A monthly newsletter of the Legislative Budget Office of LSC  
Volume: Fiscal Year 2021  
Issue: September 2020  
Highlights  
Ross Miller, Chief Economist  
GRF tax receipts during July and August totaled $830 million more than was  
received during the first two months of FY 2020. A boost was certainly expected from  
the delay in the personal income tax (PIT) filing deadline from April to July, and that  
accounts for most of the growth – perhaps roughly $600 million. But sales tax  
revenue grew strongly as well, contributing $204 million in growth from FY 2020 to  
the current fiscal year. The only tax that was notably weak was the commercial  
activity tax (CAT), for which revenue was based on companies’ taxable gross receipts  
during the April through June period so strongly affected by COVID-19 business  
shutdowns. When compared to the Office of Budget and Management’s (OBM’s)  
revenue estimates, released in September and which took into account the delay in  
the PIT filing deadline, tax revenue was $254 million above estimate for the year to  
date (YTD) through August 31.  
Ohio's unemployment rate fell to 8.9% in July, from 11.0% in June and from 17.6%  
at its peak in April. Though still clearly elevated due to responses to COVID-19, Ohio's  
rate was over a full percentage point lower than the national rate of 10.2% in July.  
Through August 2020, GRF sources totaled $7.53 billion:  
Revenue from the sales and use tax was $182.9 million above estimate;  
PIT receipts were $96.3 million above estimate.  
Through August 2020, GRF uses totaled $7.60 billion:  
Program expenditures were $85.5 million below estimate, due primarily to  
property tax reimbursements having been $105.2 million below estimate;  
Expenditures for Medicaid were $68.0 million above estimate.  
In this issue...  
More details on GRF Revenues (p. 2), Expenditures (p. 12),  
the National Economy (p. 23), and the Ohio Economy (p. 26).  
Also Issue Updates on:  
CARES Act Funding for Higher Education (p. 16)  
COVID-19 Provider Relief Funds (p. 17)  
PPE Manufacturing Grants (p. 18)  
CARES Act Funding for Libraries (p. 19)  
Federal Emergency Preparedness Grants (p. 19)  
ODJFS Apprenticeship Grant (p. 20)  
Civil Justice Program Grants (p. 21)  
Financial Literacy Education Grants (p. 22)  
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 2020  
(
$ in thousands)  
(
Actual based on report run in OAKS Actuals Ledger on September 1, 2020)  
State Sources  
Tax Revenue  
Actual  
Estimate* Variance Percent  
Auto Sales  
Nonauto Sales and Use  
Total Sales and Use  
$156,342  
$802,596  
$958,938  
$142,200 $14,142  
$779,600 $22,996  
$921,800 $37,138  
9.9%  
2.9%  
4.0%  
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  
Business and Property  
Estate  
$837,879  
$278,052  
$80,472  
$28,533  
$0  
$775,200 $62,679  
$308,500 -$30,448  
8.1%  
-9.9%  
3.6%  
$77,700  
$34,500  
$700  
$0  
-$3,200  
$31,500  
$14,500  
$5,200  
$4,300  
$0  
$2,772  
-$5,967  
-17.3%  
-$700 -100.0%  
$445 ---  
$3,585 112.0%  
-$471  
-$968  
$110  
$850  
$0  
$445  
$385  
$31,029  
$13,532  
$5,310  
$5,150  
$0  
$12  
$0  
$1  
-1.5%  
-6.7%  
2.1%  
19.8%  
---  
---  
---  
---  
$0  
$0  
$12  
$0  
$0  
$1  
Total Tax Revenue  
$2,239,738 $2,170,700 $69,038  
3.2%  
Nontax Revenue  
Earnings on Investments  
Licenses and Fees  
Other Revenue  
$0  
$2,761  
$73,328  
$0  
$4,804  
$5,838 $67,490 1156.1%  
$0  
-$2,043  
---  
-42.5%  
Total Nontax Revenue  
$76,089  
$10,641 $65,447 615.0%  
Transfers In  
$4,000  
$77,932 -$73,932  
-94.9%  
2.7%  
Total State Sources  
$2,319,827 $2,259,273 $60,553  
$1,140,575 $1,165,884 -$25,309  
$3,460,402 $3,425,157 $35,245  
Federal Grants  
-2.2%  
1.0%  
Total GRF Sources  
*
Estimates of the Office of Budget and Management as of September 2020.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 2  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
Table 2: General Revenue Fund Sources  
Actual vs. Estimate ($ in thousands)  
FY 2021 as of August 31, 2020  
(
$ in thousands)  
(
Actual based on report run in OAKS Actuals Ledger on September 1, 2020)  
State Sources  
Tax Revenue  
Auto Sales  
Actual  
Estimate* Variance Percent FY 2020**  
$276,200 $62,720 22.7% $290,551  
Percent  
16.6%  
$338,920  
Nonauto Sales and Use  
$1,751,787 $1,631,600 $120,187  
7.4% $1,596,437  
9.7%  
Total Sales and Use  
$2,090,707 $1,907,800 $182,907  
9.6% $1,886,987  
10.8%  
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  
Business and Property  
Estate  
$2,017,839 $1,921,500 $96,339  
5.0% $1,351,212  
49.3%  
-14.3%  
6.8%  
-10.0%  
-94.9%  
$332,046  
$106,082  
$51,383  
$37  
$364,000 -$31,954  
-8.8%  
7.5%  
-11.4%  
-97.7%  
---  
$387,456  
$99,364  
$57,081  
$736  
$98,700  
$58,000  
$1,600  
$0  
$7,382  
-$6,617  
-$1,563  
$824  
$824  
$1 164666.6%  
$2,390  
$31,285  
$13,570  
$11,943  
$10,026  
$0  
-$3,100  
$31,700  
$16,200  
$9,800  
$8,500  
$0  
$5,490 177.1%  
-$7,540  
131.7%  
-2.5%  
6.3%  
32.5%  
15.1%  
---  
697.6%  
---  
-97.8%  
21.6%  
-$415  
-$2,630  
$2,143  
$1,526  
$0  
-1.3%  
-16.2%  
21.9%  
18.0%  
---  
$32,088  
$12,769  
$9,015  
$8,709  
$0  
$180  
$15  
$0  
$0  
$180  
$15  
---  
-$30  
---  
$0  
$1  
$0  
$1  
---  
$38  
Total Tax Revenue  
$4,668,328 $4,414,700 $253,628  
5.7% $3,837,886  
Nontax Revenue  
Earnings on Investments  
Licenses and Fees  
Other Revenue  
$1  
$6,397  
$80,532  
$0  
$5,417  
$6,297 $74,235 1179.0%  
$11,713 $75,216 642.1%  
$1  
$980  
---  
18.1%  
$84  
$5,512  
$63,939  
-99.4%  
16.1%  
26.0%  
25.0%  
Total Nontax Revenue  
$86,929  
$69,535  
Transfers In  
$79,832  
$77,932  
$1,900  
2.4%  
$69,480  
14.9%  
21.6%  
37.4%  
26.8%  
Total State Sources  
$4,835,089 $4,504,345 $330,744  
$2,697,761 $2,723,070 -$25,309  
$7,532,850 $7,227,415 $305,435  
7.3% $3,976,901  
-0.9% $1,963,119  
4.2% $5,940,020  
Federal Grants  
Total GRF SOURCES  
*
*
Estimates of the Office of Budget and Management as of September 2020.  
*Cumulative totals through the same month in FY 2020.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 3  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
1
Revenues  
Jean J. Botomogno, Principal Economist  
Overview  
On June 30, 2020, Ohio closed the books of a difficult fiscal quarter and year as the impact  
of the COVID-19 pandemic brought down GRF tax revenue. In contrast, FY 2021 started in a more  
auspicious way: GRF sources of $7.53 billion through August were $305.4 million (4.2%) above the  
estimate released by OBM in September 2020. GRF sources consist of state-source receipts, which  
2
include tax revenue, nontax revenue, and transfers in, and federal grants. Federal grants were the  
only GRF category posting a year-to-date (YTD) negative variance with a shortfall of $25.3 million  
(
$
0.9%). This shortfall was more than offset by gains of $253.6 million (5.7%) for GRF tax sources,  
75.2 million (642.1%) for nontax revenue, and $1.9 million (2.4%) for transfers in. Tables 1 and 2  
show GRF sources for the month of August and for FY 2021 through August, respectively.  
Regarding GRF tax revenues, in the April to June period in FY 2020, they fell $1.19 billion  
17.4%) below the estimate. In FY 2021, however, this GRF category is experiencing a resurgence.  
(
For the fiscal year through August, three of the four largest tax sources posted positive variances.  
The sales and use tax and the PIT were $182.9 million and $96.3 million, above their respective  
estimates. The cigarette tax also experienced a positive variance of $7.4 million. On the other  
hand, the CAT was short of its projected receipts by $32.0 million, due to reduced economic  
3
activity tied to COVID-19-related measures in the prior quarter. The remaining tax sources  
posted a YTD combined negative variance of just $1.0 million. The financial institutions tax (FIT),  
the alcoholic beverage tax, the liquor gallonage tax, and the domestic insurance tax were above  
their respective revenue targets by $5.5 million, $2.1 million, $1.5 million, and $0.8 million.  
However, those positive variances were offset by negative variances of $6.6 million for the  
kilowatt-hour tax, $2.6 million for the natural gas consumption tax, $1.6 million for the foreign  
insurance tax, and $0.4 million for the public utility tax. Chart 1, below, shows cumulative YTD  
variances of GRF sources in July and in August 2020.  
1 This report compares actual monthly and year-to-date GRF revenue sources to OBM’s 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.  
3
To slow the pandemic outbreak, the Governor issued an emergency declaration on  
March 9, 2020, and various public health orders followed, including a stay-at-home requirement and  
some business closures. Those measures reduced taxable gross receipts in the spring quarter, which was  
the basis for the tax paid by quarterly CAT taxpayers in August 2020.  
Budget Footnotes  
P a g e | 4  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
Chart 1: Cumulative Variances of GRF Sources in FY 2021  
(
Variances from Estimates, $ in millions)  
$350  
$300  
$250  
$200  
$150  
$100  
$50  
$0  
-
$50  
Jul-20  
Aug-20  
Federal Grants  
Tax Revenue  
Total GRF Sources  
Compared to GRF sources in FY 2020 through August, GRF sources rose $1.59 billion  
4
(
(
(
26.8%), due to outsized increases in federal grants ($734.6 million, 37.4%) and tax sources  
$830.4 million, 21.6%). Nontax revenue and transfers in also grew, respectively, by $17.4 million  
25.0%) and $10.4 million (14.9%). The increase in GRF tax sources was led by a jump of  
$
666.6 million in PIT revenue and $203.7 million for the sales and use tax. The increase in PIT  
revenue was primarily due to a delay in the tax filing deadline from April until July, as explained  
in more detail in the PIT section below, while sales tax revenue has been supported by federal  
income support programs, as explained further in the section on that tax. Also, revenue from the  
FIT, the cigarette tax, and the alcoholic beverage tax increased by $9.9 million, $6.7 million, and  
$
kilowatt-hour excise tax revenue declined $5.7 million.  
2.9 million, respectively. On the other hand, CAT receipts declined $55.4 million, and  
Sales and Use Tax  
The recovery in sales tax receipts started in June continued in July and August 2020. Over  
the first two months of FY 2021, the sales and use tax was $182.9 million (9.6%) above OBM  
projections, with $145.8 million of the overage coming in July. Combined GRF revenue totaling  
$
2.09 billion was also $203.7 million (10.8%) above FY 2020 receipts. In the latest month, August  
GRF sales tax revenue of $958.9 million was $37.1 million (4.0%) above estimate, due to a strong  
positive variance from the auto sales tax portion of the tax. Growth of 10.8% from the prior year  
in the absence of any significant tax policy change is unusually large. This likely reflects pent-up  
consumer demand and delayed purchases of durable and nondurable products due to earlier  
lockdowns and business closures. According to the most recent estimates by the Bureau of  
Economic Analysis, a nationwide decrease in employee compensation (-$197.6 billion) during  
4 This growth is primarily due to a COVID-19-related temporary increase in the share of federal  
reimbursements for Medicaid. The increase was authorized by the federal Coronavirus Aid, Relief, and  
Economic Security (CARES) Act. The increased federal reimbursement accounted for $186.6 million of the  
$
734.6 million growth in federal grants, according to the Ohio Administrative Knowledge System (OAKS).  
Budget Footnotes  
P a g e | 5  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
2
payments and other personal transfer receipts (+$613.1 billion), resulting in a seasonally  
adjusted annualized 34.3% rate of increase in personal income for the quarter.  
020’s second quarter was more than offset by the increase in unemployment compensation  
Consumers received income support from federal stimulus checks, additional  
unemployment compensation from the federal CARES Act, and a number of businesses kept some  
5
employees on payroll after receiving loans from the federal payroll protection program. The  
income support from the federal fiscal response to the pandemic appears to have eliminated (at  
least temporarily) the economic downdraft of the COVID-19 pandemic on the sales and use tax. Also,  
both Ohio employment and unemployment data have shown marked improvements of late. For  
example, Ohio's unemployment rate declined to 8.9% in July 2020 from the rate of 11.0% in June  
(
employment gained 62,700 workers (seasonally adjusted) in July, with most of the gains from  
employment in service-producing industries. That gain followed a payroll employment increase of  
in April and May, the unemployment rate was 17.6% and $13.9%, respectively). Nonfarm payroll  
2
improvement in the Ohio labor market and any additional federal personal transfer payments.  
13,200 in June. The future performance of this tax source is likely to be dependent on continued  
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  
YTD FY 2021 GRF nonauto sales and use tax receipts totaled $1.75 billion, an amount  
120.2 million (7.4%) above estimate and $155.4 million (9.7%) above revenue in the  
$
corresponding period in FY 2020. Nonauto sales and use tax revenue of $802.6 million in August  
was above estimate by $23.0 million (2.9%) and $17.3 million (2.2%) above revenue in the same  
month last year. In July 2020, this tax source was $97.2 million (11.4%) above estimate. Generally,  
a large part of a month’s nonauto sales and use tax revenue is from tax collection or tax  
remittance on taxable sales in the previous month. After widespread lockdowns and business  
closures in April and May, most businesses reopened in June. Thus, the increases in July and  
August sales and use tax revenue are due, in part, to increased consumer spending and taxable  
sales in June and July, respectively.  
In the last quarter of FY 2020, this tax source fell $315.2 million (12.7%) below estimate;  
quarterly receipts were $199.0 million (8.4%) below receipts in the corresponding quarter in  
FY 2019. So, the turnaround in nonauto sales and use tax receipts in FY 2021 has been  
remarkable. Chart 2 provides year-over-year growth in nonauto sales and use tax collections  
since January 2020 and shows the rebound in nonauto sales tax revenue in recent months.  
5 To address the economic fallout from COVID-19, the U.S. Congress passed the CARES Act at the  
end of March 2020. The Act included cash payments of up to $1,200 (plus $500 for each child age 16 or  
under) for each qualifying adult, an additional $600 per week on top of any state-provided unemployment  
benefits through July 31, 13 weeks of unemployment benefits above that of each state’s unemployment  
program, and unemployment benefits for self-employed and “gig” workers. The payroll protection  
program is a loan program intended to subsidize payroll costs for eight weeks after those loans, some of  
which are forgivable, are made. In the months following passage of the CARES Act, other federal support  
programs have been enacted or modified.  
Budget Footnotes  
P a g e | 6  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
Chart 2: Nonauto Sales and Use Tax Receipts Trend  
Actual vs. Prior Year  
(
Three-month Moving Average)  
10.0%  
5
.0%  
.0%  
0
-
5.0%  
-
-
10.0%  
15.0%  
Jan-20  
Feb-20  
Mar-20  
Apr-20  
May-20  
Jun-20  
Jul-20  
Aug-20  
Auto Sales and Use Tax  
The rebound in auto sales and use tax receipts from poor performances in April and May  
started in June 2020 (when the tax had a positive variance of $34.1 million) and continued in the  
new fiscal year. Through August, FY 2021 auto sales and use tax receipts of $338.9 million were  
$
62.7 million (22.7%) above estimate and $48.4 million (16.6%) above revenue in the  
corresponding period in FY 2020. In the latest month, auto sales and use tax revenue was  
156.3 million, an amount $14.1 million (9.9%) above estimate and $11.0 million (7.6%) above  
$
such receipts in August 2019. In July, this tax source was $48.6 million (36.3%) above estimate.  
Chart 3 shows year-over-year growth in auto sales and use tax collections, the  
pandemic-related revenue declines earlier in the calendar year from both low demand and low  
supply of vehicles and the subsequent rebound in the most recent months.  
Chart 3: Auto Sales and Use Tax Receipts Trend  
Actual vs. Prior Year  
(
Three-month Moving Average)  
30.0%  
20.0%  
10.0%  
0.0%  
-
-
-
-
10.0%  
20.0%  
30.0%  
40.0%  
Jan-20  
Feb-20  
Mar-20  
Apr-20  
May-20  
Jun-20  
Jul-20  
Aug-20  
Budget Footnotes  
P a g e | 7  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
Nationwide, U.S. unit vehicle sales (for new vehicles) took a slight step backwards in  
August. Annualized seasonally adjusted units sold came in at 14.9 million, a monthly decrease of  
0
.7% from July. Year-over-year sales were down by 20% and sales retreated for both cars and  
light trucks. Unit sales of light trucks decreased by about 16% and car sales were down 32% below  
those in August 2019. Generally, sales of used vehicles constitute almost half of the Ohio auto  
sales tax base. Sales of previously owned vehicles have been strong and are supporting the  
expansion of the auto taxable base.  
Personal Income Tax  
YTD FY 2021 GRF receipts from the PIT of $2.02 billion were $96.3 million (5.0%) above  
estimate, and $666.6 million (49.3%) above such revenue in the corresponding period in FY 2020.  
This large year-over-year growth is directly attributable to the delay of income tax filings from  
April to July 2020. Among measures designed to combat the impact of the COVID-19 pandemic,  
rd  
H.B. 197 of the 133 General Assembly authorized the Tax Commissioner to delay various state  
tax payments, which he did, to match the extended deadline for federal income tax returns. Thus,  
in July 2020, payments associated with annual returns of $501.9 million were $492.5 million  
6
above such payments in July 2019; PIT GRF revenue for the month was $550.1 million (87.3%)  
above receipts in July 2019.  
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,  
7
quarterly 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 87% of gross collections  
in FY 2020). Larger or smaller than expected refunds (which decrease gross collections) could also  
greatly affect the monthly performance of the tax. The income tax filing delay has introduced  
some volatility in the monthly trends of most PIT components.  
August PIT revenue to the GRF of $837.9 million was $62.7 million (8.1%) above  
anticipated revenue. Gross collections for the month were $19.5 million (2.0%) below target, due  
mostly to payments due with annual returns being below its estimate by $79.9 million. This  
negative variance was partially offset by positive variances of $28.9 million for employer  
withholding, $20.7 million for quarterly estimated payments, and $11.5 million for trust  
payments. More than offsetting the shortfall in gross collections, refunds were $93.6 million  
below estimates, though LGF distributions were $11.5 million higher than their anticipated level.  
Thus, PIT revenue to the GRF came in $62.7 million above the estimate for the month.  
For FY 2021, revenues from each component of the PIT relative to estimates and revenue  
received in FY 2020 are detailed in the table below. FY 2021 gross collections were $37.3 million  
above projections. Quarterly estimated payments, trust payments, and employer withholding  
were above their respective projections by $44.2 million, $10.0 million, and $1.1 million. Those  
6 In April 2020, this component was $697.8 million below anticipated revenue.  
7 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 individual’s tax year and January of the  
following year. Most estimated payments are made by high-income taxpayers.  
Budget Footnotes  
P a g e | 8  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
positive variances were partially offset by shortfalls of $13.5 million for payments due with  
annual returns and $4.4 million for miscellaneous payments. Refunds were $70.5 million below  
estimate and LGF distributions were above expectation by $11.5 million, thus resulting in a YTD  
positive variance of $96.3 million for the GRF.  
Compared to the corresponding period last year, FY 2021 gross collections grew  
826.9 million, driven by an increase of $599.0 million from payments due with annual returns.  
$
In addition, quarterly estimated payments, trust payments, and employer withholding increased  
by $157.9 million, $44.7 million, and $29.6 million, respectively. However, miscellaneous  
payments were $4.4 million lower than in FY 2020. Year-over-year growth in withholding receipts  
in calendar year (CY) 2020 is limited because of a 4.0% reduction in withholding rates effective  
January 2020 due to H.B. 166’s reduction of income tax rates for nonbusiness income. FY 2021  
refunds and LGF distributions were higher than those in FY 2020 by $146.4 million and  
$
to YTD receipts in FY 2020.  
13.8 million, respectively. Therefore, growth in PIT GRF revenue totaled $666.6 million relative  
FY 2021 PIT Revenue Variance and Annual Change by Component  
YTD Variance from Estimate Changes from FY 2020  
Category  
Amount  
$ in millions)  
Percent  
(%)  
Amount  
($ in millions)  
Percent  
(%)  
(
Withholding  
$1.1  
$44.2  
$10.0  
-$13.5  
-$4.4  
0.1%  
$29.6  
$157.9  
$44.7  
2.0%  
Quarterly Estimated Payments  
Trust Payments  
31.3%  
27.1%  
-2.1%  
-33.3%  
1.6%  
577.8%  
2078.3%  
2268.1%  
-33.3%  
53.3%  
Annual Return Payments  
Miscellaneous Payments  
Gross Collections  
$599.0  
-$4.4  
$37.3  
-$70.5  
$11.5  
$96.3  
$826.9  
$146.4  
$13.8  
Less Refunds  
-20.3%  
16.3%  
5.0%  
112.0%  
20.2%  
Less LGF Distribution  
GRF PIT Revenue  
$666.6  
49.3%  
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 2021 and estimated withholding receipts adjusted for the decrease in  
the withholding tax rate. Payrolls are estimated to have increased about 5.0%, on average, in the  
last three months, after their low point in the spring quarter.  
Budget Footnotes  
P a g e | 9  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
Chart 4: Monthly Witholding Receipts Trend  
Actual vs. Prior Year  
(
Three-month Moving Average)  
8.0%  
6.0%  
4.0%  
2.0%  
0.0%  
-
-
-
-
2.0%  
4.0%  
6.0%  
8.0%  
-
-
10.0%  
12.0%  
Jan-20  
Feb-20  
Mar-20  
Apr-20  
May-20  
Jun-20  
Jul-20  
Aug-20  
Actual  
Adjusted  
Commercial Activity Tax  
August receipts to the GRF from the CAT were $278.1 million, an amount $30.4 million  
(9.9%) below estimate and $43.9 million (13.6%) below August 2019 revenue. This first payment  
from quarterly CAT taxpayers was based on taxable gross receipts from April to June 2020, and  
it reflected the first full impact of the economic downdraft from the COVID-19 pandemic on this  
tax. (The last quarterly CAT payment of $332.4 million was received in May for taxable gross  
receipts during the January to March quarter.) For the YTD, total GRF receipts from the CAT of  
$
332.0 million were $32.0 million (8.8%) short of estimate and $55.4 million (14.3%) less than  
revenue in the first two months of FY 2020. Compared to the last fiscal year, FY 2021 gross  
collections decreased by $60.7 million (12.6%), but refunds and credits increased $4.9 million  
(22.7%) above those items in FY 2020.  
Under continuing law, CAT receipts are deposited into the GRF (85.0%), the School District  
Tangible Property Tax Replacement Fund (Fund 7047, 13.0%), and the Local Government  
Tangible Property Tax Replacement Fund (Fund 7081, 2.0%). respectively. The 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  
generally transferred back to the GRF.  
Cigarette and Other Tobacco Products Tax  
FY 2021 revenue from the cigarette and other tobacco products (OTP) tax totaling  
106.1 million was above estimate by $7.4 million (7.5%). This total included $88.3 million from  
$
the sale of cigarettes and $17.8 million from the sale of OTP. For the month of August, receipts  
from this tax source of $80.5 million were $2.8 million (3.6%) above estimate and $1.7 million  
(2.1%) above revenue in August 2019.  
Budget Footnotes  
P a g e | 10  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
FY 2021 receipts grew $6.7 million (6.8%) relative to revenues in the July to August period  
in FY 2020. Receipts from cigarette sales and OTP sales increased by $2.6 million (3.1%) and  
$
4.1 million (29.7%), respectively. The large increase in OTP revenue is due, in part, to additional  
revenue from the vapor tax. H.B. 166 levied a tax of 10¢ per milliliter (or gram) of vapor product  
depending on the form of the product) which is defined as any liquid solution or other substance  
(
that contains nicotine and is depleted as it is used in an electronic smoking product. Of total  
receipts in FY 2020 of $82.4 million from the sale of OTP, the new tax on vapor products  
contributed $3.6 million, according to the Department of Taxation.  
On a yearly basis, revenue from the cigarette tax usually trends downward, generally at a  
slow pace, while receipts from the tax on OTP generally increase with price increases of the  
products. The OTP tax is an ad valorem tax, generally 17% of the wholesale price paid by  
wholesalers for the product; thus, revenue from that portion of the tax base (about 9% of the  
total tax base) grows with OTP price increases.  
Budget Footnotes  
P a g e | 11  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
Table 3: General Revenue Fund Uses  
Actual vs. Estimate  
Month of August 2020  
(
$ in thousands)  
(
Actual based on OAKS reports run September 3, 2020)  
Program Category  
Actual  
Estimate*  
Variance Percent  
Primary and Secondary Education  
Higher Education  
$1,005,255  
$192,849  
$7,941  
$998,557  
$201,182  
$6,577  
$6,698  
-$8,333  
$1,364  
-$271  
0.7%  
-4.1%  
20.7%  
0.0%  
Other Education  
Total Education  
$1,206,044 $1,206,316  
Medicaid  
$1,797,147 $1,729,101  
$68,046  
3.9%  
Health and Human Services  
Total Health and Human Services  
$109,433  
$130,100  
-$20,667 -15.9%  
$47,379 2.5%  
$1,906,580 $1,859,201  
Justice and Public Protection  
General Government  
$167,280  
$30,096  
$189,582  
$35,240  
-$22,301 -11.8%  
-$5,143 -14.6%  
-$27,445 -12.2%  
Total Government Operations  
$197,377  
$224,821  
Property Tax Reimbursements  
Debt Service  
$140,476  
$74,403  
$245,672 -$105,196 -42.8%  
$74,403 $0 0.0%  
$320,075 -$105,196 -32.9%  
Total Other Expenditures  
$214,878  
Total Program Expenditures  
Transfers Out  
$3,524,880 $3,610,413  
$3,227 $33,900  
$3,528,107 $3,644,313 -$116,206  
-$85,533 -2.4%  
-$30,673 -90.5%  
Total GRF Uses  
-3.2%  
*
September 2020 estimates of the Office of Budget and Management.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 12  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
Table 4: General Revenue Fund Uses  
Actual vs. Estimate  
FY 2021 as of August 31, 2020  
(
$ in thousands)  
(
Actual based on OAKS reports run September 3, 2020)  
Program Category  
Actual  
Estimate*  
Variance Percent FY 2020** Percent  
Primary and Secondary Education  
Higher Education  
$1,726,604 $1,719,906  
$6,698  
-$8,333  
$1,364  
-$271  
0.4% $1,456,515  
18.5%  
4.6%  
$369,887  
$17,423  
$378,220  
$16,059  
-2.2%  
8.5%  
$353,466  
$17,656  
Other Education  
-1.3%  
15.7%  
Total Education  
$2,113,914 $2,114,185  
0.0% $1,827,637  
Medicaid  
$3,961,245 $3,893,198  
$68,046  
-$20,667  
$47,379  
1.7% $3,048,542  
29.9%  
3.6%  
Health and Human Services  
Total Health and Human Services  
$231,546  
$252,213  
-8.2%  
$223,563  
$4,192,791 $4,145,412  
1.1% $3,272,105  
28.1%  
Justice and Public Protection  
General Government  
$492,820  
$74,839  
$515,121  
$79,983  
-$22,301  
-$5,143  
-4.3%  
-6.4%  
-4.6%  
$462,916  
$81,627  
6.5%  
-8.3%  
4.2%  
Total Government Operations  
$567,659  
$595,104  
-$27,445  
$544,543  
Property Tax Reimbursements  
Debt Service  
$140,470  
$173,651  
$314,121  
$245,666 -$105,196 -42.8%  
$173,651 $0 0.0%  
$419,318 -$105,196 -25.1%  
$201,355 -30.2%  
$386,012 -55.0%  
$587,367 -46.5%  
Total Other Expenditures  
Total Program Expenditures  
Transfers Out  
$7,188,486 $7,274,019  
$410,727 $436,900  
-$85,533  
-$26,173  
-1.2% $6,231,653  
15.4%  
-6.0%  
$648,403 -36.7%  
Total GRF Uses  
$7,599,213 $7,710,919 -$111,706  
-1.4% $6,880,056  
10.5%  
*
*
September 2020 estimates of the Office of Budget and Management.  
*Cumulative totals through the same month in FY 2020.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 13  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
EMexlanpey Cearnter,dDiriecttorures8  
Ivy Chen, Principal Economist  
Overview  
This section compares actual monthly and YTD program expenditures and transfers from  
the GRF (GRF uses) with OBM's 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.  
Through August, FY 2021 GRF program expenditures totaled $7.19 billion. These  
expenditures were $85.5 million (1.2%) below the estimate released by OBM in September 2020.  
This negative YTD variance was dominated by a negative YTD variance of $105.2 million (42.8%)  
in Property Tax Reimbursements. Four other program categories had negative YTD variances,  
including two with variances greater than $20.0 million: Justice and Public Protection  
(
$22.3 million, 4.3%) and Health and Human Services ($20.7 million, 8.2%). These negative  
variances were partially offset by positive YTD variances in the three remaining categories,  
especially a positive YTD variance of $68.0 million (1.7%) in Medicaid. In addition to program  
expenditures, total uses include transfers out. Transfers out totaled $410.7 million YTD and had  
a negative YTD variance of $26.2 million (6.0%) at the end of August. Combining program  
expenditures and transfers out, total GRF uses for FY 2021 were $7.60 billion at the end of  
August. These uses were $111.7 million (1.4%) below estimate. The rest of this section discusses  
both GRF and non-GRF variances in Medicaid and the GRF variance in Property Tax  
Reimbursements.  
Medicaid  
GRF Medicaid expenditures were $68.0 million (3.9%) above their monthly estimate in  
August, which brought YTD expenditures to 1.7% above estimate at the end of August. Non-GRF  
Medicaid expenditures were $115.4 million (9.2%) below their monthly estimate in August,  
which brought YTD expenditures to 6.4% below estimate at the end of August. Including both the  
8 This report compares actual monthly and YTD expenditures from the GRF to OBM’s estimates. If  
a program category’s 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.  
Budget Footnotes  
P a g e | 14  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
GRF and non-GRF, all funds Medicaid expenditures were $47.4 million (1.6%) below estimate in  
August, and YTD all funds Medicaid expenditures were 0.8% below estimate at the end of August.  
Among departments, the Ohio Department of Medicaid (ODM) had the largest all funds  
expenditures both in the month of August ($2.6 billion) and YTD ($5.0 billion). ODM was followed  
by the Ohio Department of Developmental Disabilities (ODODD), with all funds expenditures of  
$
282.3 million in August and $549.2 million YTD. The other six “sister” agencies who have  
Medicaid expenditures – Job and Family Services, Health, Aging, Mental Health and Addiction  
Services, State Board of Pharmacy, and Education account for the remainder (less than 1%) of  
the total Medicaid budget. Unlike ODM and ODODD, the six “sister” agencies incur only  
administrative spending.  
By service category, Managed Care accounted for more than half of total expenditures,  
both in August and YTD. August expenditures for Managed Care were $1.8 billion and YTD  
expenditures were $3.5 billion. Fee-For-Service was the next largest service category by  
expenditures, accounting for $921.3 million in August and $1.9 billion YTD. The remaining  
expenditures were distributed among Premium Assistance ($95.2 million in August,  
$
154.7 million YTD) and Administration ($81.1 million in August, $142.0 million YTD).  
The impact of the COVID-19 pandemic has led to increases in Medicaid caseloads during  
each of the past six months. From March through August of 2020, caseloads increased by an  
average of 39,200 cases per month. According to the ODM, nearly all of the caseload variance  
over the previous six months has been due to the suspension of routine redeterminations of  
eligibility and an increase in the number of new applications and approvals, due to the economic  
impacts of the COVID-19 pandemic. In August, total caseloads were 3,021,000. Average monthly  
caseloads for FY 2021 were 3,003,000 at the end of August.  
Property Tax Reimbursements  
This category of GRF expenditures reimburses school districts and other local  
governments for their property tax losses due to property tax rollbacks and the homestead  
exemption. Reimbursements are made twice a year. The current payment is based on a property  
tax settlement conducted in August. Reimbursements will be made as counties request them  
through December. Since payments are made at the request of the counties, this category often  
has variances at the beginning of a cycle that are offset as the cycle draws to a close. At the end  
of August, this category was under estimate by $105.2 million (42.8%). This YTD variance should  
decrease by the end of the calendar year.  
Budget Footnotes  
P a g e | 15  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
Issue Updates  
Controlling Board Approves $200 million in Additional Federal  
COVID-19 Relief for Higher Education Institutions  
Edward Millane, Senior Budget Analyst  
On July 13, 2020, the Controlling Board approved a total of $200 million in additional federal  
funding for public and private institutions of higher education to respond to the COVID-19  
pandemic. The additional funding, appropriated in three new line items in the Department of Higher  
Education (DHE) budget, is supported by federal Coronavirus Aid, Relief, and Economic Security  
(
$
CARES) Act funds deposited into the Coronavirus Relief Fund (Fund 5CV1). Chart 5 shows the new  
200 million in Fund 5CV1 appropriations by line item. The chart shows that $92.3 million (46.2%) is  
directed towards the state’s public universities with relatively large shares of students living on  
campus (item 235677). These funds may be used to support COVID-19-related measures at campus  
locations, including additional costs for mitigation in residences and dining halls. The remaining two  
items direct $53.9 million (26.9%) to public “commuter campuses,” including community colleges  
and Ohio technical centers (item 235679), and $53.8 million (26.9%) to private nonprofit and  
for-profit institutions (item 235678) to support any necessary adjustments to campuses to comply  
with COVID-19-related health measures. Generally, allocations are based on each campus’ full-time  
equivalent (FTE) enrollment with additional weights for students who are Pell-eligible, part-time  
status, or campus residents. These new funds are in addition to the approximately $400 million in  
CARES Act funds that institutions received directly from the U.S. Department of Education earlier  
this year through the Higher Education Emergency Relief Fund.  
Over 250 public and private higher education institutions and Ohio technical centers will  
receive a portion of the $200 million. Chart 6 shows Fund 5CV1 allocations by institution sector type.  
As the chart indicates, the state’s 14 public universities will receive approximately $127.3 million  
(
(
63.6%). A total of 74 private, nonprofit institutions will receive the next highest share at $51.9 million  
25.9%), followed by 22 community colleges at $18.1 million (9.1%), 91 private, for-profit institutions  
at $1.9 million (1.0%), and 52 Ohio technical centers at $0.8 million (0.4%).  
Chart 5. Fund 5CV1 Appropriations for Ohio  
Higher Education Institutions by Line Item  
Chart 6. Fund 5CV1 Allocations for Ohio  
Higher Education Institutions by Sector Type  
Public  
Institutions -  
Commuter  
Private,  
Nonprofits,  
$51.9 , 25.9%  
Public  
Institutions -  
Residential  
(235679),  
$53.9 , 26.9%  
Public  
Universities,  
127.3 ,  
3.6%  
(
92.3 , 46.2%  
235677),  
Community  
Colleges,  
$18.1 , 9.1%  
$
6
$
Private  
Institutions  
Private,  
For-  
profits,  
(235678),  
$
53.8 , 26.9%  
Ohio  
Technical  
Centers,  
0.8 , 0.4%  
Total Fund 5CV1 Appropriations:  
200 million  
$1.9 , 1.0%  
$
$
Budget Footnotes  
P a g e | 16  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
Through August 27, nearly 100 institutions have received payouts totaling approximately  
182.5 million. DHE anticipates that eligible institutions will receive their full allocations by the  
$
end of September. An institution that receives an allocation from these new funds must complete  
an interim financial compliance report by October 15, 2020, and a final report by  
December 30, 2020.  
Controlling Board Approves More Than $471 million in COVID-19  
Provider Relief Funds  
Nelson V. Lindgren, Economist  
On July 13 and July 27, the Controlling Board approved eight requests to establish  
appropriations totaling $471.2 million for OBM, which will be used to provide COVID-19 relief  
payments to healthcare providers. The funds to support these requests come from the federal  
government’s CARES Act. Payments will be made to Medicaid providers who have experienced  
business interruptions and increased costs as a result of the COVID-19 pandemic. Funds can be  
used to continue to provide services and to address additional and ongoing costs related to the  
pandemic. Providers that are eligible to receive this funding include the following: skilled nursing  
facilities (SNFs); critical access, rural access, and distressed hospitals; private intermediate care  
facilities for individuals with intellectual disabilities (ICF/IIDs); home and community long-term  
care providers; and community behavioral health providers. The table below shows the total  
amounts available for each provider type. SNFs will receive regular relief funds, as well as infection  
control funds. To qualify for the infection control funds, SNFs must meet certain survey criteria.  
COVID-19 Provider Relief Funds Available, FY 2021  
Provider Type  
Amount  
$207,169,262  
SNF Total  
SNF Regular Relief  
$182,169,262  
$25,000,000  
$124,232,014  
$62,000,000  
$45,000,000  
$32,812,500  
$471,213,776  
SNF Infection Control  
Home and Community Long-Term Care Providers  
Critical Access, Rural, and Distressed Hospitals  
Community Behavioral Health Providers  
ICF/IIDs  
Total  
OBM collaborated with the departments of Medicaid, Aging, Mental Health and Addiction  
Services, and Developmental Disabilities to calculate the allocations for each provider type. To  
determine amounts, they surveyed providers and analyzed existing cost reports and other  
relevant information. Providers must apply at the state of Ohio’s grant website in order to receive  
Budget Footnotes  
P a g e | 17  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
funds. The website can be accessed here – https://grants.ohio.gov/fundingopportunities.aspx  
(
relief payments vary by provider type. The application period ends on September 30, 2020.  
see CARES Act – Coronavirus Relief Fund Provider Relief Payments). Eligibility requirements and  
Development Services Agency Awards $20 million in CARES Act  
Funds for PPE Manufacturing Grants  
Tom Middleton, Senior Budget Analyst  
The Development Services Agency (DSA) allocated nearly $20 million in federal CARES Act  
funding to 68 businesses in June under the Ohio PPE Retooling and Reshoring Grant Program.  
Grants of up to $500,000 were awarded to small- and medium-sized manufacturers  
(500 employees or fewer) to repurpose existing facilities to make personal protective  
equipment (PPE) or reshore PPE production to Ohio. The table below summarizes the grants by  
JobsOhio region.  
Ohio PPE Retooling and Reshoring Grant Program Grants by JobsOhio Region, FY 2020  
JobsOhio Region  
Northeast  
Central  
Total Grant Amount  
$10,511,243  
$2,992,953  
Number of Grants  
37  
Average Grant Award  
$284,088  
10  
7
$299,295  
Northwest  
West  
$2,110,963  
$301,566  
$1,850,000  
4
$462,500  
Southwest  
Southeast  
$1,533,394  
8
$191,674  
$1,000,000  
2
$500,000  
Total  
$19,998,553  
68  
$294,096  
Grant funds may be used to offset the cost of equipment necessary to manufacture PPE,  
or to retool, or construct facilities to manufacture PPE. Businesses were required to specify the  
type of PPE to be produced, which are shown in the list below. Of the 68 businesses receiving  
grants, 23 committed to manufacturing multiple PPE types.  
Face shields – 23 businesses;  
Community masks – 22 businesses;  
Surgical masks – 13 businesses;  
Hand sanitizers – 11 businesses;  
Gowns – 9 businesses;  
Cleaning and sanitizing products – 6 businesses;  
Other PPE (dividers, nasal swabs, ventilator parts, thermometers, gloves) – 11 businesses.  
Budget Footnotes  
P a g e | 18  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
State Library Board Establishes New Federally Funded Grant  
Program to Assist Libraries with COVID-19 Response  
Dan Redmond, Budget Analyst  
In July 2020, the State Library Board established a new grant program, called the CARES  
Act Mini-Grant, to assist libraries with their COVID-19 pandemic response. The grant program  
made available $1.06 million supported by Ohio’s share of federal funds appropriated to the  
Institute of Museum and Library Services (IMLS) as part of the CARES Act. IMLS is an independent  
federal agency that advises policymakers on library, museum, and information services and  
distributes federal funds to state library administrative agencies.  
The grant provides $3,000 to each library system successfully applying for the funds, with  
no matching requirement. Awards are limited to one per public library system, academic campus  
(
system, campus, or school district. Funds must support the purchase of items in any of the  
following three areas:  
main or branch), or K-12 school district to be shared among the libraries within each respective  
Technology to expand internet connectivity and community outreach;  
Materials to implement new service models; and  
PPE for library staff and facilities.  
Libraries have applied to use the funds for the purchase of wireless hotspots and Wi-Fi  
signal boosters, touchless water fountains and faucets, automatic doors, curbside pickup and  
drop off services, and increased cleaning services, among others. The application period closed  
August 14. The State Library Board has awarded 299 grants with another 59 applications pending  
an award decision. If necessary, the Board will use other IMLS discretionary grant funds to cover  
any grants above the number that can be supported by its CARES Act award.  
Ohio Emergency Management Agency Receives $21 million in  
Federal Preparedness Grants  
Maggie West, Senior Budget Analyst  
On July 10, 2020, the Ohio Emergency Management Agency (Ohio EMA) announced the  
receipt of $20.9 million in grant funding from the U.S. Department of Homeland Security, Federal  
Emergency Management Agency (FEMA) to assist state and local governments, nonprofit  
organizations, and first responders in promoting emergency preparedness across Ohio. Of the  
9
$
950.0 million available nationally, Ohio’s portion represents 2.2%. The funding received by  
Ohio consists of four separate preparedness grant program awards (see table below). Together  
these programs aim to prevent, protect against, respond to, recover from, and mitigate terrorist  
attacks, major disasters, and other emergencies. In addition to these purposes, FEMA requires  
preparedness grant recipients in any given year to address specified critical priority areas. For the  
federal fiscal year (FFY) 2020 grant cycle, those areas include cybersecurity, soft targets and  
crowded places, intelligence and information sharing, and emerging threats.  
9 The FFY 2020 grant guidance focused on the nation’s highest risk areas, including urban areas  
that face the most significant threats.  
Budget Footnotes  
P a g e | 19  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
The Ohio EMA, a division of the Department of Public Safety, serves as the state  
administrative agency for federal preparedness grants and is responsible for receiving  
applications, awarding subgrants, and ensuring compliance in accordance with the requirements  
of each grant program. Additional information on these program grants is available at:  
https://www.ema.ohio.gov.  
Federal Preparedness Grant Awards, FFY 2020 (Total: $20,898,083)  
Grant Program  
Amount  
Emergency Management Performance Grant  
$10,166,130  
Assists enhancing and sustaining all-hazards capabilities of emergency  
management agencies (EMAs); used to allocate noncompetitive grants to all  
8
8 Ohio county EMAs; 50% match requirement  
State Homeland Security Grant Program  
$6,731,000  
$2,366,979  
$1,633,974  
Supports the prevention, preparation for, response to, and recovery from acts of  
terrorism; used to allocate noncompetitive grants to all eight Ohio homeland  
security regions; no match requirement  
Non-Profit Security Grant Program  
Supports security enhancements for nonprofit organizations at high risk of a  
terrorist attack; used to competitively award grants to eligible nonprofits; no  
match requirement  
Operation Stonegarden  
Enhances cooperation and coordination among law enforcement agencies that  
provide security along Lake Erie; used to allocate noncompetitive grants to sheriffs  
in Ohio counties that border Lake Erie; no match requirement  
ODJFS Receives $9.4 million Apprenticeship Grant  
Nicholas J. Blaine, Budget Analyst  
On July 14, 2020, the Ohio Department of Job and Family Services (ODJFS) was awarded  
a $9.4 million federal grant to support the state’s registered apprenticeship system and to  
expand apprenticeship opportunities. This “Building State Capacity to Expand Apprenticeship  
through Innovation” grant is provided by the U.S. Department of Labor (USDOL) and will be  
expended over three years. Funds will be used for system improvements, incentives to help  
employers pay for the costs of training, and pre-apprenticeship opportunities to better serve  
those underrepresented in apprenticeship programs. Specific grant goals include the following:  
expanding registered apprenticeships in healthcare, mental health care, addiction treatment, or  
alternative pain management occupations that provide services in rural areas; providing  
apprenticeships to all workers, including women, minorities, veterans, individuals with  
disabilities, and individuals with a criminal record; and supporting engagement with small  
businesses in nontraditional industries. Apprenticeships are available to those 16 and older in a  
variety of occupations.  
Budget Footnotes  
P a g e | 20  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
USDOL is providing grant funds to expand the registered apprenticeship program model  
across the nation. Ohio’s model is the ApprenticeOhio program, which is housed within the ODJFS  
Office of Workforce Development. The program offers outreach to employers, technical support,  
registration of apprenticeship programs that meet certain requirements, and issues a nationally  
recognized certification for completion. It has more than 19,000 enrolled apprentices.  
Apprentices learn skills needed for a job in the apprentice sponsor’s industry through at least  
2
under the supervision of a skilled professional, apprentices learn skills while receiving pay for  
,000 hours of structured on-the-job training and 144 hours of classroom instruction. Working  
their work.  
Supreme Court Awards $725,000 in FY 2021 Civil Justice  
Program Grants  
Robert Meeker, Budget Analyst  
On July 24, 2020, the Ohio Supreme Court announced the award of $725,088 in FY 2021  
Civil Justice Program grants to 19 public agencies and nonprofit organizations. In total, seven  
courts or clerks of court received $209,200 and 12 nonprofit organizations or government  
agencies received $515,888, including $50,000 to the Bureau of Criminal Investigation. Grants  
range from $13,000 to the Summit County Court of Common Pleas for an online dispute  
resolution pilot program to two grants of $80,000 each to the Ohio State Bar Association for the  
Rural Clerkship Program and the Equality Ohio Education Fund for the Equality Ohio Legal Clinic.  
The Civil Justice Grant Program, established in 2016, funds services and activities that  
provide direct civil legal assistance or increase access to assistance for Ohioans’ civil legal needs,  
such as housing, health care, and economic security. Maximum award amounts vary by expected  
impact. For FY 2021, projects with a county- or city-wide impact were eligible for up to $25,000,  
projects with an impact on two or more counties for up to $50,000, projects with a regional  
impact on five or more counties for up to $75,000, and projects with a strong statewide impact  
for up to $100,000. As the table below shows, over the life of the program, 40 recipients have  
been awarded a total of $1.4 million. Beginning in FY 2019 civil justice grants are being awarded  
biennially and the grant program period is up to 24 months.  
Civil Justice Program Grant Awards, FY 2018-FY 2021  
Number of  
Fiscal Year  
Total Awarded  
Range of Awards  
Awards  
2
2
2
018  
019  
021  
$327,040  
$397,551  
8
$10,000-$75,000  
$8,818-$65,000  
$13,000-$80,000  
$8,818-$80,000  
13  
19  
$725,088  
Total  
$1,449,679  
40*  
*
more grants over the life of the program.  
The number of unique organizations receiving grants is 32, as eight organizations received two or  
Budget Footnotes  
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September 2020  
Legislative Budget Office of the Legislative Service Commission  
Civil Justice grants are supported by money appropriated from the Civil Justice Grant  
Program Fund (Fund 5SP0), which consists of (1) one-half ($150) of the fee charged to attorneys  
from other states trying cases in Ohio10 and (2) a voluntary $50 donation made as part of the  
biennial attorney registration process for Ohio attorneys. From FY 2017 through FY 2020, a total  
of $1.2 million was credited to Fund 5SP0, or about $306,000 per year.  
Department of Commerce Awards Financial Literacy Education  
Grants to Four Recipients  
Shannon Pleiman, Senior Budget Analyst  
On August 3, 2020, the Department of Commerce announced funding of $46,510 to four  
organizations under the Financial Literacy Education Grant Program. The purpose of the grant is  
to support innovative education programs that strengthen adult financial literacy. This year,  
grants were awarded to programs focused on providing children and young adults the knowledge  
and skills needed to develop and integrate personal financial literacy. Grants are awarded to  
applicants that demonstrate the need for financial education in their community. The table below  
displays the award recipients and the total amount awarded. More detail on each grant recipient  
can be found on the Department of Commerce website.  
Financial Literacy Education Grant Recipients, FY 2021  
Grant Recipient  
DoverPhila Federal Credit Union  
Junior Achievement of Mahoning Valley  
Terra College Foundation  
Award Amount  
$25,125  
$10,000  
$8,985  
Ohio University Credit Union  
$2,400  
Total  
$46,510  
The grant is financed through quarterly transfers of 5% of all charges, penalties, and  
forfeitures levied by the Consumer Finance Section within the Division of Financial Institutions.  
This revenue is deposited into the Financial Literacy Education Fund (Fund 5FW0). The current  
fund balance of Fund 5FW0 is nearly $365,000. Grant guidelines require that at least half of the  
financial literacy education programs be conducted by or offered at public community colleges  
or state institutions of higher education.  
10 Out-of-state attorneys seeking permission to appear in an Ohio proceeding must first register  
with the Supreme Court Office of Attorney Services and pay a fee of $300.  
Budget Footnotes  
P a g e | 22  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
TErric Maakcelak, Eiconnomgist the Economy  
Overview  
The nation was hit with the most severe economic downturn in modern history during the  
second quarter of 2020. Since the low point in April, data point generally to recovery. The national  
unemployment rate declined by 1.8 percentage points in August, to 8.4%, as nonfarm employers  
added approximately 1.4 million payroll employees. Real gross domestic product  
(
inflation-adjusted GDP) fell at a 31.7% annual rate during the second quarter of 2020, as both  
consumption and investment expenditures dropped in response to the COVID-19 health crisis.  
Nationally, industrial production increased in July for the third month in a row, although output  
remained 8.2% below its level in July 2019. The Federal Reserve Bank (FRB), the nation’s central  
bank, kept its short-term interest rate target near zero and continued to inject funds into the  
country’s monetary base by purchasing securities from commercial and government issuers. The  
FRB signaled an increased willingness to keep short-term interest rates low for an extended time,  
saying inflation below its 2% target could be followed by inflation above the target for an  
unspecified period.  
Ohio’s labor force and economy appear to be improving, as the unemployment rate  
dropped to 11.0% in June then 8.9% in July, the first time Ohio’s unemployment rate has dipped  
below that of the nation since late 2015. Employment gains in July were distributed among  
industries, though job gains were most numerous in the leisure and hospitality service industry.  
Residential real estate markets, for both existing homes and new residential construction, were  
strong in July and August, according to Ohio Realtors and the FRB’s Beige Book.  
The National Economy  
Nonfarm payroll employment rose by 1.4 million in August, rising approximately 1% as  
the total number of persons employed in nonfarm occupations increased to 140.9 million. In  
August, nonfarm employment was below its February level by around 11.5 million. Among  
industries, employment totals increased significantly in retail trade (+248,900), professional and  
business services (+197,000), leisure and hospitality (+174,000), education and health services  
(
goods-producing industries increased by 43,000 while private service-providing industries added  
+147,000), and transportation and warehousing (+78,100). In total, employment in  
9
84,000 jobs. Chart 7 shows the trend in national payroll employment.  
Of particular note, government employment increased by 344,000 in August. While partly  
the result of ongoing government operations and reopening of schools, this increase is largely  
attributable to the significant rise in the number of temporary workers helping to conduct the  
decennial Census. As of the week of the August Bureau of Labor Statistics establishment survey,  
just over 288,000 paid temporary workers were on Census payrolls across the six census regions.  
During August, the national unemployment rate dropped by 1.8 percentage points, to  
.4%; the number of unemployed persons declined by 2.8 million. Unemployment rates were  
8
down among all racial groups included in the data. The country’s employment-population ratio  
increased 1.4 percentage points to 56.5% during the month but remained 4.6 percentage points  
Budget Footnotes  
P a g e | 23  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
below its February level, suggesting large numbers of persons remain potential labor force  
1
1
reentrants. Chart 8 shows the national unemployment rate.  
Real GDP plummeted in the second quarter of 2020, falling at an annualized rate of 31.7%,  
the largest quarterly decline in economic activity on record; real GDP for the quarter was 9.1%  
below its rate in the same quarter in 2019. Nonresidential fixed investment fell between the first  
and second quarters at a seasonally adjusted annual rate of 26.0%, while residential fixed  
investment declined at a 37.9% rate. However, the number of new housing units started in July  
was a seasonally adjusted 22.6% greater than a month prior, signaling a recovery in the  
1
2
residential construction industry. New home sales rose in July to the highest rate since 2006.  
Real consumer spending dropped at a 34.1% annual rate during the second quarter, when  
spending on both goods (-10.6%) and services (-43.1%) declined.  
According to the most recent estimates by the Bureau of Economic Analysis, a nationwide  
decrease in employee compensation (-$197.6 billion) during 2020’s second quarter was more  
than offset by the increase in unemployment compensation payments and other personal  
transfer receipts (+$613.1 billion), resulting in a seasonally adjusted annualized 34.3% rate of  
increase in personal income for the quarter. Paired with the sharp drop in personal consumption  
spending during the year’s second quarter, personal saving increased by approximately  
$
790.1 billion. In July, personal income increased a seasonally adjusted 0.4%, as wages and salary  
disbursements rose for the third straight month, by 1.4%, after collapsing in March and April.  
Retail sales during the month were up by a seasonally adjusted 0.8% from the previous month  
and were 5.8% greater than in July 2019. Sales in the food service industry were up a seasonally  
adjusted 5.0% in July but still 18.9% below their level a year prior.  
Industrial production rose a seasonally adjusted 3.0% in July, according to the most recent  
data from the Federal Reserve, though production remained 8.2% below its level in July 2019.  
Industrial output increased in July across all three major industry groups: manufacturing (+3.4%),  
utilities (+3.3%), and mining (+0.8%). Production of motor vehicles and parts, having fallen at the  
outset of the COVID-19 pandemic at the most rapid rate in series history that starts in 1972,  
returned in July nearly to its February level.  
Production in the national service sector increased in August for the third month in a row,  
according to the Institute for Supply Management’s (ISM’s) Services PMI. The production and  
new orders indexes signaled continued expansion, although a smaller percentage of surveyed  
firms reported expansion in August than in July. Employment decreased for a majority of  
companies surveyed by the ISM. A large majority of companies and industries reported increases  
in prices paid for labor and supplies.  
The consumer price index (CPI) increased by 0.6% in both June and July. Rising prices paid  
for fuel and energy headline a series of volatile price adjustments in recent months, as markets  
scramble to adjust to rapidly changing conditions. Year over year, the CPI for all items increased  
11 The labor force is measured as persons who are employed plus unemployed persons who  
sought work during the four-week period prior to the survey.  
12 According to initial data from the U.S. Census Bureau’s Survey of Construction.  
Budget Footnotes  
P a g e | 24  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
by 1.0%; a 2.3% rise in the cost of services13 and a 4.1% year-over-year increase in the cost of  
food offset a 20.2% drop in the CPI for energy commodities.  
Chart 7: U.S. and Ohio Nonfarm Payroll Employment  
(
in millions)  
153.9  
148.5  
143.1  
137.7  
132.3  
126.9  
5.7  
5.5  
5.3  
5.1  
4.9  
4.7  
2016  
2017  
2018  
2019  
2020  
U.S. Employment  
Ohio Employment (right scale)  
Chart 8: U.S. and Ohio Unemployment Rates  
% of Labor Force  
18.0%  
15.0%  
12.0%  
9.0%  
6.0%  
3.0%  
2016  
2017  
2018  
2019  
Ohio  
2020  
United States  
13 Services not including energy services.  
Budget Footnotes  
P a g e | 25  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
The Ohio Economy  
Ohio's unemployment rate declined to 8.9% in July 2020 from the revised rate of 11.0%  
in June. Ohio’s unemployment rate was 4.2% in July 2019. Chart 8 shows Ohio’s unemployment  
rate. During July, Ohio’s unemployment rate was lower than the national rate of 10.2%. Rates of  
unemployment among states ranged from 4.5% (Utah) to 16.1% (Massachusetts).  
Nonfarm payroll employment in Ohio was approximately 5.1 million in July 2020, gaining  
6
2,700 workers during the month, seasonally adjusted. In July, employment in good-producing  
industries declined by 2,000 while employment in service-producing occupations increased by  
4,700. Job gains were particularly large in leisure and hospitality (+25,100), education and health  
6
services (+15,700), professional and business services (+14,700), government (+4,900), and  
construction (+2,000), while employment growth in the financial services (+400) industry was  
limited. The number of persons on payrolls declined in manufacturing (-3,700) and trade,  
transportation, and utilities (-1,800) during the month. Chart 7 shows Ohio nonfarm payroll  
1
4
employment.  
The rate of business formation was significantly higher in recent weeks in Ohio than  
during the same period a year ago, according to the U.S. Census Bureau’s Business Formation  
Statistics series, derived from the Internal Revenue Service processing of applications for  
business-related tax identification numbers. Since early May, the number of business  
applications from Ohio through the week of August 23 was 68% higher than during the same  
period a year ago; the number of applications submitted by business persons indicating that they  
planned for paid employment was 46% higher.  
Beginning in March, the U.S. Census Bureau has provided data on the effects of COVID-19  
on small business operations via the Small Business Pulse Survey. During the week beginning  
August 23, among the sample of Ohio employers with under 500 workers, 71% reported that they  
were negatively affected by the pandemic, 8% believed the pandemic had positively affected  
their business, and 21% said the pandemic had little or no effect on the business. Such factors as  
physical distancing, availability of personal protective equipment or other supplies, availability of  
employees to work, and ability to hire or rehire employees adversely affected activity at 39% of  
small businesses in the sample. Of the small businesses surveyed during the week, 2% reported  
missing required loan payments since March 13, 2020.  
According to Ohio Realtors, both unit and dollar volume of existing home sales increased  
from July 2019 to July 2020, up 8.6% and 18.0%, respectively. The average price paid for an  
existing home was around $223,000 in July 2020. Total unit volume YTD in 2020 declined 3.2%  
from last year, however, the dollar volume of sales rose 2.6% on higher average prices.  
14 During the COVID-19 pandemic, the Ohio Department of Job and Family Services produced a  
county-level count of job-posting trends by occupation and employer, which include occupational  
categories at a more granular level than available from national surveys. The County Job Trends Report is  
available on the Department’s website at: ohiolmi.com/Home/COVID-19.  
Budget Footnotes  
P a g e | 26  
September 2020  
Legislative Budget Office of the Legislative Service Commission  
Economic conditions in the Cleveland Federal Reserve District improved modestly during  
the most recent survey reporting period.15 About one-fourth of contacts reported adding  
workers during the survey window; a majority of firms believed staffing levels would still be  
below prepandemic levels come Spring 2021. Most firms held selling prices constant from the  
previous period, however, a sizable number of construction and manufacturing firms noted price  
increases for raw materials due to shortages. Activity rose slightly for manufacturers, though with  
variation among industries. In the real estate market, residential builders reflected positively on  
recent activity and expect the market to remain strong. In the financial services industry, a  
decrease in business loan activity was somewhat offset by strength in demand for new mortgages  
and refinancings, as well as vehicle purchase loans. Firms reported that low delinquency rates  
among commercial and consumer loans were largely due to a mixture of forbearance agreements  
and government support programs.  
15 The Federal Reserve Bank of Cleveland’s district consists of all of Ohio, western Pennsylvania,  
eastern Kentucky, and the northern panhandle of West Virginia. Comments here are derived from the  
latest edition of the Beige Book, a Federal Reserve publication that summarizes reports from business and  
industry contacts outside of the Federal Reserve System collected on or before August 24, 2020.  
Budget Footnotes  
P a g e | 27  
September 2020