On January 31, Governor Mike DeWine submitted his blue book budget proposal to the Ohio General Assembly. There were a number of areas that GOPC has keeping an eye on as part of the ‘as introduced’ budget, which are detailed below.
Public Transportation Budget
The DeWine administration has proposed to fund public transportation with state GRF revenue each year of the biennium, with just over $37 million per year set-aside for Ohio’s public transportation agencies. These funds support operations at Ohio’s urban and rural public transit agencies.
GOPC was pleased to see this proposal, which is on par with the funding over the past two years that was approved by the state legislature in 2021 after initially being recommended by the administration to be cut to less than $10 million per year. We look forward to working with lawmakers over the next several weeks to continue to grow this support, which helps workers connect to jobs, allows elderly and disabled riders to access needed services, and reduces wear and tear on Ohio’s roadways.
Brownfield Revitalization Fund & Building Demolition & Site Revitalization Programs
The Brownfield Remediation Fund (BRF) and the Building Demolition and Site Revitalization Programs (BDSR) were created by the Ohio General Assembly in 2021 and invested nearly $500 million in 87 of Ohio’s 88 counties to identify, remediate, and redevelop blighted properties across Ohio.
GOPC was disappointed to see that it appears the administration is not prioritizing investment in brownfield remediation and residential and commercial demolition. Both the BRF and BDSR programs have been zeroed out for funding in the blue book budget proposal.
Through the BRF fund, 125 sites received grants to assess the level and type of environmental contamination present. Over half of these assessment dollars were awarded in counties with less than 70,000 residents. Remediating Ohio’s brownfields will create shovel-ready economic development projects across the state and is key to ensuring that Ohio’s left-behind communities have the opportunity to compete for jobs and economic growth.
Affordable Housing Development
Last month, Governor DeWine signed legislation passed by the 134th Ohio General Assembly in late 2022 which contained a number of provisions which will limit affordable housing opportunities in Ohio. At the time, the Governor said that his budget proposal would address the issues raised by the legislation and help to address the states affordable housing crisis.
While details remain to be provided, during his State of the State Address which focused entirely on the budget, the Governor announced that his affordable housing proposals included
The creation of a state low income housing tax credit (LIHTC)
The creation of a new single family affordable housing tax credit
The creation of an Ohio first-time homebuyer savings account and home improvement savings accounts
Greater Ohio looks forward to working with the legislature and the administration related to these proposals aimed at addressing the affordable housing crisis in Ohio.
All Ohio Future Fund and Innovation Hubs
New proposals in the budget included a commitment by the Governor to invest $2.5 billion into a new All Ohio Future Fund to support infrastructure and attract new businesses, enhance business growth and retention, and encourage workforce development across the state. During the State of the State address, the Governor noted the site investments would be located in every single part of Ohio and “within commuting distance” for every single Ohio citizen.
Not much is known about this proposal at this time, and GOPC will be keeping a close eye on the program details and how the funding is proposed to be invested across Ohio. We particularly want to ensure that these sites are developed with those Ohioans who do not have access to personal transportation and are not reliant on single-passenger automobile transportation only.
Similar to the All Ohio Future Fund, the administration is proposing to create new Innovation Hubs near Ohio anchor institutions. Similar to existing “innovation districts” which were created in the Governor’s first time in Cincinnati, Cleveland and Columbus, these hubs would help support research and development within existing innovation hubs, and create new jobs, preserve existing jobs, and support improved economic conditions across the state.
Like the All Ohio Future Fund, we look forward to seeing the details of the administrations proposal and look forward to ensuring the program creates opportunities to invest in Ohio’s legacy cities and left behind communities.
With the introduction of the budget blue book, the work of passing the two year state budget now shifts to the Ohio General Assembly. Hearings should begin soon in the Ohio House of Representatives, with the Ohio Senate likely to begin work in April or May.
GOPC looks forward to working with the Ohio General Assembly to ensure that Ohio is investing in these important programs which will continue to make it the ideal place to live, work, and raise a family. Ohio's lawmakers have championed these investments in the past, and we trust they will prioritize these investments for Ohio's future.