The Ohio Municipal League this week noted Ohio’s local communities and taxpayers contribute more than $300 million to the Ohio Police & Firefighters pension fund, and H.B. 296 would increase that by $80 million.
“The increase found in this legislation represents a significant amount of money that would be diverted from important services in our communities,” said Ohio Municipal League board president and Centerville Deputy Mayor Belinda Kenley in a statement. “When municipal budgets are constrained, cities and villages are faced with very few options to make up a revenue shortfall or to generate new revenue without reducing services to residents.”
Kenley was joined at a press conference Monday with Springfield Mayor Rob Rue and Beavercreek Mayor Don Adams. Other opponents have included city leaders from Dayton, West Carrollton and Troy.
Bill sponsor state Rep. Thomas Hall, R-Madison Twp., told this news outlet he also heard concerns from the city of Middletown. But he believes funding police pensions is a priority. He said lawmakers should consider restoring some state funding to local governments to help shoulder the costs.
The proposal comes as leaders of the Ohio Fire and Police Pension Fund, which serves more than 50,000 active and retired members, have sounded the alarms of the fund’s long-term solvency based on a surge of retirements, a lack of new recruits and a dipping investment market.
The measure has strong backing from trade associations and unions representing police officers and firefighters.
“This legislation will provide sound funding for OP&F,” said Jeffrey Moore, president of the union representing West Chester firefighters, in testimony last year. “It provides a basis for recruiting and retaining public safety employees statewide. Public safety employees count on the stability of pension and disability benefits, which this funding critically provides. Ohio’s fire fighters and police officers cannot face more cuts.”
While Vandalia’s city manager testified against the bill, Vandalia Police Chief Kurt Althouse testified in support as president of the Ohio Association of Chiefs of Police.
“This legislation is a crucial step in ensuring our officers have a reliable retirement while also supporting the recruitment and retention of qualified candidates in an increasingly competitive job market,” Althouse testified last month.
The Ohio Municipal League is asking state lawmakers to study ways to fix the pension system instead of pushing through H.B. 296, calling it an “unfunded mandate.”
“The funding period for OP&F is below the 30-year statutory threshold required by the state, and the employer increase in HB 296 will not magically fix the long-term solvency of the fund,” Ohio Municipal league Executive Director Kent Scarrett said.
If H.B. 296 does pass this House before the end of the year, it will move to the Ohio Senate for further consideration. All unfinished legislation expires at the end of the year.
