Legislative Budget Office of the Legislative Service Commission  
A monthly newsletter of the Legislative Budget Office of LSC  
Volume: Fiscal Year 2020  
Issue: December 2019  
Highlights  
Ross Miller, Chief Economist  
November GRF tax revenue was just $2 million (0.1%) below the estimate  
published by the Office of Budget and Management (OBM) in August. Sales and use  
tax receipts came in well above estimate ($31.9 million), but the income tax, the  
commercial activity tax, and the public utility excise tax were all below estimate by  
sizable amounts. The November results mean that FY 2020 GRF tax revenue was  
$
GRF program expenditures were $149.5 million below estimate, and the state  
budget overall looks in good shape through the first five months of FY 2020.  
95.0 million above estimate for the year to date through November. November  
Ohios unemployment rate remained unchanged at 4.2% in October, and was  
.6 percentage point higher than the national rate for that month. Payroll  
0
employment fell by 1,000 from September to October.  
Through November 2019, GRF sources totaled $14.07 billion:  
Revenue from the sales and use tax was $114.2 million above estimate;  
Personal income tax receipts were $38.4 million below estimate.  
Through November 2019, GRF uses totaled $15.63 billion:  
Program expenditures were $277.4 million below estimate;  
Expenditures from all program categories were below estimates, led by  
Medicaid (by $85.9 million), Higher Education (by $63.2 million), Justice and  
Public Protection (by $47.2 million), and Health and Human Services  
($31.5 million).  
In this issue...  
More details on GRF Revenues (p. 2), Expenditures (p. 11),  
the National Economy (p. 26), and the Ohio Economy (p. 27).  
Also Issue Updates on:  
Workforce Development Revolving Loan Program (p. 19)  
Pike State Forest Expansion (p. 19)  
New Cemetery Grant Program (p. 20)  
Nations Report Card (p. 20)  
ODOT Transit Funding (p. 21)  
Maternal Mortality Funds (p. 22)  
Medicaid Unified Preferred Drug List Available (p. 23)  
Federal JAG Awards (p. 23)  
Environmental Education Grants (p. 24)  
Available online at: www.lsc.ohio.gov/Budget Central  
Legislative Budget Office of the Legislative Service Commission  
Table 1: General Revenue Fund Sources  
Actual vs. Estimate  
Month of November 2019  
($ in thousands)  
(Actual based on report run in OAKS Actuals Ledger on December 03, 2019)  
State Sources  
Tax Revenue  
Actual  
Estimate*  
Variance Percent  
Auto Sales  
Nonauto Sales and Use  
Total Sales and Use  
$118,485  
$823,376  
$941,861  
$105,900  
$804,100  
$910,000  
$12,585  
$19,276  
$31,861  
11.9%  
2.4%  
3.5%  
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  
$603,464  
$330,309  
$72,248  
$25,621  
-$1,176  
$6  
-$3,129  
$24,342  
$4,987  
$5,329  
$4,301  
$0  
$640,100  
$334,900  
$72,400  
$26,300  
-$9,600  
$0  
-$7,800  
$29,600  
$5,200  
$5,000  
$4,100  
$0  
-$36,636  
-$4,591  
-$152  
-$679  
$8,424  
$6  
$4,671  
-$5,258 -17.8%  
-$213  
$329  
$201  
$0  
-5.7%  
-1.4%  
-0.2%  
-2.6%  
87.8%  
---  
59.9%  
-4.1%  
6.6%  
4.9%  
---  
---  
---  
$47  
$0  
$0  
$0  
$47  
$0  
Total Tax Revenue  
$2,008,210 $2,010,200  
-$1,990  
-0.1%  
Nontax Revenue  
Earnings on Investments  
Licenses and Fees  
Other Revenue  
$18  
$1,152  
$2,390  
$3,560  
$0  
$415  
$2,282  
$2,697  
$18  
$737 177.8%  
$107  
$863  
---  
4.7%  
32.0%  
Total Nontax Revenue  
Transfers In  
$0  
$0  
$0  
---  
Total State Sources  
$2,011,770 $2,012,897  
$600,694  
$2,612,464 $2,837,326 -$224,862  
-$1,127  
-0.1%  
Federal Grants  
$824,429 -$223,735 -27.1%  
Total GRF Sources  
-7.9%  
*Estimates of the Office of Budget and Management as of August 2019.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 2  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
Table 2: General Revenue Fund Sources  
Actual vs. Estimate  
FY 2020 as of November 30, 2019  
($ in thousands)  
(Actual based on report run in OAKS Actuals Ledger on December 03, 2019)  
State Sources  
Tax Revenue  
Auto Sales  
Nonauto Sales and Use  
Total Sales and Use  
Actual  
Estimate*  
Variance Percent FY 2019** Percent  
$681,487  
$3,951,423 $3,876,600  
$4,632,910 $4,518,700 $114,210  
$642,100  
$39,387  
$74,823  
6.1%  
1.9% $3,749,635  
$630,354  
8.1%  
5.4%  
5.8%  
2.5% $4,379,988  
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  
$3,601,894 $3,640,300  
-$38,406  
$23,915  
-$3,247  
-$2,452  
$18,253  
$7  
-$7,617 -34.2%  
-$5,672  
-$1,509  
-$2,713 -10.8%  
$379 1.8%  
-$204 -10.2%  
$43  
$38  
-1.1% $3,611,739  
-0.3%  
5.3%  
-5.1%  
-7.6%  
9.6%  
$799,015  
$329,253  
$144,848  
$174,253  
$7  
$775,100  
$332,500  
$147,300  
$156,000  
$0  
3.1%  
-1.0%  
-1.7%  
11.7%  
---  
$758,725  
$347,119  
$156,730  
$159,029  
$2 309.8%  
-$21,855 -36.9%  
$68,100 -13.0%  
$20,253  
$25,476 -11.7%  
$20,899 3.3%  
-$29,917  
$59,228  
$18,291  
$22,487  
$21,579  
$1,796  
$43  
-$22,300  
$64,900  
$19,800  
$25,200  
$21,200  
$2,000  
$0  
-8.7%  
-7.6%  
-9.7%  
$2,019 -11.0%  
$192 -77.5%  
$32  
---  
---  
$38  
$0  
16.9%  
Total Tax Revenue  
$9,775,725 $9,680,700  
$95,025  
1.0% $9,528,446  
2.6%  
Nontax Revenue  
Earnings on Investments  
Licenses and Fees  
Other Revenue  
$41,475  
$10,617  
$73,610  
$125,702  
$27,500  
$7,829  
$58,740  
$94,069  
$13,975  
$2,788  
$14,870  
$31,633  
50.8%  
35.6%  
25.3%  
33.6%  
$25,393  
$9,788  
$54,740  
$89,922  
63.3%  
8.5%  
34.5%  
39.8%  
Total Nontax Revenue  
Transfers In  
$75,548  
$68,570  
$6,978  
10.2%  
$76,109  
-0.7%  
2.9%  
-6.1%  
0.1%  
Total State Sources  
$9,976,975 $9,843,339 $133,636  
$4,089,613 $4,362,985 -$273,372  
$14,066,588 $14,206,323 -$139,736  
1.4% $9,694,477  
-6.3% $4,357,089  
-1.0% $14,051,565  
Federal Grants  
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  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
1
Revenues  
Jean J. Botomogno, Principal Economist  
Overview  
Through November in FY 2020, GRF sources totaling $14.07 billion were $139.7 million  
(
1.0%) below the Office of Budget and Management (OBM) estimate, due to a large negative  
2
variance of $273.4 million (6.3%) for federal grants. Partially offsetting that shortfall, YTD tax  
receipts were $95.0 million (1.0%) above projections, while nontax revenues and GRF transfers  
in had positive variances of $31.6 million (33.6%) and $7.0 million (10.2%), respectively.  
Tables 1 and 2 show GRF sources for the month of November and for FY 2020 through  
November, respectively. GRF sources consist of both federal grants and state-source receipts,  
such as tax revenue, nontax revenue, and transfers in.  
Chart 1, below, shows cumulative YTD variances of GRF sources each month through  
November 2019.  
Chart 1: Cumulative Variances of GRF Sources in FY 2020  
(
Variances from Estimates, $ in millions)  
$
$
150  
100  
$
50  
$0  
-
$50  
-
-
-
-
-
$100  
$150  
$200  
$250  
$300  
Jul-19  
Aug-19  
Federal Grants  
Sep-19  
Oct-19  
Nov-19  
Tax Revenue  
Total GRF Sources  
Regarding the YTD performance of specific tax sources, the sales and use tax and the  
commercial activity tax (CAT) posted positive variances of $114.2 million and $23.9 million,  
respectively. In addition, the foreign insurance tax was $18.3 million above its anticipated level.  
On the other hand, the personal income tax (PIT) and the cigarette and other tobacco products  
1 This report compares actual monthly and YTD GRF revenue sources to OBMs estimates. If  
actual receipts were 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 were lower than  
estimate.  
2 Federal grants are typically federal reimbursements for Medicaid and other human services  
programs.  
Budget Footnotes  
P a g e | 4  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
tax were $38.4 million and $3.2 million, respectively, below their FY 2020 estimates. Most of  
the remaining GRF taxes also experienced negative variances through November, including the  
3
financial institutions tax (FIT, $7.6 million), the alcoholic beverage tax ($2.7 million), and the  
three utility-related taxes (the kilowatt-hour excise tax, the public utility tax, and the natural  
gas consumption tax) which were collectively $9.6 million below projections. All other taxes had  
smaller variances at the end of November.  
For the month of November 2019, GRF sources of $2.61 billion were $224.9 million below  
estimates, due to shortfalls of $223.7 million for federal grants and $2.0 million for tax sources.  
However, nontax revenue was above estimate by $0.9 million; and no GRF transfers in occurred  
or were anticipated. The poor performance of GRF tax sources was the result of negative  
variances of $36.6 million from the PIT, $5.3 million from the public utility tax, and $4.6 million  
from the CAT. Those negative variances were partially offset by gains of $31.9 million for the sales  
tax, $8.4 million for the foreign insurance tax, and $4.7 million for the FIT.  
As shown in Table 2, FY 2020 GRF sources through November were just $15.0 million  
(0.1%) above sources in the corresponding period in FY 2019. Receipts from tax sources and  
nontax revenue were $247.3 million and $35.8 million above such revenues in FY 2019 through  
November. On the other hand, federal grants and transfers in were below their FY 2019 levels  
by $267.5 million and $0.6 million, respectively. Growth in GRF tax revenue was due to the  
sales tax ($252.9 million) and the CAT ($40.3 million). Revenue from the PIT for the first five  
months of FY 2020 fell slightly ($9.8 million); this was due in part to a reduction in withholding  
rates, the role of which is explained below.  
Sales and Use Tax  
The sales and use tax has been healthy throughout FY 2020. Through November, GRF  
receipts of $4.63 billion from this tax were $114.2 million (2.5%) above estimate, with both the  
nonauto and the auto portions of the tax above projections. Total sales tax revenue was also  
$
252.9 million (5.8%) above receipts in FY 2019 through November. For the latest month, GRF  
receipts were $941.9 million, $31.9 million (3.5%) above estimate, powered by strong results  
from the auto sales tax. Compared to the same month last year, November receipts from this tax  
increased $44.1 million (4.9%). For analysis and forecasting, revenue from 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.  
Nonauto Sales and Use Tax  
November receipts from the nonauto sales and use tax totaling $823.4 million exceeded  
estimate by $19.3 million (2.4%). This performance increased the cumulative YTD positive  
variance of this GRF source to $74.8 million (1.9%), up from a positive variance of $55.5 million in  
the first four months of FY 2020. Compared to revenue in the same month in 2018, November  
3 A negative variance in FIT collections through the first half of the year is not uncommon. The  
OBM estimate always assumes refunds outweigh FIT collections during this period. Refunds typically  
occur during the first half of a fiscal year as taxpayers make adjustments to previous tax filings, which is  
inherently difficult to predict. Receipts of the FIT are typically expected in January, March, and May.  
Budget Footnotes  
P a g e | 5  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
revenue increased $36.1 million (4.6%). For the fiscal year to date, GRF receipts of $3.95 billion  
were $201.8 million (5.4%) above revenue in the corresponding period in FY 2019.  
Chart 2, below, shows year-over-year growth in nonauto sales tax collections. As a result  
of continuing economic expansion, nonauto sales tax receipts have continued to grow in  
FY 2020. Tax revenue growth has also been supported by increased sales tax remittances by  
out-of-state sellers. Though the total amount of additional tax revenue is uncertain, Ohio has  
benefitted from an increase in voluntary collections by certain remote sellers in the wake of the  
U.S. Supreme Court decision in South Dakota v. Wayfair in June 2018. Following this Supreme  
Court decision, H.B. 166, the main operating budget act for the biennium, substantially  
4
modified Ohios nexus assumptions, which are expected to increase nonauto sales tax revenue  
by $121 million in FY 2020. However, the revenue gains may be higher or lower depending on  
the behavioral response of remote sellers and market facilitators (e.g., Amazon Marketplace,  
eBay, Walmart Marketplace, Etsy).  
Chart 2: Nonauto Sales and Use Tax Receipts Trend  
Actual vs. Prior Year (with Tax Base Adjustment)  
(
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  
The auto sales and use tax continues to outperform expectations and has been above  
estimate each month in FY 2020. YTD GRF revenue from this source totaled $681.5 million  
through November, an amount $39.4 million (6.1%) above estimates. YTD collections were also  
$51.1 million (8.1%) above receipts in the corresponding period in FY 2019.  
4 If an out-of-state seller has sufficient contact with the state (nexus), the seller is required to  
abide by Ohios tax laws. Effective August 1, 2019, Ohio enacted substantial nexus statutes when a seller  
has at least 200 transactions or $100,000 or more in gross sales into Ohio. With this change in statutes, a  
seller making sales into Ohio may have a requirement to collect Ohio (sellers) use tax without a physical  
presence in this state.  
Budget Footnotes  
P a g e | 6  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
Chart 3: Auto Sales and Use Tax Receipts Trend  
Actual vs. Prior Year  
(
Three-month Moving Average)  
1
0.0%  
9
8
7
6
5
4
3
2
1
0
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
.0%  
For the month of November 2019, revenue from this tax was $118.5 million, $12.6 million  
(11.9%) above estimate and $8.0 million (7.2%) above collections in the same month in 2018.  
Chart 3 shows year-over-year growth in auto sales and use tax collections. As mentioned in  
previous editions of Budget Footnotes, recent gains in the tax base largely reflect higher vehicle  
prices paid by consumers rather than increases in the number of units sold, as consumer tastes  
and preferences have shifted away from cars toward trucks, sport-utility vehicles and crossovers;  
and as long as gas prices remain relatively low and stable, this trend is likely to continue.  
Nationally, sales of light vehicles (autos and light trucks) through November averaged  
16.9 million units on an annualized basis, below last years 17.2 million units in the corresponding  
period. So it is probable sales in 2019 will fall short of the previous years level of 17.3 million  
units, and they may be below the 17-million mark for the first time in five years.  
Personal Income Tax  
Through November, YTD PIT GRF receipts of $3.60 billion were $38.4 million (1.1%) below  
projections. This tax source had recorded a surplus of $18.8 million in the first fiscal quarter, but  
its performance has been weaker since. November GRF receipts of $603.5 million were below  
estimates by $36.6 million (5.7%), in part due to higher than expected refunds, after a shortfall of  
$
November 2018. Comparisons with year-ago receipts are affected by a 3.3% withholding rate  
reduction earlier this calendar year. Compared to PIT receipts from the corresponding period  
20.6 million in October. November PIT revenue was also $82.3 million (12.0%) below revenue in  
5
one year ago, YTD FY 2020 revenue declined $9.8 million (0.3%), though at the end of September,  
YTD PIT receipts were up 3.1% relative to revenue in the first quarter of FY 2019.  
5 Effective January 1, 2019, Ohio employer withholding tax rates were reduced by 3.3% in order to be  
st  
fully consistent with the income tax rate reductions enacted in 2015 (H.B. 64 of the 131 General Assembly).  
Budget Footnotes  
P a g e | 7  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
PIT revenue to the GRF is comprised of gross collections, minus refunds and distributions to  
the Local Government Fund (LGF). Gross collections consist of employer withholdings, quarterly  
6
estimated payments, trust payments, payments associated with annual returns, and other  
miscellaneous payments. The performance of the tax is typically driven by employer 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.  
The PIT performance in October and November is generally affected by the close of the  
filing extension period. Annual tax returns are generally due by April 15 each year. However,  
some taxpayers request a six-month filing extension, which requires them to file their  
7
completed tax returns on or before the October 15 deadline. An IRS extension also qualifies an  
Ohio taxpayer for an extension to file the state income tax return, though payment of tax due  
to the state and federal governments are to be made by the preceding April 15.  
In November, gross collections were below projections by $19.3 million, with all  
components failing to meet their respective targets: withholding was $9.3 million below  
estimate, taxes due with annual returns were $5.4 million below expectation, and  
miscellaneous payments were short of projection by $2.7 million; and larger than expected  
refunds contributed $13.3 million to the PIT monthly negative variance of $36.6 million. The  
November negative variance was more broadly based than the PIT negative variance in October  
of $20.6 million, which was due to higher than expected refunds ($33.1 million); gross  
collections that month were $12.4 million above projections.  
For the YTD, revenues from each component of the PIT relative to estimates and  
revenue received in FY 2019 are detailed in the table below. Gross collections were  
$
21.0 million above estimate, with quarterly estimated payments being the only component  
with a YTD negative variance. Refunds and distributions to LGF were $54.6 million and  
4.9 million, respectively, higher than expected. Taxpayers who relied on extensions to file their  
$
tax year (TY) 2018 tax returns were likely the beneficiaries of most of these refunds, as some of  
them overestimated their tax liabilities and remitted too much PIT payment by April when  
requesting an IRS extension. FY 2020 refunds and LGF distributions also increased compared to  
their amounts in the corresponding period last fiscal year. In part, the increase in LGF  
distributions is due to an increase in the allocation of GRF tax revenue to the LGF. H.B. 166  
included a provision in uncodified law increasing the allocation from 1.66% of GRF tax revenue  
to 1.68% during the current biennium.  
6 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.  
7 Because taxpayers who request an extension generally have more complex finances, they  
represent 20% of the total tax liability that will be reported for all individual income tax returns filed  
during the year. https://www.irs.gov/statistics/filing-season-statistics.  
Budget Footnotes  
P a g e | 8  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
FY 2020 PIT Revenue Variance and Annual Change by Component  
YTD Variance from Estimate  
Changes from FY 2019  
Category  
Amount  
$ in millions)  
Percent  
(%)  
Amount  
($ in millions)  
Percent  
(%)  
(
Withholding  
$23.0  
-$6.0  
$1.2  
0.6%  
$52.8  
$20.4  
$1.3  
1.4%  
7.8%  
Quarterly Estimated Payments  
Trust Payments  
-2.1%  
6.5%  
2.1%  
1.0%  
0.5%  
15.5%  
2.8%  
-1.1%  
7.1%  
Annual Return Payments  
Miscellaneous Payments  
Gross Collections  
$2.5  
$21.3  
$1.1  
21.2%  
3.6%  
$0.3  
$21.0  
$54.6  
$4.9  
$96.8  
$95.0  
$11.7  
-$9.8  
2.4%  
Less Refunds  
30.6%  
7.0%  
Less LGF Distribution  
GRF PIT Revenue  
-$38.4  
-0.3%  
Through November, FY 2020 employer withholding receipts8 grew 1.4%, despite the  
reduction in withholding rates described above. The chart below illustrates the growth of  
monthly employer withholdings on a three-month moving average relative to one year ago. It  
shows both the actual change in withholding receipts in FY 2020 and estimated withholding  
receipts adjusted for the decrease in withholding tax rates in January.  
Chart 4: Monthly Witholding 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%  
Actual  
Adjusted  
8 Withholding receipts consist of monthly employer withholding (about 99% of the total) and  
annual employer withholding.  
Budget Footnotes  
P a g e | 9  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
Commercial Activity Tax  
In the first three months of the fiscal year, the CAT exceeded OBMs estimate by  
33.6 million, including a monthly surplus of $18.2 million in August for the first payment for  
$
quarterly calendar return taxpayers. However, in October and November, GRF revenue from  
the CAT was $5.1 million (6.9%) and $4.6 million (1.4%), respectively, below estimates.  
November GRF revenue of $330.3 million, which included the second payment for quarterly  
calendar return taxpayers, showed no growth relative to receipts in November 2018. Despite  
the recent shortfalls, YTD GRF revenue from this source was $23.9 million (3.1%) above  
estimates and $40.3 million (5.3%) above revenues in the corresponding period in FY 2019.  
9
Some of the YTD gains were driven by a decline in tax credits claimed against the CAT, as  
compared to the previous year. Through November, FY 2020 gross collections grew 2.6% while  
refunds and credits fell 26.7%, resulting in a higher growth rate for the GRF. After growing 8.8%  
in the first quarter in FY 2020 relative to FY 2019, in the October-November period, gross  
collections and GRF revenue fell $15.6 million and $9.7 million, respectively, or roughly 3%  
each. December estimated receipts to the GRF are $10.2 million. Thus, year-over-year growth  
as a whole in the second quarter of FY 2020 may be flat or negative.  
9 A number of Ohios business tax credits can be claimed against more than one type of tax, but  
many are claimed against the CAT, which is imposed on the privilege of doing business in Ohio.  
Budget Footnotes  
P a g e | 10  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
Table 3: General Revenue Fund Uses  
Actual vs. Estimate  
Month of November 2019  
($ in thousands)  
(Actual based on OAKS reports run December 9, 2019)  
Program Category  
Actual  
Estimate*  
Variance Percent  
Primary and Secondary Education  
Higher Education  
$694,505  
$196,708  
$6,255  
$687,318  
$246,520  
$5,527  
$7,187  
1.0%  
-$49,812 -20.2%  
Other Education  
$728  
13.2%  
Total Education  
$897,469  
$939,365  
-$41,896  
-4.5%  
Medicaid  
$1,321,424  
$118,705  
$1,327,358  
$127,385  
-$5,933  
-$8,680  
-0.4%  
-6.8%  
-1.0%  
Health and Human Services  
Total Health and Human Services  
$1,440,129  
$1,454,743  
-$14,614  
Justice and Public Protection  
General Government  
$204,237  
$34,796  
$229,316  
$47,340  
-$25,079 -10.9%  
-$12,544 -26.5%  
-$37,623 -13.6%  
Total Government Operations  
$239,033  
$276,656  
Property Tax Reimbursements  
Debt Service  
$52,201  
$30,839  
$83,040  
$107,602  
$30,848  
-$55,401 -51.5%  
-$8  
0.0%  
Total Other Expenditures  
$138,450  
-$55,410 -40.0%  
Total Program Expenditures  
Transfers Out  
$2,659,671  
$1,132  
$2,809,214 -$149,543  
$0 $1,132  
$2,809,214 -$148,411  
-5.3%  
---  
Total GRF Uses  
$2,660,803  
-5.3%  
*September 2019 estimates of the Office of Budget and Management.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 11  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
Table 4: General Revenue Fund Uses  
Actual vs. Estimate  
FY 2020 as of November 30, 2019  
($ in thousands)  
(Actual based on OAKS reports run December 9, 2019)  
Program Category  
Actual  
Estimate*  
Variance Percent FY 2019** Percent  
Primary and Secondary Education  
Higher Education  
$3,556,395 $3,575,583 -$19,188  
-0.5% $3,551,341  
0.1%  
-2.4%  
16.0%  
-0.3%  
$935,853  
$43,999  
$999,017 -$63,164  
$44,615 -$616  
-6.3%  
-1.4%  
$958,530  
$37,928  
Other Education  
Total Education  
$4,536,247 $4,619,215 -$82,968  
-1.8% $4,547,799  
Medicaid  
$6,755,892 $6,841,766 -$85,874  
-1.3% $6,703,488  
0.8%  
11.7%  
1.6%  
Health and Human Services  
Total Health and Human Services  
$631,624  
$663,090 -$31,466  
-4.7% $565,584  
-1.6% $7,269,072  
$7,387,516 $7,504,856 -$117,340  
Justice and Public Protection  
General Government  
$1,071,195 $1,118,357 -$47,163  
-4.2%  
$989,334  
$164,324  
8.3%  
14.1%  
9.1%  
$187,517  
$209,268 -$21,751 -10.4%  
Total Government Operations  
$1,258,711 $1,327,625 -$68,914  
-5.2% $1,153,658  
Property Tax Reimbursements  
Debt Service  
$903,562  
$884,338  
$911,427  
$884,630  
-$7,865  
-$292  
-0.9%  
0.0%  
$904,529  
$914,659  
-0.1%  
-3.3%  
-1.7%  
Total Other Expenditures  
$1,787,901 $1,796,057  
-$8,156  
-0.5% $1,819,189  
Total Program Expenditures  
Transfers Out  
$14,970,375 $15,247,754 -$277,379  
$662,799 $669,975 -$7,177  
$15,633,173 $15,917,729 -$284,555  
-1.8% $14,789,718  
1.2%  
-1.1%  
$752,840 -12.0%  
0.6%  
Total GRF Uses  
-1.8% $15,542,558  
*
*
September 2019 estimates of the Office of Budget and Management.  
*Cumulative totals through the same month in FY 2019.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 12  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
Table 5: Medicaid Expenditures by Department  
Actual vs. Estimate  
($ in thousands)  
(Actuals based on OAKS report run on December 9, 2019)  
Month of November 2019  
Estimate* Variance Percent  
Year to Date through November 2019  
Department  
Medicaid  
GRF  
Actual  
Actual  
Estimate*  
Variance Percent  
$1,247,754 $1,259,811  
$601,974 $620,728  
$1,849,728 $1,880,540  
-$12,057  
-$18,754  
-$30,811  
-1.0% $6,411,061  
-3.0% $3,590,307  
$6,500,056  
$3,671,530  
-$88,995  
-$81,223  
-1.4%  
-2.2%  
-1.7%  
Non-GRF  
All Funds  
Developmental  
Disabilities  
GRF  
-1.6% $10,001,368 $10,171,586 -$170,218  
$62,031  
$60,225  
$246,409  
$306,634  
$1,806  
3.0%  
$295,889  
$978,609  
$294,558  
$1,068,080  
$1,362,639  
$1,331  
-$89,471  
-$88,140  
0.5%  
-8.4%  
-6.5%  
Non-GRF  
All Funds  
$164,148  
-$82,261 -33.4%  
$
226,179  
-$80,455 -26.2% $1,274,498  
Job and Family Services  
GRF  
$10,427  
$21,749  
32,176  
$6,215  
$26,248  
$32,464  
$4,212  
-$4,499 -17.1%  
-$288 -0.9%  
67.8%  
$44,501  
$80,604  
$42,448  
$68,782  
$2,053  
$11,821  
$13,874  
4.8%  
17.2%  
12.5%  
Non-GRF  
$
$125,104  
$111,230  
All Funds  
Health, Mental Health and Addiction, Aging, Pharmacy Board, and Education  
GRF  
$1,212  
$5,085  
$1,106  
$3,221  
$4,327  
$107  
$1,863  
$1,970  
9.6%  
57.9%  
45.5%  
$4,441  
$19,720  
$24,161  
$4,703  
$17,298  
$22,001  
-$263  
$2,423  
$2,160  
-5.6%  
14.0%  
9.8%  
Non-GRF  
$
6,297  
All Funds  
All Departments:  
GRF  
$1,321,424 $1,327,358  
$792,956  
$2,114,381 $2,223,965 -$109,584  
-$5,933  
-0.4% $6,755,892 $6,841,766  
-$85,874  
-1.3%  
-3.2%  
-2.1%  
Non-GRF  
All Funds  
$896,607 -$103,651 -11.6% $4,669,240 $4,825,691 -$156,451  
-4.9% $11,425,132 $11,667,456 -$242,325  
*September 2019 estimates from the Department of Medicaid.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 13  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
Table 6: All Funds Medicaid Expenditures by Payment Category  
Actual vs. Estimate  
($ in thousands)  
(Actuals based on OAKS report run on December 9, 2019)  
Month of November 2019  
Year to Date through November 2019  
Actual Estimate* Variance Percent  
Payment Category  
Actual  
Estimate* Variance Percent  
Managed Care  
CFC†  
$1,384,684 $1,390,735  
-$6,051  
-$7,522  
-$2,055  
$3,958  
$2,966  
-$3,398  
$0  
-0.4% $6,912,729 $6,945,486  
-$32,757  
-$32,686  
-$14,556  
-$8,367  
-$1,242  
$26,020  
-$1,925  
-0.5%  
-1.3%  
-0.8%  
-0.7%  
-0.3%  
2.4%  
--  
$483,657  
$360,683  
$241,359  
$79,911  
$219,074  
$0  
$491,179  
$362,738  
$237,401  
$76,945  
$222,472  
$0  
-1.5% $2,433,081  
-0.6% $1,797,730  
1.7% $1,172,683  
$2,465,766  
$1,812,286  
$1,181,050  
$382,950  
$1,103,433  
$0  
Group VIII  
ABD†  
ABD Kids  
My Care  
P4P†  
3.9%  
-1.5% $1,129,453  
-- -$1,925  
$381,708  
Fee-For-Service  
ODM Services  
DDD Services  
$557,027  
$336,479  
$220,548  
$0  
$627,604  
$336,939  
$290,665  
$0  
-$70,564 -11.2% $3,675,924 $3,792,058 -$116,121  
-3.1%  
-2.8%  
-5.8%  
1.7%  
-$460  
-0.1% $1,737,904  
$1,788,037  
$1,316,021  
$669,444  
$18,557  
-$50,133  
-$76,221  
$11,202  
-$969  
-$70,104 -24.1% $1,239,787  
Hospital – HCAP†  
Hospital Other  
$0  
$0  
--  
--  
$680,646  
$17,587  
$0  
$0  
-5.2%  
Premium Assistance  
Medicare Buy-In  
Medicare Part D  
$92,079  
$53,162  
$38,917  
$97,079  
$57,127  
$39,952  
-$5,000  
-$3,965  
-$1,034  
-5.2%  
-6.9%  
-2.6%  
$455,154  
$260,952  
$194,202  
$465,982  
$268,842  
$197,140  
-$10,828  
-$7,890  
-$2,937  
-2.3%  
-2.9%  
-1.5%  
Administration  
Total  
$80,590  
$108,546  
-$27,956 -25.8%  
$381,324  
$463,930  
-$82,607 -17.8%  
$2,114,381 $2,223,965 -$109,571  
-4.9% $11,425,132 $11,667,456 -$242,312 -2.1%  
*September 2019 estimates from the Department of Medicaid.  
Pay For Performance.  
CFC - Covered Families and Children; ABD - Aged, Blind, and Disabled; HCAP - Hospital Care Assurance Program; P4P -  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 14  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
EMexlanpey Cearnter,dDiriecttorures10  
Ivy Chen, Principal Economist  
Overview  
The preceding Table 4 shows GRF expenditures compared to estimates for FY 2020  
year-to-date (YTD). Through November, FY 2020 GRF program expenditures totaled  
14.97 billion. These expenditures were $277.4 million (1.8%) below OBMs estimate. All  
$
program categories were below their YTD estimates. The top three largest YTD negative  
variances were in Medicaid ($85.9 million), Higher Education ($63.2 million), and Justice and  
Public Protection ($47.2 million). Table 3 shows GRF expenditures compared to estimates for  
the month of November. For the month of November, GRF program expenditures totaled  
$
2.66 billion, $149.5 million (5.3%) below estimate. All categories were below estimate except  
for Primary and Secondary Education and Other Education, which had small positive variances  
$7.2 million and $0.7 million, respectively). The top three largest monthly negative variances  
(
were in Property Tax Reimbursements ($55.4 million), Higher Education ($49.8 million), and  
Justice and Public Protection ($25.1 million). The variance in Property Tax Reimbursements was  
expected as an offset to a positive variance in September.11 Other significant variances are  
discussed below. Also, below is an update on outstanding prior year encumbrances.  
Transfers out were above estimate by $1.1 million in November and below estimate by  
7.2 million (1.1%) YTD. Including both program expenditures and transfers out, total GRF uses  
$
were $15.63 billion YTD. These YTD uses were below estimate by $284.6 million (1.8%).  
Medicaid  
GRF Medicaid expenditures were below both their monthly and YTD estimates, by  
$
5.9 million (0.4%) and $85.9 million (1.3%), respectively. Non-GRF Medicaid expenditures were  
also below both their monthly and YTD estimates, by $103.7 million (11.6%) and $156.5 million  
3.2%), respectively. Including both the GRF and non-GRF, all funds Medicaid expenditures were  
109.6 million (4.9%) below estimate in November and $242.3 million (2.1%) below the YTD  
(
$
estimate at the end of November. As a joint federal-state program, both GRF and non-GRF  
Medicaid expenditures contain federal and state dollars.  
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 generally also account for the  
majority of the variances in Medicaid expenditures. At the end of November YTD all funds  
Medicaid expenditures were below estimate by $170.2 million (1.7%) for ODM and by  
10 This report compares actual monthly and YTD expenditures from the GRF to OBMs estimates.  
If a program categorys actual expenditures were higher than estimate, that program category is  
deemed to have a positive variance. The program category is deemed to have a negative variance when  
its actual expenditures were lower than estimate.  
11 Please see page 15 of the October issue of Budget Footnotes for an explanation of this  
variance.  
Budget Footnotes  
P a g e | 15  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
$
88.1 million (6.5%) for ODODD. Whereas ODMs negative variance was fairly evenly distributed  
among GRF ($89.0 million) and non-GRF ($81.2 million) spending, ODODDs negative variance was  
entirely due to non-GRF spending ($89.5 million) partially offset by a small positive variance in  
GRF spending ($1.3 million). 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 sixsister”  
agencies 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. Fee-For-Service (FFS, $116.1 million,  
3
1
.1%) had the largest overall negative variance, followed by Administration ($82.6 million,  
7.8%), Managed Care ($32.8 million, 0.5%), and Premium Assistance ($10.8 million, 2.3%).  
The YTD variance in FFS was driven by a negative variance of $70.1 million in DDD  
services for the month of November. These are services provided by ODODD. As can be seen in  
Table 5, ODODDs negative variance in November was entirely in non-GRF expenditures  
(
$82.3 million). Approximately $76.0 million of this variance was due to timing of ODODDs cost  
report settlement and the remainder was due to a delay in ODODDs payment of quarterly  
Medicaid administrative claims. Each of these items are reporting mechanisms which capture  
Medicaid eligible costs and allow ODODD to disburse federal funds to counties based on  
Medicaid allowable costs that have been incurred by those counties for their administration  
and services. The YTD variance in the Administration category is mostly due to timing and is  
expected to smooth out throughout the fiscal year.  
Higher Education  
The Higher Education program category had a negative variance in the month of  
November of $49.8 million (20.2%), which pushed the categorys YTD negative variance to  
$
63.2 million (6.3%). These variances appear to be mostly due to timing. A number of  
appropriation items were to have large payments in November that were to account for the  
first five months of the fiscal year. Several of these payments were delayed and will be made in  
December or a future month. The largest of these items are listed below with their negative  
November/YTD variances indicated in parentheses:12  
235535, Ohio Agricultural Research and Development Center ($15.6 million);  
235511, Cooperative Extension Service ($10.5 million);  
235536, The Ohio State University Clinical Teaching ($3.8 million);  
235507, OhioLINK ($2.5 million);  
235538, University of Toledo Clinical Teaching ($2.5 million);  
235510, Ohio Supercomputer Center ($1.8 million); and  
235556, Ohio Academic Resources Network ($1.3 million).  
In addition to these items, most other appropriation items in this category were also  
below estimate both in November and YTD.  
12 For an explanation of each of these items, please see the Catalog of Budget Line Items for the  
Department of Higher Education.  
Budget Footnotes  
P a g e | 16  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
Justice and Public Protection  
The Justice and Public Protection category had a negative variance of $25.1 million  
10.9%) in November that increased the categorys negative YTD variance to $47.2 million  
4.2%).13 The three agencies with the largest negative variances in the month of November  
(
(
were the Department of Rehabilitation and Correction (DRC)($9.7 million), the Public Defender  
(PUB)($7.8 million), and the Attorney General (AGO)($4.5 million).  
DRCs negative variance occurred primarily in item 501321, Institutional Operations,  
which is DRCs primary GRF appropriation item used to pay for the operation of the states  
prisons. For the YTD, this item is $7.4 million under estimate, but a positive YTD variance in item  
5
variance for the agency overall. Item 505321 is used to pay for the provision of medical services  
05321, Institution Medical Services, of $6.8 million resulted in only a $2.0 million negative YTD  
to offenders housed in the states prison system.  
PUBs negative variance in November increased its negative YTD variance to  
13.3 million. Both the monthly and YTD variances are primarily due to item 019501, County  
$
Reimbursement. This item is used to reimburse counties for their costs of providing indigent  
defense. The reimbursement payment for November, which was estimated to total  
$
$
from item 055502, School Safety Grants. Most of this items $12.0 million appropriation for  
FY 2020 was estimated to be spent in October ($6.0 million) and November ($5.0 million).  
Actual YTD spending from this item through November was only $1.0 million. This negative  
variance should be offset in future months.  
7.6 million, was delayed.  
AGOs negative variance in November increased its negative YTD variance to  
13.3 million. Both the monthly and YTD variances are primarily due to a delay in spending  
Prior Year Encumbrances  
As reported in the July issue of Budget Footnotes, state agencies carried into FY 2020  
314.1 million in encumbered GRF funds that were originally appropriated for fiscal years prior  
$
to FY 2020. An agency generally has five months to spend prior year encumbrances for  
operating expenses. Any unspent operating expense encumbrances will lapse at the end of the  
five-month period and will become part of the GRF cash balance once OBM cancels the  
encumbrances. Subject to the approval of the Director of Budget and Management, an agency  
may carry funds encumbered for purposes other than operating expenses beyond the  
five-month period. Encumbrances for some grant and aid payments may be carried for several  
months or even years.  
13 See page 16 of the November issue of Budget Footnotes for an explanation of the variance at  
the end of October.  
Budget Footnotes  
P a g e | 17  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
Prior Year GRF Encumbrances by Agency ($ in thousands)  
Prior Year  
Encumbrances  
as of  
Outstanding  
Encumbrances  
as of  
Percentage of  
Total  
Percentage of  
Total  
Agency  
July 1, 2019  
December 10, 2019  
Education  
$67,181  
$64,140  
$34,735  
$33,777  
$28,672  
21.4%  
20.4%  
11.1%  
10.8%  
9.1%  
$20,137  
$16,997  
$1,537  
$26,809  
$324  
24.1%  
20.3%  
1.8%  
Job and Family Services  
Medicaid  
Higher Education  
32.1%  
0.4%  
Rehabilitation and  
Corrections  
Development  
All Other Agencies  
Total  
$17,668  
$67,968  
5.6%  
21.6%  
100%  
$8,834  
$9,000  
10.6%  
10.8%  
$314,141  
$83,638  
100.0%  
As shown in the table above, as of December 10, 2019, $83.6 million of the $314.1 million  
(26.6%) was still outstanding. The remainder of the encumbrances from July were either  
expended or allowed to lapse. The Department of Higher Education (DHE) had the largest share  
32.1%) of the total outstanding encumbrances as of December 10, followed by the Ohio  
Department of Education (ODE) at 24.1%, and the Ohio Department of Job and Family Services  
ODJFS) at 20.3%. Together, these three agencies had $63.9 million (76.5%) of the $83.6 million in  
(
(
total outstanding prior year encumbrances. The nature of these outstanding encumbrances is  
discussed below.  
DHE had $26.8 million in outstanding prior year encumbrances, of which $25.7 million  
occurred in item 235438, Choose Ohio First Scholarship. Item 235438 is used to pay the states  
obligations to scholarship recipients.  
Of ODEs outstanding encumbrances, which totaled $20.1 million, 48.0% ($9.7 million)  
was encumbered in item 200550, Foundation Funding. These encumbrances will be used mainly  
to meet year-end school foundation payment adjustments. Foundation payments are allocated to  
districts based on a variety of data. Some of these data are not finalized until the following fiscal  
year. Funds are generally encumbered each year in order to make adjusted payments based on  
these updated data. Other significant outstanding encumbrances were in items 200408, Early  
Childhood Education, ($4.6 million, 22.7%) and 200511, Auxiliary Services, ($2.7 million, 13.4%).  
These encumbrances will be used for making final payments and adjustments for early childhood  
education services and auxiliary services for chartered nonpublic schools.  
ODJFS had $17.0 million in outstanding prior year encumbrances. The most significant  
encumbrance was $11.2 million in item 655523, Medicaid Program Support Local Transportation.  
These encumbrances are for payments to local county departments of job and family services for the  
states share of Medicaid costs for providing transportation services to certain Medicaid enrollees.  
Budget Footnotes  
P a g e | 18  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
Issue Updates  
Institutions Participating in Workforce Development Revolving  
Loan Program Disbursed $2.6 million in Loans in FY 2019  
Edward Millane, Senior Budget Analyst  
In early September, the Department of Higher Education (DHE) released its annual  
report for FY 2019 on the OhioMeansJobs Workforce Development Revolving Loan (WDRL)  
Program showing institutions participating in the program issued nearly 600 loans for a total of  
$
2.6 million in FY 2019. The average loan amount was $4,410. The number and amount of loans  
increased 42% and 52%, respectively, from the 420 loans for $1.7 million issued in FY 2018.  
Over the past several fiscal years, the number of loans and loan disbursements have grown as  
DHE and the Treasurer of State (TOS) increased marketing and outreach efforts.  
Under the program, created by S.B. 1 of the 130th General Assembly, a public or private  
institution of higher education, career-technical center, or private career school may apply to  
the Chancellor of Higher Education for approval of a workforce training program and up to  
$
250,000 per program to support loans to students enrolled in the program. In FY 2019,  
commercial drivers license (CDL) and truck driving programs were the most popular program  
type to receive funding, followed by nursing and emergency medical technician (EMT), dental  
assistant, a variety of manufacturing and industrial technician, and peace officer training  
programs. After the Chancellor determines the amount awarded to the institution for a  
program, the institution, with the approval of TOS, may then award loans to eligible program  
participants. The loans are to be repaid to the state within seven years, are interest-free until  
six months after the participant successfully completes the program, and cannot exceed  
$
item 090610, OhioMeansJobs Revolving Loan Program.  
10,000 per individual. Loans are disbursed from TOSs budget using Fund 5NH0 appropriation  
H.B. 166 winds down the program during the FY 2020-FY 2021 biennium, eliminating  
appropriation for DHE administrative support in FY 2021 and reducing appropriations to  
item 090610 from $13.1 million in FY 2019 to $775,000 in FY 2020 and $250,000 in FY 2021. It  
also transfers $5.6 million in FY 2020 and $7.1 million in FY 2021 from Fund 5NH0 to the Ohio  
Incumbent Workforce Job Training Fund (Fund 5HR0) to support the non-GRF portion of the  
TechCred Program, which was established under the Development Services Agency to provide  
short-term certificate training assistance. In response to these funding provisions, TOS announced  
in July of this year that no new applications for loans will be approved under the program.  
DNR Dedicates 1,400 Acres to Expand Pike State Forest  
All-Purpose Vehicle Trails  
Tom Wert, Senior Budget Analyst  
On November 18, 2019, the Department of Natural Resources (DNR) dedicated the  
purchase of 1,405 acres of land for the expansion of Pike State Forest in Pike and Highland  
counties. The additional acreage will be used to construct an additional 20 miles of all-purpose  
vehicle (APV) trails, doubling the mileage of the forests existing APV trail network. The  
Budget Footnotes  
P a g e | 19  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
purchase price of the additional property totaled nearly $2.7 million. Of this amount,  
$
4
1.9 million was used during calendar year 2019 to purchase 1,005 acres. The remaining  
00 acres will be acquired during calendar year 2020 for approximately $800,000.  
Funding for the purchase was made available through the State Recreational Vehicle  
Fund (Fund 5210), which receives revenue from APV registration fees. APV owners pay $31.25  
to register their four wheelers, dirt bikes, and other all-terrain vehicles, every three years.  
Roughly 45,000 APVs are registered each year in Ohio generating approximately $420,000 per  
year in revenue for Fund 5210. As of November 26, 2019, the cash balance in Fund 5210 was  
slightly less than $800,000.  
Department of Commerce Awards $75,000 under New Cemetery  
Grant Program  
Shannon Pleiman, Senior Budget Analyst  
On October 9, 2019, the Department of Commerce awarded over $75,000 to  
5
7 cemetery operators benefiting 65 cemeteries in 34 counties under the new Cemetery Grant  
nd  
Program. The program was created by H.B. 168 of the 132 General Assembly and is used to  
provide funds to not-for-profit cemeteries to (1) defray the costs of exceptional maintenance  
(
nonroutine, nonrepetitive maintenance) or (2) train cemetery personnel in the maintenance  
and operation of cemeteries. Overall, grants ranged from a low of $500 to a high of $5,000. Of  
the 57 cemetery operators receiving grants, 44 received awards of $1,000. The list of  
cemeteries awarded under the grant and other grant information can be accessed on the  
Department of Commerce website: www.com.ohio.gov.  
Under this competitive award program, grant applications are evaluated using project  
budget, cemetery operating budget, and a description of the exceptional maintenance to be  
undertaken, among other criteria. Grants are funded by $1 of each $2.50 burial permit fee that  
is deposited into the Cemetery Grant Fund (Fund 5SE0). H.B. 166 appropriates $100,000 in  
both FY 2020 and FY 2021 to fund the program.  
2019 Nations Report CardReleased  
Dan Redmond, Budget Analyst  
On October 30, 2019, The National Center for Education Statistics (NCES) released  
scores for the National Assessment of Education Progress (NAEP) commonly referred to as the  
Nations Report Cardfor reading and mathematics in grades four and eight. NAEP, required  
by congressional mandate, was first administered in 1969 to assess how public school students  
in the nation are performing academically. The reading and mathematics portions of the NAEP  
are administered biennially. Ohios 2019 scores for grade four reading and mathematics  
exceeded the national average. However, both Ohios and the nations students in grade four  
scored lower on the 2019 reading assessment compared to 2017. The chart below compares  
Ohios grade four average scores with the national averages. NAEPs reading and mathematics  
assessments are scored on a scale of 0 to 500.  
Budget Footnotes  
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December 2019  
Legislative Budget Office of the Legislative Service Commission  
Average National Assessment for Education Progress (NAEP) Grade Four Reading  
and Mathematics Scores for Ohio and the Nation, 2013-2019  
2
2
2
2
2
2
2
2
2
2
2
60  
55  
50  
45  
40  
35  
30  
25  
20  
15  
10  
2
46  
2
44  
2
41  
241  
2
41  
24  
240  
225  
240  
2
39  
225  
2
2
22  
19  
2
21  
221  
221  
2
2
013  
2015  
2017  
2019  
Math - Ohio  
Math - National  
Reading - Ohio  
Reading - National  
For Ohio students in grade eight, 2019 reading and mathematics scores also exceeded  
the national average. Although Ohios grade eight scores show decreases from 2017, these  
decreases were not statistically significant.  
Average National Assessment for Education Progress (NAEP) Grade Eight Reading  
and Mathematics Scores for Ohio and the Nation, 2013-2019  
3
2
2
2
2
2
2
2
2
2
2
00  
95  
90  
85  
80  
75  
70  
65  
60  
55  
50  
290  
2
88  
2
86  
285  
2
84  
69  
2
82  
68  
2
81  
66  
281  
2
2
2
67  
2
266  
265  
264  
2
62  
2
013  
2015  
2017  
2019  
Math - Ohio  
Math - National  
Reading - Ohio  
Reading - National  
ODOT Awards Nearly $105 million for Transit and Mobility  
Services  
Tom Middleton, Senior Budget Analyst  
On October 28, 2019, the Ohio Department of Transportation (ODOT) announced the  
allocation of $104.7 million in FY 2020 funding to assist 106 Ohio transit and mobility entities  
across Ohio. Of this amount, $69.4 million is state GRF funding, and the remaining $35.2 million  
Budget Footnotes  
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December 2019  
Legislative Budget Office of the Legislative Service Commission  
comes from the Federal Transit Administration (FTA). The table below summarizes the  
allocations by type of entity and purpose. The funding was provided in H.B. 62, the  
transportation budget act for the FY 2020-FY 2021 biennium, under GRF line item 775470 and  
Fund 7002 line item 775452. A full list of FY 2020 awards is available on the ODOT website.  
ODOT Transit Funding Allocations, FY 2020  
Number  
of  
Entities  
State  
Allocation  
(GRF)  
Federal  
Allocation  
Total  
Allocation  
Type of Entity  
Purpose  
Operating and  
capital assistance  
Urban transit systems  
Rural transit systems  
28 $58,489,490  
$0*  
$58,489,490  
$43,944,263  
Operating and  
capital assistance  
38  
40  
$8,712,952 $35,231,311  
Mobility entities (rural Mobility assistance  
transits and other local for the elderly and  
and nonprofit entities) disabled populations  
$2,231,505  
$0  
$2,231,505  
Total  
106 $69,433,947 $35,231,311 $104,665,258  
*ODOT does not administer federal funding to urban transit systems. These entities receive FTA funding directly from the federal  
government.  
The $35.2 million in FTA funding noted in the table above was distributed to rural transit  
systems across the state. The largest share of GRF dollars, around $44.5 million, was  
competitively awarded to urban and rural transit systems for capital projects, including bus  
purchases, under the Ohio Transit Preservation Partnership Program. For FY 2020, the program  
was broadened to include funding for other uses such as technology, healthcare, workforce,  
and other initiatives. About $20.6 million of the GRF funding was allocated by formula around  
$
16.6 million to urban transit systems, and $4.0 million to rural transit systems. As seen in the  
table, $2.2 million of GRF funding was awarded for transit programs that enhance mobility for  
the elderly and disabled populations, including services operated by local government agencies  
and nonprofit entities. The remaining $2.0 million in GRF funding was allocated to elderly and  
disabled fare assistance for rural transit systems and small urban transit systems.  
ODH Awarded $12.2 million in Federal Funds to Target Maternal  
Mortality  
Jacquelyn Schroeder, Budget Analyst  
On November 15, 2019, the Ohio Department of Health (ODH) was awarded  
12.2 million in federal funds to be used over the next five years to address maternal  
$
mortality. Of this amount, about $10.0 million is from the U.S. Health Resources and Services  
Administration and will be used to do the following: establish a maternal health task force,  
create and implement a plan to reduce maternal deaths, and support efforts that implement  
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December 2019  
Legislative Budget Office of the Legislative Service Commission  
data-driven strategies to address maternal mortality. The remaining $2.2 million, which is  
from the U.S. Centers for Disease Control and Prevention, will be used to support ODHs  
Pregnancy-Associated Mortality Review (PAMR) program. PAMR helps to identify and review  
pregnancy-associated deaths in order to develop interventions to reduce maternal mortality.  
The announcement of this funding coincided with the release of ODHs first report on  
maternal deaths. The report studied 610 pregnancy-associated deaths that occurred between  
2
008 and 2016. A pregnancy-associated death is a death that occurs during pregnancy or within  
a year after pregnancy regardless of cause. Of these deaths, 186 were classified as  
pregnancy-related, which means that the death was related to, or aggravated by, the  
pregnancy or its management. The report summarized a number of findings for both  
pregnancy-associated and pregnancy-related deaths. For pregnancy-associated deaths, the  
following was found: there was no racial disparity in these deaths; the leading causes of these  
deaths were unintentional injury, homicide, and malignancies; and 48% of these deaths that  
occurred between 2012 through 2014 were preventable. For pregnancy-related deaths the  
following was determined: 57% of these deaths that occurred between 2012 and 2016 were  
thought to be preventable; leading causes included heart conditions, infections, hemorrhage,  
and pre-eclampsia and eclampsia; and black women were more than two and a half times as  
likely as white women to die from pregnancy-related conditions. The report can be read in its  
entirety on ODHs website: www.odh.ohio.gov.  
Medicaid Unified Preferred Drug List Available  
Nelson V. Lindgren, Economist  
On November 8, 2019, the Ohio Department of Medicaid (ODM) made the Unified  
Preferred Drug List (UPDL) available on its website. The UPDL will be used by ODM and all five  
Medicaid managed care plans (MCP) beginning on January 1, 2020. Currently, ODM and each  
Medicaid MCP use their own drug list and prior authorization process. Usage of the UPDL will  
instead result in a standard drug list and a consistent prior authorization process across the  
Medicaid program. The implementation of a UPDL is anticipated to result in program savings and  
efficiencies. Specifically, the UPDL may reduce medication errors, ease administrative burden for  
prescribers and pharmacies, and reduce confusion and potential delays for Medicaid enrollees.  
Additionally, adoption of the UPDL could maximize the collections of both federal and supplemental  
pharmaceutical rebates. Currently, each Medicaid MCP negotiates with drug manufacturers for  
pharmaceutical rebates. Under a UPDL, ODM will negotiate for the entirety of the Medicaid  
program, which could lead to more favorable rebates and also ensure that rebate revenue is  
retained by ODM. Lastly, ODM maintains that this implementation will increase program  
transparency. The complete UPDL can be accessed on ODMs website: www.medicaid.ohio.gov.  
Criminal Justice Services Awards $3.9 million in Federal  
Edward Byrne Memorial Justice Assistance Grants  
Maggie West, Senior Budget Analyst  
On November 14, 2019, the Department of Public Safetys Office of Criminal Justice  
Services announced the award of $3.9 million in federal grants from the Edward Byrne Memorial  
Justice Assistance Grant (JAG) Program to 115 projects in 49 counties. Under the JAG program,  
Budget Footnotes  
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December 2019  
Legislative Budget Office of the Legislative Service Commission  
units of local government, state agencies, state-supported universities, and statewide and local  
nonprofit or faith-based associations may apply for new or renewal funding to support crime  
prevention and control activities in five program purpose areas. The Multi-Jurisdictional Task  
Forces and Law Enforcement Program purpose area received the most funding at $2.0 million,  
52% of the total amount awarded, to support 56 projects.  
Funding for the projects ranged from $2,518 for the Immigrant Survivors of Partner  
Violence Program in Hamilton County to $120,000 for the METRICH Enforcement Unit  
a multi-jurisdictional drug task force coordinated in Richland County). The following table  
(
lists, for each program area, the number of projects funded and the total amount of funding  
awarded. JAG Program awards provide for 12 months of funding, beginning January 1, 2020.  
The required match (cash or in-kind) is either 25%, 50%, or 75%, depending upon the type of  
project and the number of years a project has been funded, but may be waived under certain  
circumstances.  
Federal JAG Awards by Program Purpose Area*  
Number of  
Program Purpose Area  
Total Funding  
Projects  
Multi-Jurisdictional Task Forces and Law Enforcement  
Courts, Defense, Prosecution, and Victim Services  
Crime Prevention  
56  
25  
23  
9
$2,006,318  
$816,467  
$593,472  
$387,239  
$51,368  
Cross-Agency and Cross-System Collaboration, Training, and Research  
Adult and Juvenile Corrections, Community Corrections, and Reentry  
2
Total  
115  
$3,854,864  
*A complete list of awards by county is available at https://www.ocjs.ohio.gov/.  
Ohio EPA Awards Environmental Education Grants  
Jamie Doskocil, Fiscal Supervisor  
Earlier this fall, the Ohio Environmental Protection Agencys Office of Environmental  
Education issued nearly $180,000 in education grants for both its General and Mini-Grant  
programs. Twelve grants were awarded in all: five General Grants and seven Mini-Grants. These  
grants are funded by the Environmental Education Fund (Fund 6A10), which receives one-half of  
all civil penalties collected by Ohio EPA air and water pollution control programs. Monies in this  
fund are used to enhance public awareness and understanding of issues affecting environmental  
quality.  
The General Grant offers grants up to $50,000 while the Mini-Grant program offers  
smaller grants ranging from $500 to $5,000. Recipients include statewide and local  
organizations with projects focusing on raising awareness and educating the public about  
important environmental issues that affect the state. The table below denotes the awarding  
Budget Footnotes  
P a g e | 24  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
organization and amount. General grants may be issued for up to two years, but awardees are  
encouraged to complete their projects within 12 months. There is a minimum 10% local match  
requirement for the projects.  
Fall 2019 Ohio Environmental Education General Grant Program Awards  
Counties  
Impacted  
Grant  
Award  
Grant Recipient  
Program  
General Grant Program $150,000 Total Project Funding  
North Central Ohio  
Educational Service Center  
Columbiana,  
Crawford,  
Seneca  
Watershed Dynamics Education  
Program  
$45,166  
Columbiana County Education Columbiana  
Service Center  
Professional Development Project –  
Clean Water  
$40,563  
$27,935  
$27,605  
$8,731  
Boardman Local School District Columbiana,  
Mahoning  
School Water Monitoring Project –  
Mill Creeks Watershed  
Holden Forests and Gardens  
Lake  
Sustainable Forestry & Land  
Management Outreach  
Warren County Park District  
Warren  
Solar Energy & Pollinator Habitat  
Project  
Mini-Grant Program $26,263 Total Project Funding  
Ohio University Voinovich  
School of Leadership and  
Public Affairs  
Athens, Meigs  
Ohio Universitys Museum Complex  
$5,000  
Worthington City Schools/  
Colonial Hills Elementary  
Franklin  
Outdoor Learning Space  
$5,000  
$4,941  
Tinkers Creek Watershed  
Cuyahoga  
Bug BioBlitzProgram  
Partners  
Hilliard City Schools  
Portage Park District  
Franklin  
Portage  
Latham Park Water Quality Field Trip  
$3,800  
$2,796  
Storm Water Quality Demonstration  
Project  
Oregon City Schools  
Miami Valley School  
Lucas  
Augmented Reality Watershed Project  
$2,526  
$2,200  
Miami  
Hydroponic & Vertical Farming  
Education Program  
Budget Footnotes  
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December 2019  
Legislative Budget Office of the Legislative Service Commission  
TRurhaaizacRidkzwiann, SegniortEchonoemistEconomy  
Phil Cummins, Senior Economist  
Overview  
Economic activity appears to have picked up recently. In November, payroll employment  
growth nationwide was the strongest since January, and the countrys unemployment rate  
returned to a 50-year low. Inflation-adjusted gross domestic product (real GDP) continued to  
grow in this years third quarter, rising at a 2.1% annual rate. Industrial production fell in  
October in part due to a major labor strike. Inflation generally remains low.  
In Ohio, payroll employment fell in October and remained below a peak reached last  
January. The statewide unemployment rate was 4.2%, higher than the nationwide average for  
1
the past 32 years. Manufacturing contacts in the region reported that activity increased  
slightly in the six weeks to mid-November, according to a Federal Reserve System report, the  
Beige Book. Statewide home sales picked up slightly in this years first ten months.  
Earlier this year the nations central bank lowered its short-term interest rate target by  
three-quarters of a percentage point in three quarter-point increments, returning the rate to its  
level in the 2018 second quarter. The Federal Reserves Open Market Committee, which sets  
monetary policy, met December 10-11 and left the interest rate target unchanged.  
The National Economy  
Total nonfarm payroll employment nationwide rose by 266,000 in November, the  
largest increase since January. The average nationwide unemployment rate fell last month to  
3
shown in Chart 5, and average unemployment in Chart 6.  
.5%, matching the 50-year low reached in September. U.S. nonfarm payroll employment is  
Employment rose in November in health care (+45,000), leisure and hospitality  
+45,000), professional and technical services (+31,000), transportation and warehousing  
+16,000), and finance (+13,000). Manufacturing employment rose 54,000 in November after  
(
(
falling 43,000 in October, mostly due to the auto workers strike at General Motors plants. On  
balance, factory employment growth this year has been slow. Most employment growth this  
year has been in the service sector. Mining employment fell in November (-7,000) and was 19%  
lower than the peak for recent years in 2014.  
In November, 5.8 million people were counted as unemployed, near the bottom of a  
range in which unemployment has fluctuated for more than a year. Of these, 1.2 million had  
been looking for work for more than six months, near the lowest level since 2007. Those  
working included 4.3 million part-time workers who preferred full-time work but whose  
hours had been reduced or who had been unable to find full-time jobs, also near lows since  
2
007.  
Budget Footnotes  
P a g e | 26  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
The nations real GDP, one of the broadest measures of economic activity, rose at a  
.1% annual rate in this years third quarter, revised upward from 1.9% initially reported, based  
2
on more data. Real GDP rose at a 2.6% rate in the first half of the year and by 2.9% in 2018. The  
main driver of real GDP growth in the latest quarter continued to be consumer spending.  
Monthly data indicate that outlays by consumers rose further in October, though durable goods  
purchases fell. Light motor vehicle sales strengthened in November, but the sales rate in the  
fourth quarter to date remained below the third quarter pace. Residential fixed investment  
rose in the third quarter, after declining for six consecutive quarters. Lower mortgage interest  
rates this year have made homes more affordable. But private nonresidential fixed investment  
fell for the second consecutive quarter, due in substantial part to cutbacks in mining  
exploration and well drilling, and in spending on civilian aircraft. Cuts in mining and well drilling  
were likely due to low crude oil and natural gas prices. The drop in outlays for aircraft plausibly  
was related to grounding of Boeings 737 MAX jet.  
Industrial production declined 0.8% in October, mainly because of a United Automobile  
Workers strike at General Motors, settled in late October. Factory output fell 0.6% from  
September to October, and mining and utility output also were lower. Both total industrial  
production and manufacturing reached peaks in December 2018 and remained lower  
throughout this years first ten months.  
Inflation picked up in October, measured by the consumer price index (CPI). The CPI  
rose 0.4% from September, the largest one-month change since March, as gasoline and other  
energy prices rose. However, the uptick in the all-items CPI followed no change in September.  
The index for all items was 1.8% higher than a year earlier. A sub-index that excludes volatile  
food and energy prices was 2.3% higher in October than a year ago, near the upper end of the  
range in which this inflation measure has fluctuated during the past decade. A related index,  
the personal consumption expenditures price index excluding food and energy, was 1.6%  
higher in October than a year earlier, below a 2% inflation objective set by the Federal  
Reserve.  
The Ohio Economy  
The states total nonfarm payroll employment, seasonally adjusted, declined by 1,000 in  
October from the revised total in September, following a 400 jobs increase in September and a  
4
,700 jobs increase in August. Employment gains in the government sector (+3,000) were offset  
by job losses in goods-producing industries (-3,200) and private-service providing industries  
-800). Gains occurred in health care, leisure and hospitality, and local government. Job losses  
(
were widespread among other industries. Ohio total nonfarm payroll employment is shown in  
Chart 5, in comparison with nationwide employment.  
Budget Footnotes  
P a g e | 27  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
Chart 5: U.S. and Ohio Nonfarm Payroll Employment  
(
in millions)  
1
1
1
1
1
1
53.7  
48.4  
43.1  
37.8  
32.5  
27.2  
5.8  
5.6  
5.4  
5.2  
5.0  
4.8  
2
008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019  
U.S. Employment  
Ohio Employment (right scale)  
Compared to October of last year, the states nonfarm payroll employment was 19,600  
or 0.4% higher. Employment in private service-providing industries and government increased  
by 23,600 and 6,400, respectively. Employment in goods-producing industries decreased by  
1
educational and health services, leisure and hospitality, professional and business services, local  
government, financial activities, and state government.  
0,400, mostly (-8,600) in construction. Year-over-year employment gains were led by  
In October, Ohios unemployment rate was 4.2%, unchanged from September, but down  
from 4.6% in October of last year. The states unemployment rate in October was higher than the  
U.S. unemployment rate. The U.S. unemployment rate was 3.6% in October, an increase from  
3
.5% in September, but a decrease from 3.8% in October of last year. The number of unemployed  
Ohioans was 246,000 in October, an increase of 3,000 from September. The number of  
unemployed Ohioans decreased by 19,000 compared to October of last year. Ohios statewide  
unemployment rate is shown in Chart 6, compared with the U.S. unemployment rate.  
Budget Footnotes  
P a g e | 28  
December 2019  
Legislative Budget Office of the Legislative Service Commission  
Chart 6: U.S. and Ohio Unemployment Rates  
%
of Labor Force  
1
1
1
2%  
1%  
0%  
9%  
8%  
7%  
6%  
5%  
4%  
3%  
2
008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019  
United States Ohio  
The regions economic activity expanded at a modest pace, according to a Federal  
1
4
Reserve Bank of Cleveland report. Retailers noted that the labor market remained tight.  
Wages continued to grow modestly. Sales in the retail sector increased slightly compared to the  
previous months. Auto dealers reported sales of light vehicles remained solid. Manufacturing  
activity increased slightly, but some manufacturing contacts cited slower growth in western and  
central Europe and trade tensions with China as restraining demand. Residential and  
nonresidential construction demand increased. Professional and business services reported  
strong demand while the freight sector continued to weaken.  
In October, the number of existing homes sold in Ohio increased by 2.3% compared to  
October 2018, according to the Ohio Association of Realtors. From January through October of  
this year, existing home unit sales were 0.4% higher than in the corresponding months of 2018.  
The statewide sales price of homes sold in the first ten months of this year averaged $194,300  
or 6.0% higher than a year earlier.  
14 The report is derived from the latest Federal Reserve System Beige Book that summarizes  
information collected from outside contacts on or before November 18, 2019. The Federal Reserve Bank  
of Clevelands district includes all of Ohio and parts of Kentucky, Pennsylvania, and West Virginia.  
Budget Footnotes  
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December 2019