Statehouse News:  May 13, 2008

Statehouse News

The legislature has introduced economic stimulus packages -- both include capital improvement projects, as well as the reauthorization of the Clean Ohio Fund program in both the House and the Senate.  Hearings will begin this week on both proposals.   

Bills Introduced

HJR 5  (Sears) Clean Ohio Fund: Proposing to enact Section 2q of Article VIII of the Constitution of the State of Ohio to authorize the issuance of general and other obligations of the state to pay the costs relating to environmental and related conservation, preservation, and revitalization purposes.  

SJR 7  (Wagoner) Clean Ohio Fund: Proposing to enact Section 2q of Article VIII of the Constitution of the State of Ohio to authorize the issuance of general and other obligations of the state to pay the costs relating to environmental and related conservation, preservation, and revitalization purposes.   

HB 554 (Hottinger) Economic Stimulus: To establish the Ohio Bioproducts Development Program and Ohio Biomedical Development Program to be administered by the Third Frontier Commission, to establish the Third Frontier Economic Stimulus Advisory Board, to expand the economic development programs administered by the Department of Development to include transportation logistics anddistribution infrastructure projects, to provide additional money for capital improvement projects of local subdivisions and for highway capital improvement projects of local subdivisions and for highway capital improvement projects, to modify the authority of the Ohio Coal Development Office, to administer coal research and development projects, to provide for advanced energy projects

administered by the Ohio Air Quality Development Authority, to establish the Ohio Innovation Partnership Coop/Internship Program, to extend the historical building rehabilitation tax credit, limit credit amounts, require regional distributive balance and economic effects to be considered, and to make an appropriation. Am. & En. 149.311, 166.01, 166.02, 166.08, 166.11, 184.02, 1555.03, 3333.38, 3333.68, 3333.69, 3333.70, 3345.32, 5725.151, 5733.47, 5747.76, 5747.98, 164.28, 166.25, 166.26, 166.30, 184.23 to 184.26, 3333.71 to 3333.80, 3706.25 to 3706.29, and 5537.141   

SB 335 (Carey) Economic Stimulus: To establish the Ohio Bioproducts Development Program and Ohio Biomedical Development Program to be administered by the Third Frontier Commission, to establish the Third Frontier Economic Stimulus Advisory Board, to expand the economic development programs administered by the Department of Development to include transportation logistics and distribution infrastructure projects, to provide additional money for capital improvement projects of local subdivisions and for highway capital improvement projects, to modify the authority of the Ohio Coal Development Office, to administer coal research and development projects, to provide for advanced energy projects administered by the Ohio Air Quality Development Authority, to establish the Ohio Innovation Partnership Co-op/Internship Program, to extend the historical building rehabilitation tax credit, limit credit amounts, require regional distributive balance and economic effects to be considered,

and to make an appropriation. Am. & En. 149.311, 166.01, 166.02, 166.08, 166.11, 184.02, 1555.03, 3333.38, 3333.68, 3333.69, 3333.70, 3345.32, 5725.151, 5733.47, 5747.76, 5747.98, 164.28, 166.25,

166.26, 166.30, 184.23 to 184.26, 3333.71 to 3333.80, 3706.25 to 3706.29, and 5537.141  

Tuesday Committee Hearings

Senate State & Local Government & Veterans Affairs, South Hearing Rm., 10 a.m.

--Added to the agenda:

SB 276 (Stivers) Conservation / Revitalization Projects:  To authorize a county, municipal corporation, or township to issue public obligations to provide, or assist in providing, grants, loans, loan guarantees, or contributions for conservation and revitalization purposes.  (3rd-All –Possible Vote)

House Finance & Appropriations, Rm. 313, 1:30 p.m.

--Added to the agenda:

HB 554  (Hottinger) Economic Stimulus (1st Hearing-Sponsor-Pending referral)  

HJR 5  (Sears) Clean Ohio Fund (1st Hearing-Sponsor-Pending referral) 

Wednesday Committee Hearings

House Finance & Appropriations, Rm. 313, 9:30 a.m.

--Added to the agenda:

HB 554  (Hottinger) Economic Stimulus (2^nd Hearing)  

HJR 5  (Sears) Clean Ohio Fund (1st Hearing-Sponsor-Pending referral) 

Senate Environment & Natural Resources, South Hearing Rm., 11 a.m.

*Grendell Resolution: Constitutional amendment on groundwater and private property rights (Sponsor)

HB 416 (Dolan) Water Compact (2nd Hearing-All testimony)  

Thursday Committee Hearings

House Local & Mun. Gov’t & Urban Revitalization, Rm. 018, 8:30 a.m.

HB 521 (Wolpert) Local Government (6th-All-Amendments & possible vote)  

Finance and Financial Institutions, Finance Hearing Room, 10am

SB 335 (Carey) Economic Stimulus (1^st Hearing, Sponsor Testimony)

SJR 7 (Wagoner) Clean Ohio (1^st Hearing, Sponsor Testimony)  

Statehouse News:  May 12, 2008

Committee Schedule:

Wednesday, May 14th

Senate Environment & Natural Resources, South Hearing Rm., 11 a.m.

*Grendell: Sponsor Testimony on constitutional amendment on groundwater and private property rights

HB 416 (Dolan) WATER COMPACT (2nd Hearing-All testimony)  

Thursday, May 15^th

House Local & Mun. Gov’t & Urban Revitalization, Rm. 018, 8:30 a.m.

HB 521 (Wolpert) LOCAL GOVERNMENT (6th Hearing-All testimony-

Amendments & possible vote)  

Administrative News:

Strickland’s policy priorities would likely require tax hike or

program cuts in next biennium budget, expert says

Without a tax hike next biennium, Gov. Ted Strickland's plans to reform education, increase health care coverage, and make universities more affordable will become extremely difficult, according to one veteran state budget guru.

Budget forecasts for the upcoming biennium that were conducted even before the economy turned south anticipated the smallest general revenue fund growth since introduction of the personal income tax more than thirty years ago, financial consultant Richard Sheridan said in a recent Center for Community Solutions analysis.

Not accounting for the effects of the current recession on GRF receipts, the state would have only an additional $1.1 billion, or about 2% more to spend each year of the next biennium, said the first director of Ohio 's Legislative Budget Office in the 1970's. That's largely due to previously enacted tax cuts.

"Already there are commitments, or probabilities, that could require significantly more than that sum, not counting amounts needed to pay for increased debt-service costs, built-in state employee benefits costs, and increased fuel, energy, and other maintenance costs affected by rising inflation," he said.

The economic downturn will likely make for even smaller revenue receipts than originally anticipated and may prompt the legislature to tap the Budget Stabilization Fund this biennium, he said.

If policymakers decide to spend down the so-called "rainy day fund" to stave off a deficit this biennium, replenishing it would probably require the total amount of new money available next biennium, he said. "But even without that occurring, the state will have problems funding its goals for higher education, primary and secondary education reform, or the proposed economic stimulus package, not to mention Medicaid and adult correction deficits, and commitments to settle the juvenile corrections lawsuits.

"Added together, new demands on a rapidly depleted state GRF could very well result in a large general tax increase as the only way of balancing the next state budget," he said.

Strickland spokesman Keith Dailey said the governor believes he will be able to continue progress on his "Turnaround Ohio " plan next biennium without increasing taxes.  "The governor does not think a tax increase would be wise for the state at this time," he said.  Gov. Strickland has already accomplished a number of his priorities in the current biennium, despite limited resources, Mr. Dailey said, pointing to additional higher education funding to support a two-year freeze on tuition hikes and expanded access to children's health care programs.

"He intends to continue living within our means in the next budget cycle," he said, noting the Office of Budget and Management recently issued guidance to state agencies to plan for funding scenarios of 90% and 95% of their current appropriations when developing their budget requests for the next biennium.

Barring a tax increase, Mr. Sheridan said the state would likely have to:

Asked in a recent interview for his perspective Mr. Strickland's options, U.S. Sen. George Voinovich recalled large-scale protests that his budget cuts sparked off during a recession in the 1990's.  "Finally I went to (Speaker) Vern Riffe and I said, 'Vern, we're going to have to increase taxes in order to balance our budget. You know I've got the courage to make the cuts, but we're down to the bone," he said. Eventually, the economy improved, enabling the state to build up the rainy day fund and reduce taxes, he added.  However, his 1998 plan to hike the sales tax by one cent to increase funding for education became a political liability during the year he ran for the U.S. Senate, he said. "I got clobbered. I got clobbered from the conservatives, my opponent ran ads against me.

"He's in a tough position," the former governor said of Gov. Strickland. "My heart goes out to him. It really does. He's got a tough job on his hands."

Statehouse News:  May 9, 2008

Committee Activity on Thursday, May 8^th

House Local & Municipal Government & Urban Revitalization

The committee took testimony on HB 521, Rep. Wolpert’s legislation that would create the Ohio Commission on Local Government Reform and Collaboration to develop recommendations on reforming and restructuring local government in Ohio .   During the legislation’s 5^th hearing, testimony was offered by Mayor Deborah Sutherland of Bay Village , testifying as an interested party.   Rocky Black, senior policy director for the Ohio Farm Bureau Federation testified that the FB believes the legislation is necessary and timely considering the need to improve efficiencies and accountability, however, also noted that the FB strongly supports keeping government as limited and close to the people as possible. Robert Cornwell, executive director of the Buckeye State Sheriffs Association, also testified.  He told the committee that local governmental units already have the authority to combine and contract for certain services. The BSSA is also concerned about the commission structure and felt improvements were needed to ensure proper representation.

Schedule for Next Week, May 12^th-16^th

Wednesday, May 14

Senate Environment & Natural Resources, South Hearing Rm., 11 a.m.

Sen. Grendell:  Sponsor testimony will be offered on a constitutional amendment on groundwater and private property rights. 

HB 416 (Dolan) Water Compact:  Great Lakes-St. Lawrence River Basin Water Resources

Compact:  Second hearing, all testimony will be considered.

Thursday, May 15

House Local & Municipal Government & Urban Revitalization, Rm. 018, 8:30 a.m.

SB 268 (Seitz) County Bidding :  To allow a county contracting authority to use competitive

sealed proposals instead of competitive sealed bidding when doing so would be

advantageous to the county:  Sponsor Testimony

HB 521 (Wolpert) Local Government:  Creating Ohio Commission on Local Gov’t Reform

and Collaboration:  6^th Hearing, all testimony and possible vote.