A bill to require municipalities to pay around $80 million a year more toward pensions for law enforcement passed the House with bipartisan support. But the bill, which is supported by cops but opposed by cities, may not get much further.
House Bill 296 would require municipalities to increase the contribution to the fund for police from 19.5% to 24% over six years, which is the rate for firefighters. It also boosts the employee contribution from 12.25% to 12.5 starting in 2030.
The Ohio Police and Fire pension fund is short about $15 million after a financial crisis in 1967. Sponsor Rep. Cindy Abrams (R-Hamilton), a former police officer, said first responders have already pitched in - the retirement age was raised from 48 to 52 and cost-of-living adjustments were eliminated until a member is 55 and then capped at 3%, adding up to $3.2 billion.
"This issue cannot wait. The storm we warned about over three years ago is now here. It is upon us," Abrams said. "And if we the legislature fail to take action, the fund will become unstable, jeopardizing the pensions of our first responders."
Cities pay $300 million to the Ohio Police and Fire pension fund annually. Some say the increase, estimated at about $80 million a year, could force layoffs, cuts in services or tax increases.
Democratic amendments to send cities state money to help with the increase were shot down. But 23 Democrats and 43 Republicans voted for the bill, with 19 Republicans and six Democrats against it.
"This cannot be the end of the dialogue, because we are only addressing one piece of the equation today," said Rep. Beryl Brown Piccolantonio (D-Gahanna), who voted for the bill. "As we head into a new budget cycle, I implore us to continue the conversation and to be creative about approaches to supporting our local communities."
If retirements and benefits for first responders aren't solid, Rep. Sean Brennan (D-Parma) said he fears people who might be interested in those careers would turn away from them.
"And the labor shortage among those ranks is going to be the worst this nation has ever seen," said Brennan, a former Parma city councilmember. "I understand that there's a cost here, but I believe that that cost is small, considering what it might cost down the road if what I just stated comes true.”
But there might not be enough time for a vote in the Senate before session ends this month.
“Getting this done before the end of the year I think is going to be extraordinarily difficult," said Senate President Matt Huffman (R-Lima), who talked to reporters before the bill passed the House Wednesday. "We're certainly going to to try to address it in the last eight or nine days. But....it's a complicated business. So it's hard for me to believe we're going to get that done."
There are no committee meetings set for the rest of this week or for next week so far, with Senate session scheduled for next Wednesday.
