State Budget Cuts Hit Cuyahoga Falls

State funding cuts were discussed as a part of the Cuyahoga Falls city council meeting July 25. From the sounds of things, the city will feel some budgetary pain as a result, but not in a way immediately visible to the city's taxpayers.

While shrinking budgets appear to be an issue for all municipalities across Ohio, Cuyahoga Falls Finance Director Joseph Brodzinski is “confident” that despite changes in the tangible personal property tax exemption, capital projects (.i.e. roads, infrastructure) are likely carry on without event.

“Effective [this month] there was a change to that exemption, which means that we will lose about $500,000 in revenue compared to what was budgeted,” Brodzinski told Patch in an interview Friday.

Next year, changes to the exemption will pair with property tax reduction “which has nothing to do with state budget, but 100% to do with economy” and will result in a $1.7 million decrease in funds, according to Brodzinski.

“In 2013 those items plus, the elimination of estate taxes will impact Cuyahoga Falls to the tune of $3 million,” he said. “That’s a lot of money and we’ve already been making aggressive spending cuts since 2006.”

Brodzinski said that, at least until 2013, these cuts will be minimally visible to the eyes of the average taxpayer.

The way most cities operate, he said, this will equate to less revenue available in the general fund for capital projects.

“We have continued, and will continue to do, capital programs and projects because we have funds set aside,” Brodzinski offered, adding that the city has long considered such projects a priority.

“I think a lot of cities will feel the same pain we are, but it’s not clear how that will impact what they choose to do about infrastructure. We will still be doing roads and still be getting things done, which is a good thing.”

Loss of tax revenue is a familiar plight to cities all across the state, according to Kathy Hummel, Finance Committee Chair and Councilwoman At-Large.

“All communities in the state of Ohio are facing these same dire straits that we are with the loss of local government funds and the lowering of real estate collections,” Hummel told Patch this week.

“Not a nice picture,” Ward 7 City Councilman Jerry James told Patch.

“But it’s something that will hopefully be turned around, not necessarily overnight, but in baby steps.”