Local governments and school districts throughout Ohio have an opinion on Gov. John Kasich's proposed state budget, and Hilliard is no exception.

Local governments and school districts throughout Ohio have an opinion on Gov. John Kasich's proposed state budget, and Hilliard is no exception.

According to Gov. John Kasich's proposed budget, the Local Government Fund would be cut from $665-million in the 2011 budget to $339-million in 2013, almost a 50-percent decrease. In a letter included with the state budget, Kasich wrote that the budget "closes an $8-billion structural imbalance while preserving the $800-million, two-year income-tax cut that went into effect on Jan. 1."

Hilliard Mayor Don Schonhardt mentioned the Kasich budget during his state-of-the-city address last week.

"Nine percent of our general fund revenue is derived from state-levied shared taxes, of which, the Local Government Fund accounts for approximately 50-percent," Schonhardt said. "In 2011, the proposed reductions in local government funds will reduce general fund revenues by $100,000. That reduction will grow in 2012 to $400,000.

"If these reductions in theLocal Government Fund continue at the same rate during the state's next biennium budget, local government funds will be completely eliminated as a source of revenue to the city by 2015. That means on an annual basis, in excess of $800,000 in revenues will no longer be available to citizens of this community to help provide basic governmental services.

"If we now couple the elimination of local government fund revenues with the separately proposed legislation to eliminate the estate tax, the city of Hilliard will lose an additional source of revenue beginning in 2013 that has contributed on average approximately $250,000 annually.

"Let me provide a practical example of the impact of these changes. For every $100,000 we lose in revenue from other sources, we need 125 new jobs paying an average annual salary of $40,000 to make up the loss. It would require two employers the size of BMW Financial Services Group (based in Hilliard) to compensate us for the revenue lost from the Local Government Fund alone. You would need four BMW Financial Services to recover the revenue loss resulting from reduced investment earnings ($720,000) and the elimination of the local government fund revenue ($830,000), tough to accomplish during a jobless recovery."

While Kasich has said local governments "need to become much more efficient," Schonhardt said the city of Hilliard has wrung "every ounce of efficiency from every department and employee.

"We know there are great challenges ahead and we will meet those challenges by doing what we have been doing. It's our job to protect the bottom line in the city of Hilliard and the residents of this community need to know I will do everything in my power to do just that."