Legislative Update - February 2021
Governor Unveils Frame Work For State Operating Budget; More Introductions To Come
Ohio’s legislators consider hundreds of bills during a typical two year legislative session, but no legislation is more important to the state of Ohio than the bills that compose the state budget. As is customary in odd numbered years, three major budget bills will be enacted in 2021. These budgets consist of the state operating, transportation and BWC/IC budget. With certainty, CEA will be a voice for our industry during these important deliberations.
Operating Budget
The five month long budget process began on Feb. 4th with a House Finance committee hearing on the State’s Operating Budget. The Governor’s proposal, which must be enacted before July 1, totals $85.7 billion in Fiscal Year 2022 and $85.8 billion in FY 2023 across all funds. The State-only GRF spending is slated to be $24.3 billion in the first year and $25.9 billion in the second year of the budget. Some provisions of note include:
- Assisting 15,000 small businesses by providing $10,000 grants to the qualified Small Business Relief Grant applicants who have yet to receive assistance through the state's share of the Coronavirus Relief Fund
- Investing $200 million to provide up to $2.5 million in grants to pay for infrastructure projects in communities
- Investing $15 million to support targeted workforce investments in economically distressed rural and urban communities
- Investing $16 million with the goal of helping high school students earn 70,000 workforce credentials each year
- Funding the Industry Sector Partnership Grant to support partnerships among business, schools, training providers, and community leaders, strengthening the local workforce
- Moving Equal Opportunity Services Program This line item has supported the Minority Business Enterprise; Encouraging Diversity, Growth, and Equity; Women's Business Enterprise; and Veteran-Friendly Business Enterprise Programs, which help disadvantaged businesses sell goods and services to state agencies. In fiscal year 2022, DAS will move this line to the Development Services Agency (DSA)
- Funding For Facilities Construction Commission
GRF: Funding for fiscal year 2022 is $457.4 million (or a 40.2% increase from fiscal year
2021). Funding for fiscal year 2023 is $426.7 million (or a 6.7% decrease from fiscal year
2022). • All Funds: Funding for fiscal year 2022 is $465.6 million (or a 39.3% increase
from fiscal year 2021). Funding for fiscal year 2023 is $435.3 million (or a 6.5% decrease
from fiscal year 2022)
- BWC expansion of the Substance Use Response (SUR) Program to a statewide program
Transportation Budget
The transportation budget funds programs with motor vehicle fuel taxes and registration fees. These programs primarily are housed in the departments of Transportation and Public Safety. The transportation budget must be signed into law by March 31st. It should be noted that the Office of Budget and Management Director has stated that gas tax revenue is "not expected to fully recover to pre-pandemic forecasted levels during the upcoming two-year period.” In March 2020, traffic was down about half from the same point the previous year. In the final quarter of Fiscal Year 2020, gas tax revenue was down $125 million compared to projections.
BWC and Industrial Commission Budget
Appropriations bills for the Bureau of Workers' Compensation and the Industrial Commission make up the third major spending bill. This piece of legislation should be introduced soon.
CEA Supported Bill Banning Synthetic Urine Possibly On The Fast Track
SB 25, introduced by Senator Theresa Gavarone, received sponsor and proponent testimony, on Feb. 2nd, before the Senate Judiciary Committee. The legislation, named the Relapse Reduction Act, would enhance penalties for certain drug trafficking offenses committed in the vicinity of a substance addiction services provider, and prohibit defrauding an alcohol, drug, or urine screening testing. CEA’s Tim Linville’s testimony was highlighted during the hearing. In his testimony Mr. Linville stated that, "Construction work can be dangerous, stressful and physically demanding. Each person working on a construction site depends on the skill level, competence and fitness for duty of those of their co-workers. They have to rely on one another to safely do their jobs in order to protect themselves and their fellow workers from accidents.” SB 25 is scheduled for another hearing on Feb. 9th.
Cuyahoga County Internal Equity Committee Releases Report
The Cuyahoga County Equity Commission was appointed to oversee the County’s equity efforts. The Commission identified five pilot agencies within the County and the Equity Report consists of status reports from the following five pilot agencies and one Board:
1. Department of Health and Human Services 2. Department of Development
3. Department of Public Works 4. Department of Human Resources
5. Office of Procurement and Diversity 6. Cleveland – Cuyahoga Workforce Dev. Board
Executive Budish stated, “As reflected in their report, they have established a baseline assessment of their employees and culture – this is a starting point to determining biases that may be present as they develop and implement our policies and programs. We will build on their learnings to assist the other County agencies as we expand the work to every County agency by the end of 2021.”