East Cleveland leader. [volume] (East Cleveland, Ohio) 1942-1970, 1950-03-23
City Income
Tax? Not Here
Say Officials


about a municipal income tax levy.
City officials when approached on
the subject following the state
ment by Ohio Tax Commissioner
c. Emory Glander in Columbus last
Thursday, replied they are not
contemplating any such action
here.
Glander, speaking before con-
ference on restaurant manage
ment, held that Ohio cities need
ing more than they are now re-
ceiving from state aid, should turn
to the municipal income tax levy
as their individual solution. At the
same time he warned against abuse
of the levy power.
Under the current state aid pro-
gram Ohio will appropriate and
earmark % million dollars to tax
ing subdivisions this year. County
city and school districts are in
cluded. Of this sum Cuyahoga
County will receive eight and
half million dollars. Allocated by
the County Budget Commission,
East Cleveland municipality will
receive $185,000 as it's share. The
money goes into the general oper-
ating fund.
One city sofficial gave the fol-
lowing background information on
the present state aid policy:
Inception of the state aid pro-
gram dates back to the action plac-
ing ten mill tax levy limitation
on b-divisions. When the sales
tax was inaugurated, it was the
intent Of the legislature to aid
schools and municipalities with in
come lost through the 10 mill levy
act. Basieally, a large proportion
of sales tax income goes back to
the subdivisions. In allowing this
policy, the legislature has recog-
nized increased operating costs
with increasing state aid. For in
stance, in 1914 East Cleveland re-
ceived $65,000 in state aid. Two
years later the figure went to
$87, 600 and is 1947 jumped to
100000. 1t has increased steadily
year by year and for 1850 it will
be $185, 900. The current program
set up for state aid is operating
to July 1, 1941.
Repercussion to Glander's state
ment came from both Mayor Thorn
as A. Burke of Cleveland and Gov
ernor Frank ]. Lausche.
Burke said if the state would
live up to it's obligations on poor
relief, instead of thrusting them
on municipalities, no talk of new
tax would be necessary.
Governor Lausche held that if
addition state aid is needed, it
would seem that the obligation
rested with the municipality, which
in turn should impose the tax. He
added that if those who spend
public money are faced with the
responsibility of urging such as
tax, there will be greater thrift
in the spending.
Schools also receive aid from
the state under what is known as
the School Foundation Law. 1t
also, has increased and under a
new policy adopted in 1947 ma
terially increased this source of
revenue for school districts all
of which were in more or less
financial stress.
In the sums allotted to the school
under the Foundation law, explains
Miss Ruth Nemec, clerk-treasurer
of the East Cleveland School dis
trict, the state deducts the dis
trict's share of retirement of both
teaching and non-teaching en-
ployees. AS salary increments
boost the salary costs, the deduc-
tions increase proportionately each
year.
In 1850 the gross credit locally,
will be $259,820 out of which the
state will deduct $40,216 for teach
ing employee retirement needs, and
S14,78O for non-teaching require
ment needs.
In 1945 the East Cleveland
School district received $191 $40.
This went up to $2O9,G2S in 1916
and in 1947, when new estimate,
namely per pupil attendance was
established as a basis, it brought
the income to $232,OOO.