A monthly newsletter of the Legislative Budget Office of LSC  
Volume: Fiscal Year 2020  
Issue: September 2019  
Highlights  
Jean Botomogno, Principal Economist  
Total GRF sources in the first two months of FY 2020 were $53.8 million (0.9%)  
above estimates published by the Office of Budget and Management (OBM) in  
August 2019. Year-to-date (YTD) GRF tax revenue was $34.1 million (0.9%) above  
projections, including positive variances from the sales and use tax ($35.4 million)  
and the commercial activity tax (CAT, $28.7 million), though the personal income  
tax (PIT) was short $14.3 million. On the other hand, GRF program expenditures  
through August were $92.0 million (1.5%) below their anticipated levels.  
Ohios economy added 4,500 nonfarm payroll employees in July, and the  
states unemployment rate remained at a seasonally adjusted 4.0%. The number  
of unemployed persons was approximately 235,200 in July 2019, 27,700 fewer  
than a year prior. Total nonfarm payroll employment was 5.59 billion, seasonally  
adjusted, in July, an increase of 25,200 from July 2018.  
Through August 2019, GRF sources totaled $5.94 billion:  
Sales and use tax receipts were $35.4 million above estimate;  
Revenue from the PIT was $14.3 million below estimate.  
Through August 2019, GRF uses totaled $6.88 billion:  
Program expenditures were $92.0 million below estimate due primarily to  
Medicaid ($47.9 million) and property tax reimbursements ($20.4 million).  
In this issue...  
More details on GRF Revenues (p. 2), Expenditures (p. 11),  
the National Economy (p. 29), and the Ohio Economy (p. 31).  
Also Issue Updates on:  
Federal Family Violence Prevention and Services Grants (p. 20)  
New STEM and STEAM Schools (p. 20)  
High School Diplomas Awarded by Adult Programs (p. 22)  
Mosquito Control Grants (p. 23)  
Nurse Education Grant Programs (p. 23)  
Southern Ohio Agricultural and Community Development Foundation Grants (p. 25)  
Rural Communities Opioid Response Program (p. 26)  
Volunteer Fire Assistance Grants (p. 27)  
Wrong-Way Safety Pilot Project (p. 28)  
Available online at: www.lsc.ohio.gov/Budget Central  
Legislative Budget Office of the Legislative Service Commission  
Table 1: General Revenue Fund Sources  
Actual vs. Estimate  
Month of August 2019  
($ in thousands)  
(Actual based on report run in OAKS Actuals Ledger on September 3, 2019)  
State Sources  
Actual  
Estimate*  
Variance Percent  
Tax Revenue  
Auto Sales  
Nonauto Sales and Use  
Total Sales and Use  
$145,333  
$785,262  
$930,595  
$135,500  
$757,200  
$892,700  
$9,833  
$28,062  
$37,895  
7.3%  
3.7%  
4.2%  
Personal Income  
Commercial Activity Tax  
Cigarette  
Kilowatt-Hour Excise  
Foreign Insurance  
Domestic Insurance  
Financial Institution  
Public Utility  
Natural Gas Consumption  
Alcoholic Beverage  
Liquor Gallonage  
Petroleum Activity Tax  
Corporate Franchise  
Estate  
$721,347  
$321,961  
$78,807  
$35,196  
$177  
$706,300  
$303,800  
$77,800  
$34,000  
$400  
$15,047  
$18,161  
$1,007  
$1,196  
-$223  
$0  
-$8,461 -940.1%  
$173  
-$1,051  
-$1,406  
$180  
2.1%  
6.0%  
1.3%  
3.5%  
-55.9%  
---  
$0  
$0  
$900  
-$7,561  
$31,873  
$11,449  
$3,894  
$4,480  
$0  
$31,700  
$12,500  
$5,300  
$4,300  
$0  
0.5%  
-8.4%  
-26.5%  
4.2%  
---  
$0  
-$40  
$0  
-$40  
$0  
$0  
$0  
---  
---  
Total Tax Revenue  
$2,132,178 $2,069,700  
$62,478  
3.0%  
Nontax Revenue  
Earnings on Investments  
Licenses and Fees  
Other Revenue  
$40  
$5,199  
$63,525  
$68,764  
$0  
$4,806  
$1,684  
$6,489  
$40  
$393  
$61,841 3673.3%  
$62,275  
---  
8.2%  
Total Nontax Revenue  
959.6%  
Transfers In  
$69,480  
$68,570  
$911  
1.3%  
Total State Sources  
Federal Grants  
$2,270,422 $2,144,759 $125,664  
$708,551 $751,710 -$43,160  
$2,978,973 $2,896,469 $82,504  
5.9%  
-5.7%  
2.8%  
Total GRF Sources  
*
*
Estimates of the Office of Budget and Management as of August 2019.  
*Cumulative totals through the same month in FY 2019.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 2  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Table 2: General Revenue Fund Sources  
Actual vs. Estimate ($ in thousands)  
FY 2020 as of August 31, 2019  
($ in thousands)  
(Actual based on report run in OAKS Actuals Ledger on September 3, 2019)  
State Sources  
Tax Revenue  
Auto Sales  
Actual  
Estimate* Variance Percent FY 2019**  
$274,200 $16,351 6.0% $272,116  
Percent  
6.8%  
$290,551  
Nonauto Sales and Use  
$1,596,437 $1,577,400 $19,037  
1.2% $1,532,377  
4.2%  
Total Sales and Use  
$1,886,987 $1,851,600 $35,387  
1.9% $1,804,493  
4.6%  
Personal Income  
Commercial Activity Tax  
Cigarette  
Kilowatt-Hour Excise  
Foreign Insurance  
Domestic Insurance  
Financial Institution  
Public Utility  
Natural Gas Consumption  
Alcoholic Beverage  
Liquor Gallonage  
Petroleum Activity Tax  
Corporate Franchise  
Estate  
$1,351,212 $1,365,500 -$14,288  
-1.0% $1,357,192  
-0.4%  
12.6%  
-7.9%  
$387,456  
$99,364  
$57,081  
$736  
$358,800 $28,656  
8.0%  
-1.5%  
-3.3%  
-43.4%  
---  
$344,000  
$107,922  
$63,135  
$2,561  
$0  
$100,900  
$59,000  
$1,300  
$0  
-$1,536  
-$1,919  
-$564  
$1  
-9.6%  
-71.2%  
1566.7%  
-1718.3%  
-0.7%  
-13.9%  
-13.6%  
3.6%  
---  
-121.4%  
0.2%  
$1  
-$7,540  
$32,088  
$12,769  
$9,015  
$8,709  
$0  
$1,500  
$31,800  
$14,000  
$10,800  
$8,600  
$0  
-$9,040 -602.7%  
$466  
$288  
-$1,231  
-$1,785  
$109  
0.9%  
-8.8%  
-16.5%  
1.3%  
---  
$32,305  
$14,839  
$10,440  
$8,404  
$0  
$0  
-$30  
$0  
-$30  
---  
$141  
$38  
$0  
$38  
---  
$37  
Total Tax Revenue  
$3,837,886 $3,803,800 $34,086  
0.9% $3,745,936  
2.5%  
Nontax Revenue  
Earnings on Investments  
Licenses and Fees  
Other Revenue  
$84  
$5,512  
$63,939  
$69,535  
$0  
$5,123  
$2,466 $61,473 2492.4%  
$7,590 $61,945 816.2%  
$84  
$388  
---  
7.6%  
$57  
$6,178  
$5,174  
$11,408  
48.3%  
-10.8%  
1135.8%  
509.5%  
Total Nontax Revenue  
Transfers In  
$69,480  
$68,570  
$911  
1.3%  
$75,995  
-8.6%  
3.7%  
4.9%  
4.1%  
Total State Sources  
Federal Grants  
$3,976,901 $3,879,959 $96,942  
$1,963,119 $2,006,279 -$43,160  
$5,940,020 $5,886,238 $53,782  
2.5% $3,833,339  
-2.2% $1,872,048  
0.9% $5,705,387  
Total GRF SOURCES  
*
*
Estimates of the Office of Budget and Management as of August 2019.  
*Cumulative totals through the same month in FY 2019.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 3  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Revenues  
Russ Keller, Senior Economist  
Overview  
This section compares actual GRF sources posted each month against OBMs estimates  
for FY 2020, which were released in August 2019. GRF sources consist of state-source receipts  
(
reimbursements for Medicaid and other programs.  
tax revenue, nontax revenue, and transfers in) and federal grants, which are typically federal  
This report compares actual monthly and YTD GRF revenue sources to OBM's estimates.  
If actual receipts are higher than estimate, that GRF source is deemed to have a positive  
variance. Alternatively, a GRF source is deemed to have a negative variance if actual receipts  
are lower than estimate.  
Table 1, which precedes this section, shows GRF sources for the most recent month, in  
this case August, relative to the OBM estimates, while Table 2 compares the sources for the  
YTD for FY 2020 to the estimates. The YTD table also presents the sum of the sources,  
respectively, for the corresponding months in the previous fiscal year and the percent change  
from the previous fiscal year to the current fiscal year. For example, Table 1 shows that sources  
for August were $2.98 billion and OBMs estimates totaled $2.90 billion. Thus, August sources  
had a positive variance of $82.5 million (2.8%). Table 2 shows that YTD sources (including both  
July and August) totaled $5.94 billion compared to an estimate of $5.89 billion. So, the YTD  
variance is a positive $53.8 million (0.9%). Table 2 also shows the sum of sources in July and  
August 2018 (FY 2019), which were $5.71 billion. Thus, YTD GRF sources are 4.1%  
($234.6 million) higher than at the same time last fiscal year.  
Referring to Table 1, in August 2019, federal grants and transfers in were short of  
anticipated receipts by $42.2 million (5.2%). On the other hand, GRF tax sources and GRF  
nontax revenue were above projections by $62.5 million (3.0%) and $62.3 million (959.6%),  
respectively. GRF tax receipts from the sales and use tax, CAT, and PIT surpassed estimates, but  
those positive variances were partly offset by negative variances from other taxes, netting the  
surplus of $62.5 million. Among GRF nontax sources, the other revenue category collected  
$
$
63.5 million in August whereas the OBM estimate only anticipated monthly receipts of  
1.7 million.  
GRF tax revenue for the YTD was $3.84 billion, $34.1 million (0.9%) above the estimate, an  
encouraging start to the new fiscal year. GRF tax sources ended FY 2019 with a positive variance of  
651.2 million, driven up by large positive variances from the PIT ($313.2 million) and the sales and  
$
use tax ($234.3 million). Through the first two months of this fiscal year, the sales and use tax and  
the CAT posted a combined positive variance of $64.0 million, while the PIT was $14.3 million below  
its anticipated revenue, and the FIT experienced a shortfall of $9.0 million. Most other GRF tax  
1
sources were below estimates, including the utility-related taxes ($2.9 million) and cigarette tax  
(
surplus of $0.9 million. Therefore, state sources were $96.9 million above estimate. On the other  
$1.5 million). Also, nontax revenue was $61.9 million above projections and transfers in posted a  
1
Utility-related taxes include the kilowatt-hour excise tax, the public utility tax, and the natural  
gas consumption tax.  
Budget Footnotes  
P a g e | 4  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
hand, federal grants were $43.2 million (2.2%) short of YTD projections, due to GRF Medicaid  
spending having been below expectations so far this year. Chart 1, below, shows cumulative  
variances of GRF sources through August 2019.  
Chart 1: Cumulative Variances of GRF Sources in FY 2020  
(
Variances from Estimates, $ in million)  
$
$
$
60  
40  
20  
$0  
-
-
-
$20  
$40  
$60  
Jul-19  
Federal Grants  
Aug-19  
Tax Revenue  
Total GRF Sources  
Compared to the first two months of FY 2019, GRF tax sources increased $91.9 million  
(2.5%) and federal grants increased $91.1 million (4.9%). Among the largest tax sources,  
revenue from the sales and use tax and CAT increased $82.5 million and $43.5 million,  
respectively, but receipts from the cigarette tax fell $8.6 million while PIT revenue declined by  
$
6.0 million.  
Sales and Use Tax  
Through August in FY 2020, total GRF sales and use tax receipts of $1.89 billion were  
35.4 million (1.9%) above estimate, with both the nonauto and the auto portions of the tax  
$
above projections. Total revenue was also $82.5 million (4.6%) above receipts in FY 2019  
through August. The sales and use tax outperformed estimates in nearly every month of  
FY 2019. For the month of August, receipts of $930.6 million were $37.9 million (4.2%) above  
estimate. Compared to the same month last year, August receipts from this tax increased  
$
46.7 million (5.3%).  
For analysis and forecasting, the sales and use tax is separated into two parts: auto and  
nonauto. Auto sales and use tax collections generally arise from the sale of motor vehicles, but  
auto taxes arising from leases are paid at the lease signing and are mostly recorded under the  
nonauto tax instead of the auto tax.  
H.B. 166  
H.B. 166, the main budget operating act for the biennium, made several changes to  
sales tax law. Most importantly, the budget act substantially modifies Ohios nexus  
assumptions. Remote sellers that have gross receipts in excess of $100,000 from sales into Ohio  
or engage in 200 or more separate sales transactions into Ohio during the current or preceding  
Budget Footnotes  
P a g e | 5  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
calendar year (CY) must collect use tax. The budget act generally requires persons that own,  
operate, or control a physical or electronic marketplace through which retail sales are  
facilitated on behalf of other sellers (i.e.,marketplace facilitators) to register as a seller and  
collect and remit the use tax due on all transactions facilitated through that marketplace. These  
modifications of sales tax nexus are expected to increase revenue from the sales and use tax by  
$
or lower depending on the behavioral response of remote sellers and market facilitators.  
Revenue from permissive county and transit authority taxes is expected to increase by  
121 million in FY 2020 and $210 million in FY 2021. However, the revenue gains may be higher  
$
30 million in FY 2020 and $51 million in FY 2021.  
Nonauto Sales and Use Tax  
In August 2019, GRF revenue from the nonauto sales and use tax totaled $785.3 million,  
an amount $28.1 million (3.7%) above estimate. Compared to revenue in the same month in  
2
018, August nonauto sales and use tax revenue increased $39.3 million (5.3%).  
For the fiscal year, GRF receipts totaled $1.60 billion, an amount $19.0 million (1.2%)  
above estimate, and also $64.1 million (4.2%) above revenue in the corresponding period in  
FY 2019. Chart 2, below, shows year-over-year growth in nonauto sales tax collections. For the  
fiscal year, OBM expects GRF nonauto sales tax collections to increase 4.3% compared to FY 2019.  
Chart 2: Nonauto Sales and Use Tax Receipts Trend  
Actual vs. Prior Year  
(
Three-month Moving Average)  
8
7
6
5
4
3
2
1
0
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
Auto Sales and Use Tax  
August GRF revenue from the auto portion of the sales and use tax of $145.3 million was  
above estimate by $9.8 million (7.3%), and those receipts were $7.4 million (5.4%) above  
revenue in August 2018. Through August, FY 2020 auto sales tax receipts of $290.6 million were  
$
$
growth over the past year. As shown in Chart 3, the rate of growth has slowed in recent months  
when measured against more robust growth earlier in 2019.  
16.4 million (6.0%) above anticipated receipts. Compared to FY 2019, revenue growth was  
18.4 million (6.8%). The auto sales and use tax has generally experienced strong but uneven  
Budget Footnotes  
P a g e | 6  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Nationwide, new light vehicle (i.e., auto and light truck) sales in the last two months  
averaged 16.9 million units (at seasonally adjusted annual rates), which is consistent with the  
average pace in the first six months of 2019. The market share of passenger cars continues to  
shrink as it declined to 27% of all new light vehicle sales in August, which was an all-time low.  
Light truck sales and passenger cars evenly split the new light vehicle sales market as recently  
as CY 2012, but light truck sales continue to grow at a pace that lifts the entire new vehicle  
market. Light truck sales have shown no serious decline in recent years, but a sustained drop in  
those sales would negatively impact Ohio auto sales tax revenue. For the fiscal year as a whole,  
OBM expects auto sales tax collections to increase 3.1% compared to FY 2019.  
Chart 3: Auto Sales and Use Tax Receipts Trend  
Actual vs. Prior Year  
(
Three-month Moving Average)  
9
8
7
6
5
4
3
2
1
0
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
Personal Income Tax  
The PIT finished FY 2019 3.6% above estimate, which was entirely attributable to outsized  
tax receipts in the last fiscal quarter. However, in FY 2020, the PIT has fallen below projections.  
GRF revenue of $1.35 billion through August was $14.3 million (1.0%) below estimate, which  
reflects a negative variance of $29.3 million (4.5%) in July that was partially offset by a surplus of  
$
15.0 million (2.1%) in August. As compared to year-ago receipts, FY 2020 revenue 2declined only  
$6.0 million (0.4%) despite a 3.3% withholding rate reduction over that same period.  
PIT revenue is comprised of gross collections, minus refunds and distributions to the  
Local Government Fund (LGF). Gross collections consist of employer withholdings, quarterly  
3
estimated payments, trust payments, payments associated with annual returns, and other  
miscellaneous payments. The performance of the tax is typically driven by employer  
2
Effective January 1, 2019, Ohio employer withholding tax rates were reduced by 3.3% in order  
st  
to be fully consistent with the income tax rate reductions enacted in 2015 (H.B. 64 of the 131 General  
Assembly).  
3
Quarterly estimated payments are made by taxpayers who expect to be underwithheld by  
more than $500. Payments are due in April, June, and September of an individuals tax year and January  
of the following year. Most estimated payments are made by high-income taxpayers.  
Budget Footnotes  
P a g e | 7  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
withholdings, which is the largest component of gross collections (about 81% of gross  
collections in FY 2019). Larger than expected refunds could also greatly affect the monthly  
performance of the tax.  
For the YTD, revenues from each component of the PIT relative to estimates and  
revenue received in FY 2020 are detailed in the table below. It shows withholding, quarterly  
estimated payments, annual return payments, and trust payments were below estimates.  
Those negative variances were partially offset by a positive variance for miscellaneous  
payments, resulting in a shortfall of $6.1 million for gross collections. The PIT shortfall increased  
because refunds were $8.2 million higher than expected. FY 2020 refunds also increased  
compared to their amount in the July to August period last year.  
FY 2020 Personal Income Tax Revenue Variance and Annual Change by Component  
Variance from Estimate  
Changes from FY 2019  
Amount  
$ in millions)  
Percent  
(%)  
Amount  
($ in millions)  
Percent  
(%)  
Category  
(
Withholding  
-$1.8  
-$3.6  
-$0.4  
-$1.1  
$0.8  
-0.1%  
$16.5  
-$0.7  
-$0.3  
$2.4  
1.1%  
Quarterly Estimated Payments  
Trust Payments  
-11.5%  
-17.2%  
-4.0%  
6.4%  
-2.4%  
-13.4%  
10.1%  
9.0%  
Annual Return Payments  
Miscellaneous Payments  
Gross Collections  
$1.1  
-$6.1  
$8.2  
-0.4%  
6.7%  
$19.0  
$23.2  
$1.8  
1.2%  
Less Refunds  
21.6%  
2.7%  
Less LGF Distribution  
GRF PIT Revenue  
$0.0  
0.0%  
-$14.2  
-1.0%  
-$6.0  
-0.4%  
Compared to revenue in the corresponding period in FY 2019, gross collections were  
.2% higher, from increased receipts from withholding, which accounted for the majority of the  
1
growth in collections, and annual return payments. Quarterly estimated payments decreased  
by $0.7 million compared to such revenue in the first two months of FY 2019. However, July and  
August are relatively small revenue months for this component of gross collections, while  
September will be the first big month of the fiscal year for this component. Through August,  
employer withholding was 0.1% below estimate in FY 2020. Revenue growth for this PIT  
component has been generally respectable in CY 2019, when adjusted for withholding rate cuts  
implemented at the outset of the year. The chart below illustrates the growth of monthly  
employer withholdings, as adjusted for the January 1 rate cut. The chart displays the adjusted  
receipts on a three-month moving average relative to one year ago. As can be seen from the  
chart, collectionsgrowth decelerated below 5.0% in the latest month.  
Budget Footnotes  
P a g e | 8  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Chart 4: Monthly Witholding Receipts Trend  
Actual vs. Prior Year (with adjustment for rate cut)  
(
Three-month Moving Average)  
9
8
7
6
5
4
3
2
1
0
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
Commercial Activity Tax  
The performance of the CAT improved in FY 2019 before growth tapered at the end of  
the year because of refunds claimed by taxpayers. Total GRF receipts of $387.5 million in the  
first two months of FY 2020 were $28.7 million (8.0%) above projections. The first CAT payment  
for quarterly return taxpayers, due in August, provided $322.0 million to the GRF, an amount  
$
18.2 million (6.0%) above the monthly estimate, which buttressed a surplus of $10.5 million  
(
(
19.1%) from the previous month. Compared to FY 2019, YTD GRF receipts were $43.5 million  
12.6%) higher. Available economic data suggest the CAT positive variance and the gain in  
receipts relative to FY 2019 are likely due to a decrease in credit claims. For the fiscal year as a  
whole, OBM forecast modest growth of 0.5% for this tax source.  
Under continuing law, CAT receipts are deposited into the GRF (85%), the School District  
Tangible Property Tax Replacement Fund (Fund 7047, 13%), and the Local Government Tangible  
Property Tax Replacement Fund (Fund 7081, 2%). Distributions to Fund 7047 and Fund 7081 are  
used to make reimbursement payments to school districts and other local taxing units,  
respectively, for the phase out of property taxes on general business tangible personal  
property. Any receipts in excess of amounts needed for such payments are transferred back to  
the GRF.  
Cigarette and Other Tobacco Products Tax  
August GRF revenue of $78.8 million from the cigarette and other tobacco products tax  
was $1.0 million (1.3%) above estimate. Revenue from this tax in July 2019 was $2.5 million  
(
11.0%) below estimate. Thus, the cumulative negative variance for the cigarette and other  
tobacco products tax totaled $1.5 million (1.5%). Total revenue of $99.4 million included  
85.6 million from the sale of cigarettes and $13.7 million from the sale of other tobacco  
products.  
$
FY 2020 revenue was $8.6 million (7.9%) below revenue through August last year. Total  
revenue from the cigarette and other tobacco products tax usually trends downward at a slow  
pace. This is due to a decline in cigarette revenue, while receipts from the tax on other tobacco  
Budget Footnotes  
P a g e | 9  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
products generally increase. Future collections for the sale of other tobacco products should  
further increase on account of law changes in the most recent operating budget, H.B. 166,  
4
which will impose an excise tax on vapor products beginning October 1, 2019. Nevertheless,  
OBM estimates a yearly revenue decline of about 2.9% compared to FY 2020.  
Summary of OBM Estimates for GRF Sources for FY 2020  
Estimated revenue by GRF source for the full fiscal year is provided below. As seen from  
the table, GRF sources are estimated to total $34.07 billion in FY 2020. Based on this estimate,  
the sales and use tax, the PIT, the CAT, and the cigarette tax will provide nearly two-thirds of  
total GRF sources in FY 2020.  
OBM Estimate for GRF Sources for FY 2020  
(
$ in thousands)  
Estimate  
$11,013,800  
Revenue Source  
Sales and Use Tax  
As a % of Total Source  
32.3%  
Individual Income Tax  
$8,726,400  
$1,638,500  
$891,700  
25.6%  
4.8%  
Commercial Activity Tax  
Cigarette & Other Tobacco Products Tax  
Domestic and Foreign Insurance Taxes  
Utility Taxes  
2.6%  
$593,200  
1.7%  
$552,600  
1.6%  
Other Taxes  
$305,700  
0.9%  
Subtotal GRF Taxes  
$23,721,900  
$474,246  
69.6%  
1.4%  
Nontax Revenue and Transfers In  
Federal Grants  
$9,868,943  
$34,065,090  
29.0%  
100.0%  
Total GRF Sources  
4
The budget act levies a tax of 10¢ per milliliter (mL) of vapor product, or if the vapor product is  
sold in nonliquid form, the tax is levied on each gram. Vapor product is defined as any liquid solution or  
other substance that contains nicotine and is depleted as it is used in an electronic smoking product.  
Each vapor distributor of vapor products pays a license fee of $125 each year.  
Budget Footnotes  
P a g e | 10  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Table 3: General Revenue Fund Uses  
Actual vs. Estimate  
Month of August 2019  
($ in thousands)  
(Actual based on OAKS reports run September 5, 2019)  
Program Category  
Actual  
Estimate* Variance Percent  
Primary and Secondary Education  
Higher Education  
$753,993  
$185,908  
$9,002  
$758,575  
$187,713  
$9,054  
-$4,582  
-$1,805  
-$52  
-0.6%  
-1.0%  
-0.6%  
-0.7%  
Other Education  
Total Education  
$948,902  
$955,342  
-$6,440  
Medicaid  
$1,119,861 $1,167,732 -$47,871  
$99,462 $110,445 -$10,982  
$1,219,323 $1,278,177 -$58,854  
-4.1%  
-9.9%  
-4.6%  
Health and Human Services  
Total Health and Human Services  
Justice and Public Protection  
General Government  
$195,883  
$34,753  
$207,095 -$11,212  
-5.4%  
16.5%  
-2.7%  
$29,839  
$4,914  
Total Government Operations  
$230,636  
$236,934  
-$6,298  
Property Tax Reimbursements  
Debt Service  
$201,355  
$137,906  
$339,262  
$221,795 -$20,440  
$137,906 $0  
$359,701 -$20,440  
-9.2%  
0.0%  
Total Other Expenditures  
-5.7%  
Total Program Expenditures  
Transfers Out  
$2,738,123 $2,830,154 -$92,031  
$648,403 $642,775 $5,628  
$3,386,526 $3,472,929 -$86,403  
-3.3%  
0.9%  
Total GRF Uses  
-2.5%  
*September 2019 estimates of the Office of Budget and Management.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 11  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Table 4: General Revenue Fund Uses  
Actual vs. Estimate  
FY 2020 as of August 31, 2019  
($ in thousands)  
(Actual based on OAKS reports run September 5, 2019)  
Program Category  
Actual  
Estimate* Variance Percent FY 2019** Percent  
Primary and Secondary Education  
Higher Education  
$1,456,515 $1,461,097  
-$4,582  
-$1,805  
-$52  
-0.3% $1,443,273  
0.9%  
-5.7%  
-4.9%  
-0.5%  
$353,466  
$17,656  
$355,271  
$17,708  
-0.5%  
-0.3%  
$374,997  
$18,562  
Other Education  
Total Education  
$1,827,637 $1,834,077  
-$6,440  
-0.4% $1,836,832  
Medicaid  
$3,048,542 $3,096,414 -$47,871  
$223,563 $234,545 -$10,982  
$3,272,105 $3,330,959 -$58,854  
-1.5% $2,876,450  
6.0%  
0.2%  
5.6%  
Health and Human Services  
Total Health and Human Services  
-4.7% $223,129  
-1.8% $3,099,579  
Justice and Public Protection  
General Government  
$462,916  
$81,627  
$474,128 -$11,212  
-2.4%  
6.4%  
$454,243  
$74,963  
1.9%  
8.9%  
2.9%  
$76,713  
$4,914  
Total Government Operations  
$544,543  
$550,842  
-$6,298  
-1.1%  
$529,206  
Property Tax Reimbursements  
Debt Service  
$201,355  
$386,012  
$587,367  
$221,795 -$20,440  
$386,012 $0  
$607,807 -$20,440  
-9.2%  
0.0%  
$279,337 -27.9%  
$384,878 0.3%  
$664,214 -11.6%  
Total Other Expenditures  
-3.4%  
Total Program Expenditures  
Transfers Out  
$6,231,653 $6,323,684 -$92,031  
$648,403 $642,775 $5,628  
$6,880,056 $6,966,459 -$86,403  
-1.5% $6,129,832 1.7%  
0.9% $741,858 -12.6%  
-1.2% $6,871,689 0.1%  
Total GRF Uses  
*
*
September 2019 estimates of the Office of Budget and Management.  
*Cumulative totals through the same month in FY 2019.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 12  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Table 5: Medicaid Expenditures by Department  
Actual vs. Estimate  
($ in thousands)  
(Actuals based on OAKS report run on September 1, 2019)  
Month of August 2019  
Year to Date through August 2019  
Actual Estimate* Variance Percent  
Department  
Medicaid  
GRF  
Actual  
Estimate* Variance Percent  
$1,050,412 $1,097,308 -$46,897  
-4.3% $2,915,463 $2,962,360 -$46,897  
-0.7% $1,164,092 $1,172,294 -$8,202  
-2.5% $4,079,555 $4,134,654 -$55,099  
-1.6%  
-0.7%  
-1.3%  
Non-GRF  
$1,124,426 $1,132,628  
-$8,202  
$
2,174,838 $2,229,936 -$55,099  
All Funds  
Developmental Disabilities  
GRF  
$56,134  
184,353  
240,487  
$58,497  
$185,729  
$244,226  
-$2,362  
-$1,376  
-$3,738  
-4.0%  
-0.7%  
-1.5%  
$115,747  
$450,333  
$566,080  
$118,110  
$451,709  
$569,819  
-$2,362  
-$1,376  
-$3,738  
-2.0%  
-0.3%  
-0.7%  
$
Non-GRF  
All Funds  
$
Job and Family Services  
GRF  
$12,472  
$21,525  
33,997  
$10,836  
$16,119  
$26,955  
$1,636  
$5,406  
$7,042  
15.1%  
33.5%  
26.1%  
$15,759  
$32,954  
$48,714  
$14,124  
$27,548  
$41,672  
$1,636  
$5,406  
$7,042  
11.6%  
19.6%  
16.9%  
Non-GRF  
$
All Funds  
Health, Mental Health and Addiction, Aging, Pharmacy Board, and Education  
GRF  
$843  
$1,091  
$5,055  
$6,146  
-$248 -22.7%  
-$1,216 -24.1%  
-$1,464 -23.8%  
$1,573  
$6,255  
$7,828  
$1,820  
$7,471  
$9,292  
-$248 -13.6%  
-$1,216 -16.3%  
-$1,464 -15.8%  
Non-GRF  
$3,839  
$
4,682  
All Funds  
All Departments:  
GRF  
$1,119,861 $1,167,732 -$47,871  
$1,334,143 $1,339,531 -$5,387  
2,454,005 $2,507,263 -$53,259  
-4.1% $3,048,542 $3,096,414 -$47,871  
-0.4% $1,653,635 $1,659,022 -$5,387  
-2.1% $4,702,177 $4,755,436 -$53,259  
-1.5%  
-0.3%  
-1.1%  
Non-GRF  
All Funds  
$
*September 2019 estimates from the Department of Medicaid.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 13  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Table 6: All Funds Medicaid Expenditures by Payment Category  
Actual vs. Estimate  
($ in thousands)  
(Actuals based on OAKS report run on September 1, 2019)  
Month of August 2019  
Year to Date through August 2019  
Actual Estimate* Variance Percent  
Payment Category  
Actual  
Estimate* Variance Percent  
Managed Care  
CFC†  
$1,374,145 $1,392,102 -$17,957  
-1.3% $2,757,198 $2,775,155 -$17,957  
-0.7%  
-1.2%  
-1.0%  
-0.8%  
-0.9%  
1.4%  
$485,248  
$361,089  
$229,918  
$75,002  
$497,140 -$11,893  
-2.4%  
-1.9%  
-1.7%  
-1.8%  
2.8%  
$977,093  
$718,008  
$466,547  
$150,879  
$444,671  
$988,985 -$11,893  
Group VIII  
ABD†  
$367,948  
$233,867  
$76,398  
-$6,859  
-$3,949  
-$1,396  
$6,140  
$724,867  
$470,496  
$152,275  
$438,532  
-$6,859  
-$3,949  
-$1,396  
$6,140  
ABD Kids  
MyCare  
$222,889  
$216,749  
Fee-For-Service  
ODM Services  
DDD Services  
Hospital - HCAP†  
Hospital - Other  
$886,322  
$318,145  
$227,371  
$340,681  
$125  
$918,099 -$31,778  
$344,527 -$26,382  
$238,850 -$11,479  
-3.4% $1,606,463 $1,638,240 -$31,778  
-1.9%  
-3.6%  
-2.1%  
1.8%  
6.7%  
-7.7%  
-4.8%  
1.8%  
$700,311  
$546,789  
$340,681  
$18,681  
$726,693 -$26,382  
$558,268 -$11,479  
$334,722  
$0  
$5,959  
$125  
$334,722  
$18,557  
$5,959  
$125  
Premium Assistance  
Medicare Buy-In  
Medicare Part D  
$92,566  
$52,062  
$38,632  
$99,271  
$55,123  
$38,944  
-$6,705  
-$3,061  
-$312  
-6.8%  
-5.6%  
-0.8%  
$179,676  
$102,148  
$77,528  
$183,048  
$105,209  
$77,839  
-$3,373  
-$3,061  
-$312  
-1.8%  
-2.9%  
-0.4%  
Administration  
Total  
$102,844  
$102,995  
-$152  
-0.2%  
$158,841  
$158,993  
-$152  
-0.1%  
-1.1%  
$2,454,005 $2,507,263 -$53,259  
-2.1% $4,702,177 $4,755,436 -$53,259  
*September 2019 estimates from the Department of Medicaid.  
†CFC - Covered Families and Children; ABD - Aged, Blind, and Disabled; HCAP - Hospital Care Assurance Program.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 14  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
EMexlanpey Cearnter,dDiriecttorures  
Ivy Chen, Principal Economist  
Overview  
This section compares actual monthly and YTD program expenditures and transfers from  
the GRF (GRF uses) with OBMs estimates. The tables that precede this section summarize the  
data and are referred to in this section. Table 3 compares the uses for the most recent month  
with the estimates for that month, and Table 4 compares the uses for the fiscal YTD with the  
YTD estimates. The variance column in each table is calculated by subtracting the estimate from  
the actual; so if the actual use is higher than the estimate, the variance is positive and if the  
actual use is lower than the estimate, the variance is negative. The variance is shown both as a  
dollar value and a percent. Table 4 also shows the sum of the uses for the corresponding  
months in the previous fiscal year and the percent change from the previous fiscal year to the  
present fiscal year; a negative percent change means the value of the use has fallen from the  
prior year and a positive percent change means the value of the use has risen from the prior  
year. Program expenditures are broken out into nine program categories. Three are related to  
education, two to health and human services, and two to government operations. The  
remaining two are property tax reimbursements and debt service.  
Tables 5 and 6 provide more detailed data on Medicaid expenditures from both the GRF  
and non-GRF funds. They compare actual Medicaid expenditures with estimates provided by  
the Department of Medicaid for each month and YTD. Table 5 presents the data by agency, and  
Table 6 presents the data by payment category. There are four main payment categories –  
Managed Care, Fee-For-Service (FFS), Premium Assistance, and Administration.  
Through August, FY 2019 GRF program expenditures totaled $6.23 billion. These  
expenditures were $92.0 million (1.5%) below the estimate released by OBM in September  
2
019. All program expenditure categories had negative YTD variances except for General  
Government. The program category with the greatest negative YTD variance was Medicaid at  
47.9 million (1.5%). In addition to program expenditures, total uses include transfers out.  
$
Transfers out had a YTD positive variance of $5.6 million (0.9%) at the end of August, resulting  
in a YTD negative variance of $86.4 million (1.2%) for total uses. The rest of this section first  
discusses the variance in Medicaid and then summarizes the estimates for GRF uses and for all  
funds (including both the GRF and non-GRF) Medicaid expenditures for the full fiscal year.  
Medicaid  
Medicaid is a joint federal-state program. It is mainly funded by the GRF but is also  
supported by several non-GRF funds. Both GRF and non-GRF Medicaid expenditures contain  
5
federal and state dollars. GRF Medicaid expenditures were below both the monthly and YTD  
5
Federal reimbursements for Medicaid expenditures made from the state GRF are deposited  
into the GRF as revenue to help support the GRF appropriations for Medicaid. Federal reimbursements  
for Medicaid expenditures made from state non-GRF funds are deposited into various non-GRF funds for  
expenditure. In recent years, the federal government has reimbursed about two-thirds of Ohio’s total  
Medicaid expenditures.  
Budget Footnotes  
P a g e | 15  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
estimates by $47.9 million. Non-GRF Medicaid expenditures were below both the monthly and  
YTD estimates by $5.4 million. Including both the GRF and non-GRF, a6ll funds Medicaid  
expenditures were $53.3 million below both the monthly and YTD estimates.  
Table 5 shows GRF and non-GRF Medicaid expenditures for the Ohio Department of  
Medicaid (ODM), the Ohio Department of Developmental Disabilities (ODODD), and six other  
sisteragencies that also take part in administering Ohio Medicaid. ODM and ODODD account  
for about 99% of the total Medicaid budget. Therefore, they also account for the vast majority  
of variances in Medicaid expenditures. The other six agencies Job and Family Services, Health,  
Aging, Mental Health and Addiction Services, State Board of Pharmacy, and Education –  
account for the remaining one percent of the total Medicaid budget. Unlike ODM and ODODD,  
the six sisteragencies incur only administrative spending.  
Table 6 shows all funds Medicaid expenditures by payment category. Expenditures were  
below their YTD estimates for all four payment categories. FFS ($31.8 million, 1.9%) had the  
largest overall negative variance, followed by Managed Care ($18.0 million, 0.7%), Premium  
Assistance ($3.4 million, 1.8%), and Administration ($0.2 million, 0.1%). A description of each of  
these categories and their subcategories is given below under the headingSummary of  
ODM Estimates for Medicaid.”  
Under the FFS category, expenditures on ODM Services and DDD (ODODD) Services  
were both below their YTD estimates by $26.4 million and $11.5 million, respectively.  
Expenditures from the HospitalHCAP subcategory, were $6.0 million above estimate. Under  
the Health Care Assurance Program (HCAP), the state makes subsidy payments to hospitals that  
provide uncompensated care to low-income and uninsured individuals at or below 100% of the  
federal poverty level.  
Expenditures from all Managed Care categories were below their YTD estimates except  
for MyCare, which had a positive YTD variance of $6.1 million. MyCare is a managed care  
program for Ohioans who are eligible for both Medicaid and Medicare.  
The negative variance in the Premium Assistance category was dominated by a negative  
variance of $3.1 million in the Medicare Buy-In subcategory. Medicare Buy-In helps certain  
Medicare eligible individuals who have limited income to pay Medicare premiums, deductibles,  
and coinsurance.  
Summary of OBM Estimates for GRF Uses  
The table below shows the estimates released by OBM in September 2019 for GRF uses  
for FY 2020. The program categories are ordered from largest to smallest annual estimate.  
Altogether, GRF program expenditures are estimated to total $33.97 billion in FY 2020. Of this  
amount, $15.52 billion (45.7%) will go to Medicaid and $8.19 billion (24.1%) will go to Primary  
and Secondary Education. Together, these two program categories are expected to account for  
6
9.8% of total program expenditures in FY 2020.  
6
Expenditures for July are generally made before the estimates are complete, so estimates are  
set equal to expenditures for this month, resulting in August monthly variances being equal to August  
YTD variances.  
Budget Footnotes  
P a g e | 16  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
In addition to program expenditures, OBM estimates that $683.7 million will be  
transferred out of the GRF. Most of these transfers ($648.4 million) occurred in August 2019.  
OBM also estimates that $357.1 million of FY 2020 appropriations will be encumbered at the  
end of the fiscal year for expenditure in future fiscal years. This results in an estimated total of  
GRF uses for FY 2020 of $35.01 billion.  
OBM Estimates for GRF Uses for FY 2020 by Program Category  
(
$ in thousands)  
Expenditures  
$15,520,897  
As a % of Total Program  
Expenditures  
Program Categories  
Medicaid  
45.7%  
24.1%  
7.3%  
7.1%  
5.4%  
4.3%  
4.3%  
1.6%  
0.2%  
100.0%  
--  
Primary and Secondary Education  
Justice and Public Protection  
Higher Education  
$8,187,474  
$2,493,163  
$2,400,971  
$1,842,600  
$1,460,175  
$1,453,397  
$529,349  
Property Tax Reimbursements  
Debt Service  
Health and Human Services  
General Government  
Other Education  
$81,061  
Total Program Expenditures  
$33,969,088  
$683,675  
Transfers Out  
Year-end Encumbrances  
$357,123  
--  
Total GRF Uses  
$35,009,885  
--  
Summary of ODM Estimates for Medicaid  
The table below shows the estimates by payment category released by ODM in  
September 2019 for both GRF and non-GRF Medicaid expenditures for FY 2020. There are four  
main payment categories Managed Care, FFS, Premium Assistance, and Administration.  
Managed Care is a health care delivery system whereby ODM contracts with a managed  
care plan (MCP) to manage the cost and utilization of services in exchange for a set  
per-member, per-month payment for each recipient. Managed Care is broken into six  
subcategories. The largest subcategory both in terms of expenditures and enrollment is  
Covered Families and Children (CFC), which includes expenses for children with household  
incomes up to 206% of the federal poverty level (FPL), pregnant women up to 200% FPL, and  
Budget Footnotes  
P a g e | 17  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
families (parents and children) who receive cash assistance under Ohio Works First or who have  
household incomes at or below 90% FPL. The second subcategory is Group VIII, which includes  
costs for nondisabled adults made Medicaid eligible under the Affordable Care Act (ACA). These  
individuals are under age 65 and have incomes at or below 138% FPL. The next subcategories  
are Aged, Blind, and Disabled (ABD) and ABD Kids. ABD includes expenditures related to  
individuals who are age 65 or older, who are significantly visually impaired, or who have a  
disabling condition that meets Supplemental Security Income requirements. These individuals  
must also meet income and asset limits. ABD Kids includes costs for children who are visually  
impaired or have a disabling condition as well as children in foster and adopted care. MyCare  
includes expenses for individuals enrolled in a demonstration project that coordinates the  
delivery of Medicare and Medicaid services for recipients eligible for both programs (otherwise  
known as dual-eligibles). The last Managed Care subcategory is Pay for Performance. Pay for  
Performance is an incentive program that rewards MCPs that achieve specific levels of  
performance in certain program priority areas.  
The second category is FFS, which is a payment model in which qualified Medicaid  
providers are paid for each covered service. This category has four subcategories. The largest is  
ODM Services, which includes expenditures related to waiver-related services as well as other  
Medicaid covered services not paid for by MCPs (e.g., prescription drugs and payments to  
nursing facilities, hospitals, and physicians). The next subcategory is DDD Services, which  
includes institutional and noninstitutional services provided to individuals with an intellectual  
disability and reimbursed by ODODD. The next two subcategories are for supplemental  
payments to hospitals. Hospital HCAP includes subsidy payments to hospitals that provide  
uncompensated, or charity, care to low-income and uninsured individuals. Hospital Other  
includes upper payment limit (UPL) payments that comprise the difference between total base  
payments for services and the maximum payment level allowed under the UPL for those  
services as well as other miscellaneous payments.  
The Premium Assistance Category includes two subcategoriesMedicare Buy-In and  
Medicare Part D. Medicare Buy-In includes payments for individuals who receive assistance in  
paying their Medicare Part A or Part B premiums and other cost-sharing expenses such as  
copayments, coinsurance, and deductibles. Medicare Part D includes monthly payments to the  
federal Medicare Program for prescription drug costs for dual-eligibles.  
The last category is Administration and includes costs related to administering Medicaid  
in Ohio. Costs are included for ODM, ODODD, and the other six sisterMedicaid agencies.  
Budget Footnotes  
P a g e | 18  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
ODM Estimates for Medicaid Expenditures for FY 2020 by Payment Category  
(
$ in thousands)  
Expenditures  
$17,910,201  
As a % of Total Medicaid  
Expenditures  
Payment Categories  
Managed Care  
62.9%  
21.9%  
16.4%  
10.7%  
3.4%  
Covered Families and Children (CFC)  
Group VIII  
$6,241,120  
$4,666,438  
$3,033,996  
$971,026  
Aged, Blind, and Disabled (ABD)  
ABD Kids  
MyCare  
$2,717,174  
$280,448  
9.5%  
Pay For Performance  
Fee-For-Service (FFS)  
ODM Services  
1.0%  
$8,308,222  
$4,392,241  
$3,101,882  
$669,444  
29.2%  
15.4%  
10.9%  
2.4%  
DDD Services  
Hospital HCAP  
Hospital Other  
Premium Assistance  
Medicare Buy-In  
Medicare Part D  
$144,655  
0.5%  
$1,161,007  
$670,605  
4.1%  
2.4%  
$490,402  
1.7%  
Administration  
$1,093,428  
$28,472,857  
3.8%  
Total Medicaid Expenditures  
100.0%  
Budget Footnotes  
P a g e | 19  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Issue Updates  
Criminal Justice Services Awards $3.1 million in Federal Family  
Violence Prevention and Services Act Grants  
Maggie West, Senior Budget Analyst  
On July 30, 2019, the Office of Criminal Justice Services awarded $3,085,964 in federal  
Family Violence Prevention and Services Act (FVPSA) grants for 63 projects in 45 counties. The  
grants were awarded to nonprofit and faith-based associations to establish, maintain, and  
expand projects that: (1) prevent incidents of family, domestic, or dating violence, (2) provide  
immediate shelter and related assistance for family, domestic, or dating violence victims and  
their dependents, and (3) provide specialized services for children exposed to family, domestic,  
or dating violence, underserved populations, and victims who are members of racial and ethnic  
minorities.  
Both new and continuation projects were eligible to apply for funding. There was no  
funding cap for the grants; however, the amount awarded for each project was influenced by  
the number of applications received, as well as the availability of funds. Each organization that  
receives FVPSA funds is required to provide an in-kind or cash match of at least 35% for new  
projects, and at least 20% for projects that previously received funding. Four of the 63 grants  
were awarded for new projects. Individual project awards ranged from $14,068 (Greene  
County) to $68,000, which was received by six projects in five counties (Cuyahoga, Franklin,  
Hamilton (2 projects), Lucas, and Wood). The average award was $48,984. A list of project  
awards can be found on the Offices website: www.ocjs.ohio.gov.  
STEM Committee Designates 14 New STEM and STEAM Schools  
for the 2019-2020 School Year  
Dan Redmond, Budget Analyst  
On April 22, 2019, the Ohio Department of Educations (ODEs) STEM Committee  
designated 14 new STEM and STEAM schools for the 2019-2020 school year (see table below).  
A STEM or STEAM school designation may be given to a public school governed by either a  
7
traditional school board or an independent governing board. Public community or chartered  
nonpublic schools may be designated as a STEM or STEAM school equivalent. Designated  
schools are invited into the Ohio STEM Learning Network (OSLN), which is a public-private  
partnership managed by Battelle. OLSN supports designated schools and applicants through  
seven regional hubs that provide training for educators and other resources in STEM education  
and cultivate partnerships with stakeholder organizations in the area to improve STEM  
programming. To receive the STEM school designation, a school must present evidence of a  
working partnership with both public and private entities, including institutions of higher  
education and business organizations, and evidence the school will offer a rigorous and diverse  
7
The Metro Early College High School in Columbus is an example of a STEM school governed by  
an independent board.  
Budget Footnotes  
P a g e | 20  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
curriculum that emphasizes science, technology, engineering, and mathematics, along with the  
arts and humanities and personalized learning and teamwork skills. A STEAM school must  
follow those requirements as well as include an arts organization in their partnership and  
present evidence that the curriculum will integrate arts and design into STEM subjects. This is  
the second school year to include the STEAM designation and nine schools will operate as  
STEAM schools beginning this fall.  
Including the 14 newly designated schools, there will be a total of 69 STEM and STEAM  
schools across the state, of which 44 are governed by traditional school boards, seven by  
independent boards, and 18 are STEM or STEAM school equivalents. The complete list of STEM  
and STEAM schools is available on the Departments website at http://education.ohio.gov/  
Topics/Career-Tech/STEM.  
Newly Designated STEM and STEAM Schools, 2019-2020 School Year  
County  
Cuyahoga  
Cuyahoga  
Cuyahoga  
Cuyahoga  
Erie  
School Name  
Franklin Elementary  
Gearity Professional Development School  
John Marshall Information Technology School STEM  
Type  
STEM  
STEM  
Governing Board  
Traditional school board  
Traditional school board  
Traditional school board  
STEAM school equivalent  
STEM school equivalent  
Traditional school board  
STEAM school equivalent  
Traditional school board  
Traditional school board  
Traditional school board  
Traditional school board  
Traditional school board  
Traditional school board  
Traditional school board  
St. Angela Merici  
STEAM  
STEM  
St. Mary  
Franklin  
Franklin  
Franklin  
Hancock  
Lucas  
Herbert Mills Elementary*  
St. Paul  
STEAM  
STEAM  
STEAM  
STEAM  
STEM  
Winchester Trail Elementary School  
Bigelow Hill Intermediate  
Chase STEMM Academy  
Waterville Primary  
Lucas  
STEAM  
STEM  
Mahoning  
Ross  
Northeast Ohio Impact Academy  
Chillicothe Primary  
STEM  
Stark  
East Canton High School  
STEM  
*Herbert Mills was previously designated a STEM school.  
Budget Footnotes  
P a g e | 21  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Number of High School Diplomas Awarded by Adult Programs  
Increased in FY 2019  
Jason Glover, Budget Analyst  
In FY 2019, 1,482 adults ages 22 and older received high school diplomas through the  
2+ Adult High School Diploma Program and the Adult Diploma Program, an increase of 22.7%,  
2
or 274 graduates, compared to the prior year. About half of this growth stemmed from the  
2
2+ Adult High School Diploma Program, which helps adults earn a locally issued high school  
diploma from a school district, community school, or two-year college. The number of  
graduates from this program has grown strongly since the programs beginning in FY 2016.  
Preliminary data suggests that at least 784 graduates received a high school diploma through  
the program in FY 2019, though some providers have not yet completed reporting. In FY 2018,  
the final tally of graduates was 646, an increase of 257 (66.1%) from FY 2017. The Adult  
Diploma Program grew in FY 2019 as well, increasing by 136 (24.2%) to 698 in the fourth year of  
the program. In FY 2018, 562 adults completed the program. In addition to completing high  
school graduation requirements, participants receive skills training needed for a job in one of  
2
industry-recognized credential or certificate.  
0 in-demand career fields. Upon completion of the program, each participant also earns an  
State subsidy for these programs also continues to increase. During FY 2019, ODE paid  
5.2 million to providers in the 22+ Adult High School Diploma Program, up $1.6 million (42.7%)  
$
from the $3.7 million paid in FY 2018. Providers receive up to $5,000 annually for each individual  
enrolled in the program depending on the extent of the individuals successful completion of  
high school graduation requirements. State subsidy to providers for students in the Adult  
Diploma Program was $2.8 million in FY 2019, an increase of about $598,000 (27.1%) compared  
to FY 2018. Payments to participating institutions for each student enrolled in an approved  
program of study are calculated according to a formula providing certain tiers of funding based  
on the number of hours of technical training required in the students career pathway training  
program and the students grade level upon initial enrollment into the program.  
The GRF supports both programs. Beginning in FY 2018, H.B. 49 consolidated GRF  
funding for both programs into line item 200572, Adult Education Programs. The table below  
summarizes the numbers of graduates and state subsidies for the two programs.  
2
2+ High School Diploma and Adult Diploma Programs Graduates and State Subsidy, FY 2016-FY 2019  
Measure  
Program  
FY 2016  
127  
FY 2017  
389  
FY 2018  
646  
FY 2019  
784*  
2
2+ High School Diploma  
Graduates  
Adult Diploma  
345  
472  
487  
876  
562  
1,208  
698  
1,482  
Total  
2
2+ High School Diploma  
$545,962  
$1,029,595  
$1,575,557  
$2,434,397  
$1,820,464  
$4,254,861  
$3,653,106  
$2,204,582  
$5,857,688  
$5,211,948  
$2,803,077  
$8,015,025  
State Subsidy  
for Providers  
Adult Diploma  
Total  
*Reporting is not yet completed for FY 2019  
Budget Footnotes  
P a g e | 22  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Ohio EPA Awards $659,500 in Mosquito Control Grants  
Jessica Murphy, Budget Analyst  
On June 7, 2019, the Ohio Environmental Protection Agency (Ohio EPA) announced the  
award of 35 mosquito control grants totaling $659,500 for the 2019 grant cycle to be disbursed  
in FY 2020. The purpose of these competitively awarded grants is to support a larger statewide  
effort by the Ohio Department of Health to lessen the likelihood of an outbreak of  
mosquito-borne viruses such as Zika, West Nile, and La Cross Encephalitis.  
The grant recipients include 33 local health departments and two cities, spread across  
2 counties. Grant awards range from $6,040 (Zanesville-Muskingum County Health  
3
Department) to six maximum amounts of $25,000 (Ashland, Licking, Medina, Mahoning, and  
Ross county health departments, and the city of Kent). The average grant amount is $18,843. Of  
the awarded total, $543,673, or 82%, will be used for mosquito surveillance and control and  
$
115,827, or 18%, for breeding source reduction, specifically scrap tire removal.  
Since initiating this funding opportunity in 2016, the Ohio EPA has now awarded  
02 mosquito control grants totaling $4.3 million. Historically, these grants have been paid with  
2
money appropriated from two funds used by the Ohio EPA: (1) the Scrap Tire Management  
Fund (Fund 4R50), primarily consisting of a 50¢ per tire fee on the sale of tires and (2) the  
Environmental Protection Remediation Fund (Fund 5410), consisting of money collected from  
enforcement settlement actions. The 2019 grants, however, will be paid exclusively with money  
appropriated from Fund 4R50.  
Board of Nursing Announces $3.0 million for Nurse Education  
Grant Programs  
Nicholas J. Blaine, Budget Analyst  
In August 2019, the Ohio Board of Nursing announced 16 nursing education program  
awards totaling $3.0 million for the 2019-2021 grant cycle (see table below). The grants are  
provided to programs that partner with health care facilities, community health agencies, or  
other education programs to increase nursing student enrollment capacity. Funds may be used  
to purchase educational equipment or to hire or contract with clinical faculty and instructional  
personnel. Grants are awarded to pre-licensure programs for licensed practical nurses (LPNs)  
and registered nurses (RNs), as well as post-graduate education programs. The grant program is  
funded by $10 of each nursing license renewal fee, which is deposited into the Nurse Education  
Grant Program Fund (Fund 5AC0). A grant recipient may not receive more than $200,000 in  
each grant cycle. Funds are typically disbursed quarterly.  
Budget Footnotes  
P a g e | 23  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Nursing Education Grant Program Awards  
September 1, 2019 to August 31, 2021  
Program Name  
Award  
$391,140  
LPN Pre-Licensure Programs  
Collins Career Technical Center Practical Nursing Program  
North Central State College Practical Nurse Program  
RN Pre-Licensure Programs  
$200,000  
$191,140  
$1,121,860  
$200,000  
$200,000  
$200,000  
$200,000  
$199,988  
$121,872  
$1,513,000  
$200,000  
$200,000  
$200,000  
$200,000  
$200,000  
$199,999  
$156,990  
$156,011  
$3,026,000  
Ashland University Dwight Schar College of Nursing and Health Services  
Capital University, Department of Nursing  
Ohio Northern University Bachelor of Science in Nursing Program  
Ohio University School of Nursing  
Muskingum University Bachelor of Science in Nursing Program  
Walsh University Gary and Linda Byers School of Nursing  
Post-Graduate Programs  
Ashland University Dwight Schar College of Nursing and Health Services  
Bowling Green State University RN to BSN Program  
Capital University, Department of Nursing  
Ohio University School of Nursing Master of Science in Nursing  
The Ohio State University  
Walsh University Gary and Linda Byers School of Nursing  
Lourdes University Master of Science in Nursing Program  
The University of Toledo College of Nursing  
Total  
Budget Footnotes  
P a g e | 24  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Southern Ohio Agricultural and Community Development  
Foundation Awards $1.7 million in Grants in FY 2019  
Shannon Pleiman, Budget Analyst  
In FY 2019, the Southern Ohio Agricultural and Community Development Foundation  
awarded approximately $1.7 million under seven grant programs. These programs are designed  
to help tobacco farm families and rural communities of the 22 burley tobacco-producing counties  
in southern Ohio diversify into farming other crops or start new business ventures. The total  
awarded also included $125,000 issued under a new, one-time grant in FY 2019 designed to help  
youth development organizations reconstruct or construct their facilities. This grant was awarded  
to Canters Cave 4-H Camp, which serves ten counties in the foundations region. The table below  
shows the number of awards issued and the total amount by grant program in FY 2019.  
Southern Ohio Agricultural and Community Development Foundation Awards in FY 2019  
Program  
Program Description  
Awards Issued  
Total  
Provides tobacco farmers with funding to  
diversify their businesses into  
nontobacco-related agricultural markets  
Agricultural  
Development  
25  
$527,291  
Provides financial assistance to projects that  
create or expand job opportunities for  
residents in communities affected by reduced  
demand for tobacco  
Economic  
Development  
2
$414,000  
Provides assistance to young farmers  
incorporating technology and conservation  
practices into their farming activities  
Young Farmer  
12  
82  
$250,823  
$159,000  
Provides education and training assistance to  
tobacco farmers switching from tobacco  
production to other crops  
Educational  
Assistance  
Provides grants to agricultural societies for  
permanent improvements for youth  
education and agriculture at county  
fairgrounds  
Agricultural  
Society  
4
$100,000  
$97,500  
Provides grants for tuition, on-campus room  
and board, and books for students pursuing a  
bachelors degree  
Educational  
Excellence  
14  
Provides grants for reconstruction and  
remodeling of existing buildings or  
construction of new structures for youth  
development facilities  
Youth  
Development  
1
$125,000  
Total  
140  
$1,673,614  
Budget Footnotes  
P a g e | 25  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Since FY 2010, the foundations grant programs and operating expenses have been  
supported by an endowment fund and the investment and interest earning associated with that  
fund. The money in the endowment fund is not subject to the General Assemblys  
appropriation process.  
$
5.0 million in Federal Funds Awarded to Help with Substance  
Use Disorder in Rural Areas  
Ryan Sherrock, Economist  
On August 8, 2019, the U.S. Department of Health and Human Services (HHS) awarded  
5.0 million to five Ohio entities to strengthen and expand substance use disorder (SUD)  
$
prevention, treatment, and recovery services in rural areas. The awards were provided under  
the Rural Communities Opioid Response Program (RCORP), which is a multi-year program  
aimed at reducing the morbidity and mortality of SUD in high-risk rural communities. Eligible  
applicants included private and public, for-profit and nonprofit entities whose target  
populations reside in HHS-designated rural counties or rural census tracts in urban counties.  
RCORP focus areas include the following: reducing the occurrence and risk of SUD, as well as  
fatal opioid-related overdoses; promoting infectious disease detection though community and  
provider education; implementing or expanding access to evidence-based practices; eliminating  
or reducing treatment costs for uninsured and underinsured patients; implementing or  
expanding access to treatment options that help patients start and stay in recovery; and  
expanding the ability of providers to bill for treatment services. In total, over $111.0 million was  
awarded to 96 rural entities across 37 states. The table below shows the Ohio entities that  
received awards.  
Ohio RCORP Grant Recipients  
Rural Entity  
Adena Health System  
City  
Grant Award  
$1,000,000  
Chillicothe  
Sandusky  
Chillicothe  
Athens  
Erie County Health Department  
Hopewell Health Centers, Inc.  
Ohio University  
$1,000,000  
$1,000,000  
$1,000,000  
$1,000,000  
$5,000,000  
University of Cincinnati  
Cincinnati  
Total  
Budget Footnotes  
P a g e | 26  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Rural Fire Departments to Receive More Than $95,000 in  
Volunteer Fire Assistance Grants  
Tom Wert, Budget Analyst  
On August 14, 2019, the Department of Natural Resources (DNR) announced that  
4 volunteer fire departments in ten rural counties would receive grants under the Volunteer  
2
Fire Assistance (VFA) Summer 2019 Wildland Fire Personal Protective Equipment and Wildland  
Fire Tools Competitive Grant Program. The program, administered by DNRs Division of  
Forestry, provides fire departments with up to ten complete sets of wildland fire personal  
protective equipment, which includes fire-resistant shirts and pants, hard hats, goggles, leather  
gloves, and various tools. Under the program, approximately 580 fire departments in DNRs  
wildfire protection area were eligible to apply. The wildfire protection area, which was  
expanded in February of 2019, includes all parts for the following counties: Adams, Ashland,  
Ashtabula, Athens, Belmont, Brown, Carroll, Clermont, Harrison, Henry, Highland, Hocking,  
Holmes, Jackson, Jefferson, Lawrence, Licking, Lucas, Knox, Meigs, Mahoning, Monroe, Morgan,  
Muskingum, Noble, Perry, Pike, Portage, Richland, Ross, Scioto, Stark, Trumbull, Tuscarawas,  
Vinton, and Washington. T8he number of fire departments and the totals received by county are  
shown in the table below.  
Wildland Fire Personal Protective Equipment and Wildland Fire Tools Grants  
by County Summer 2019  
County  
Number of Fire Departments  
Amount  
$19,318  
Ashtabula  
Brown  
5
3
$13,075  
$4,343  
$8,885  
$5,120  
$3,479  
$12,726  
$4,551  
$4,551  
$19,413  
$95,461  
Fulton  
1
Geauga  
Henry  
2
2
Lucas  
1
Mahoning  
Portage  
Stark  
3
1
1
Trumbull  
5
Total  
24  
8 A complete list of recipients can be found online at: http://ohiodnr.gov/portals/forestry/pdfs/  
fire/19Summer_PPEandToolsRecipients.pdf.  
Budget Footnotes  
P a g e | 27  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Ohio Department of Transportation Announces Wrong-Way  
Safety Pilot Project  
Tom Middleton, Senior Budget Analyst  
On July 23, 2019, the Ohio Department of Transportation (ODOT) unveiled a $1.3 million  
safety pilot project in Hamilton County to detect and deter wrong-way drivers. Under the pilot  
program, the Department will install 92 electronic signs and 82 detection devices at  
2
is activated, LED lights around the edge of severalWrong Way andDo Not Enter signs begin  
3 locations on Interstate 71 in the Cincinnati metropolitan area. When the wrong-way system  
blinking. An alert is also sent to the ODOT Traffic Management Center in Columbus.  
ODOT selected this pilot project area based on factors such as frequency of 911 calls,  
prior wrong-way and alcohol-related crashes, and ramp traffic volumes. The detection devices  
will allow ODOT to collect data and design systems to prevent future wrong-way occurrences.  
Although wrong-way crashes accounted for less than 1% of all traffic accidents in Ohio in 2018,  
they had a high rate of fatality. Overall, wrong-way accidents are 40 times more likely to result  
in death.  
Funding for the Hamilton County pilot project totals $1,268,356. Of total funding, 90%  
comes from the federal Highway Safety Improvement Program and 10% from state motor fuel  
tax funds. Both the federal and state funding is spent through the Highway Operating Fund  
(Fund 7002).  
Budget Footnotes  
P a g e | 28  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
TErric Maakcelak, Eiconnomgist the Economy  
Overview  
The U.S. economy continued to grow through August. Employers added 130,000  
nonfarm employees in August, and the unemployment rate remained very low at 3.7%.  
Nationally, inflation-adjusted gross domestic product (real GDP) rose at a 2.0% annual rate in  
the second quarter of 2019, buoyed by consumer spending on goods and services. Both the  
Federal Reserve Boards industrial production index (IPI) and the Institute for Supply  
Management (ISM) indicated a slowing of manufacturing activity in recent months. Sectors  
other than manufacturing continued to expand in August, according to another ISM survey of  
purchasing managers.  
Ohios economy added 4,500 jobs in July, and the states unemployment rate remained  
at a seasonally adjusted 4.0%. YTD existing home sales, in terms of the number of units, were  
little changed (-0.2%) from January to July 2018; the average sale price of existing homes  
increased 6.4% over that time. Real GDP in Ohio grew at a seasonally adjusted rate of 3.5% in  
the first quarter of 2019, according to the most recent data available from the U.S. Bureau of  
Economic Analysis (BEA).  
The National Economy  
Nonfarm payroll employment increased by 130,000 workers in August. Employment in  
private goods-producing industries rose by 12,000, while private service-providing industries  
added 84,000 workers. The federal government added 28,000 workers in August, the majority  
to assist with Census 2020. Nationally, employment showed little change over the month for  
the construction, manufacturing, transportation and warehousing, and leisure and hospitality  
industries.  
The national unemployment rate remained at 3.7% for the third month in a row. The  
U.S. civilian noninstitutional population age 16 and over increased an estimated 207,000 in  
August while around 571,000 persons entered the labor force, increasing the labor force  
participation rate to 63.2%, the highest level measured since 2013. Rates of unemployment  
increased for those workers without a high school diploma and were level or decreased for all  
other education groups. Chart 5, below, documents the national level of employment and the  
unemployment rate.  
The Bureau of Labor Statistics (BLS) also announced a preliminary estimate of its annual  
benchmark revision to its payroll employment statistics. Monthly employment numbers are  
derived from the Current Employment Statistics (CES) survey, a sample of approximately  
6
89,000 private and government worksites across the U.S. BLS anticipates a downward  
adjustment of 501,000 (-0.3%) to the March 2019 total employment estimate when the final  
benchmark revision is issued in February 2020. The CES sample is redrawn once a year, and in  
months between resampling, new firm births are estimated. The Quarterly Census of  
Employment and Wages, from statesunemployment insurance tax systems, is used for the  
annual benchmark to more accurately reflect worksites and workers in the nation as a whole.  
Budget Footnotes  
P a g e | 29  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Chart 5: U.S. Employment and Unemployment  
1
1
1
1
1
1
1
1
1
52  
49  
46  
43  
40  
37  
34  
31  
28  
11.0%  
10.0%  
9.0%  
8.0%  
7.0%  
6.0%  
5.0%  
4.0%  
3.0%  
2
008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019  
Nonfarm Payroll Employment  
Unemployment Rate (right scale)  
According to the second estimate from the BEA, real GDP rose at a 2.0% annualized rate  
in the second quarter of 2019, a downward revision from the 2.1% annual growth rate first  
estimated. The personal consumption expenditures component of real GDP increased at a  
seasonally adjusted 4.7% rate, the fastest quarterly increase in this spending category since  
2
014. Nationally, residential fixed investment declined at a 2.9% rate, the sixth straight quarter  
of decline in real spending in this sector. The rate of investment in nonresidential structures  
fell. Exports declined and imports remained around the same level. In the first quarter of 2019,  
real GDP rose at a 3.1% annual rate.  
During their most recent meeting on July 30 and 31, the Federal Reserve Banks Open  
Market Committee (FOMC) voted to decrease the federal funds target range by  
0
.25 percentage point. Among meeting participants, those who favored a reduction in the rate  
primarily cited a deceleration in business fixed investment and manufacturing. Some  
committee members cited uncertainty in global t9rade markets, while some members also cited  
inflation remaining below the FOMCs 2.0% goal.  
U.S. industrial production fell 0.2% in July, after expanding 0.2% in June, and was  
1
0
.3% below its all-time peak in December 2018. This Julys industrial production index was  
.5% greater than in July 2018, according to data from the Federal Reserve Board. Among major  
industry groups, manufacturing production declined 0.4% in July, while mining production  
dropped 1.8%. Manufacturing production this July was 1.6% lower than a peak in December  
and 0.5% below manufacturing production in July 2018; mining activity in July was 5.5% greater  
than a year prior. Factory production may be reported to have fallen again in August; the  
ISM manufacturing index contracted in August, the first decline in this measure of activity since  
2
016. ISM indexes are based on surveys of purchasing managers.  
9
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20190731.pdf.  
Budget Footnotes  
P a g e | 30  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
Nationally, the seasonally adjusted number of building permits issued for privately  
owned housing unit construction reached an annual rate of 1,336,000 in July, up from the  
1
,316,000 pace set in July 2018. According to the Census Bureaus Building Permits Survey, the  
number of permits issued for new residential construction has slowed in 2019 as compared to  
last calendar year, a national trend which is also picked up in real GDP data. A similar slowing  
was evident in numbers of housing units started.  
The consumer price index increased by a seasonally adjusted 0.3% in July according to  
the most recent BLS release. The price index which includes all items has increased 1.8% over  
the past year, while the price index which excludes the more volatile food and energy industries  
1
0
increased by 2.2% year over year. Energy prices rose last month, as the price index for energy  
increased by a seasonally adjusted 1.3% in July 2019, following a drop of 2.3% in the previous  
1
1
month. The price index for food has remained unchanged the past two months.  
The Ohio Economy  
Ohios economy added 4,500 nonfarm payroll employees in July, and the states  
unemployment rate remained at a seasonally adjusted 4.0%. In July 2018, Ohios adjusted  
unemployment rate stood at 4.6%. The number of unemployed persons was approximately  
2
payroll employment and unemployment rate over the last ten years.  
35,200 in July 2019, 27,700 fewer than a year prior. Chart 6, below, shows trends in the states  
Chart 6: Ohio Employment and Unemployment  
5
5
5
5
5
5
5
5
4
.7  
.6  
.5  
.4  
.3  
.2  
.1  
.0  
.9  
12.0%  
11.0%  
10.0%  
9.0%  
8.0%  
7.0%  
6.0%  
5.0%  
4.0%  
2
008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019  
Nonfarm Payroll Employment  
Unemployment Rate (right scale)  
10  
The energy index includes both energy commodities (mostly gasoline and fuel oil) and energy  
services (electricity, piped gas service).  
11  
The food index includes food prepared both at home and at other locations.  
Budget Footnotes  
P a g e | 31  
September 2019  
Legislative Budget Office of the Legislative Service Commission  
The states total nonfarm payroll employment was 5,593,000, seasonally adjusted, in  
July, an increase of 4,500 from the previous month and of 25,200 from July 2018. The industry  
which added the most jobs over the past month was the manufacturing industry (+3,200); the  
leisure and hospitality industry added 2,600 employees, while governments added 2,000 new  
1
2
workers. Over the past 12 months, employment in private goods-producing industries has  
increased by 3,600, while employment in private service-providing industries has increased by  
1
federal (+700), state (+1,800), and local (+700) governments realizing an increase in  
8,400. Government payrolls have increased by 3,200 workers over the same time period, with  
employment numbers.  
Ohios GDP grew at a seasonally adjusted 3.5% annual rate during the first quarter of  
019, following growth at a 1.4% rate in the previous quarter. In 2019s first quarter, Ohios  
2
economy accounted for 3.3% of national GDP, unchanged from the prior four quarters. Growth  
in finance and insurance (+0.86 percentage point), nondurable goods manufacturing  
(
assistance (+0.52 percentage point), and mining, quarrying, and oil and gas extraction  
+0.73 percentage point), retail trade (+0.65 percentage point), health care and social  
(+0.48 percentage point) contributed to Ohios growth during the quarter.  
According to Ohio realtors, a total of 15,439 existing homes were sold in July 2019, a  
.8% increase over the July 2018 total. The total dollar volume of sales in July was  
2
approximately $3.19 billion, up 10.6% from the same month a year prior. The average sales  
price of an existing home in Ohio, from January to July 2019, was $194,082.  
Business activity in the Cleveland Federal Reserve District remained at a consistent level  
during the recent survey period, according to a recent Federal Reserve System publication, the  
1
3
Beige Book. Employment growth remained stagnant, and wage growth was moderate in most  
sectors. Home sales increased but home builders noted weaker demand. Retailers reported  
improving sales. Manufacturers in the region reported weaker demand for their products, citing  
uncertainty, trade tensions, and increased competition. Respondents reported strong  
nonresidential construction demand. Prices were little changed on net.  
1
2
3
The increase in government employment matches that at local governments.  
1
The Federal Reserve Bank of Clevelands district consists of all of Ohio, western Pennsylvania,  
eastern Kentucky, and the northern panhandle of West Virginia. Comments summarized above are from  
the latest edition of the Beige Book, a publication that summarizes comments from business and  
industry contacts outside of the Federal Reserve System collected on or before August 23, 2019.  
Budget Footnotes  
P a g e | 32  
September 2019