State Representative Jim Buchy
Expanding Budget Options for Local Governments 

In an effort to assist local governments and school districts, the state legislature last year passed a bill that established an innovative program called STAR Plus. The program gave Ohio’s local governments and school districts the ability to deposit funds into FDIC-approved banks in Ohio, which, after earning interest, would generate more money in the future. 

The money that would be deposited into banks comes from reserve funds as a way to provide public entities with more money down the road. Local governments were always allowed to deposit cash into banks, but the legislation adopted in House Bill 209 of the previous General Assembly simply makes it possible for those deposits to earn interest. 

Before we passed the bill, our top concern was that any taxpayer dollars that were being collected were also being protected. STAR Plus is a safe program because it allows for money only to be invested in secure, FDIC-backed community banks. Additionally, the program is not a mandate. It is simply an option that is available improve upon budget constraints. A number of townships, villages and schools in the 84th House District have invested in the program. 

The law has already paid major dividends. A few days ago, State Treasurer Josh Mandel announced that the program has drawn $1 billion in investments in just its first 10 months of operation. That extra money generates more funding for various government programs that go towards public safety and education. 

I applaud Treasurer Mandel for standing behind this program. Ohio became the first state in the country to adopt a measure like STAR Plus, and the results have been extremely promising. 

Uncertain economic times can put a lot of strain on both state and local governments, as well as on Ohio residents. During times like these, it is especially important that we do all that we can to weather the storm until the economy picks up again.