State Budget Passes The Ohio House, The Ohio Senate, And Is Signed By The Governor

After months of committee hearings, testimony and debate, Ohio’s two-year state budget (HB 110) was signed by Governor on June 30th.  The measure appropriates just under $74.1 billion during Fiscal Years 2022 and 2023 from the General Revenue Fund and $161.9 billion across all funding areas.  The bill contains a number of policy changes in its thousands of pages.  Here are some provisions that may be of interest:

• Transfers The Equal Employment Opportunity Division and Contractor Compliance Program from The Department of Administrative Services (DAS) to The Department of Development (DEV). 
  
  This provision transfers responsibility to administer the Contractor Compliance Program from DAS to DEV. (The program ensures state contractors adhere to state affirmative action policies.) It also transfers responsibility for administering the Minority Business Enterprise Program, the Encouraging Diversity, Growth, and Equity (EDGE) Program, the Women-Owned Business Enterprise Program, and the Veteran-Friendly Business Enterprise Program to the Director of Development and the Department of Development (DEV), rather than the Director of Administrative Services (DAS) and the Equal Opportunity Employment Coordinator within DAS.
   
• Funds Minority Business Bonding 
  
  Permits the Director of Development, upon the recommendation of the Minority Development Financing Advisory Board, to pledge up to $10.0 million in unclaimed funds in the FY 2022-FY 2023 biennium allocated to the Minority Business Bonding Program.
   
• Minority Business Enterprise Loan 
  
  Requires the Minority Business Enterprise Loan Fund to be used for awards under the Minority Business Enterprise Loan Program and to cover operating expenses of the Minority Business Enterprise Division.

• Income Tax Reduction 
  
  Reduces tax rates by 3% in tax year 2021 and thereafter, except eliminates the top bracket and further reduces the tax rate in the next-to-top bracket to 3.99%. Increases the income level at which the lowest tax bracket begins to $25,000 in tax year 2021.
   

Note that CEA and its lobbying team along with others in the industry were also successful in keeping force account provisions out of the budget bill.  The language that came out would have had significant force account increases directly taking work away from private employers and workers and giving it to government entities and public sector workers. This was a great development for smaller contractors. CEA was also successful along with its industry partners in obtaining one of only fourteen vetoes in regard to how the state controlling board agenda is scheduled. The vetoed language would have slowed public construction and would have led to inefficiencies in agency procurement processes.

Cuyahoga County

The County continues to have its interior and exterior equity committees meet and discuss equity issues.  CAA / CEA are pleased to announce Glen Shumate was appointed to serve on the Cuyahoga County Citizens’ Advisory Council on Equity.  Executive Budish made this appointment, and Cuyahoga County Council unanimously approved the appointment.  The County is also focused on implementation of previously passed equity ordinances and executive orders.  Finally, one more item to report on is that the 5-year economic plan that is produced each year is making its way through the Council at this time.