said Solon would lose about $499,000 each year if that tax is repealed.

According to the Plain Dealer, the tax is levied at estates valued at more than $338,333. The tax brings in about $250 million a year to local governments and $60 million to the state.

Find out what's happening in Solonwith free, real-time updates from Patch.

But while that change would create a budget hole officials would need to plug, other measures would decrease costs for Solon.Β 

Kasich's budget also had a proposal to shift the cost burden of employee pensions from the employer to employees. The plan was to reduce employer contributions by 2 percent and increase the workers' contribution by 2 percent.

That plan was removed in the house version of the budget, but the Senate is expected to re-introduce that proposal during its budget deliberations.

If enacted, Solon would save about $466,000 per year.


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