Legislative Update - February

The newly elected members of 135th Ohio General Assembly were sworn in during the first week of January. Republicans continue to dominate the majorities in both chambers with a 26-7 majority in the Senate and a 67-32 margin in the Ohio House. The legislature’s main focus for the next six months will be debating and passing Ohio’s budget bills.  These mandated bills for enactment are the State Operating, Transportation, Workers’ Compensation, and Industrial Commission Budgets. 

Locally, Chris Ronayne was sworn in earlier this January and will serve as the third Cuyahoga County Executive. Executive Ronayne replaces Armond Budish who served for two terms in that role. As he begins his first term, the Executive intends to focus on issues that include workforce development, public transportation, and housing. CEA met with Executive Ronayne prior to him being elected, and we look forward to working with him and his staff on issues that impact CEA members. 

Finally, Mayor Bibb begins the second year of his first term. He continues to work with the Cleveland City Council on dispersing ARPA funding, finalizing a Community Benefit Agreement proposal, and economic development issues.  

Governor DeWine Delivers the State of State

Governor DeWine presented his State of the State speech before a joint session of the Ohio House and Senate on January 31st.  Areas of possible interest to CEA members include but are not limited to; 

• Creation of an “All Ohio Future Fund” - a one-time investment of $2.5 billion to prepare the infrastructure of large economic development sites located in every single part of Ohio.  
• $300 million of one-time funding for capital improvements and equipment for career tech education.
• Need-based financial aid to students choosing to enroll in community colleges or university regional campuses. 
• Expansion of the Ohio College Opportunity Grants to include many more working Ohio families and increasing the scholarship amount per student.

BWC Rate Cut Discussed for Employers 

Employers in Ohio are likely to see a cut in their workers’ compensation premiums following a Bureau of Workers’ Compensation (BWC) Board of Directors review of the proposed 2024 fiscal year premiums.  The BWC actuaries stated that the proposal would lower employer premiums 8 percent which could potentially save Ohio employers more than $90 million. This is in addition to the more than $100 million saved by a premium cut for employers last year.  If the new rate cut proposal is approved, the reduction would take effect July 1, 2023.

CEA On Cuyahoga County Transition Work Group 

CEA was honored to be asked to participate on an Economic Development Task Force created by County Executive Ronayne.  This work group shared ideas on what the County can do ranging from small changes to transformational changes to move this region and its economy forward. 

• The Executive has reiterated his commitment to:
• Building out housing initiatives
• Improving public transportation 
• Focusing on workforce development 
• Modernizing government 
• Establishing an ombudsman office 
• Focusing on justice and jail issues
• Providing early intervention and youth opportunities

Cleveland City Council Passes Workforce Legislation and Funding

Cleveland’s Workforce, Education, and Training Committee, as well as the Finance Committee and then the full City Council passed legislation setting aside $10 million to help prepare residents for certain workforce programs.  The intent of the legislation is to increase minority participation in construction, lead safety, broadband, brownfield clean up, and other areas by training an increased number of workers, expanding apprenticeship programs, providing career development for students and additional support for those in job training.  It should be noted that CEA’s Executive Vice President, Glen Shumate, testified in support of the legislation and worked with the Administration and Council on this bill.  

Cleveland City Council Continues Discussions on Community Benefits 

Cleveland City Council, led by Council President Blaine Griffin, and others on Council continue to work with CEA and other industry partners in regard to updating the Community Benefits Agreement package for the City. CEA has been involved throughout the process and continues to work with elected officials and those in our industry on crafting legislation that helps residents and the community. 

Mayor Bibb Submits Budget Proposal

The Mayor has identified violence prevention, public safety, East Side neighborhood development and transforming the lakefront as a few of his budget priorities.  The budget also listed a host of proposals and in-progress initiatives regarding further investments for the City’s East Side and for areas Citywide.  These included:

• Executing the “Putting Assets to Work” initiative to identify and put city-owned parcels into use for new developments.
• Unlocking the full potential of Cleveland’s “commercial corridors,” particularly the Opportunity Corridor.
• Reforming the city’s nuisance abatement process through a task force to deliver “swift responses to improve neighborhood quality of life.”
• Streamlining the city’s lead hazard abatement process, along with more outreach to owners and tenants. Cleveland.com recently reported that 80% of rental properties have not yet been certified as lead safe after two years.
• Investing American Rescue Plan Act money into home repairs and gap financing for homes.
• Investing $10 million to grow a new pipeline to increase the number of local workers in infrastructure, construction, lead abatement and clean energy projects.

The proposed $1.948 billion budget will be worked on by City Council and must be completed by April 1st.