YOUNGSTOWN, Ohio (WKBN) – A local State Representative is warning a new tax measure in Columbus could mean big trouble for local governments and agencies.

Lauren McNally spoke with Mahoning County Commissioners Thursday, giving an update on key pieces of legislation being considered in the Statehouse.

One would be House Bill 1, which would change the state income tax system so everyone would pay the same percentage of their wages. McNally says it will reduce the budget by more than a billion dollars.

“What it is going to do is roll back a lot of the local government funding and then everything on the local government level, your libraries, your schools, your parks, your streets, are going to have to be put up for levies,” McNally said.

McNally says she hopes to hear from organizations that run libraries and other agencies to let them know about the impact she says the bill will have.

“The public park associations. We need to hear from more of those types of organizations, and we need to make sure they understand how it’s going to affect their budgets,” she said.

The bill’s sponsor, Rep. Adam Mathews, R-56th District, says the bill would make Ohio a flat tax state and provide an income tax cut to anybody who pays taxes in the state. It separates income tax rates from property tax rates and gives a property tax cut based on lowering the taxable value of a home.

Mathews said Ohioans deserve to live without “overwhelming tax burdens. Now is the time for us to give these opportunities back to our citizens.”

Patty Coller contributed to this report.