COLUMBUS, OH—The Ohio House on Wednesday passed legislation that would require Cleveland and other cities and villages around the state to pitch in more money to police pensions for the first time in decades.
But while House Bill 296 easily passed the House 66-25, its chances of passing the Ohio Senate in the final weeks of the current legislative session appear much dicier.
If it becomes law, the Republican-authored legislation would make public employers of police officers pay an additional $70.1 million in total in 2027 to the Ohio Police and Fire Pension Fund, and even more in future years based on inflation. That’s according to estimates from the non-partisan Legislative Service Commission.
Cleveland would have to pay about $5.5 million more per year if the legislation is signed into law, Ahmed Abonamah, then the city of Cleveland’s chief financial officer, told state lawmakers last year.
Supporters of HB296, which include the police and fire pension fund itself as well as police and firefighter organizations, say cities and villages need to chip in more because of somber economic forecasts, a dip in recruits and rise in retirees, and lackluster payroll growth.
Republican state Rep. Cindy Abrams, a former Cincinnati police officer, said in a floor speech Wednesday that the police and fire pension fund is headed toward insolvency unless something is done.
She noted that while public employers’ contribution rates haven’t changed since 1986, the 60,000 or so first responders enrolled in the fund have seen significant reductions in benefits in recent years, including increasing member contribution rates and eliminating cost-of-living adjustments until members turn 55.
“Let’s respect our first-responders and ultimately ensure the safety of our communities together,” Abrams said.
But opponents say the move would create an unfunded mandate that would force cities and villages to either slash non-pension spending – including on hiring new police officers – or raise local taxes.
State Rep. Juanita Brent, a Cleveland Democrat, said the mayors of University Heights and Cleveland Heights told her that if HB296 becomes law, the city will be forced to lay off employees.
“We have to go back to the negotiation table to get this done right,” Brent said.
Senate President Matt Huffman, a Lima Republican, said Wednesday that he considers the police pension issue a “priority.” However, Huffman said he thinks it will be “extraordinarily difficult” for HB296 to pass the Senate before this year’s lame-duck session ends in a couple weeks.
Under the bill, participating cities and villages’ annual contribution rate to the pension fund for police officers would rise from 19.5% of total payroll right now to 24% in 2027. The pension fund’s employer contribution rate for full-time firefighters is already 24%.
Of the four other major public retirement funds in Ohio, only the Highway Patrol Retirement System’s employer contribution rate of 26.5% is higher than that, according to the Toledo Blade.
Before voting to pass HB296, House members voted down two proposed Democratic amendments, as well as a Republican-offered amendment, that would provide state money to local governments to help them cover the additional pension cost.
In other business on Wednesday, the Ohio House passed House Joint Resolution 8, which would have Ohio voters decide next May whether to issue another $2.5 billion in state bonds (repaid with state tax revenue) to help local governments pay to build and repair roads, bridges and other infrastructure. The measure still awaits Senate approval.
Laura Hancock contributed to this story.
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