City of Brunswick and Brunswick City Schools issue joint statement opposing House Bill 335

BRUNSWICK — The city would lose approximately $3 million from its general fund and Brunswick Schools would lose about $8 million from its budget if House Bill 335 passes in its current form. The city and Brunswick Schools released a joint statement against the bill on Tuesday. Brunswick City Council also passed a resolution on Monday opposing the bill. "House Bill 335 does not align with the state's current funding practices," the joint statement reads. "It would shift the tax burden from the state to local communities, forcing us to make difficult choices that could harm families, businesses and the long-term vitality of Brunswick. While we recognize the importance of property tax relief, it should not come at the cost of the safety of our residents or our children's education." House Bill 335 was introduced on June 4, and the House Ways and Means Committee held the first hearing for the bill on June 18. The bill would get rid of inside millage, prevent new emergency and substitute levies and allow county budget commissions to override levies that were already approved by voters. "(Inside millage) is essentially a component of property taxes that cities can institute without having a vote upon it," Vice Mayor Nick Hanek said. Brunswick said its inside millage goes toward its operational services, capital improvement program and pension obligations. "A lot of concerns have been raised about the impact on safety forces because we have mandated portions of pensions and things that have to go no matter what happens," Hanek said. Bond councils have also written letters of opposition to the bill, he said. It will be harder for municipalities to do economic development incentives because inside millage is collateral for them. "When that happens, general obligation bonds that are secured by the city's good faith and credit are in default," Law Director Dennis Nevar said. "Our credit rating goes terrible. The cost of lending in the future, if you can even get lending with a certain credit rating, goes up, and it'd be very difficult to do any type of public infrastructure improvements." If the bill were approved, municipalities could increase income taxes or sales taxes to make up for the deficit, Hanek said. "There are a lot of other alternate proposals to bring residents different types of property tax relief that are probably more well thought out," he said. According to the joint statement, Brunswick Schools would lose nearly 10 percent of its operating budget with the loss of inside millage. The reduction could lead to cuts to staffing, academic programs, extracurricular activities and student support services. The statement encouraged Brunswick residents to contact their state representatives regarding House Bill 335. "We want to be clear: We support thoughtful property tax reform," the statement reads. "What we cannot support is a rushed, sweeping policy that destabilizes our city services and schools and removes local control from the voters who have consistently invested in our community's success." Contact reporter Madisyn Woodring at (330) 721-4049 or mwoodring@medina-gazette.com.