Bill > HB574

This bill establishes the Political Subdivision Consolidation Incentive Grant Pilot Program, administered by the Secretary of State, to provide financial incentives for political subdivisions (like townships and municipal corporations) that merge or consolidate. The program defines a "merger" as a process where one political subdivision absorbs another or multiple subdivisions combine to create a single entity, excluding joint service districts. Eligible political subdivisions can receive grants based on a specific formula that calculates funding using population size and pre-merger budget amounts. For townships and municipal corporations, the grant is calculated by multiplying the merged population by forty and adding twenty percent of the lowest pre-merger budget, with a maximum grant of $2.5 million. Other political subdivisions receive a similar grant calculated by multiplying population by twenty and adding ten percent of the lowest pre-merger budget, with a maximum of $1 million. Grants are awarded on a first-come, first-served basis, subject to fund availability, and each political subdivision can receive only one grant. The bill appropriates $25 million from the General Revenue Fund for fiscal year 2026 to support this pilot program, with any unexpended funds reappropriated for fiscal year 2027.

Government Affairs

https://www.legislature.ohio.gov/legislation/136/hb574