OVERVIEW: KIDS & COMMUNITIES FIRST FUND

The Kids and Communities First Fund will help offset the impacts of Gov. Kasich’s historically deep state budget cuts to schools and local communities. The Kids and Communities First Fund will provide resources to schools and local communities to help keep teachers in the classroom, cops and firefighters on the streets and relief for local property taxpayers. The Kids and Communities First Fund will make $400 million available this year and up to $500 once the revenue from Kasich’s Frack Tax starts to take effect. CREATES THE KIDS AND COMMUNITIES FIRST FUND  This new Fund will be used to support the Kids and Communities First grant program  Money in the Fund will consist of: o All surplus tax revenue received by the end of FY 2012: Currently, tax revenues are $265 million over-estimate. These dollars would be transferred at close of current fiscal year – June 30, 2012 o $120 million from the Budget Stabilization Fund, leaving $126 million remaining in the fund o Revenue received through the new Kasich Severance Tax, except for funding for DNR equal to the amount raised by the current severance tax – Estimated at $17 million in FY 13 for the Fund Fund shall be used for grants awarded by OBM through the Kids and Communities First Grant program o Purpose of the grants is to provide Schools and Communities with resources “for job creation, maintenance, and retention programs and for other purposes related to increasing employment in the jurisdiction and for purposes of alleviating the need for new local tax levies” o OBM shall promulgate rules establishing the programs, within the 30 days of enactment o Controlling Board approval is required to release all grant funds to awardees Funds shall also be transferred to the Local Impact Fund to pay for the Local Impact Grant program o Establishes a grant-based program, administered by OBM o The purpose of the grants is to provide communities with funding to help alleviate the impact of increased horizontal well development/drilling within each jurisdiction o Authorizes OBM to transfer funds between the Kids and Communities First Fund and the Local Impact Fund as needed to provide funding for grants that have been awarded o Specifies that funding for the Local Impact Grant program shall only come from revenue raised through the new Kasich Severance Tax

NEW KASICH SEVERANCE TAX
o o o Reinstates the As Introduced language on the Kasich Severance Tax Similar to As Introduced language for DNR funding, provides that revenue equal to the amount that would have been raised under current severance tax rates during the preceding FY be transferred to DNR All other Kasich Severance Tax revenue shall be used to support the Kids and Communities First grant program and the Local Impact Grant program

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