By Erica Solvig
Enquirer staff writer

HAMILTON TWP. - State lawmakers told local government leaders Friday that while they're trying to be optimistic about future budgets, they realistically must prepare for more cuts.

That was prediction from state Rep. Tom Raga, R-Mason, and state Sen. Robert Schuler, R-Sycamore Township, to a 30-person audience at a meeting of the Warren County Municipal League.

Also speaking at Tournament Players Club at River's Bend was Mike Miller, legislative aide to Rep. Michelle Schneider, R-Madeira.

While officials don't think the local government funds will be eliminated, they say it is possible that the funds might be on the chopping block.

The funds are designed to supplement county and municipal government budgets.

"The temporary sales tax is due to expire," Schuler said, referring to a temporary one-cent hike that runs out next year. "That money has got to come from somewhere. Some people think local government funds will offset it."

According to Schuler, local governments funds for fiscal year 2005 are $81 million less than they were in fiscal year 2001.

Meanwhile, estimates show that the state's next two-year budget, which lawmakers will be discussing early next year, is predicted to be nearly $4 billion in the hole.

Raga suggested that in order to be guarded from potential cuts in the future, communities might want to create their budgets by keeping in mind a possible 10 percent cut in local government funds.

That way, communities won't run into trouble if more cutbacks are made.

"I'm trying not to be too pessimistic," Raga said.

The hour-and-a-half question-and-answer session also touched on other budget concerns, such as school funding, Medicaid and tax reform.

But county leaders' major concern was how these changes would affect local coffers.

"A lot of our revenue keeps going to Columbus," Waynesville Mayor Ernie Lawson said. "We need these dollars to operate."

E-mail esolvig@enquirer.com