GCP, Ohio Chamber execs discuss budget recommendations before Ohio House committee

Tuesday, February 08, 2011

Proposed strategy would implement performance-based state aid to local governments

Columbus, Ohio—In testimony before the Ohio House Local Government Committee, two chamber of commerce officials said that implementing performance-based state aid to local governments is an important strategy that will help the State of Ohio balance its budget.

Greater Cleveland Partnership Senior Vice President of Advocacy Carol Caruso joined with Linda Woggon, executive vice president of the Ohio Chamber of Commerce, to provide comments today on “Redesigning Ohio,” a collaborative report by the Ohio Chamber and eight Ohio metropolitan chambers that outlines ways to transform government into a 21st century institution. Their remarks said in part:

“’Redesigning Ohio’ recommends that, in the effort to balance the budget, state leaders should not miss the opportunity to get more value for the dollars they send to local government. This should include the transition to a new model, under which state government buys better, more clearly defined results and related operational efficiencies from local government.

“This new model should also require local governments, at least on a limited basis beginning with demonstration projects, to compete for state resources based on the results they achieve and should include relief from unfunded mandates that stand in the way of achieving the desired results. This model should be funded by diverting an increasing percentage of the local government fund from the current approach to one that more effectively buys specific results, performance-based innovations and improved efficiencies.

“To further encourage innovation among local governments, a Local Government Transformation Fund should be established to finance demonstration projects, help advance county-led collaboration and shared-services planning, and provide information on good government best practices within local political subdivisions. In the end, the state must work with local governments to incent and, when necessary, require system redesigns that lower costs and improve services.”

The Redesigning Ohio report was prepared by Canton Regional Chamber of Commerce; Cincinnati USA Regional Chamber; Columbus Chamber; Dayton Area Chamber of Commerce; Greater Akron Chamber; Greater Cleveland Partnership; Ohio Chamber of Commerce; Toledo Regional Chamber of Commerce and the Youngstown/Warren Regional Chamber.

The work was guided by David Osborne, a national expert on government reform, and Dr. Greg Browning one of Ohio’s foremost advisors on state budgets and governmental processes who served as Director of the Ohio Office of Budget and Management from 1991 to 1998. 

Click here to read the full testimony. Use these links to read or download the "Redesigning Ohio" executive summary and full report.

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