OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 573 Bill Analysis
135th General Assembly
Click here for H.B. 573’s Fiscal Note
Version: As Introduced
Primary Sponsors: Reps. Robinson and Brent
Effective date:
Zachary P. Bowerman, Attorney
SUMMARY
 Permanently increases the percentage of monthly GRF transfers to the LGF from 1.7% to
3.68% beginning in FY 2027.
DETAILED ANALYSIS
Local Government Fund increase
The bill permanently increases, beginning in FY 2027, the percentage of state tax
revenue that the Local Government Fund (LGF) receives per month, to 3.68%.1 The LGF was last
allocated this percentage in FY 2011 before being reduced in FY 2012.2
Under current law, the LGF is allocated 1.7% of the total tax revenue credited to the GRF
each month. This percentage was set in permanent law beginning in FY 2024 by the enactment
of H.B. 33 of the 135th General Assembly, the most recent biennial budget bill. Over the prior
decade the percentage of tax revenue allocated to the LGF fluctuated slightly. The LGF
allocation was temporarily increased once, to 1.68% for FY 2020 and 2021, and the FY 2022 and
2023 allocation was set at 1.66%.3
Under continuing law, most of the money in the LGF is distributed monthly to each
county’s undivided local government fund, largely based upon that county’s historical share.
Each county distributes its share among local governments according to a locally approved
1 R.C. 131.51.
2 H.B. 153 of the 129th General Assembly.
3 Section 387.20 of H.B. 166 of the 133rd General Assembly and Section 375.10 of H.B. 64 of the
131st General Assembly.
June 14, 2024
Office of Research and Drafting LSC Legislative Budget Office
formula or, in a few counties, a statutory need-based formula. A smaller portion of the LGF is
paid directly to townships, smaller villages, and municipalities.
HISTORY
Action Date
Introduced 05-15-24
ANHB0573IN-135ks
P a g e |2 H.B. 573
As Introduced


Statutes affected:
As Introduced: 131.51