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FOR IMMEDIATE RELEASE
April 20, 2007

Department of Aging Supports Strickland Tax Credit Expansion
Those Currently Eligible Urged to Apply Now

COLUMBUS - Barbara E. Riley, Director of the Ohio Department of Aging, has gone on the road to talk to seniors about Governor Ted Strickland's budget proposal to expand eligibility for and benefits under the state's Homestead Tax Exemption Program. Riley is also encouraging those who are eligible under the program's current guidelines to apply before the June 4 deadline.

"For years, the Department of Aging and the aging network have been telling older Ohioans about the valuable reprieve from ever-increasing property taxes that the Homestead Exemption offers," Riley said. "We're thrilled that the Governor has found an innovative way to breathe new life into a proven program and make it even more valuable for the people of our state."

In his first executive budget, currently being considered by the Ohio House of Representatives, Strickland proposes simplifying and expanding eligibility for the statewide tax credit to include all Ohioans over age 65 and adults with disabilities, regardless of income. As a result, as many as 775,000, or one in four homeowners will be eligible. His plan also makes the credit easier to calculate, by exempting the first $25,000 of a home's market value. This progressive approach ensures that the program provides the most benefit to those who most need it.

"What would you do with an extra $406?" asked Riley. "That's what the average older homeowner would save with the expanded exemption. What's more, those savings will find their way back into the economy as more seniors are able to afford the food, care, medicines and services they need and may be more willing to support local levies with their property tax liability decreased."

To help fund the program, Strickland is proposing the state securitize future payments from Ohio's tobacco settlement funds to generate more than $5 billion in funding for construction of primary and secondary schools. This infusion of cash will allow the state to forego taking out loans over the next three years, resulting in estimated interest savings of $250 million a year - enough to support the tax credit over the next 20 years.

Riley urges homeowners who are eligible for the exemption under current guidelines (those age 65 or older with a household income of $26,200 or less in 2006, or adults with a disability and the same income) not to wait until the budget passes to apply for the credit.

"We don't yet know what the application process will be when the new program begins, but we know that more than 221,000 Ohioans currently qualify," Riley added. "We also know that those who are already receiving the credit will have their feet in the door when the new program starts, and may even get credit for the prior year, if they qualify."

To apply for the Homestead Exemption, contact your county auditor's office. The deadline to apply is June 4, 2007.

About ODA

The Ohio Department of Aging serves and represents two million Ohioans age 60 and older. The Department advocates for the needs of all older citizens, with an emphasis on improving the quality of life for older Ohioans, helping them live active, healthy and independent lives, and promoting positive attitudes toward aging and older people. The Department provides services to older Ohioans through 12 area agencies on aging, home- and community-based Medicaid waiver programs such as PASSPORT, the long-term care ombudsman and the Golden Buckeye Card. For more information, visit www.goldenbuckeye.com.