A monthly newsletter of the Legislative Budget Office of LSC  
Volume: Fiscal Year 2021  
Issue: December 2020  
Highlights  
Ross Miller, Chief Economist  
November GRF tax revenues were $46.4 million greater than the estimate  
published by the Office of Budget and Management (OBM) in September. Sales and use  
tax revenue continued its strong performance; it was $39.0 million above estimate. The  
positive variance for GRF taxes over the first five months of FY 2021 was $393.6 million.  
Very unusually, GRF revenue for the first five months of the year exceeded  
GRF expenditures (see below); typically, revenues trail expenditures for the whole  
fiscal year until June, even in years that end with a surplus. The unusual relative  
positions are partly due to enhanced Medicaid reimbursements from the federal  
government, which has boosted revenue from federal grants by about $476 million  
so far this year, and partly to the delay in the filing deadline for personal income tax  
(PIT) returns from April (i.e., FY 2020) until July.  
Through November 2020, GRF sources totaled $17.00 billion:  
Revenue from the sales and use tax was $306.9 million above estimate;  
PIT receipts were $69.9 million above estimate.  
Through November 2020, GRF uses totaled $16.85 billion:  
Program expenditures were $554.4 million below estimate, including GRF  
Medicaid expenditures, which were $411.9 million below estimate;  
Expenditures from all other program categories were below estimate except for  
Primary and Secondary Education, which was above estimate by $20.9 million.  
In this issue...  
More details on GRF Revenues (p. 2), Expenditures (p. 12),  
the National Economy (p. 31), and the Ohio Economy (p. 34).  
Also Issue Updates on:  
CARES Funding for Department of Health (p. 22)  
CARES Act Hospital Provider Relief Payments (p. 22)  
CARES Act Funding for Development Services Agency (p. 23)  
Remote Education Grants (p. 24)  
STEM Public-Private Partnership Program (p. 25)  
Mineral Resource Production (p. 26)  
Pharmacy Board Annual Report (p. 27)  
COPS Hiring Grants (p. 28)  
Vineyard Expansion Assistance Program (p. 29)  
Available online at: www.lsc.ohio.gov/Budget Central  
Legislative Budget Office of the Legislative Service Commission  
Table 1: General Revenue Fund Sources  
Actual vs. Estimate  
Month of November 2020  
($ in thousands)  
(Actual based on report run in OAKS Actuals Ledger on December 1, 2020)  
State Sources  
Actual  
Estimate* Variance Percent  
Tax Revenue  
Auto Sales  
Nonauto Sales and Use  
Total Sales and Use  
$128,772  
$847,993  
$976,765  
$115,500 $13,272  
$822,300 $25,693  
$937,800 $38,965  
11.5%  
3.1%  
4.2%  
Personal Income  
Commercial Activity Tax  
Cigarette  
Kilowatt-Hour Excise  
Foreign Insurance  
Domestic Insurance  
Financial Institution  
Public Utility  
Natural Gas Consumption  
Alcoholic Beverage  
Liquor Gallonage  
Petroleum Activity Tax  
Corporate Franchise  
Business and Property  
Estate  
$636,654  
$327,498  
$75,121  
$20,903  
$977  
$634,600  
$333,800  
$71,800  
$25,600  
$2,054  
-$6,302  
$3,321  
0.3%  
-1.9%  
4.6%  
-$4,697 -18.3%  
-$9,700 $10,677 110.1%  
$0  
$0  
-$2,800  
$27,900  
$5,900  
$6,000  
$4,100  
$0  
$0  
$0  
$0  
$0  
$3,984 142.3%  
-$2,442 -8.8%  
-$616 -10.4%  
$630  
$832  
$0  
-$39  
$0  
$1  
---  
$1,184  
$25,458  
$5,284  
$6,630  
$4,932  
$0  
-$39  
$0  
$1  
10.5%  
20.3%  
---  
---  
---  
---  
Total Tax Revenue  
$2,081,367 $2,035,000 $46,367  
2.3%  
Nontax Revenue  
Earnings on Investments  
Licenses and Fees  
Other Revenue  
$0  
$719  
$814  
$0  
$621  
$2,379  
$0  
$98  
-$1,565 -65.8%  
---  
15.8%  
Total Nontax Revenue  
$1,533  
$3,000  
-$1,466 -48.9%  
Transfers In  
$0  
$0  
$0  
---  
2.2%  
7.2%  
4.1%  
Total State Sources  
Federal Grants  
$2,082,900 $2,038,000 $44,901  
$1,352,738 $1,261,773 $90,965  
$3,435,638 $3,299,773 $135,866  
Total GRF Sources  
*
estimate, adjusted for the shift of income tax filings from April (FY 2020) to July (FY 2021)).  
Estimates of the Office of Budget and Management as of September 2020 (H.B. 166  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 2  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
Table 2: General Revenue Fund Sources  
Actual vs. Estimate ($ in thousands)  
FY 2021 as of November 30, 2020  
($ in thousands)  
(Actual based on report run in OAKS Actuals Ledger on December 1, 2020)  
State Sources  
Tax Revenue  
Auto Sales  
Nonauto Sales and Use  
Total Sales and Use  
Actual  
Estimate*  
Variance Percent FY 2020**  
$97,738 14.9% $681,487  
5.3% $3,951,423  
6.6% $4,632,910  
Percent  
$754,838  
$4,175,636 $3,966,500 $209,136  
$4,930,474 $4,623,600 $306,874  
$657,100  
10.8%  
5.7%  
6.4%  
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  
$4,240,081 $4,170,200  
$69,881  
-$21,401  
$26,017  
-$12,561  
$14,837  
$824  
$8,532  
-$1,886  
-$3,696 -16.3%  
$3,568  
$3,313  
1.7% $3,601,894  
17.7%  
-5.1%  
5.7%  
-8.1%  
1.4%  
$758,599  
$347,917  
$133,139  
$176,637  
$824  
$780,000  
$321,900  
$145,700  
$161,800  
$0  
-2.7%  
8.1%  
-8.6%  
9.2%  
---  
$799,015  
$329,253  
$144,848  
$174,253  
$7 11818.3%  
-$14,968  
$60,814  
$19,004  
$27,868  
$24,313  
$878  
-$23,500  
$62,700  
$22,700  
$24,300  
$21,000  
$1,900  
$0  
36.3%  
-3.0%  
-$29,917  
50.0%  
2.7%  
3.9%  
23.9%  
12.7%  
-51.1%  
476.6%  
---  
-67.1%  
9.5%  
$59,228  
$18,291  
$22,487  
$21,579  
$1,796  
$43  
14.7%  
15.8%  
-$1,022 -53.8%  
$248  
$15  
$248  
---  
---  
---  
$15  
$0  
$0  
$38  
$12  
$0  
$12  
Total Tax Revenue  
$10,705,854 $10,312,300 $393,554  
3.8% $9,775,725  
Nontax Revenue  
Earnings on Investments  
Licenses and Fees  
Other Revenue  
$17,577  
$14,815  
$82,867  
$115,260  
$13,750  
$8,959  
$75,352  
$3,827  
$5,857  
$7,515  
$17,199  
27.8%  
65.4%  
10.0%  
17.5%  
$41,475  
$10,617  
$73,610  
$125,702  
-57.6%  
39.5%  
12.6%  
-8.3%  
Total Nontax Revenue  
$98,060  
Transfers In  
$79,832  
$77,932  
$1,900  
2.4%  
$75,548  
5.7%  
9.3%  
Total State Sources  
Federal Grants  
$10,900,946 $10,488,292 $412,654  
$6,096,280 $6,396,743 -$300,463  
$16,997,226 $16,885,035 $112,191  
3.9% $9,976,975  
-4.7% $4,089,613  
0.7% $14,066,588  
49.1%  
20.8%  
Total GRF SOURCES  
*
Estimates of the Office of Budget and Management as of September 2020 (H.B. 166 estimate, adjusted for the  
shift of income tax filings from April (FY 2020) to July (FY 2021)).  
*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  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
1
Revenues  
Jean Botomogno, Principal Economist  
Overview  
FY 2021 GRF sources through November of $17.00 billion were $112.2 million (0.7%)  
above the estimate released by OBM in September 2020. GRF sources consist of state-source  
receipts, which include tax revenue, nontax revenue, and transfers in, and federal grants (which  
was the only GRF category with a negative variance). GRF tax sources, nontax revenue, and  
transfers in were above projections by $393.6 million (3.8%), $17.2 million (17.5%), and  
$
1.9 million (2.4%), respectively. Those positive variances were partially offset by a shortfall of  
$
300.5 million (4.7%) for federal grants. Revenue for this GRF category is related to spending for  
Medicaid and other human services programs; GRF Medicaid expenditures were $411.9 million  
below estimate through November. Tables 1 and 2 show GRF sources for the month of November  
and for FY 2021 through November, respectively.  
Five months into FY 2021, GRF tax sources have been unexpectedly robust. The sales and  
use tax, the PIT, and the cigarette tax were $306.9 million, $69.9 million, and $26.0 million above  
their respective estimates. However, the commercial activity tax (CAT) had a year-to-date (YTD)  
shortfall of $21.4 million, primarily due to poor tax payments in August tied to COVID-19-related  
2
measures in the spring quarter. Regarding the other taxes, the foreign insurance tax, the  
financial institutions tax (FIT), the alcoholic beverage tax, and the liquor gallonage tax were above  
their respective YTD revenue targets by $14.8 million, $8.5 million, $3.6 million, and $3.3 million.  
On the other hand, the kilowatt-hour tax, the natural gas consumption tax, the public utility tax,  
and the petroleum activity tax experienced negative variances of $12.6 million, $3.7 million,  
$
1.9 million, and $1.0 million, respectively.  
November GRF sources were ahead of expectations by $135.9 million due to positive  
variances of $91.0 million (7.2%) for federal grants and $46.4 million (2.3%) for GRF taxes. Nontax  
revenue fell short of estimate by $1.5 million (48.9%); no transfers in occurred or were expected  
during the month. The sales and use tax, the PIT, and the cigarette tax were above their  
anticipated revenue levels by $39.0 million, $2.1 million, and $3.3 million, respectively, but the  
second quarterly payment by CAT taxpayers resulted in a deficit of $6.3 million for the GRF.  
Though negative, this variance was much smaller than the $30.4 million CAT shortfall of August  
2
November; instead, this tax had receipts of $1.0 million, for a monthly positive variance of  
020. Foreign insurance taxpayers were expected to receive net refunds of $9.7 million in  
$
10.7 million. In addition, the FIT had a positive variance of $4.0 million. Partially offsetting the  
1 This report compares actual monthly and year-to-date (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 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 economic activity and 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  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
positive variances, the kilowatt-hour tax and the public utility tax experienced deficits of  
$
GRF sources in the first five months of FY 2021.  
4.7 million and $2.4 million, respectively. Chart 1, below, shows cumulative YTD variances of  
Chart 1: Cumulative Variances of GRF Sources in FY 2021  
(Variances from Estimates, $ in millions)  
$
$
$
$
$
500  
400  
300  
200  
100  
$0  
-
-
-
-
-
$100  
$200  
$300  
$400  
$500  
Jul-20  
Aug-20  
Federal Grants  
Sep-20  
Oct-20  
Nov-20  
Tax Revenue  
Total GRF Sources  
YTD GRF sources rose $2.93 billion (20.8%) compared to YTD sources in FY 2020. The  
growth was due to increases in federal grants ($2.01 billion, 49.1%) and tax sources  
$930.1 million, 9.5%). The growth for federal grants was due in part to a COVID-19-related  
(
temporary rise in the share of federal reimbursements for Medicaid. This increase, which was  
authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, accounted for  
$
476.1 million of the $2.01 billion growth in federal grants. Transfers in also rose by $4.3 million  
(5.7%), but nontax revenue fell by $10.4 million (8.3%). The growth in GRF tax sources was led by  
an increase of $638.2 million in PIT revenue and $297.6 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 and use tax revenue has been  
supported by federal income support programs, as explained further in the section on that tax.  
Also, revenue from the cigarette tax, the FIT, the alcoholic beverage tax, and the liquor gallonage  
tax increased by $18.7 million, $14.9 million, $5.4 million, and $2.7 million, respectively. On the  
other hand, revenue declined for the CAT ($40.4 million) and the kilowatt-hour tax ($11.7 million).  
Sales and Use Tax  
The sales and use tax has been stronger than expected so far in FY 2021, with both  
portions of the tax (i.e., auto and nonauto) exceeding their respective estimates. Through  
November, FY 2021 revenue totaled $4.93 billion. This amount was $306.9 million (6.6%) above  
OBM projections, with a positive variance for the auto sales tax of nearly 15%. YTD receipts were  
also 6.4% above receipts in the corresponding period in FY 2020. November GRF sales and use  
tax revenue of $976.8 million was $39.0 million (4.2%) above estimate, with both portions of the  
tax above their respective projections. Compared to receipts last year in the same month,  
November 2020 sales and use tax revenue was higher by $34.9 million (3.7%).  
Budget Footnotes  
P a g e | 5  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
As mentioned in a previous edition of Budget Footnotes, various federal income support  
programs since the spring have buttressed FY 2021 sales and use tax revenue by offsetting the  
3
economic drag from the COVID-19 pandemic. A more recent program, the Lost Wages  
Supplement Payment Assistance Program also provided a temporary boost of up to $1,800 in  
September and October for individuals who were partially or totally unemployed because of  
COVID-19. The impact of all current federal income support programs may be waning, and hiring  
growth appear to have slowed in the last few months, but the strong performance of the sales  
and use tax has continued. A potential explanation for that strength could be the positive effect  
of the recovery in Ohio employment levels among high-wage earners, though low-wage earners  
continue to struggle. Employment rates among workers in the bottom wage quartile decreased  
by 13.7%, while that of the highest quartile increased 1.6%, compared to January 2020. In the  
corresponding period, total spending by all Ohio consumers was estimated to have increased by  
1
by all consumers increased by 18.7%.  
.8% compared to January 2020; retail spending (including online purchases, excluding groceries)  
4
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 $4.18 billion, an amount  
209.1 million (5.3%) above estimate and $224.2 million (5.7%) above revenue in FY 2020  
$
through November. The fiscal performance of the nonauto sales and use tax has been good due  
to stronger than expected consumer spending on durable goods, most of which are taxable under  
Ohio sales tax law. Available data suggest that spending on services has substantially decreased  
since the beginning of the calendar year.  
November receipts of $848.0 million were $25.7 million (3.1%) above estimate. The  
monthly tally was also $24.6 million (3.0%) above revenue in November 2019. Generally, a large  
part of a months nonauto sales and use tax revenue is from tax collection or tax remittance on  
taxable sales in the previous month. The future performance of this tax source is likely to be  
dependent on improvement in the Ohio economy and labor markets, any additional federal  
personal transfer payments, and potential statewide restrictions on economic activity due to a  
rise in COVID-19 infections.  
3 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 states 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.  
4 For these purposes, high-wage earners are defined as those earning in excess of $60,000 per year.  
Low-wage earners are those earning below $27,000 per year. Employment rates as of September 30, 2020;  
spending data as of November 22, 2020. Data available at: https://tracktherecovery.org/.  
Budget Footnotes  
P a g e | 6  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
Chart 2, below, provides year-over-year growth in nonauto sales and use tax collections  
since January 2020. After strong growth at the start of the fiscal year, the chart shows growth  
has returned to a more measured pace in recent months.  
Chart 2: Nonauto Sales and Use Tax Receipts Trend  
Actual vs. Prior Year  
(
Three-month Moving Average)  
1
0.0%  
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 Sep-20 Oct-20 Nov-20  
Auto Sales and Use Tax  
The performance of the auto sales and use tax has been stellar this fiscal year. Through  
November, FY 2021 auto sales and use tax receipts of $754.8 million were $97.7 million (14.9%)  
above estimate and $73.4 million (10.8%) above revenue in the corresponding period in FY 2020.  
In November, auto sales and use tax revenue was $128.8 million, $13.3 million (11.5%) above  
estimate and $10.3 million (8.7%) above such receipts in November 2019. Chart 3, below, 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 starting in late spring. Recently, revenue growth for this tax source has  
essentially returned to growth rates at the start of the calendar year before the pandemic.  
Cheap credit and high demand for SUVs and pickup trucks have continued to sustain the  
Ohio auto sales and use tax. The pandemic may have led persons avoiding public transportation  
(
either for work or leisure) to purchase motor vehicles; the increased demand likely raised vehicle  
prices, which mitigates reductions in unit sales. As with the nonauto portion, the future  
performance of this tax source is likely to be dependent on improvement in the Ohio economy  
and labor markets and any additional federal personal transfer payments.  
Budget Footnotes  
P a g e | 7  
December 2020  
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)  
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 Sep-20 Oct-20 Nov-20  
Personal Income Tax  
YTD FY 2021 GRF receipts from the PIT of $4.24 billion were $69.9 million (1.7%) above  
estimate and $638.2 million (17.7%) above such revenue in FY 2020 through November. Though  
this tax source is above estimate for the fiscal year to date, the PIT has lost momentum in the last  
three months, as it was a combined $26.5 million (1.2%) below the estimate, a shortfall driven  
mostly by higher than estimated refunds.  
The large year-over-year PIT revenue growth (which is expected to decrease over time) is  
directly attributable to the delay of income tax filings from April to July 2020. Excluding July  
receipts, combined PIT GRF revenue was $88.0 million (3.0%) above receipts in the August to  
November period in FY 2020. Among measures designed to combat the impact of the COVID-19  
rd  
pandemic, H.B. 197 of the 133 General Assembly authorized the Tax Commissioner to delay  
various state tax payments, which he did for this tax, to match the extended deadline for federal  
income tax returns. Thus, in July 2020, payments associated with annual returns of $501.9 million  
5
were $492.5 million 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,  
6
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  
5 In April 2020, this component was $697.8 million below anticipated revenue.  
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.  
Budget Footnotes  
P a g e | 8  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
greatly affect the monthly performance of the tax. The income tax filing delay introduced some  
volatility in the monthly trends of most PIT components. However, this volatility for payments  
with annual returns and for refunds is expected to decrease in the coming months as taxpayers  
continue to file tax year 2019 tax returns.  
November PIT revenue to the GRF of $636.7 million was $2.1 million (0.3%) above  
anticipated revenue. Gross collections were $9.0 million (1.2%) above target, driven by positive  
variances of $7.9 million for employer withholding, $1.9 million for miscellaneous payments, and  
$
0.3 million for quarterly estimated payments. Those positive variances were partially offset by  
a negative variance of $1.1 million for taxes due with annual returns, while trust payments were  
essentially on target. Refunds were $7.0 million higher than anticipated, and LGF distributions  
nearly matched the estimate.  
For FY 2021 through November, 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 $41.5 million above anticipated revenue. Quarterly estimated payments and  
trust payments were above their respective projections by $43.6 million and $14.1 million,  
respectively. Those positive variances were partially offset by shortfalls of $2.6 million for  
employer withholding, $10.2 million for payments due with annual returns, and $3.4 million for  
miscellaneous payments. Refunds were $42.3 million below estimate, but LGF distributions were  
above expectation by $13.8 million, thus resulting in the YTD positive variance of $69.9 million  
for the GRF.  
Compared to the corresponding YTD period last year, gross collections have been higher  
in FY 2021, due to the income tax filing delay. They grew $779.3 million, driven by an increase of  
$
payments and trust payments increased by $146.9 million and $44.8 million, respectively. On the  
other hand, employer withholding and miscellaneous payments were $1.2 million and  
592.2 million from payments due with annual returns. In addition, quarterly estimated  
$
3.4 million lower than in FY 2020, respectively. 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. 166s reduction of income tax rates for nonbusiness income. FY 2021  
refunds and LGF distributions were higher than those in FY 2020 by $126.3 million and  
$
to YTD receipts in FY 2020.  
14.9 million, respectively. Therefore, growth in PIT GRF revenue totaled $638.2 million relative  
Budget Footnotes  
P a g e | 9  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
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  
-$2.6  
-0.1%  
11.3%  
28.0%  
-1.4%  
-11.0%  
0.8%  
-$1.2  
$146.9  
$44.8  
-0.0%  
Quarterly Estimated Payments  
Trust Payments  
$43.6  
$14.1  
-$10.2  
-$3.4  
51.9%  
229.6%  
486.5%  
-11.0%  
18.6%  
31.1%  
8.4%  
Annual Return Payments  
Miscellaneous Payments  
Gross Collections  
$592.2  
-$3.4  
$41.5  
-$42.3  
$13.8  
$69.9  
$779.3  
$126.3  
$14.9  
Less Refunds  
-7.4%  
7.7%  
Less LGF Distribution  
GRF PIT Revenue  
1.7%  
$638.2  
17.7%  
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 2.7%, on average, in the  
last three months (without any adjustment for tax rates).  
Chart 4: Monthly Witholding Receipts Trend  
Actual vs. Prior Year  
(
Three-month Moving Average)  
8
6
4
2
0
.0%  
.0%  
.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 Sep-20 Oct-20 Nov-20  
Actual Adjusted  
Budget Footnotes  
P a g e | 10  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
Commercial Activity Tax  
YTD GRF receipts from CAT taxpayers were $758.6 million, $21.4 million (2.7%) below  
estimate. November GRF revenue of $327.5 million, which included the second payment for  
quarterly calendar return taxpayers, was $6.3 million (1.9%) below estimate and $2.8 million  
(
$
0.9%) below November 2019 revenue. The CAT recorded a first-quarter GRF shortfall of  
23.5 million; however, in the October to November period, the CAT was $2.1 million (0.5%)  
above estimate. The November payment was based on taxable gross receipts from the July to  
September quarter. The first quarterly payment for FY 2021 in August of $278.1 million, based on  
taxable gross receipts from the April to June quarter, was short of estimate by $30.4 million. Gross  
collections through November totaled $968.5 million, a decrease of $36.9 million (3.7%) relative  
to gross collections in FY 2020 through November. Refunds and credits were $70.0 million, an  
increase of $11.0 million (18.7%) 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%). 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  
YTD through November, FY 2021 revenue from the cigarette and other tobacco products  
OTP) tax totaling $347.9 million was above estimate by $26.0 million (8.1%). This total included  
(
$
305.5 million from the sale of cigarettes and $42.4 million from the sale of OTP. For the month  
of November, receipts from this tax source of $75.1 million were $3.3 million (4.6%) above  
estimate and $2.9 million (4.0%) above revenue in November 2019.  
Through November, FY 2021 receipts grew $18.7 million (5.7%) relative to revenues in the  
corresponding period in FY 2020. Receipts from cigarette sales and OTP sales increased by  
$
8.9 million (3.0%) and $9.8 million (30.1%), respectively. The 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  
7
product. 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.  
On a yearly basis, revenue from the cigarette tax usually trends downward, generally at a  
slow pace. However, that historical trend has been suspended since March 2020 by the impact on  
smokers of the COVID-19 pandemic. Smokers are spending less on travel and entertainment during  
the pandemic and thus have more disposable income for cigarettes. Fewer social interactions and  
more time at home allow for more tobacco use occasions. Also, some smokers may have switched  
back to traditional cigarettes due to recent federal restrictions on e-cigarette flavors.  
7 Of total receipts in FY 2020 of $82.4 million from the sale of OTP, the tax on vapor products  
contributed $3.6 million, or about 4%, according to the Ohio Department of Taxation.  
Budget Footnotes  
P a g e | 11  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
Table 3: General Revenue Fund Uses  
Actual vs. Estimate  
Month of November 2020  
($ in thousands)  
(Actual based on OAKS reports run December 7, 2020)  
Program Category  
Actual  
Estimate* Variance Percent  
Primary and Secondary Education  
Higher Education  
$678,431  
$197,499  
$3,527  
$640,666 $37,766  
5.9%  
0.5%  
$196,570  
$4,150  
$929  
Other Education  
-$623 -15.0%  
Total Education  
$879,457  
$841,386 $38,072  
4.5%  
Medicaid  
$1,965,873 $1,832,177 $133,695  
$121,604 $116,355 $5,248  
$2,087,476 $1,948,533 $138,944  
7.3%  
4.5%  
7.1%  
Health and Human Services  
Total Health and Human Services  
Justice and Public Protection  
General Government  
$160,312  
$33,721  
$172,098 -$11,786  
$32,818 $904  
$204,915 -$10,883  
-6.8%  
2.8%  
Total Government Operations  
$194,033  
-5.3%  
Property Tax Reimbursements  
Debt Service  
$81,334  
$26,309  
$76,289  
$26,320  
$5,045  
-$11  
6.6%  
0.0%  
4.9%  
Total Other Expenditures  
$107,643  
$102,609  
$5,034  
Total Program Expenditures  
Transfers Out  
$3,268,609 $3,097,443 $171,167  
$0 $0 $0  
$3,268,609 $3,097,443 $171,167  
5.5%  
---  
Total GRF Uses  
5.5%  
*September 2020 estimates of the Office of Budget and Management.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 12  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
Table 4: General Revenue Fund Uses  
Actual vs. Estimate  
FY 2021 as of November 30, 2020  
($ in thousands)  
(Actual based on OAKS reports run December 7, 2020)  
Program Category  
Actual  
Estimate*  
Variance Percent FY 2020** Percent  
Primary and Secondary Education  
Higher Education  
$3,443,752 $3,422,886  
$20,866  
-$11,552  
-$960  
0.6%  
-1.2%  
-2.4%  
$3,556,395  
$935,853  
-3.2%  
2.0%  
$954,777  
$38,479  
$966,328  
$39,440  
Other Education  
$43,999 -12.5%  
Total Education  
$4,437,008 $4,428,654  
$8,354  
0.2% $4,536,247  
-2.2%  
Medicaid  
$8,683,799 $9,095,661 -$411,861  
$595,332 $657,248 -$61,916  
$9,279,132 $9,752,909 -$473,777  
-4.5%  
-9.4%  
$6,755,892  
$631,624  
28.5%  
-5.7%  
25.6%  
Health and Human Services  
Total Health and Human Services  
-4.9% $7,387,516  
Justice and Public Protection  
General Government  
$1,124,940 $1,177,506  
$190,310 $208,247  
$1,315,250 $1,385,754  
-$52,566  
-$17,938  
-$70,504  
-4.5%  
-8.6%  
$1,071,195  
$187,517  
5.0%  
1.5%  
4.5%  
Total Government Operations  
-5.1% $1,258,711  
Property Tax Reimbursements  
Debt Service  
$902,217  
$503,972  
$918,601  
$506,080  
-$16,384  
-$2,108  
-1.8%  
-0.4%  
$903,562  
-0.1%  
$884,338 -43.0%  
Total Other Expenditures  
$1,406,189 $1,424,681  
-$18,492  
-1.3% $1,787,901 -21.3%  
-3.3% $14,970,375 9.8%  
-7.7% $662,799 -37.9%  
-3.4% $15,633,173 7.8%  
Total Program Expenditures  
Transfers Out  
$16,437,579 $16,991,998 -$554,419  
$411,475 $445,900 -$34,425  
$16,849,054 $17,437,898 -$588,844  
Total GRF Uses  
*
*
September 2020 estimates of the Office of Budget and Management.  
*Cumulative totals through the same month in FY 2020.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 13  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
Table 5: Medicaid Expenditures by Department  
Actual vs. Estimate  
($ in thousands)  
(Actuals based on OAKS report run on December 7, 2020)  
Month of November 2020  
Year to Date through November 2020  
Department  
Medicaid  
GRF  
Actual  
Estimate* Variance Percent  
Actual  
Estimate*  
Variance Percent  
$1,906,056 $1,773,769 $132,287  
$576,482 $590,741 -$14,259  
$2,482,538 $2,364,510 $118,028  
7.5% $8,391,874  
-2.4% $3,453,247  
$8,795,200 -$403,326  
-4.6%  
-1.7%  
-3.8%  
Non-GRF  
$3,514,350  
-$61,103  
All Funds  
5.0% $11,845,121 $12,309,550 -$464,429  
Developmental Disabilities  
GRF  
$50,007  
236,183  
286,190  
$50,380  
$231,757  
$282,137  
-$373  
$4,426  
$4,054  
-0.7%  
$248,958  
$250,199  
$1,046,728  
$1,296,927  
-$1,241  
$89,725  
$88,485  
-0.5%  
8.6%  
6.8%  
$
1.9% $1,136,454  
1.4% $1,385,412  
Non-GRF  
All Funds  
$
Job and Family Services  
GRF  
$8,946  
$18,945  
27,891  
$7,054  
$15,146  
$22,200  
$1,892  
$3,800  
$5,692  
26.8%  
25.1%  
25.6%  
$37,762  
$74,090  
$44,984  
$82,553  
-$7,221 -16.1%  
-$8,463 -10.3%  
-$15,684 -12.3%  
Non-GRF  
$
$111,853  
$127,537  
All Funds  
Health, Mental Health and Addiction, Aging, Pharmacy Board, and Education  
GRF  
$864  
$975  
$4,904  
$5,878  
-$111 -11.4%  
-$3,285 -67.0%  
-$3,396 -57.8%  
$5,206  
$12,735  
$17,940  
$5,278  
$18,394  
$23,672  
-$73  
-1.4%  
Non-GRF  
$1,618  
-$5,659 -30.8%  
-$5,732 -24.2%  
$
2,482  
All Funds  
All Departments:  
GRF  
$1,965,873 $1,832,177 $133,695  
$833,229 $842,547 -$9,318  
2,799,101 $2,674,724 $124,377  
7.3% $8,683,799 $9,095,661 -$411,861  
-1.1% $4,676,526 $4,662,026 $14,500  
4.7% $13,360,325 $13,757,687 -$397,361  
-4.5%  
0.3%  
Non-GRF  
All Funds  
$
-2.9%  
*September 2020 estimates from the Office of Budget and Management and Department of Medicaid.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 14  
December 2020  
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 7, 2020)  
Month of November 2020  
Year to Date through November 2020  
Payment Category  
Actual  
Estimate* Variance Percent  
Actual  
Estimate*  
Variance Percent  
Managed Care  
CFC†  
$1,978,468 $1,788,711 $189,757  
10.6% $8,812,792 $9,065,187 -$252,395  
-2.8%  
-2.6%  
-4.5%  
-1.6%  
-2.0%  
-2.0%  
0.2%  
$596,874  
$513,664  
$250,960  
$80,241  
$623,134 -$26,260  
-4.2% $3,030,640  
$3,110,476 -$79,836  
$2,670,277 -$120,662  
Group VIII  
ABD†  
$578,974 -$65,310 -11.3% $2,549,616  
$258,451  
$83,468  
-$7,490  
-$3,227  
-$6,307  
-2.9% $1,256,644  
-3.9% $402,447  
-2.6% $1,194,628  
--- $378,817  
$1,276,858  
$410,808  
$1,218,796  
$377,973  
-$20,213  
-$8,360  
-$24,167  
$844  
ABD Kids  
My Care  
P4P†  
$238,378  
$298,350  
$244,685  
$0 $298,350  
Fee-For-Service  
ODM Services  
DDD Services  
Hospital -  
HCAP&Other†  
$640,754  
$367,793  
$272,989  
$704,840 -$64,085  
$427,577 -$59,784 -14.0% $1,762,388  
-9.1% $3,727,866 $3,820,165  
$1,914,817 -$152,429  
-$92,298  
-2.4%  
-8.0%  
6.5%  
$277,263  
-$4,274  
-1.5% $1,342,845  
$1,260,881  
$81,964  
-$27  
$0  
-$27  
---  
$622,633  
$644,466  
-$21,834  
-3.4%  
Premium Assistance  
Medicare Buy-In  
Medicare Part D  
$94,693  
$60,068  
$34,625  
$94,026  
$59,518  
$34,508  
$667  
$551  
$117  
0.7%  
0.9%  
0.3%  
$439,046  
$299,479  
$139,568  
$434,146  
$294,163  
$139,983  
$4,900  
$5,316  
-$415  
1.1%  
1.8%  
-0.3%  
Administration  
Total  
$85,185  
$87,147  
-$1,962  
-2.3%  
$380,621  
$438,189  
-$57,568 -13.1%  
$2,799,101 $2,674,724 $124,377  
4.7% $13,360,325 $13,757,687 -$397,361 -2.9%  
*September 2020 estimates from the Office of Budget and Management and Department of Medicaid.  
P4P - Pay For Performance.  
CFC - Covered Families and Children; ABD - Aged, Blind, and Disabled; HCAP - Hospital Care Assurance Program;  
Detail may not sum to total due to rounding.  
Budget Footnotes  
P a g e | 15  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
8
Expenditures  
Melaney Carter, Director, Legislative Budget Office  
Overview  
FY 2021 GRF program expenditures totaled $16.44 billion at the end of November. These  
expenditures were $554.4 million (3.3%) below the estimate released by OBM in early September  
2
020. All program categories, except for Primary and Secondary Education, had negative YTD  
variances at the end of November. The program category with the largest negative variance was  
Medicaid, which had a negative YTD GRF variance of $411.9 million (4.5%), largely due to a  
negative variance of $429.5 million in October, which was partially offset by a positive variance  
of $133.7 million in November. It should be noted that these variances are measured against  
estimates that are approximately $3 billion higher for all funds Medicaid expenditures for the  
fiscal year than the estimates established when H.B. 166 was enacted. Health and Human  
Services had the second largest negative YTD variance at $61.9 million (9.4%), which, like  
Medicaid, was largely due to a negative variance in October ($47.0 million). The only positive YTD  
variance was $20.9 million (0.6%) for the Primary and Secondary Education category. This  
positive variance resulted from two consecutive positive monthly variances, $57.5 million in  
October and $37.8 million in November, offsetting negative variances from earlier in the fiscal  
year. YTD variances are shown in the preceding Table 4, while Table 3 shows November variances.  
In addition to program expenditures, total uses include transfers out. Transfers out  
totaled $411.5 million YTD and had a negative YTD variance of $34.4 million (7.7%) at the end of  
November. Combining program expenditures and transfers out, total GRF uses for FY 2021 were  
$
16.85 billion at the end of November. These uses were $588.8 million (3.4%) below estimate.  
The rest of this section discusses both GRF and non-GRF variances in Medicaid and the GRF  
variances in Health and Human Services and Primary and Secondary Education, followed by an  
update on prior year GRF encumbrances that were still outstanding at the end of November.  
Medicaid  
GRF Medicaid expenditures were above their monthly estimate in November by  
$
133.7 million (7.3%) but remained below their YTD estimate, by $411.9 million (4.5%), at the  
end of November. Non-GRF Medicaid expenditures were below their monthly estimate, by  
9.3 million (1.1%), yet remained above their YTD estimate, by $14.5 million (0.3%). Including  
$
both the GRF and non-GRF, all funds Medicaid expenditures were $124.4 million (4.7%) above  
estimate in November and $397.4 million (2.9%) below their YTD estimate at the end of  
November. The Medicaid expenditure and caseload estimates used in this report were updated  
by the Ohio Department of Medicaid (ODM) for FY 2021. These updates were precipitated by the  
COVID-19 pandemic and are thus different from the expenditure and caseload estimates outlined  
in H.B. 166. The updated expenditure estimates include approximately $3 billion in increases for  
the fiscal year, related to many impacts of the COVID-19 pandemic.  
8 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.  
Budget Footnotes  
P a g e | 16  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
Table 5 shows GRF and non-GRF Medicaid expenditures for ODM, the Ohio Department  
of Developmental Disabilities (ODODD), and six othersister agencies 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. ODM had an all funds positive variance in November of $118.0 million (5.0%), while  
YTD expenditures remained below estimate, with a negative variance of $464.4 million (3.8%).  
ODODD had a November all funds positive variance of $4.1 million (1.4%) and ended the month  
with a YTD positive variance of $88.5 million (6.8%). The other six sisteragencies Job and  
Family Services, Health, Aging, Mental Health and Addiction Services, State Board of Pharmacy,  
and Education account for the remaining 1% of the total Medicaid budget. Unlike ODM and  
ODODD, the six sisteragencies incur only administrative spending.  
Table 6 shows all funds Medicaid expenditures by payment category. Expenditures were  
below their YTD estimates for three of the four payment categories as of the end of November.  
Managed Care had the largest negative variance of $252.4 million (2.8%), followed by Fee-For-  
Services negative variance of $92.3 million (2.4%), and Administrations negative variance of  
$
$
57.6 million (13.1%). Premium Assistance YTD expenditures were above estimate by  
4.9 million (1.1%).  
In March, Congress passed three acts to allocate additional federal funding to states for  
several programs to address the COVID-19 pandemic. These three acts are: the Coronavirus  
Preparedness and Response Supplemental Appropriations Act (signed March 6), the Families First  
Coronavirus Response Act (FFCRA, March 18), and the CARES Act (March 27). The second act  
passed by Congress, the FFCRA, increases the federal medical assistance percentage (FMAP) by  
6
.2 percentage points for certain Medicaid expenditures incurred after January 1, 2020, and  
9
throughout the duration of the COVID-19 emergency. To qualify for the increase, a state must  
do the following: (1) maintain eligibility standards or procedures that are no more restrictive than  
those in place on January 1, 2020, (2) not charge premiums that exceed those in place on  
January 1, 2020, (3) provide testing, services, and treatments including vaccines, specialized  
equipment, and therapies related to COVID-19 without cost-sharing requirements, (4) provide  
continuous coverage to individuals enrolled onto the program during the emergency period,10  
and (5) not require local political subdivisions to pay a greater portion of the nonfederal share of  
expenditures than was required on March 11, 2020.  
The Medicaid program is jointly funded by states and the federal government. The federal  
share for most Medicaid expenditures is determined by a states FMAP, which is calculated  
annually for each state using a formula established in federal statute.11 However, there are  
9 The increased FMAP is available for each calendar quarter occurring during the emergency. The  
U.S. Secretary of Health and Human Services declared COVID-19 an emergency on January 31, 2020. Thus,  
the increase is available for qualifying expenditures incurred on or after January 1, 2020, through the end  
of the quarter in which the emergency ends.  
10 States cannot terminate Medicaid coverage for individuals enrolled onto the program during  
the emergency period unless the individual voluntarily terminates eligibility or is no longer a resident of  
the state.  
11 The statute considers a state’s per capita income for the three most recent years relative to the  
nation’s per capita income over the same time period.  
Budget Footnotes  
P a g e | 17  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
exceptions to the regular FMAP formula for certain services and populations. In general, the  
6
.2 percentage point increase applies only to those Medicaid expenditures subject to the regular  
FMAP and not to expenditures made for these exceptions. As a result, the increase does not apply  
to administrative expenditures or service expenditures for the expansion population under the  
Affordable Care Act (typically referred to asGroup VIII), among others. Ohios FMAP was  
6
because of the FFCRA. Ohios FMAP is 63.6% from October 1, 2020, through September 30, 2021,  
3.02% from October 1, 2019, through September 30, 2020, and temporarily increased to 69.22%  
and is currently temporarily increased to 69.8% because of the FFCRA. In November, this  
6
federal funding for Ohio Medicaid. The majority of this increased funding was for GRF funds  
.2 percentage point FMAP increase represented approximately $122.2 million in increased  
($107.6 million), with the remaining $14.6 million going to non-GRF funds.  
The impact of the COVID-19 pandemic began to show in Marchs Medicaid caseloads, and  
the impacts have continued to show through monthly caseload increases since March. From  
March through November of 2020, caseloads have increased by 33,900 cases per month, on  
average. According to ODM, nearly all of the caseload variance 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. Based on updated FY 2021  
ODM estimates, Novembers caseload of 3.1 million enrollees is approximately 160,500 cases  
(4.9%) below estimate.  
Health and Human Services  
The Health and Human Services program category includes all non-Medicaid GRF  
expenditures by several state agencies. This category had a positive variance of $5.2 million  
(4.5%) in November, decreasing its YTD negative variance to $61.9 million (9.4%).  
Job and Family Services  
The Ohio Department of Job and Family Services (ODJFS) was responsible for $43.2 million  
of the YTD variance. ODJFSs variances were dominated by three appropriation items as listed  
below:  
600413, Child Care State/Maintenance of Effort, was $1.5 million under estimate in  
November and $10.9 million under estimate YTD;  
600523, Family and Children Services, was $5.6 million over estimate in November and  
$
10.5 million under estimate YTD;  
600535, Early Care and Education, was $8.5 million under estimate in November and  
9.1 million under estimate YTD.  
Items 600413 and 600535 are used to provide publically funded child care. The uses of  
$
item 600523 include providing funding to public children services agencies for child protection,  
supplementing federal Title XX funds provided to counties, and supporting foster parents.  
Mental Health and Addiction Services  
The Ohio Department of Mental Health and Addiction Services (OhioMHAS) was mainly  
responsible for this categorys positive November variance. OhioMHAS had a positive variance in  
November of $8.2 million that partially offset negative variances in August and September,  
resulting in a negative YTD variance at the end of November of $4.5 million. OhioMHASs positive  
variance in November came mainly from item 336421, Continuum of Care Services, which was  
Budget Footnotes  
P a g e | 18  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
over its November estimate by $8.3 million, resulting in a positive YTD variance for this item of  
$
addiction, and mental health.  
1.4 million. Item 336421 is mainly used to distribute funds to local boards of alcohol, drug  
Primary and Secondary Education  
The Primary and Secondary Education program category includes all GRF expenditures  
by the Ohio Department of Education (ODE), except for Medicaid and Property Tax  
Reimbursement expenditures. This category had a positive variance of $57.5 million in October  
and another positive variance of $37.8 million (5.9%) in November, that have more than offset  
its negative September variance, resulting in a YTD positive variance of $20.9 million (0.6%). As  
reported in Octobers issue of Budget Footnotes, this category had negative variances of  
$
appropriation item 200573, EdChoice Expansion, in September, due mainly to a timing issue  
related to scholarship payments. With positive variances of $10.1 million in October and  
48.2 million in appropriation item 200550, Foundation Funding, and $30.7 million in  
$
$
6.7 million in November, item 200573s negative YTD variance has been reduced to  
13.8 million. Item 200550 had a positive variance of $49.1 million in October and another  
positive variance of $46.9 million in November, leaving it with a YTD positive variance of  
46.9 million. Item 200550 is the main source of state funding for local schools. The positive  
$
YTD variance in item 200550 is partially offset by negative variances in most other line items.  
In addition to item 200573, another item with a significant negative YTD variance is item  
2
00437, Student Assessment. This item had a negative YTD variance of $7.9 million at the end  
of November that was caused by a negative variance of $11.6 million in November offsetting  
positive variances from earlier in the fiscal year. Item 200437 funds Ohios contracts with  
companies that provide standardized testing to public students in the state.  
Prior Year Encumbrances  
As reported in the July 2020 issue of Budget Footnotes, state agencies carried into  
FY 2021 $412.2 million in encumbered GRF funds that were originally appropriated for fiscal  
years prior to FY 2021. An agency generally has five months to spend prior year encumbrances  
for operating expenses. Any unspent operating expense encumbrances will lapse at the end of  
the five-month period and will become part of the GRF cash balance once OBM cancels the  
encumbrances. Subject to the approval of the Director of Budget and Management, an agency  
may carry funds encumbered for purposes other than operating expenses beyond the  
five-month period. Encumbrances for some grant and aid payments may be carried for several  
months or even years.  
Budget Footnotes  
P a g e | 19  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
Prior Year GRF Encumbrances by Agency ($ in thousands)  
Prior Year  
Encumbrances as  
of July 1, 2020  
Outstanding  
Encumbrances as of  
December 1, 2020  
Percentage  
of Total  
Percentage  
of Total  
Agency  
Job and Family Services  
Education  
$100,825  
$68,323  
$39,185  
$33,635  
$32,637  
$26,549  
$23,837  
$87,247  
$412,238  
24.5%  
16.6%  
9.5%  
$16,060  
$16,191  
$28,377  
$22,954  
$8,211  
11.8%  
11.9%  
20.9%  
16.9%  
6.0%  
Higher Education  
Transportation  
Medicaid  
8.2%  
7.9%  
Development  
Rehabilitation and Corrections  
Other  
6.4%  
$19,507  
$3,200  
14.3%  
2.4%  
5.8%  
21.2%  
100.0%  
$21,439  
$135,940  
15.8%  
100.0%  
Total  
As shown in the table above, as of December 1, 2020, $135.9 million of the $412.2 million  
(33.0%) 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  
20.9%) of the total outstanding encumbrances as of December 1, followed by the Ohio  
Department of Transportation (ODOT) at 16.9%, the Development Services Agency (DSA) at  
4.3%, ODE at 11.9%, and ODJFS at 11.8%. Together, these five agencies had $103.1 million  
75.8%) of the $135.9 million in total outstanding prior year encumbrances. The nature of these  
(
1
(
outstanding encumbrances is discussed below.  
DHE had $28.4 million in outstanding prior year encumbrances, of which $26.6 million  
occurred in item 235438, Choose Ohio First Scholarship. Item 235438 is used to pay the states  
obligations to scholarship recipients.  
ODOT had $23.0 million in outstanding prior year encumbrances, of which $19.1 million  
occurred in item 775470, Public Transportation - State. Item 775470 is used to provide state  
funding for local transit programs.  
DSA had $19.5 million in outstanding prior year encumbrances. Of this amount,  
6.8 million occurred in item 195455, Appalachia Assistance, and $6.2 million occurred in item  
95556, TechCred Program. Item 195455 is used to provide financial assistance to development  
$
1
projects in Ohios Appalachian counties. Item 195556 is used to fund the new TechCred program  
that offers financial assistance for students and workers to enroll in short-term training courses  
or programs in specific industries or to pursue in-demand jobs.  
Budget Footnotes  
P a g e | 20  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
Of ODEs outstanding encumbrances, which totaled $16.2 million, 50.6% ($8.2 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. Another significant outstanding encumbrance was $4.0 million in item  
2
designed to support programs that provide high school students with opportunities to earn  
00478, Industry-Recognized Credentials High School Students. This item funds a new program  
industry-recognized credentials.  
ODJFS had $16.1 million in outstanding prior year encumbrances. The most significant  
encumbrance was $7.3 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 | 21  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
Issue Updates  
Controlling Board Approves $384.7 Million in FY 2021 for ODH  
to Combat COVID-19  
Jacquelyn Schroeder, Senior Budget Analyst  
Between July 13 and November 9, 2020, the Controlling Board approved six requests to  
increase appropriations for the Ohio Department of Health (ODH) by a total of $384.7 million in  
FY 2021 to help combat COVID-19. The vast majority of funding ($309.9 million) will be used to  
expand the states diagnostic COVID-19 testing efforts. Specific expansion efforts will include:  
procuring reagents, specimen collection kits, and equipment; supporting testing costs at  
state-associated laboratories; warehousing and purchasing personal protective equipment; and  
performing data analysis. In addition, efforts will expand testing at nursing homes and other  
congregant facilities and provide for testing at various pop-up sites located throughout the state.  
Another $72.1 million will be used to help support Ohios 113 local health departments (LHDs).  
With these funds, LHDs will, among other things, hire epidemiological investigators to prevent the  
spread of COVID-19 in communities and fund other necessary local response activities. In addition  
to hiring at the local level, ODH will also use these funds to contract for, or hire, a statewide network  
of epidemiological staff to be deployed to areas experiencing a surge in cases. The remaining  
$
2.7 million will provide funding to limit farmworkersexposure to COVID-19. Specifically,  
agricultural camp operators will be given funds to improve health and safety at worksites and  
camps to reduce the transmission of COVID-19. These improvements will focus on reducing housing  
density and installing touchless equipment, partitions, and hand washing stations.  
This funding is made available through the federal CARES Act to support state efforts to  
respond to the COVID-19 pandemic. The CARES Act allows states to use funding from the federal  
Coronavirus Relief Fund for expenditures made in response to the pandemic from March 1, 2020,  
through December 30, 2020, that were not authorized as part of the state budget.  
Controlling Board Approves Additional $62.0 Million for Certain  
Hospitals  
Nelson V. Lindgren, Economist  
On October 26, 2020, the Controlling Board approved an additional $62.0 million in  
provider relief funds for certain hospitals, bringing the total relief to $124.0 million. These funds  
will target hospitals that provide critical access to Medicaid recipients and the public in rural and  
underserved areas. Payments will be made to eligible hospitals who have experienced business  
interruptions and increased costs due to the COVID-19 pandemic. However, the amounts  
distributed will be based on the amount of service reductions a hospital experienced during the  
three months (March through May) that nonessential and elective surgeries and procedures  
were postponed. Hospitals that are eligible for funding include critical access hospitals, rural  
access hospitals, St. Vincent Charity Hospital, Metro General in Cleveland, and the University of  
Toledo Medical Center. Critical and rural access hospitals improve access to healthcare by  
keeping essential services in rural communities. St. Vincent Charity Hospital is included because  
Budget Footnotes  
P a g e | 22  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
it provides a large proportion of behavioral health services in comparison to peer hospitals. The  
University of Toledo Medical Center is included because it is a distressed hospital.  
The funds to support this appropriation increase are provided by the federal CARES Act  
and administered by OBM. Hospitals are not the only provider category that received CARES  
provider relief funds. To date, including this request, $548.8 million has been approved for  
nursing homes, home and community long-term care providers, intermediate care facilities for  
individuals with intellectual disabilities, adult day care centers, and senior centers. In order to  
receive these funds, providers had to apply at the state of Ohios grant website. The application  
period for most of these funds ended on September 30, 2020.  
The Development Services Agency Has Allocated Almost  
$
183 Million Under Five CARES Act-funded Programs  
Tom Middleton, Senior Budget Analyst  
DSA has awarded $182.6 million of $243.9 million in funding under five new grant programs  
created using federal CARES Act funding received by the state. As of November 24, 2020,  
approximately $61.3 million remained to be allocated from three of the programs. Funding allocations  
and awards under each of the five programs, along with the number of recipients and average award  
amounts, are shown in the table below. The funding for each of the programs was approved by the  
Controlling Board in meetings held on June 1 and October 26.  
Awards Under Five New DSA Grant Programs Funded by the CARES Act  
(
As of November 24, 2020)  
Amount  
Allocated  
Application Funding  
Start Date $ millions  
Recipient  
Number  
Average  
Grant  
Program  
Recipients  
$
millions  
Ohio PPE  
Small- and  
June 6  
$20.0  
$20.0  
68  
$294,118  
Retooling and  
Reshoring  
medium-sized  
manufacturers  
Ohio Minority  
Micro-  
Small-, minority-,  
and women-  
June 6  
$5.0  
$5.0  
500  
$10,000  
Enterprise  
owned businesses  
Small Business Small businesses  
Relief  
November  
2
$125.0  
$38.7  
$85.0  
$17.6  
8,502  
6,702  
$9,998  
$2,626  
Bar and  
Businesses with  
on-premise liquor  
permits  
November  
2
Restaurant  
Assistance  
Home Relief  
Community action November  
agencies 2  
$55.2  
$55.0  
47 $1,170,213  
TOTAL  
$243.9  
$182.6  
Budget Footnotes  
P a g e | 23  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
Awards under most of the programs were distributed on a first-come, first-served basis.  
Under the Small Business Relief Grant Program, at least $500,000 was made available to businesses  
in each of the 88 counties. Home Relief Program funding flows through local community action  
agencies, with most of the funds ($50.0 million) going to individuals at or below 200% of the federal  
poverty level to support mortgage, rental, water, or sewer utility payment relief. Details on each  
program are described on the Controlling Board requests and at businesshelp.ohio.gov.  
In addition to the five programs listed above, several existing federally funded programs  
administered by DSA received CARES Act money, augmenting financial support for communities  
across Ohio. These include the Community Development Block Grant, Community Services Block  
Grant, and various federal housing programs.  
ODE and Philanthropy Ohio Award $3.1 Million in Remote  
Education Grants  
Nick Ciolli, Budget Analyst  
On October 19, 2020, a partnership between ODE and a nonprofit called Philanthropy  
Ohio announced the awarding of $3.1 million in competitive grants to 28 projects aimed at  
improving remote education practices across the state through a program called the  
Collaborative Fund for Educating Remotely and Transforming Schools. According to ODE, the  
awards will be used, among other purposes, to provide professional development for educators  
in delivering high-quality remote, hybrid, and blended education; bolster learning platforms so  
educators can plan and deliver instructional lessons in person or remotely instantaneously and  
in ways that preserve the sequence of learning; and increase digital literacy opportunities for  
parents, families, and caregivers. All but one of the 28 grantees received the full amount they  
requested; the average grant award was $113,742. As the table below shows, the majority of the  
grants were awarded to traditional school districts with the rest going to educational service  
centers, community schools, and a community service organization.  
October 2020 Collaborative Fund Grant Awards Summary  
Organization Type  
Traditional school districts  
Educational service centers  
Community schools  
Grants Awarded Total Grant Amount  
State Contribution  
$1,155,486  
$953,655  
15  
10  
2
$1,540,648  
$1,271,540  
$187,985  
$140,989  
Community service organizations  
Total  
1
$125,000  
$93,750  
28  
$3,125,173  
$2,343,880  
ODE committed $5.0 million from its allocation of federal CARES Act funding to support the  
Collaborative Fund, contributing $3 for every $1 that Philanthropy Ohio contributes (that is, 75% of the  
overall grant award). Of the states commitment, about $2.6 million remains and will be used to fund  
additional grants later in the fiscal year. The Collaborative Fund is a component of RemotEDx, a broader  
program that uses a portion of ODEs CARES Act funding to support remote education initiatives, such  
as those funded through the BroadbandOhio Connectivity grants awarded in September.  
Budget Footnotes  
P a g e | 24  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
DHE Awards $375,000 for STEM Public-Private Partnership  
Program  
Jason Glover, Budget Analyst  
In October 2020, DHE awarded a total of $375,000 to five institutions of higher education  
as part of the STEM Public-Private Partnership Program created in H.B. 166.12 Each college will  
be awarded a one-time grant of $75,000 to lead a partnership with high schools and private  
companies to provide high school students the opportunity to receive education and training in  
a targeted industry while simultaneously earning high school and college credit (see table below).  
Each partnership may use the awards only for transportation, classroom supplies, and primary  
instructors for courses offered under the program. Pursuant to H.B. 166, the five selected  
partnerships represent each quadrant of the state and the central region. DHE will release the  
request for proposal for the FY 2021 funding awards in early 2021 with awards being made in  
June 2021.  
STEM Public-Private Partnership Program Awardees and Partners, FY 2020  
Higher Education  
Business Partners  
Educational Partners  
Institutions  
Belmont Technical Peterson Hospital, Southeastern Ohio  
River High School (HS) and St.  
Clairsville HS  
College  
Regional Medical Center, Wheeling  
Hospital, WVU Medicine Barnesville  
Hospital, and WVU Medicine Reynolds  
Memorial Hospital  
Marion Technical  
College  
Custom Glass Solutions, Mid-Ohio  
Energy Cooperative, Inc., and Sakamura  
USA, Inc.  
Cardington-Lincoln HS, Pleasant  
Valley HS, and River Valley HS  
Rhodes State  
College  
Lima Memorial Hospital and Mercy  
Health St. Ritas Medical Center  
Delphos St. Johns HS, Fort Jennings  
HS, Jefferson Senior HS, Jennings  
Local School District (SD), Lincolnview  
HS, Miller City HS, Ottoville Local SD,  
and Spencerville Local SD  
Sinclair  
Clippard Instrument Laboratory, Inc.  
Butler Tech Colerain HS  
Community  
College  
Stark State College BWX Technologies, Inc., E.C.P. Auto  
Cuyahoga Falls HS, Four Cities  
Compact, Louisville HS, Marlington  
HS, and Osnaburg Local SD  
of Technology  
Repair & Service, The K Company, Inc.,  
Kyocera SGS Precision Tools, Inc., Liberty  
Ford, Inc., Powell Electrical Systems, Inc.  
12 H.B. 166 appropriated $500,000 each year in FY 2020 and FY 2021 from GRF line item 235544, STEM  
Public-Private Partnership Program. The FY 2020 appropriation subsequently was reduced to $375,000 to help  
balance the state budget in the wake of the economic disruption caused by the COVID-19 pandemic.  
Budget Footnotes  
P a g e | 25  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
Mineral Resource Production Tops $8.8 Billion in CY 2019  
Tom Wert, Senior Budget Analyst  
More than $8.8 billion worth of industrial minerals were produced in Ohio during CY 2019  
according to the 2019 Report on Ohio Mineral Industries published by the Department of Natural  
1
3
Resources (DNR) on November 18, 2020. The report summarizes the production and value of Ohios  
seven industrial minerals, oil, and natural gas. Natural gas and oil accounted for the vast majority of  
mineral production value in 2019. These two resources made up nearly $7.3 billion, or 82.4%, of the  
total. The remaining 17.6% ($1.5 billion) was derived from the production of limestone and dolomite,  
coal, sand and gravel, salt, sandstone and conglomerate, clay, and shale. The table below summarizes  
the 2019 production and value of each of these industrial minerals.  
Ohio Industrial Mineral Production and Value in CY 2019  
Mineral Resource  
Production  
2,616,223,483 mcf  
27,662,040 bbl  
71,047,875 tons  
8,214,447 tons  
34,253,368 tons  
3,876,312 tons  
1,200,974 tons  
951,750 tons  
397,961 tons  
Total  
Value ($ in millions)  
$5,781.9  
$1,468.3  
$732.5  
Percent of Total  
65.69%  
16.68%  
8.32%  
Gas  
Oil  
Limestone and dolomite  
Coal  
$286.5  
3.25%  
Sand and gravel  
$269.5  
3.06%  
Salt  
$206.9  
2.35%  
Sandstone and conglomerate  
$45.0  
0.51%  
Clay  
$7.5  
0.09%  
Shale  
$4.2  
0.05%  
$8,802.3  
100.00%  
mcf = thousand cubic feet; bbl = barrel (42 gallons)  
As the primary regulatory agency over industrial mineral production in the state, DNR  
receives funding from severance taxes levied on the volume of mineral resources extracted.  
Severance taxes on oil and natural gas are applied at a rate of 10¢ per barrel of oil and 2.5¢ per  
thousand cubic feet of natural gas. 90% of these taxes is deposited to the credit of the Oil and  
Gas Well Fund (Fund 5180) and provide the bulk of operating funds used by DNRs Division of Oil  
and Gas Resources. The remaining 10% is deposited to the credit of the Geological Mapping Fund  
(
deposited primarily to the credit of the Mining Regulation and Safety Fund (Fund 5290) used by  
the Division of Mineral Resources Management. A small portion of the severance taxes on  
Fund 5110) used by the Division of Geological Survey. Severance taxes on industrial minerals are  
13  
The 2019 report may be accessed from the Division of Geological Survey website at:  
https://ohiodnr.gov/wps/portal/gov/odnr/discover-and-learn/safety-conservation/about-odnr/geologic-  
survey/industrial-minerals/industrial-minerals.  
Budget Footnotes  
P a g e | 26  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
limestone and dolomite and sand and gravel are deposited in Fund 5110. For CY 2019, total  
collection of mineral resource severance taxes exceeded $61.3 million.  
Pharmacy Board Releases FY 2020 Annual Report  
Robert Meeker, Budget Analyst  
In October 2020, the state of Ohio Board of Pharmacy released its annual report for  
FY 2020 showing revenues of $19.5 million, expenses of $15.6 million, and 87,082 active licenses.  
The Boards primary functions include licensing pharmacists and related professions, licensing  
sites where dangerous drugs are sold or stored, maintaining Ohios prescription drug monitoring  
database, and regulating medical marijuana dispensaries, patients, and caregivers.  
Of the Boards $19.5 million in FY 2020 revenues, 95% was collected from three sources:  
pharmacist, drug distributor, and home medical equipment services provider licensing  
($9.4 million, 48.2%), medical marijuana patient, dispensary, and dispensary employee licensing  
(
Reporting System (OARRS) integration with medical record systems ($2.1 million, 10.8%).  
$7.0 million, 35.9%), and grant money received from ODM to support Ohio Automated Rx  
Of the Boards $15.6 million in FY 2020 expenses, 95% was attributable to three sources:  
administration and enforcement of laws largely governing the legal distribution of dangerous  
drugs and the practice of pharmacy ($9.5 million, 60.9%), implementation of the Medical  
Marijuana Control Program ($3.2 million, 20.5%), and integration of OARRS with medical records  
systems ($2.1 million, 13.5%).  
The table below shows the number of active licenses reported by the Board from FY 2017  
through FY 2020. The year-over-year increases have been driven by the addition of licensing for  
pharmacy technicians and home medical equipment services providers in FY 2018 and medical  
marijuana-related licensing in FY 2019. Compared to FY 2017, active licenses have increased by  
4
0,553, or 87.1%.  
Active Licenses Reported by the State of Ohio Board of Pharmacy, FY 2017 Through FY 2020  
Category  
FY 2017  
19,984  
3,712  
--  
FY 2018  
20,349  
3,449  
20,648  
19,591  
1,736  
661  
FY 2019  
20,704  
2,951  
24,269  
19,555  
1,802  
874  
FY 2020  
21,843  
4,397  
34,372  
21,813  
2,028  
1,011  
1,533  
34  
Pharmacist  
Pharmacy Intern  
Pharmacy Technician  
Terminal Distributor of Dangerous Drugs  
Drug Distributor  
20,421  
2,432  
--  
Home Medical Equipment Service Provider  
Medical Marijuana Dispensary Employee  
Dispensary Provisional  
--  
--  
614  
--  
--  
37  
Dispensary Certificate of Operation  
--  
--  
19  
51  
Total  
46,549  
66,434  
70,825  
87,082  
Budget Footnotes  
P a g e | 27  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
In addition to medical marijuana dispensary and dispensary employee licensing as  
highlighted in the table above, the Board also maintains the Medical Marijuana Patient and  
Caregiver registry. The registry became active in December 2018, and, as of the end of FY 2020,  
1
16,497 patients and 13,140 caregivers had completed the registration process.  
Ohio State Highway Patrol Receives $1.3 Million Community  
Oriented Policing Services Hiring Grant  
Maggie West, Senior Budget Analyst  
On November 9, 2020, the Controlling Board approved a request from the Department of  
Public Safety to increase federal appropriation item 764610, Highway Safety Programs Grant, by  
1.3 million in FY 2021. The request for the increase was due to the Ohio State Highway Patrols  
$
receipt of unanticipated federal grant money, most notably, a $1.3 million Community Oriented  
Policing Services (COPS) Hiring Program grant awarded by the U.S. Department of Justices Office  
of Community Oriented Policing Services. COPS Hiring Program grants provide funding directly to  
state, local, and tribal law enforcement agencies to hire new officers, or rehire officers laid off  
due to budget reductions, in an effort to increase their community-policing capacity and crime  
prevention efforts. The patrol will use the award to pay the salary and fringe benefits associated  
with five positions over the grants three-year funding period.  
For all of federal fiscal year (FFY) 2020, which ended on September 30, 2020, Ohio  
received $36.5 million from the COPS Hiring Program, which was directly awarded to law  
enforcement agencies in the state and supported a total of 220 officers. Three cities (Cincinnati,  
Cleveland, and Akron) accounted for $22.7 million, or 62.1%, of Ohios share. The following table  
lists the 33 Ohio law enforcement agencies that received COPS Hiring grant awards for FFY 2020,  
the number of positions funded, and the award amount.  
Ohio COPS Hiring Program Grant Award Recipients, FFY 2020  
(
Totals: $36,530,823/220 Officers)  
Recipient  
# of Officers)  
Recipient  
Amount  
Recipient  
(# of Officers)  
Amount  
Amount  
(
(# of Officers)  
Cincinnati (86)  
Cleveland (30)  
Akron (12)  
$10,750,000 Canton (5)  
$7,968,944 Dayton (5)  
$625,000 Middletown (2)  
$625,000 Mt. Health (2)  
$250,000  
$250,000  
$250,000  
$3,957,780 Maple Heights  
Police (2)  
$572,124 New Boston Police  
(2)  
Ohio State Highway  
Patrol (5)  
$1,281,658 Lorain Police (4)  
$500,000 Union City (2)  
$219,461  
$125,000  
Hamilton County  
Sheriff (10)  
$1,250,000 Euclid (3)  
$375,000 Bay Village (1)  
Mansfield Police (4) $1,083,097 Marion Police (3)  
$375,000 Brooklyn (1)  
$375,000 Fayette (1)  
$125,000  
$125,000  
Trotwood (4)  
$1,039,007 Whitehall Police (3)  
Budget Footnotes  
P a g e | 28  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
Ohio COPS Hiring Program Grant Award Recipients, FFY 2020  
(
Totals: $36,530,823/220 Officers)  
Recipient  
# of Officers)  
Recipient  
Amount  
Recipient  
(# of Officers)  
Amount  
Amount  
(
(# of Officers)  
Youngstown Police  
(8)  
$800,869 Cambridge (2)  
$250,000 Greenfield (1)  
$125,000  
Ohio DRC* (4)  
$752,014 Fairborn (2)  
$250,000 Milton Township (1)  
$125,000  
$125,000  
Toledo Police (6)  
$750,000 Jackson County  
Sheriff (2)  
$250,000 Washington County  
Sheriff (1)  
East Cleveland  
Police (3)  
$626,768 Metropolitan Park  
District Toledo (2)  
$250,000 Aberdeen Police (1)  
$104,101  
*Ohio Department of Rehabilitation and Correction  
Department of Agriculture Awards 14 Grape Growers Under new  
Vineyard Expansion Assistance Program  
Shannon Pleiman, Senior Budget Analyst  
In November, the Ohio Grape Industries Committee of the Department of Agriculture  
awarded $76,500 under the new Vineyard Expansion Assistance Program to 14 grape growers in  
the state. The vineyards are spread out across 13 counties, with Medina County being the lone  
county hosting multiple awardees.  
The purpose of the reimbursement program is to allow vineyards to invest in and plant  
high-quality, high-value grapes onsite instead of purchasing grapes from other states. Under the  
program, up to $3,000 per acre and up to three acres can be reimbursed to create new or expand  
existing vineyards. The table below displays the amount awarded to each grower.  
Vineyard Expansion Assistance Program Awards  
Awarded  
Amount  
Awarded  
Amount  
Vineyard  
Acres  
2.75  
Vineyard  
Acres  
1.5  
Buccia Vineyard  
Clark Farms  
$8,250 William White Family  
$4,500  
$3,750  
2.75  
$8,250 Das Weinhaus Vineyard  
and Winery  
1.25  
Overton Valley Vineyards  
The Vineyards at Pine Lake  
Vinoklet Winery  
2.75  
2.75  
2.75  
2
$8,250 Folck Family Farm  
$8,250 Hanover Winery  
$8,250 Breezy Vines LLC  
$6,000 Five Roots Vineyard  
$4,500 White Timbers  
Total  
1.25  
1.25  
1
$3,750  
$3,750  
$3,000  
$3,000  
$3,000  
$76,500  
Quinstock Farm  
1
King Vineyard  
1.5  
1
25.5  
Budget Footnotes  
P a g e | 29  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
Currently, there are 340 licensed wine manufacturers across the state that produce and  
sell more than 1.2 million gallons, or 500,000 cases, of wine annually. Ohio ranks sixth in the  
nation for wine production. The Ohio Grape Industries Program is funded through a 5¢ per gallon  
tax on all wine sales in Ohio that is deposited into the Ohio Grape Industries Fund (Fund 4960).  
In FY 2020, this yielded receipts of approximately $1.2 million.  
Budget Footnotes  
P a g e | 30  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
TErric Maakcelak, Eiconnomgist the Economy  
Overview  
The national economy continued to expand in recent months. Despite a surge in COVID-19  
cases across the country in November, the national unemployment rate fell to 6.7% and employers  
added 245,000 nonfarm payroll jobs, according to the Bureau of Labor Statistics. Seasonally  
adjusted personal income fell 0.7% in October, although increases in employee compensation  
(
+0.7%) and proprietors income (+1.2%) were signs of recovery in core categories.14 Retail sales  
were up 0.3% in October, although businesses such as gas stations and food service establishments  
continue to lag in sales as travel and recreation activities continue to be subdued.15  
Ohios labor market added 30,800 nonfarm payroll jobs in October, and the states  
unemployment rate decreased by a substantial 2.7 percentage points, to 5.6%. In the last year,  
employment in both the goods-producing (-4.2%) and service-providing (-6.8%) sectors have  
been largely impacted by the pandemic. The states housing market remained robust in October  
due to high demand and favorable mortgage interest rates; the dollar volume of existing home  
sales was 35.3% greater in October 2020 than a year prior. It should be noted that due to the  
time lag in data releases at the state level, some information regarding the Ohio economy will  
not reflect the recent resurgence in diagnosed COVID-19 cases in the state. However, according  
to multiple sources of high frequency data on small businesses in Ohio, business conditions in  
recent weeks have required companies to reduce work hours and record a lower number of  
1
6
revenue transactions.  
The National Economy  
The U.S. economy added 245,000 nonfarm payroll jobs in November, though total  
employment remains around 9.8 million below its level in February. The national monthly  
unemployment rate declined from 6.9% in October to 6.7% in November. Chart 5 shows nonfarm  
payroll employment, and Chart 6 displays unemployment.  
During the month, employment in transportation and warehousing rose by 145,000, with  
job growth notable among couriers and messengers (+82,000), warehousing and storage  
(
and business services increased by 60,000, while the health care industry added 46,000 workers  
in November. Notable job gains were also recorded in the construction (+27,000), manufacturing  
+37,000), and truck transportation (+13,000). The number of workers employed in professional  
(+27,000), and financial (+15,000) industries.  
Though hiring in retail trade rose in November before seasonal adjustment, in preparation  
for the holiday season, the seasonally adjusted number of workers in retail trade declined by  
4,700 in November, as hiring lagged behind seasonal norms in many parts of the industry.  
3
Among industry subclassifications, seasonally adjusted employment declined in department  
stores (-13,800), sporting goods, hobby, book, and music stores (-12,100), electronics and  
14 Data according to the Bureau of Economic Analysis.  
15 Data according to the Census Bureau’s Monthly Retail Trade and Food Services Survey.  
16 SeeThe Ohio Economy subsection for details.  
Budget Footnotes  
P a g e | 31  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
appliance stores (-11,300), health and personal care stores (-8,100), and general merchandise  
stores other than department stores (-7,000).  
Government employment declined by a seasonally adjusted 99,000 workers in  
November; the reduction was largely within federal government, as the Census Bureau removed  
9
governments decreased by 13,000 during the month, while state employment totals held even.  
3,000 temporary census workers from its payroll. The number of persons employed by local  
Unemployment decreased by 326,000 persons in November, and total, seasonally adjusted  
unemployment was 10.7 million in November. The number of persons considered as unemployed  
for over 26 weeks increased by 64% between September and November, to approximately  
3.9 million, and includes persons who lost their jobs during the initial pandemic response.  
National production, as measured by real GDP, increased by a seasonally adjusted 7.4%  
in the third quarter of 2020 after contracting 9.0% during the second quarter (changes in this  
paragraph are not at annual rates). Production of consumer goods rose a seasonally adjusted  
1
investment expenditures fell 8.3% during the second quarter, and rebounded somewhat by rising  
0.1% during the quarter, while the value of consumer services produced increased 8.3%. Fixed  
6
.9% in the subsequent quarter.  
Personal income nationwide decreased by a seasonally adjusted 0.7% in October.  
Employee compensation (+0.7%) and proprietorsincome (+1.2%) increased for the sixth straight  
month. Government transfer receipts of persons declined a seasonally adjusted 6.2% from  
September. Octobers rise in real personal consumption expenditures (+0.5%) was the sixth in as  
many months. The decline in personal saving (-7.8%), equal to disposable personal income minus  
outlays, extends a pattern of six consecutive monthly declines in the saving rate.17  
Nationally, total industrial production increased by a seasonally adjusted 1.1% in October,  
and has increased in five of the last six months following large declines in March and April of this  
year. Among major industry groups, a rise in activity in manufacturing (+1.0%) and utilities  
(
month, aggregate manufacturing was 3.9% below its level a year prior, although production of  
motor vehicles and parts was 6.9% higher than October 2019.  
+3.9%) during October was slightly counteracted by a decline in mining (-0.6%). During the  
Retail sales were up 0.3% in October compared with September. While total sales at retail  
and food service establishments were 5.7% greater in October 2020 than a year prior, growth  
varied greatly by industry. Sales at gasoline stations were 14.0% below a year prior, and sales at  
food services and drinking establishments were down 14.2% from last October. Year over year,  
strength in retail sales has continued in grocery stores (+9.2%) and nonstore retailers (+29.1%),  
as consumers spent more on food and delivered goods.  
According to the National Association of Realtors, the national housing market remained  
robust in October, with existing home unit sales rising a seasonally adjusted 4.3% during the month  
and 26.6% higher than in October 2019. Additionally, housing starts were 14.2% higher in October  
2
and U.S. Department of Housing and Urban Development. All current data point to increased demand  
in the 2020 housing market due to health in the national construction and finance markets.  
020 as compared to a year prior, according to construction surveys conducted by the Census Bureau  
17 As measured by the dollar value of personal saving divided by disposable personal income.  
Budget Footnotes  
P a g e | 32  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
Consumer prices, as measured by the consumer price index for all items, were unchanged  
in October and were 1.2% above the level in October 2019. Excluding the more volatile food and  
energy subindexes, consumer prices were 1.6% greater than a year prior. Among the major  
expenditure categories detailed in the press release, the price level of food (+3.9%) and energy  
1
8
(
-9.2%) were most changed over the last year.  
Many small businesses around the country appear to be cutting back on activity. The  
Census Bureaus Small Business Pulse Survey of businesses with under 500 employees, for the  
week ended November 29, showed that 21.4% of small businesses reduced the number of paid  
hours offered to their employees. Nationally, 5.8% of businesses completing the survey reported  
increasing operating revenues from the previous week, with 38.0% reporting decreases. In the  
accommodation and food services industry, 46.9% of small businesses reduced paid hours.  
During the week, 10.4% of small businesses in the accommodation and food services industry  
nationwide temporarily closed a location and 2.2% permanently closed a location, while only  
1
.1% of the sample reopened a previously closed location.  
Chart 5: 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  
2
016  
2017  
2018  
2019  
2020  
U.S. Employment  
Ohio Employment (right scale)  
18 The price index for energy is composed of energy commodities (motor fuels, fuel oil, and other  
fuels) and energy services (electricity, utility gas service).  
Budget Footnotes  
P a g e | 33  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
Chart 6: U.S. and Ohio Unemployment Rates  
%
of Labor Force  
18.0%  
15.0%  
12.0%  
9
6
3
.0%  
.0%  
.0%  
2
016  
2017  
2018  
2019  
Ohio  
2020  
United States  
The Ohio Economy  
Ohios labor market expanded by approximately 30,800 nonfarm payroll jobs in October,  
led primarily by gains in manufacturing (+8,100), professional and business services (+7,300),  
leisure and hospitality (+6,100), and trade, transportation, and utilities (+5,700). As the labor  
market continues to adjust to the pandemic economy, job gains in manufacturing were split  
between durable (+5,900) and nondurable (+2,200) goods. During October, the financial activities  
industry added 3,000 workers; there were also changes to employment levels in educational  
services (-800) and health care and social assistance (+2,300).  
Year over year, nonfarm payroll employment decreased in both the goods producing  
(-39,300, -4.2%) and the service providing (-314,300, -6.8%) sectors. Among major industries, the  
accommodation and food services (-101,500, -20.9%) industry has been most affected, though  
employment totals in educational services (-15,100, -12.8%) and wholesale trade (-23,100, -9.7%)  
have also dipped substantially. Both state (-26,600, -14.9%) and local (-26,800, -5.1%)  
governments have shed jobs in the year leading up to October 2020. The decline in state  
government employment over the past year is mostly in education. The local government  
employment decline is both in education and in other parts of local government. The number of  
federal workers was higher than a year ago (+1,500, +1.9%) due at least in part to temporary  
census workers. Chart 5 displays nonfarm employment totals nationally and in Ohio.  
Ohios unemployment rate dropped by a seasonally adjusted 2.7 percentage points, to  
.6% in October, the largest drop in the rate since June. The unemployment rates improvement  
5
during October was fourth most rapid in the nation, behind only Illinois (-3.6 percentage points),  
Michigan (-3.1 percentage points), and Rhode Island (-3.5 percentage points). Ohios  
unemployment rate was 1.5 percentage points greater in October 2020 than in October 2019. By  
comparison, the year-over-year unemployment rate increase was less in only seven states.  
Chart 6 displays unemployment rates in Ohio and nationally.  
Budget Footnotes  
P a g e | 34  
December 2020  
Legislative Budget Office of the Legislative Service Commission  
The number of small businesses operating in Ohio has declined significantly during 2020.  
Womply, an integrated technology platform for small businesses, reports Ohio-specific data on  
1
9
small business conditions. The number of Ohio small businesses having at least one transaction  
in the last three business days has declined 29.3% from the January indexing period to  
November 25. Small business revenue has declined 34.9% during the same time period.  
The adverse effects of the current health crisis on Ohio small businesses is shown by the  
Census Bureaus weekly Small Business Pulse Survey of businesses with under 500 employees.  
During the week ended November 29, 46.5% of businesses had at least some employees working  
remotely. During the same week, 24.7% of respondents reported a decrease in the number of  
employee hours worked from the previous week, while 4.0% of respondents reported an increase  
in employee hours worked.  
Existing home unit sales were 16.5% greater in October 2020 than in October 2019, and  
the total dollar value of home sales was 35.3% higher, according to the Ohio Association of  
Realtors. Through October, the number of existing home sales was 2.2% above the level in 2019,  
and the average sale price was 8.9% greater. The trends suggest a notable increase in demand  
for houses and property in the state during 2020.  
Economic activity in the Cleveland Federal Reserve District increased moderately in the  
recent survey period, according the Federal Reserve Boards Beige Book.20 According to survey  
contacts, Most firms that had temporarily laid off workers have rehired most of those workers.”  
Reports of price movements were mixed. The costs for some commodity inputs were well above  
their prepandemic levels, while a number of restaurants and hotels cut output prices to fill vacant  
capacity. Overall consumer spending grew during the period, and contacts expected business to  
remain steady despite the rise in COVID-19 infections. Manufacturing orders increased according  
to some firms. Demand for real estate and residential construction remained elevated in the  
survey period, while activity in the nonresidential sector remained more or less level. In the  
financial services industry, low interest rates continued to support demand for consumer loan  
products. Demand for professional and business services continued to increase. Demand for  
freight, cargo volumes, and freight contract pricing increased over the survey period, as supply  
chains strain from high demand in product markets.  
19 Data according to Track the Recovery Project: https://tracktherecovery.org/.  
20 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 November 20, 2020.  
Budget Footnotes  
P a g e | 35  
December 2020