Budget Footnotes  
A NEWSLETTER OF THE OHIO LEGISLATIVE SERVICE COMMISSION  
MAY 2016  
VOLUME 39, NUMBER 9  
STATUS OF THE GRF  
STATUS OF THE GRF  
Highlights...................................1  
Revenues ..................................2  
Expenditures............................12  
HIGHLIGHTS  
Ross Miller, Chief Economist, 614-644-7768  
ISSUE UPDATES  
April GRF tax revenues were generally disappointing.  
The income tax was $109 million below the Office of Budget  
and Management (OBM) estimate, primarily due to  
Harmful Algal Bloom  
Research..............................21  
Marine Patrol Assistance  
Grants ..................................22  
payments accompanying tax returns having been below Trauma-Informed Care ............23  
Suicide Prevention...................23  
expectations. On the spending side of the budget, GRF  
Federal Homelessness  
program expenditures were $305 million above estimate for  
the month, but $253 million of that was a timing-related  
Grants ..................................24  
Secondary Transition  
Services Grant......................24  
variance for Property Tax Reimbursements. State-source Manufacturing Extension  
Partnership...........................25  
Fernald Preserve  
Easements ...........................26  
Diesel Emission Reduction  
Grants ..................................26  
revenues, including tax revenues, were below estimate for  
FY 2016 through April, but the variance was not too large,  
and the spending side of the budget will likely enable the  
state to end the fiscal year with a surplus.  
TRACKING THE ECONOMY  
Through April 2016, GRF sources totaled $28.44 billion:  
The National Economy ............28  
The Ohio Economy..................31  
Revenue from the personal income tax was  
201.3 million below estimate;  
$
Sales and use tax receipts were $30.1 million above  
estimate.  
Through April 2016, GRF uses totaled $30.38 billion:  
Program expenditures were $286.2 million below  
estimate, due primarily to Medicaid ($404.7 million)  
and Health and Human Services ($88.0 million);  
Legislative Service Commission  
7
7 South High Street, 9th Floor  
Columbus, Ohio 43215  
Those negative variances were partially offset by a  
timing-related positive variance in Property Tax  
Reimbursements ($320.0 million).  
Telephone: 614-466-3615  
AVAILABLE ON OUR WEBSITE: WWW.LSC.OHIO.GOV  
CLICK ON 'PUBLICATIONS/BUDGET FOOTNOTES'  
Ohio Legislative Service Commission  
Table 1: General Revenue Fund Sources  
Actual vs. Estimate  
Month of April 2016  
($ in thousands)  
(Actual based on report run in OAKS Actuals Ledger on May 2, 2016)  
STATE SOURCES  
Actual  
Estimate*  
Variance  
Percent  
TAX REVENUE  
Auto Sales  
$117,369  
$129,700  
-$12,331  
-9.5%  
Nonauto Sales and Use  
$789,154  
$792,700  
-$3,546  
-0.4%  
Total Sales and Use Taxes  
$906,522  
$922,400  
-$15,878  
-1.7%  
Personal Income  
$717,341  
$2,001  
$30,341  
$1  
$826,700  
$0  
-$109,359  
$2,001  
-$2,009  
$1  
-13.2%  
---  
Corporate Franchise  
Financial Institution  
Public Utility  
$32,350  
$0  
-6.2%  
---  
Kilowatt-Hour Excise  
Natural Gas Consumption (MCF)  
Commercial Activity Tax  
Petroleum Activity Tax  
Foreign Insurance  
Domestic Insurance  
Business and Property  
Cigarette  
$30,770  
$3,414  
$37,080  
$0  
$34,700  
$4,300  
$38,700  
$0  
-$3,930  
-$886  
-$1,620  
$0  
-11.3%  
-20.6%  
-4.2%  
---  
$247  
-$900  
$0  
$1,147  
$51  
127.4%  
---  
$51  
$1  
$0  
$1  
---  
$79,012  
$3,106  
$3,693  
$681  
$74,100  
$4,700  
$3,600  
$0  
$4,912  
-$1,594  
$93  
6.6%  
-33.9%  
2.6%  
---  
Alcoholic Beverage  
Liquor Gallonage  
Estate  
$681  
Total Tax Revenue  
$1,814,260  
$1,940,650  
-$126,390  
-6.5%  
NONTAX REVENUE  
Earnings on Investments  
Licenses and Fees  
Other Revenue  
$9,590  
$1,856  
$497  
$5,650  
$19,300  
$327  
$3,940  
-$17,444  
$170  
69.7%  
-90.4%  
52.0%  
-52.8%  
Total Nontax Revenue  
$11,943  
$25,277  
-$13,334  
TRANSFERS  
Budget Stabilization  
Other Transfers In  
Total Transfers In  
$0  
$898  
$898  
$0  
$0  
$0  
$0  
$898  
$898  
---  
---  
---  
TOTAL STATE SOURCES  
Federal Grants  
$1,827,101  
$1,000,855  
$2,827,957  
$1,965,927  
$912,549  
-$138,826  
$88,306  
-7.1%  
9.7%  
TOTAL GRF SOURCES  
$2,878,477  
-$50,520  
-1.8%  
*Estimates of the Office of Budget and Management as of September 2015, including revisions in February 2016.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
2
May 2016  
Ohio Legislative Service Commission  
Table 2: General Revenue Fund Sources  
Actual vs. Estimate  
FY 2016 as of April 30, 2016  
($ in thousands)  
(Actual based on report run in OAKS Actuals Ledger on May 2, 2016)  
Percent  
Change  
STATE SOURCES  
Actual  
Estimate*  
Variance  
Percent  
FY 2015  
TAX REVENUE  
Auto Sales  
$1,109,618  
$7,487,296  
$8,596,914  
$1,083,400  
$7,483,400  
$8,566,800  
$26,218  
2.4%  
$1,071,082  
$7,185,395  
$8,256,477  
3.6%  
Nonauto Sales and Use  
Total Sales and Use Taxes  
$3,896  
0.1%  
4.2%  
$30,114  
0.4%  
4.1%  
Personal Income  
Corporate Franchise  
Financial Institution  
Public Utility  
$6,444,653  
$32,369  
$159,981  
$75,407  
$292,467  
$34,061  
$996,871  
$5,598  
$6,646,000  
$0  
-$201,347  
$32,369  
$19,181  
$807  
-3.0%  
---  
$7,158,873  
$1,721  
-10.0%  
1780.3%  
24.3%  
20.2%  
12.8%  
-16.9%  
48.1%  
26.2%  
5.9%  
$140,800  
$74,600  
$305,000  
$35,700  
$1,009,900  
$4,900  
13.6%  
1.1%  
-4.1%  
-4.6%  
-1.3%  
14.3%  
0.6%  
-88.5%  
---  
$128,661  
$62,760  
$259,345  
$40,977  
$673,125  
$4,436  
Kilowatt-Hour Excise  
-$12,533  
-$1,639  
-$13,029  
$698  
Natural Gas Consumption (MCF)  
Commercial Activity Tax  
Petroleum Activity Tax  
Foreign Insurance  
Domestic Insurance  
Business and Property  
Cigarette  
$317,187  
$565  
$315,400  
$4,900  
$1,787  
-$4,335  
$93  
$299,421  
$7,537  
-92.5%  
119.1%  
25.1%  
-3.7%  
$93  
$0  
$42  
$768,021  
$44,822  
$37,501  
$1,613  
$739,800  
$45,000  
$36,500  
$0  
$28,221  
-$178  
3.8%  
-0.4%  
2.7%  
---  
$613,681  
$46,561  
$35,993  
$2,812  
Alcoholic Beverage  
Liquor Gallonage  
$1,001  
$1,613  
-$117,177  
4.2%  
Estate  
-42.6%  
1.2%  
Total Tax Revenue  
$17,808,123  
$17,925,300  
-0.7%  
$17,592,420  
NONTAX REVENUE  
Earnings on Investments  
Licenses and Fees  
Other Revenue  
$26,196  
$55,490  
$45,737  
$127,423  
$16,650  
$44,087  
$35,754  
$96,491  
$9,546  
$11,403  
$9,983  
57.3%  
25.9%  
27.9%  
32.1%  
$17,924  
$56,487  
$25,487  
$99,898  
46.1%  
-1.8%  
79.5%  
27.6%  
Total Nontax Revenue  
$30,932  
TRANSFERS  
Budget Stabilization  
Other Transfers In  
Total Transfers In  
$0  
$195,474  
$195,474  
$0  
$191,100  
$191,100  
$0  
$4,374  
$4,374  
---  
2.3%  
2.3%  
$0  
$24,272  
$24,272  
---  
705.4%  
705.4%  
TOTAL STATE SOURCES  
Federal Grants  
$18,131,020  
$10,311,786  
$28,442,806  
$18,212,891  
$10,534,714  
$28,747,605  
-$81,871  
-$222,928  
-$304,800  
-0.4%  
-2.1%  
-1.1%  
$17,716,590  
$7,955,248  
$25,671,838  
2.3%  
29.6%  
10.8%  
TOTAL GRF SOURCES  
*Estimates of the Office of Budget and Management as of September 2015, including revisions in February 2016.  
Detail may not sum to total due to rounding.  
May 2016  
3
Budget Footnotes  
Ohio Legislative Service Commission  
REVENUES  
Jean J. Botomogno, Principal Economist, 614-644-7758  
Overview  
The April 2016 income tax filing season concluded with a negative  
variance of $109.4 million for the personal income tax (PIT). This poor  
performance increased the income tax's year-to-date negative variance to  
$
201.3 million, up from $92.0 million through March 2016; and helped  
FY 2016 state  
sources were  
push the variance of GRF tax sources back into negative territory for the  
fiscal year to date. Year-to-date GRF tax sources were below estimate by  
$117.2 million at the end of April. On the other hand, federal grants in  
April were $88.3 million above estimate, reducing the fiscal year's shortfall  
for this GRF source to $222.9 million, down from $311.2 million at the end  
of March. For the fiscal year through April, total GRF sources of  
$
81.9 million  
below estimate  
through April.  
1
2
$
of Budget and Management (OBM); this negative variance increased from  
28.44 billion were $304.8 million below the estimate released by the Office  
3
$254.3 million after the first three fiscal quarters. Tables 1 and 2 show GRF  
sources for the month of April and for FY 2016 through April, respectively.  
Total GRF sources in April were $2.83 billion, an amount that was  
$
50.5 million (1.8%) below estimate. State sources were $138.8 million  
(7.1%) below estimate (including shortfalls of $126.4 million for GRF tax  
receipts and $17.4 million for licenses and fee revenue). That deficit was  
partially offset by a positive variance of $88.3 million in federal grants as  
mentioned above.  
FY 2016 tax  
revenue was  
$
117.2 million  
In addition to the PIT's shortfall in April, the sales and use tax, the  
kilowatt-hour excise tax, financial institutions tax (FIT), the commercial  
activity tax (CAT), and the alcoholic beverage tax, were below estimates,  
respectively, by $15.9 million, $3.9 million, $2.0 million, $1.6 million, and  
below estimate  
through April.  
$
1.6 million. Coming in above estimates during the month were the  
cigarette tax ($4.9 million), the corporate franchise tax ($2.0 million), and  
the foreign insurance tax ($1.1 million).  
1 GRF sources consist of state-source receipts, which include tax revenue,  
nontax revenue, and transfers in, and federal grants, which are typically federal  
reimbursements for Medicaid and other programs.  
2 Federal grants have generally been below estimate due to lower than  
expected Medicaid spending. GRF FY 2016 Medicaid expenditures were  
$404.7 million below estimate through April 2016.  
3
OBM estimates were initially released in September 2015 and  
subsequently revised to accommodate the enactment of S.B. 208 and H.B. 340 of  
the 131st General Assembly.  
Budget Footnotes  
4
May 2016  
Ohio Legislative Service Commission  
The chart below shows the cumulative variances against estimates  
for tax revenue, federal grants, and total GRF sources through each month  
of the fiscal year. Recent trends for total GRF sources and federal grants  
continued in April; GRF tax revenue, which has been closer to estimates in  
most recent months, fell to 0.7% below estimate by the end of April.  
FY 2016 federal  
grants through  
April were  
Chart 1: Cumulative Performance of GRF Sources in FY 2016  
(
Variance from Estimates, in millions)  
$
$
$
600  
400  
200  
$222.9 million  
below  
estimate.  
$
0
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16  
-$200  
-$400  
-$600  
Tax Revenue  
Federal Grants  
Total GRF Sources  
Compared to the same period in FY 2015, FY 2016 sources through  
April were $2.77 billion (10.8%) higher, with all GRF categories showing  
higher revenues. Much of the total increase is due to an accounting change  
related to Medicaid expenditures which pushed federal grants higher in  
FY 2016 by $2.36 billion (29.6%). In the current fiscal year, expenditures for  
individuals who became eligible for Medicaid through the Affordable  
Care Act are made from the GRF, but in the past, such expenditures were  
debited from the Health Care Federal Fund (Fund 3F00), a non-GRF fund.  
FY 2016 GRF  
tax receipts  
through April  
were  
4
GRF transfers in also increased substantially from the previous year.  
GRF tax receipts grew by $215.7 million (1.2%), from the  
corresponding period in FY 2015. The taxes that contributed the most to  
year-over-year revenue growth are the sales and use tax, the CAT, and the  
cigarette tax. Sales and use tax revenue growth is largely reflective of a $215.7 million  
growing state economy and strong consumer spending during most of  
FY 2016, while the growth in the CAT and cigarette tax revenue are more  
the result of policy changes. H.B. 64, the budget act, increased the share of  
CAT receipts credited to the GRF from 50% to 75%, and raised the  
higher than  
FY 2015.  
4 OBM transferred $158.0 million from the Medicaid Reserve Fund to the  
GRF in July 2015.  
May 2016  
5
Budget Footnotes  
Ohio Legislative Service Commission  
cigarette tax rate from $1.25 per pack of 20 cigarettes to $1.60 per pack.  
Despite healthy employment gains in the state during FY 2016,  
PIT revenue has fallen by $714.2 million from the same period in  
FY 2015, also due primarily to tax changes enacted in H.B. 64.  
Personal Income Tax  
Unlike last year, the April surprise in 2016 was negative,  
propelled by lackluster payments due with annual returns. PIT receipts  
of $717.3 million to the GRF were 13.2% below estimate for the month.  
This result increased the year-to-date deficit for this tax to $201.3 million,  
up from $92.0 million at the end March 2016. Monthly PIT revenue had  
generally been below estimate throughout FY 2016, but the latest  
performance strongly suggests the tax would end the year in negative  
territory. April PIT revenue was also $505.0 million (41.3%) below  
revenue in the corresponding month last year. PIT revenue is comprised  
of gross collections minus refunds and distributions to the Local  
Government Fund (LGF). Gross collections consist of employer  
FY 2016 PIT  
revenue was  
below estimate  
by  
$201.3 million  
5
withholdings, quarterly estimated payments, trust payments, payments  
associated with annual returns, and other miscellaneous payments.  
through April.  
The monthly performance of the income tax is typically driven by  
employer withholdings, which is the largest component of gross  
collections. However, in February, March, and April during the tax filing  
season, tax refunds are also a significant component of net collections.  
While refunds have been below estimate every month during the tax  
filing season (including by $5.2 million in April), a shortfall of  
$
variance in April. In addition, estimated payments and monthly  
employer withholding were below projected levels by $22.0 million and  
94.4 million in taxes due with annual returns largely drove the negative  
$
16.0 million, respectively. On the other hand, annual employer  
withholding was $28.3 million above estimate, and miscellaneous  
receipts were $4.2 million above their anticipated level.  
For the fiscal year through April, PIT GRF receipts of $6.44 billion  
were 3.0% below estimate. Gross collections fell short of expected  
revenues by $188.7 million. Though all PIT components were below  
estimates, payments due with annual returns contributed the most,  
$122.1 million, to that deficit.  
5 Quarterly estimated payments are made by taxpayers who expect to be  
underwithheld by more than $500. Payments are due in April, June, and  
September of an individual's tax year and January of the following year. Most  
estimated payments are made by high-income taxpayers.  
Budget Footnotes  
6
May 2016  
Ohio Legislative Service Commission  
The budget act reduced income tax rates for all brackets by 6.3%,  
for taxable years beginning in 2015. As expected, the effects of the changes  
6
enacted in H.B. 64 and S.B. 208 have reduced yearly revenue from the  
income tax. Year-to-date PIT receipts were $714.2 million (10.0%) below  
revenue in FY 2015, including a large decline of $328.4 million (34.8%)  
from taxes due with annual tax returns. Though PIT revenues have  
declined, Ohio payrolls have continued to expand. However, the chart  
below illustrates the slowing growth of monthly employer withholdings  
as well as the shortfalls to estimates in recent months (actual figures in the  
chart are not adjusted for the August change in withholding rates).  
Chart 2: Monthly Withholding Receipts Trend  
Actual vs. Prior Year  
(
Three-month Moving Average)  
6
5
4
3
2
1
0
%
%
%
%
%
%
%
-1%  
Actual  
Estimate  
FY 2016 revenues through April from each component of the PIT  
relative to estimates and to the corresponding period in FY 2015 are  
detailed in the table below.  
6
S.B. 208 enhanced the small business income deduction under the  
income tax for tax year 2015, resulting in lower estimated PIT revenues in  
January through June of 2016.  
May 2016  
7
Budget Footnotes  
Ohio Legislative Service Commission  
FY 2016 Year-to-Date Income Tax Revenue  
Variances and Changes by Component  
Year-to-Date Variance  
from Estimate  
Year-to-Date Changes  
from FY 2015  
FY 2016  
Category  
Withholding  
Amount  
$ in millions)  
Percentage  
(%)  
Amount  
($ in millions)  
Percentage  
(%)  
(
employer  
-$23.4  
-$25.5  
-$11.3  
-$122.1  
-$6.5  
-0.3%  
-3.1%  
-21.6%  
-16.6%  
-7.2%  
-2.2%  
0.8%  
$82.9  
1.2%  
-8.1%  
-19.0%  
-34.8%  
-5.0%  
-3.8%  
27.2%  
4.9%  
withholding  
revenue was  
Quarterly Estimated Payments  
Trust Payments  
-$71.7  
-$9.6  
Annual Return Payments  
Miscellaneous Payments  
Gross Collections  
-$328.4  
-$4.4  
$
23.4 million  
below estimate  
through April.  
-$188.7  
$13.4  
-$331.1  
$368.7  
$14.3  
Less Refunds  
Less LGF Distribution  
Income Tax Revenue  
-$0.8  
-0.3%  
-3.0%  
-$201.3  
-$714.2  
-10.0%  
Sales and Use Tax  
The bounce back in March sales and use tax receipts from  
disappointing results in February was short-lived as this GRF tax source  
again fell below estimate in April. After a shortfall of $35.9 million in  
February and a positive variance of $3.6 million last month, GRF sales  
and use tax receipts in April were $906.5 million, $15.9 million (1.7%)  
below estimate, with deficits of $12.3 million and $3.5 million,  
respectively, for the auto tax and nonauto tax. However, for the fiscal  
year-to-date through April, sales and use tax revenues were $30.1 million  
(0.4%) above estimate, and $340.4 million (4.1%) higher than revenues  
through the same period in FY 2015. Strong collections from the auto tax  
have supported this tax source, particularly in the first half of the fiscal  
year.  
For analysis and forecasting, the sales and use tax is separated into  
two parts: auto and nonauto. Auto sales and use tax collections generally  
arise from the sale of motor vehicles, but auto taxes arising from leases  
are paid at the lease signing and are mostly recorded under the nonauto  
7
tax instead of the auto tax.  
7 Taxes arising from leases are paid immediately upon the lease signing.  
The clerks of court generally make auto sales and use tax payments on Mondays  
for taxes collected during the preceding week on motor vehicles, watercraft, and  
outboard motors titled. Therefore, auto sales and use tax receipts mostly, but not  
perfectly, reflect vehicles sold and titled during the month.  
Budget Footnotes  
8
May 2016  
Ohio Legislative Service Commission  
Nonauto Sales and Use Tax  
Including December 2015, the nonauto sales and use tax has posted  
a combined negative variance of $51.2 million in the last five months.  
Though part of the poor performance can be explained by lower than  
expected Medicaid spending and associated sales tax revenue paid by  
Medicaid health insuring corporations, this GRF source has been generally  
weak in recent months. April GRF receipts of $789.2 million were  
$
in the same month last year. For FY 2016 through April, nonauto sales and  
use tax revenues remained above estimate by $3.9 million (0.1%) and were  
FY 2016  
nonauto sales  
3.5 million (0.4%) below estimate, but $6.7 million (0.9%) above revenue  
and use tax  
revenues were  
$
301.9 million (4.2%) higher than the same period in FY 2015. This year-to- $3.9 million  
date positive variance was accumulated in the early months of the fiscal  
year. The chart below shows year-over-year changes in nonauto sales and  
use tax monthly revenues on a three-month moving average. The chart  
illustrates nonauto sales tax revenues still growing, but at a much slower  
pace than at the start of the fiscal year. Average growth over the most  
recent three months was 2.1%.  
above estimate  
through April.  
Chart 3: Nonauto Sales and Use Tax Receipts Trend  
Actual vs. Prior Year  
(
Three-month Moving Average)  
1
1
2%  
0%  
8
6
4
2
0
%
%
%
%
%
FY 2016 auto  
sales and use  
tax revenue  
was  
Auto Sales and Use Tax  
The GRF received $117.4 million from the auto portion of the sales  
and use tax in April. That amount was $12.3 million (9.5%) less than  
estimated and $10.9 million (8.5%) below receipts in April 2015.  
$
26.2 million  
above estimate  
Despite the latest performance, for the fiscal year through April,  
revenue from this tax is $26.2 million (2.4%) above estimate, and through April.  
38.5 million (3.6%) higher than receipts in the corresponding period in  
$
FY 2015. The chart below shows year-over-year changes in auto sales and  
use tax monthly revenues on a three-month moving average. The chart  
May 2016  
9
Budget Footnotes  
Ohio Legislative Service Commission  
illustrates revenues growing at an uneven pace in FY 2016, but with  
growth generally slowly trending downward (though remaining  
positive). Average growth over the most recent three months was 5.2%.  
Chart 4: Auto Sales and Use Tax Receipts Trend  
Actual vs. Prior Year  
(
Three-month Moving Average)  
1
1
2%  
0%  
8
6
4
2
0
%
%
%
%
%
Nationwide vehicle sales rebounded in April. The pace moved up  
to 17.3 million units on a seasonally adjusted annualized basis, higher  
than the 16.6 million unit pace in March, and 4% higher than a year  
earlier. Light-truck sales were again a main driver for the increase in total  
sales, and the same factors that have supported sales over the past year  
remain in place: incentives, longer loan terms, and still relatively low  
gasoline prices.  
Commercial Activity and Petroleum Activity Taxes  
FY 2016 CAT  
GRF revenue  
tax was  
The CAT provided GRF receipts of $37.1 million in April. This  
revenue was $1.6 million (4.2%) below estimate, but $11.3 million (44.1%)  
above revenue in the same month last year. For the fiscal year through  
April, CAT revenues to the GRF totaled $996.9 million, $13.0 million  
$
13.0 million  
(
1.3%) below estimate, and $323.7 million (48.1%) above receipts in the  
below estimate  
through April.  
corresponding period of FY 2015 because of the increase in the GRF share  
of CAT receipts enacted in H.B. 64. The last fiscal year payment for  
calendar quarter CAT taxpayers is due in May.  
Beginning July 1, 2014, the CAT as applied to receipts from the  
sale or exchange of motor fuel was replaced by the petroleum activity tax  
(
PAT). No receipts were expected or received from the PAT in April.  
Through April, PAT GRF revenue of $5.6 million was $0.7 million  
14.3%) above estimate and $1.2 million (26.2%) above revenue in the  
(
corresponding period in FY 2015.  
Budget Footnotes  
10  
May 2016  
Ohio Legislative Service Commission  
Cigarette and Other Tobacco Products Tax  
GRF receipts from the cigarette and other tobacco products (OTP)  
tax were $79.0 million in April, $4.9 million (6.6%) above estimate.  
Through April, total FY 2016 tax receipts of $768.0 million were FY 2016  
$
28.2 million (3.8%) above OBM estimates, and $154.3 million (25.1%)  
above revenue from the same period in FY 2015. For the the fiscal year, cigarette tax  
cigarette receipts were $699.4 million, revenue from OTP was revenue was  
$
51.4 million, and revenue from the "floor tax"8 was $17.2 million.  
$
28.2 million  
Generally, cigarette tax receipts have experienced a long-term above estimate  
downward trend; H.B. 64 increased the cigarette tax from $1.25 to through April.  
1.60 per pack of 20 cigarettes, a 28% increase, which has led to a  
$
predictable increase in tax revenues. On the other hand, revenue from  
OTP generally increase each year. In contrast, with two months left in the  
fiscal year, that source of revenue has experienced a decline of $0.5 million  
through April.  
8 The "floor tax" is the additional $0.35 tax paid by tobacco dealers for  
cigarettes in inventory (for which the old tax rate had been paid) when the new  
tax rate went into effect on July 1, 2015.  
May 2016  
11  
Budget Footnotes  
Ohio Legislative Service Commission  
Table 3: General Revenue Fund Uses  
Actual vs. Estimate  
Month of April 2016  
($ in thousands)  
(Actual based on OAKS reports run May 3, 2016)  
PROGRAM  
Actual  
Estimate*  
Variance  
Percent  
Primary and Secondary Education  
Higher Education  
$882,737  
$179,428  
$3,230  
$904,441  
-$21,705  
-2.4%  
$184,240  
$6,750  
-$4,812  
-$3,520  
-2.6%  
-52.1%  
-2.7%  
Other Education  
Total Education  
$1,065,394  
$1,095,431  
-$30,037  
Medicaid  
$1,436,072  
$111,743  
$1,289,826  
$145,251  
$146,246  
-$33,507  
$112,739  
11.3%  
-23.1%  
7.9%  
Health and Human Services  
Total Welfare and Human Services  
$1,547,815  
$1,435,076  
Justice and Public Protection  
General Government  
$169,101  
$34,443  
$193,176  
$37,830  
-$24,075  
-$3,387  
-12.5%  
-9.0%  
Total Government Operations  
$203,544  
$231,006  
-$27,462  
-11.9%  
Property Tax Reimbursements  
Capital Outlay  
$420,034  
$0  
$167,177  
$0  
$252,857  
$0  
151.3%  
---  
Debt Service  
$78,876  
$498,911  
$82,148  
$249,325  
-$3,272  
$249,586  
-4.0%  
100.1%  
Total Other Expenditures  
Total Program Expenditures  
$3,315,664  
$3,010,838  
$304,826  
10.1%  
TRANSFERS  
Budget Stabilization  
Other Transfers Out  
Total Transfers Out  
$0  
$24  
$24  
$0  
$4,400  
$4,400  
$0  
-$4,376  
-$4,376  
---  
-99.5%  
-99.5%  
TOTAL GRFUSES  
$3,315,688  
$3,015,238  
$300,450  
10.0%  
*
October 2015 estimates of the Office of Budget and Management.  
Detail may not sum to total due to rounding.  
Budget Footnotes  
12  
May 2016  
Ohio Legislative Service Commission  
Table 4: General Revenue Fund Uses  
Actual vs. Estimate  
FY 2016 as of April 30, 2016  
($ in thousands)  
(Actual based on OAKS reports run May 3, 2016)  
Percent  
Change  
PROGRAM  
Actual  
Estimate*  
Variance  
Percent  
FY2015  
Primary and Secondary Education  
Higher Education  
$6,666,459  
$1,856,055  
$62,120  
$6,712,254  
$1,875,696  
$60,422  
-$45,795  
-0.7%  
-1.0%  
2.8%  
$6,225,762  
$1,789,960  
$48,579  
7.1%  
-$19,641  
$1,698  
3.7%  
27.9%  
6.5%  
Other Education  
Total Education  
$8,584,634  
$8,648,371  
-$63,737  
-0.7%  
$8,064,301  
Medicaid  
$15,103,585  
$1,136,605  
$16,240,190  
$15,508,260  
$1,224,608  
$16,732,868  
-$404,675  
-$88,003  
-$492,678  
-2.6%  
-7.2%  
-2.9%  
$12,935,620  
$1,121,172  
$14,056,792  
16.8%  
1.4%  
Health and Human Services  
Total Welfare and Human Services  
15.5%  
Justice and Public Protection  
General Government  
$1,709,427  
$304,318  
$1,704,804  
$333,186  
$4,623  
-$28,868  
-$24,245  
0.3%  
-8.7%  
-1.2%  
$1,594,780  
$295,944  
7.2%  
2.8%  
6.5%  
Total Government Operations  
$2,013,745  
$2,037,991  
$1,890,724  
Property Tax Reimbursements  
Capital Outlay  
$1,447,966  
$0  
$1,127,928  
$0  
$320,038  
$0  
28.4%  
---  
$1,127,955  
$0  
28.4%  
---  
Debt Service  
$1,265,492  
$2,713,457  
$1,291,107  
$2,419,035  
-$25,616  
$294,422  
-2.0%  
12.2%  
$1,227,179  
$2,355,134  
3.1%  
15.2%  
Total Other Expenditures  
Total Program Expenditures  
$29,552,027  
$29,838,265  
-$286,238  
-1.0%  
$26,366,951  
12.1%  
TRANSFERS  
Budget Stabilization  
Other Transfers Out  
Total Transfers Out  
$425,500  
$406,027  
$831,527  
$425,500  
$382,431  
$807,931  
$0  
$23,596  
$23,596  
0.0%  
6.2%  
2.9%  
$0  
$587,846  
$587,846  
---  
-30.9%  
41.5%  
TOTAL GRFUSES  
$30,383,554  
$30,646,196  
-$262,642  
-0.9%  
$26,954,798  
12.7%  
*
October 2015 estimates of the Office of Budget and Management.  
Detail may not sum to total due to rounding.  
May 2016  
13  
Budget Footnotes  
Ohio Legislative Service Commission  
Table 5: Medicaid Expenditures by Department  
Actual vs. Estimate  
($ in thousands)  
(Actuals based on OAKS report run on May3, 2016)  
Month of April 2016  
Year to Date Through April 2016  
Variance Percent Actual Estimate* Variance Percent  
-13.7% $17,927,261 $19,766,120 -$1,838,859  
11.4% $14,609,503 $15,023,767 -$414,264  
Department  
Medicaid  
Actual  
Estimate*  
$1,697,755 $1,966,757  
-$269,002  
-9.3%  
GRF  
$1,386,416 $1,244,210  
$142,206  
-2.8%  
Non-GRF  
$311,339  
$722,547  
-$411,208 -56.9%  
$3,317,758  
$4,742,353 -$1,424,595 -30.0%  
Developmental Disabilities  
$192,570  
$44,031  
$216,132  
$40,311  
-$23,562  
-10.9%  
$1,984,804  
$423,252  
$2,108,994  
$413,602  
-$124,190  
$9,650  
-5.9%  
2.3%  
GRF  
$3,719  
9.2%  
Non-GRF  
$148,539  
$175,821  
-$27,282 -15.5%  
$1,561,552  
$1,695,392  
-$133,840  
-7.9%  
Job and Family Services  
$14,306  
$4,880  
$9,426  
$18,336  
$4,722  
-$4,031  
-22.0%  
$173,017  
$63,150  
$171,197  
$63,668  
$1,820  
-$519  
1.1%  
-0.8%  
2.2%  
GRF  
$158  
3.3%  
Non-GRF  
$13,614  
-$4,189 -30.8%  
$109,867  
$107,529  
$2,338  
Health  
GRF  
$529  
$302  
$228  
$679  
$263  
$416  
-$150  
-22.0%  
$5,233  
$2,905  
$2,328  
$6,122  
$2,860  
$3,262  
-$888 -14.5%  
$45 1.6%  
-$934 -28.6%  
$39  
15.0%  
Non-GRF  
-$189 -45.4%  
Aging  
$1,270  
$304  
$2,123  
$255  
-$853  
-40.2%  
$20,119  
$3,239  
$21,796  
$2,756  
-$1,677 -7.7%  
GRF  
$48  
19.0%  
$483 17.5%  
Non-GRF  
$967  
$1,868  
-$901 -48.3%  
$16,880  
$19,040  
-$2,160 -11.3%  
Mental Health and Addiction  
$307  
$140  
$167  
$415  
$65  
-$108 -26.0%  
$3,739  
$1,536  
$2,203  
$4,881  
$1,607  
$3,274  
-$1,142 -23.4%  
GRF  
$75 115.1%  
-$70 -4.4%  
-$1,071 -32.7%  
Non-GRF  
$350  
-$183 -52.2%  
Total GRF  
$1,436,072 $1,289,826  
$470,665 $914,616  
$1,906,737 $2,204,442  
$146,246  
-$443,951  
11.3% $15,103,585 $15,508,260 -2.6%  
-48.5% $5,010,588 $6,570,850 -$1,560,261 -23.7%  
-13.5% $20,114,173 $22,079,110 -$1,964,936 -8.9%  
-$404,675  
Total Non-GRF  
Total All Funds  
-$297,705  
*Estimates are fromthe Department of Medicaid.  
Detail may not sumto total due to rounding.  
Budget Footnotes  
14  
May 2016  
Ohio Legislative Service Commission  
Table 6: All-Funds Medicaid Expenditures by Payment Category  
Actual vs. Estimate  
$ in thousands)  
Actuals based on OAKS report run on May3, 2016)  
April Year to Date Through April 2016  
Estimate* Actual Estimate* Variance Percent  
$8,314,637 $8,790,170 -$475,533  
$1,162,087 $1,182,008 -$19,921  
$1,929,585 $2,041,736 -$112,151  
(
(
Payment Category  
Managed Care  
Nursing Facilities  
DDD Services  
Hospitals  
Actual  
Variance Percent  
$805,289  
$119,744  
$182,558  
$72,023  
$85,433  
$76,288  
$28,391  
$35,900  
$42,111  
$16,970  
$27,313  
$9,486  
$871,972  
$120,223  
$212,447  
-$66,683  
-$479  
-7.6%  
-0.4%  
-5.4%  
-1.7%  
-5.5%  
-$29,889 -14.1%  
$252,180 -$180,157 -71.4%  
$1,461,241 $2,638,466 -$1,177,225 -44.6%  
Behavioral Health  
Administration  
Aging Waivers  
Prescription Drugs  
Medicare Buy-In  
Physicians  
$91,324  
$74,383  
$25,312  
$36,033  
$37,915  
$16,882  
$27,494  
$12,826  
$339,086  
$86,364  
-$5,891  
$1,905  
$3,080  
-$133  
$4,196  
$88  
-6.5%  
2.6%  
$882,741  
$675,261  
$266,521  
$385,246  
$387,627  
$221,793  
$251,200  
$104,611  
$936,129 -5.7%  
-$53,388  
$943,237 -$267,976 -28.4%  
12.2%  
-0.4%  
11.1%  
0.5%  
$270,526  
$387,005  
$371,517  
$229,717  
$253,169  
$138,379  
-$4,005  
-$1,759  
$16,109  
-$7,924  
-$1,969  
-1.5%  
-0.5%  
4.3%  
-3.4%  
-0.8%  
Medicare Part D  
Home Care Waivers  
ACAExpansion  
All Other  
-$181  
-0.7%  
-$3,340 -26.0%  
-$33,768 -24.4%  
$325,737  
$79,494  
-$13,349  
-$6,871  
-3.9%  
-8.0%  
$3,164,360 $2,980,373  
$907,265 $916,678  
$183,988  
-$9,413  
6.2%  
-1.0%  
-8.9%  
Total All Funds  
$1,906,737 $2,204,442 -$297,705  
-13.5% $20,114,173 $22,079,110 -$1,964,936  
*
Estimates are fromthe Department of Medicaid.  
Detail may not sum to total due to rounding.  
May 2016  
15  
Budget Footnotes  
Ohio Legislative Service Commission  
EXPENDITURES  
Russ Keller, Economist, 614-644-1751  
Nicholas J. Blaine, Budget Analyst, 614-387-5418  
Overview  
Through April, GRF program expenditures were $29.55 billion,  
286.2 million (1.0%) below the estimate released by OBM in October  
015. GRF transfers out were $831.5 million, $23.6 million (2.9%) above  
their year-to-date estimate. Including both program expenditures and  
transfers out, GRF uses totaled $30.38 billion for the first ten months of  
FY 2016, $262.6 million (0.9%) below estimate.  
In April, GRF  
uses were  
$
2
$300.5 million  
above estimate;  
year-to-date  
GRF uses  
April program expenditures were $3.32 billion, $304.8 million  
(
10.1%) above estimate. A large part of this positive variance was due to  
remained below  
estimate by  
the Property Tax Reimbursements category, which was $252.9 million  
above its April spending estimate. This outcome was purely a timing  
issue as county auditors and treasurers sent in reimbursement requests  
earlier than anticipated by OBM. In addition, GRF Medicaid  
expenditures were $146.2 million above estimate in April, which partially  
offsets the spending patterns in prior months. All other program  
categories were below their April estimate, of which the largest negative  
variances were for Health and Human Services ($33.5 million), Justice  
and Public Protection ($24.1 million), and Primary and Secondary  
Education ($21.7 million). The monthly variance in Justice and Public  
Protection brought this program category's year-to-date expenditures  
within 0.3% of its ten-month estimate, but the other categories had larger  
year-to-date variances. The variances in Medicaid, Property Tax  
Reimbursements, Health and Human Services, and Primary and  
Secondary Education are discussed in greater detail below.  
$262.6 million.  
Medicaid  
Medicaid is primarily funded by the GRF although it also receives  
funding from various non-GRF funds. As a joint federal-state program,  
both GRF and non-GRF Medicaid expenditures contain federal and state  
moneys. Overall, the federal and state shares of Medicaid expenditures  
are about 64% and 36%, respectively.  
Table 5 provides GRF and non-GRF Medicaid expenditures by  
agency. As seen from the table, for the month of April, GRF Medicaid  
expenditures of $1.44 billion were $146.2 million (11.3%) above estimate  
while non-GRF Medicaid expenditures of $470.7 million were  
$
444.0 million (48.5%) below estimate. Across all funds, Medicaid  
expenditures of $1.91 billion in April were below estimate by  
Budget Footnotes  
16  
May 2016  
Ohio Legislative Service Commission  
$
297.7 million (13.5%). The majority of the all funds negative monthly  
variance was related to Upper Payment Limit (UPL) payment timing. UPL  
allows the state to direct supplemental payments from non-GRF funds –  
up to the difference between the Medicare and Medicaid amounts to  
providers. The UPL payment of $154.9 million for April will likely now be Through April,  
made near the end of the fiscal year due to a delay from the federal GRF Medicaid  
Centers for Medicare and Medicaid Services (CMS) in processing a state  
plan amendment.  
expenditures  
For the first ten months of FY 2016, GRF Medicaid expenditures were  
were $15.10 billion, $404.7 million (2.6%) below estimate, while non-GRF $  
Medicaid expenditures were $5.01 billion, $1.56 billion (23.7%) below below estimate;  
estimate. Across all funds, Medicaid expenditures totaled $20.11 billion, non-GRF  
404.7 million  
$
this negative year-to-date variance was related to timing of certain  
payments for hospitals (see below for more details).  
1.96 billion (8.9%) below their year-to-date estimate. A large portion of Medicaid  
expenditures  
were  
The Ohio Department of Medicaid (ODM) is primarily responsible  
for administering Medicaid, with the assistance of five other state agencies $1.56 billion  
Developmental Disabilities, Job and Family Services, Health, Aging, and below estimate.  
Mental Health and Addiction Services. As seen from Table 5, ODM, the  
largest agency within this program category, also had the largest  
year-to-date variance. For the first ten months of FY 2016, ODM's GRF  
expenditures totaled $14.6 billion, which was $414.3 million (2.8%) below  
estimate, and its non-GRF expenditures totaled $3.32 billion, which was  
$
1.42 billion (30.0%) below estimate. Across all funds, ODM's  
expenditures were $1.84 billion (9.3%) below their year-to-date estimate. Through April,  
GRF and non-GRF Medicaid expenditures from the Department of all-funds  
Developmental Disabilities (DDD), the second largest agency within this  
program category, totaled $1.98 billion for the first ten months of FY 2016, Medicaid  
which was $124.2 million (5.9%) below estimate. Together, ODM and expenditures  
DDD account for about 99% of the Medicaid expenditures total.  
were  
Table 6 details all-funds Medicaid expenditures by payment $1.96 billion  
category. As seen from the table, Hospitals had the largest negative below  
year-to-date variance at $1.18 billion (44.6%), of which $920.2 million is  
due to UPL and the Hospital Care Assurance Program (HCAP), estimate.  
$
309.8 million and $610.4 million, respectively. The UPL and HCAP  
payments originally scheduled between February and April will not be  
made until the end of FY 2016. UPL is described above. Under HCAP,  
Ohio makes subsidy payments to hospitals that provide uncompensated  
care to low-income and uninsured individuals at or below 100% of the  
federal poverty level.  
May 2016  
17  
Budget Footnotes  
Ohio Legislative Service Commission  
Two other payment categories that had significant negative  
year-to-date variances were Managed Care ($475.5 million, 5.4%) and  
Administration ($268.0 million, 28.4%). The negative variance for  
Managed Care is mainly due to new managed care rates, effective  
January 1st. These rates were lower than projected, particularly those for  
the MyCare program. MyCare provides managed care services for  
Ohioans who receive both Medicaid and Medicare benefits. As a result of  
the new managed care rates, the negative variance in the Managed Care  
category is expected to grow through the end of the fiscal year. In  
addition to the new rates, there have been lower than estimated Aged,  
Blind, and Disabled (ABD) caseloads in managed care all year. The  
negative variance for Administration continues in part due to the  
underspending of federal grants for electronic medical records.  
Additionally, a number of ODM information technology contracts are  
being completed later than originally planned.  
The only two year-to-date positive variances are in the ACA  
Expansion and Medicare Buy-In categories. All-funds expenditures from  
ACA Expansion totaled $3.16 billion for the first ten months of FY 2016,  
which was $184.0 million (6.2%) above estimate. This positive variance is  
driven by caseloads that are 4.2% higher than anticipated. However, this  
caseload-driven positive variance is being offset to some extent due to  
the lower managed care rates described above that are also applicable to  
individuals enrolled in the ACA expansion. As a result, this variance will  
likely continue to shrink through the end of the fiscal year. Also worth  
noting, some individuals currently enrolled into the ACA Expansion  
category may later be determined to be eligible under another category  
of coverage instead. If those individuals are recategorized, their costs  
would shift in the future. All-funds expenditures in the Medicare Buy-In  
category for the first ten months of FY 2016 totaled $387.6 million, which  
was $16.1 million (4.3%) above estimate. This positive variance is driven  
by a larger than anticipated increase in Medicare Part B premiums for  
2
016 and is therefore expected to continue growing through the end of  
the fiscal year. The Medicare Buy-in program pays Medicare premiums,  
deductibles, and coinsurance for certain low-income Ohioans.  
Property Tax Reimbursements  
GRF expenditures in the Property Tax Reimbursements program  
category were $420.0 million in April, $252.9 million (151.3%) above the  
monthly estimate. The April variance increased the program category's  
positive year-to-date variance from $67.2 million to $320.0 million  
(28.4%) through the first ten months of FY 2016. Funds provided under  
this program category are used to reimburse school districts and other  
Budget Footnotes  
18  
May 2016  
Ohio Legislative Service Commission  
local governments for losses incurred as a result of the 10% and 2.5%  
"
"
rollback" reductions in real property taxes and as a result of the  
homestead exemption" reduction in real property taxes. The  
reimbursement payments are made twice per year, one based on the  
February property tax settlement and one based on the August property  
tax settlement. The payments based on the February 2016 property tax  
settlement are made in the latter six months of FY 2016. Funds are  
disbursed when county auditors request the payments. Approximately  
6
1 of 88 counties had received their semiannual reimbursements by the  
end of April, more than OBM had originally anticipated.  
Health and Human Services  
GRF expenditures from the Health and Human Services program  
category were $111.7 million in April, $33.5 million (23.1%) below estimate.  
Through April, this program category's expenditures were $1.14 billion,  
$
88.0 million (7.2%) below estimate. The Ohio Department of Mental Health  
and Addiction Services (ODMHAS) accounted for the largest share  
$44.0 million) of the category's negative year-to-date variance, followed by  
(
the Ohio Department of Job and Family Services (ODJFS) at $20.2 million  
and the Ohio Department of Health (ODH) at $16.1 million.  
Expenditures from the majority of ODMHAS line items were below  
their year-to-date estimates. The largest negative year-to-date variance  
($15.4 million) within the ODMHAS budget occurred in item 336421,  
Continuum of Care Services. During the month of April, the OBM  
estimate anticipated that item 336421 would make a $17.2 million  
quarterly disbursement, of which only $3.9 million materialized. Item  
3
36421 distributes funds to local boards for mental health and alcohol,  
drug, and gambling addiction services, and this negative variance will  
likely reverse itself in May or June. Other notable negative variances were  
from item 336423, Addiction Services Partnership with Corrections  
($14.5 million); item 336504, Community Innovations ($5.1 million); and  
item 336422, Criminal Justice Services ($5.0 million).  
Within the ODJFS budget, item 600445, Unemployment Insurance  
Administration, had the largest negative year-to-date variance.  
Expenditures from this item were $7.6 million below estimate. About half  
of this negative variance ($3.4 million) occurred in April. Expenditures  
from item 600416, Information Technology Projects, and item 600321,  
Program Support, were also below their year-to-date estimate by  
$
6.2 million and $4.4 million, respectively. In general, the timing of  
expenditures from many ODJFS line items is based on the drawdown of  
funding by counties, which can vary significantly from estimates.  
May 2016  
19  
Budget Footnotes  
Ohio Legislative Service Commission  
Although ODH's expenditures were above estimate by  
1.3 million in April, year-to-date expenditures continued to trail  
$
estimates. All but two of ODH's line items were below estimates  
year-to-date. The largest negative variance ($3.9 million) occurred in item  
4
40459, Help Me Grow.  
Primary and Secondary Education  
GRF expenditures from the Primary and Secondary Education  
program category were $6.67 billion through April, $45.8 million (0.7%)  
below estimate. The Ohio Department of Education (ODE) is the only  
agency that is included in this program category. Due mainly to timing,  
expenditures from several line items were either above or below their  
year-to-date estimates. Item 200437, Student Assessments, had the largest  
negative year-to-date variance at $36.7 million. ODE authorized payment  
for student assessment invoices at the end of April, so this negative  
variance should narrow as payments are disbursed in May.  
Item 200550, Foundation Funding, was $14.9 million below its  
monthly estimate in April, which reduced its positive year-to-date  
variance to $15.4 million. Item 200550 is the main funding source of  
school foundation payments. It is not unusual to see variances in this  
item as individual school foundation payments are based on a variety of  
data that may not be finalized until late in the fiscal year.  
Budget Footnotes  
20  
May 2016  
Ohio Legislative Service Commission  
ISSUE UPDATES  
Ohio Sea Grant Issues Report on Harmful Algal Bloom Research Initiative  
Edward Millane, Senior Budget Analyst, 614-995-9991  
In late March, Ohio Sea Grant issued a progress report covering the first year of  
the Harmful Algal Bloom Research Initiative (HABRI). Projects covered in the report  
focus on four areas: developing an early warning system for bloom hazards in Lake  
Erie, treating drinking water to remove toxins, gaining a better understanding of the  
effects of human exposure to toxins from fish and fresh produce, and improving the  
dissemination of information through networks of farmers and other stakeholders. The  
program is funded by the Department of Higher Education (DHE) from Fund 7011  
appropriation item 235634, Research Incentive Third Frontier Fund, and by a 100%  
match from the grantees. In FY 2015, DHE provided $2.0 million and this annual  
funding is continued for FY 2016 and FY 2017 through an earmark in H.B. 64.  
HABRI, which is jointly managed by the Ohio State University and the  
University of Toledo, was established after the algal bloom and subsequent water issues  
in the Toledo area in 2014. Generally, awards made under HABRI are approved by  
DHE based on the recommendations of a proposal review board that includes  
representatives from the state's Environmental Protection Agency; the departments of  
Agriculture, Health, and Natural Resources; the National Wildlife Federation; and the  
Ottawa County Sanitary Engineering Department.  
The second round of funding for the program was announced in late February.  
This funding will support 13 collaborative research projects that will continue to study  
the harmful algal blooms that affect Lake Erie, Grand Lake St. Mary's, Buckeye Lake,  
and other fresh water bodies. The projects will focus on bloom sources and movement,  
safeguarding drinking water, and protecting public health. Each of the projects funded  
by HABRI consists of multiple university partners and collaborators.9  
9
The 13 researchers leading the second round projects are from the following  
universities: Akron, Bowling Green, Cincinnati, Heidelberg, Ohio State, or Toledo.  
Collaborators include individuals from Central State University and Sinclair Community  
College and other nonuniversity institutions such as the city of Akron, the University of  
Amsterdam, the Charles River Laboratory, and the U.S. Geological Survey.  
May 2016  
21  
Budget Footnotes  
Ohio Legislative Service Commission  
DNR Awards More than $576,000 to Support Marine Patrols  
Tom Wert, Budget Analyst, 614-466-0520  
On April 11, 2016, the Department of Natural Resources (DNR) announced that  
4 communities across 21 counties will receive a total of $576,154 to support marine  
2
patrol units under the Marine Patrol Assistance Grant Program. The amounts awarded  
range from approximately $7,500 to $32,000. The recipients and the amounts they were  
awarded are listed in the table below.  
2016 Marine Patrol Assistance Grant Recipients  
County  
Butler  
Recipient  
Amount  
$24,964  
$30,000  
$26,218  
$7,531  
Butler County Sheriff's Office  
Rocky River Police Department  
Huron Police Department  
Cuyahoga  
Erie  
Kelleys Island Police Department  
Vermillion Police Department  
Columbus Division of Police  
Hamilton County Sheriff's Office  
Knox County Sheriff's Office  
Lake County Sheriff's Office  
Lawrence County Sheriff's Office  
Lorain Port Authority  
$32,000  
$26,500  
$29,572  
$23,915  
$28,996  
$14,625  
$32,000  
$28,036  
$16,960  
$32,000  
$18,511  
$13,518  
$17,399  
$19,369  
$18,992  
$22,852  
$19,396  
$32,000  
$28,773  
$32,000  
$576,154  
Franklin  
Hamilton  
Knox  
Lake  
Lawrence  
Lorain  
Mahoning  
Montgomery  
Mahoning County Sheriff's Office  
Five Rivers MetroParks  
Ottawa County Sheriff's Office  
Port Clinton Police Department  
Pickaway County Sheriff's Office  
Portage County Sheriff's Office  
City of Mansfield, Clear Fork Reservoir Police  
Ross County Sheriff's Office  
Sandusky County Sheriff's Office  
Scioto County Sheriff's Office  
Summit County Sheriff's Office  
Trumbull County Sheriff's Office  
Muskingum Watershed Conservancy District  
TOTAL  
Ottawa  
Pickaway  
Portage  
Richland  
Ross  
Sandusky  
Scioto  
Summit  
Trumbull  
Tuscarawas  
Marine Patrol Assistance Grants are awarded annually to political subdivisions,  
conservancy districts, and state departments to support local marine patrol units.  
Grants awarded under the program may total up to $35,000 and require recipients to  
provide at least 25% of the costs of their marine patrol programs. Grants may be used to  
(1) buy, maintain, and operate vessels and marine equipment, (2) pay the salaries of  
Budget Footnotes  
22  
May 2016  
Ohio Legislative Service Commission  
employees responsible for enforcing Ohio's boating laws, or (3) support the cost of  
marine emergency response. Funding for the program is provided from the Waterways  
Safety Fund (Fund 7086), which receives revenue from a portion of the state gasoline  
tax, fees collected for boat registration and title services, and funding from the  
U.S. Coast Guard.  
Trauma-Informed Care Initiative Launched  
Nicholas J. Blaine, Budget Analyst, 614-387-5418  
On March 28, 2016, the Ohio Department of Mental Health and Addiction  
Services (ODMHAS) and the Ohio Department of Developmental Disabilities (ODODD)  
announced a new partnership to implement the Trauma-Informed Care (TIC) Initiative.  
TIC is an evidence-based practice that teaches service providers to both recognize the  
symptoms of trauma and to treat survivors using the most effective interventions. Six  
regional collaboratives will identify strengths and weaknesses in TIC provided in each  
region, develop shared resources, offer training, and develop implementation strategies  
for groups such as children, older adults, and individuals with developmental  
disabilities or behavioral health issues. A total of $200,000 in GRF funding over the  
biennium was set aside in H.B. 64 in ODMHAS' budget to support the TIC Initiative.  
Comprehensive Suicide Prevention Initiative Announced  
Justin Pinsker, Budget Analyst, 614-466-5709  
On April 14, 2016, the departments of Mental Health and Addiction Services,  
Health, and Medicaid announced a comprehensive suicide prevention initiative. The  
initiative was developed with the guidance of the Suicide Prevention Advisory  
Committee, whose membership includes state officials and healthcare, professional, and  
trade organizations. The initiative will focus on prevention and treatment as well as  
support for families and friends of individuals who died by suicide. Specific efforts  
include increasing suicide awareness and reducing the stigmas that surround mental  
illness and addiction, training clinicians working with at-risk individuals, and  
providing assistance to local volunteer support teams for suicide survivors. A total of  
$
2 million over the biennium was set aside in H.B. 64 in the ODMHAS's budget to  
support these efforts.  
In 2012, the last year for which data is available, 1,510 Ohioans committed  
suicide. Of these, nearly half were diagnosed with a mental illness. The suicide rates  
were highest for males age 85 and older. Suicide rates for white males were four times  
higher than white females and two times higher than black males.  
May 2016  
23  
Budget Footnotes  
Ohio Legislative Service Commission  
Local Homelessness Assistance and Prevention Programs in Ohio Receive  
$
78.1 million in Federal Continuum of Care Program Grants  
Shannon Pleiman, Budget Analyst, 614-466-1154  
On March 8, 2016, the U.S. Department of Housing and Urban Development  
(HUD) awarded $1.6 billion under the Continuum of Care (CoC) Program to local  
homeless housing and services programs in all 50 states. Of this amount, $78.1 million  
will support 258 projects in the state of Ohio. Funding is awarded to designated CoC  
planning bodies. In turn, these entities distribute funding to local homeless housing and  
services programs. The table below shows the total funding that was awarded to each  
CoC in Ohio and the number of projects the awards will support.  
Continuum of Care Program Grant Awards  
Number of  
Continuum of Care  
Award Amount  
Projects  
Akron/Summit County  
27  
$3,583,606  
$1,891,347  
$14,704,685  
$9,716,981  
$21,689,317  
$6,902,097  
$14,169,034  
$3,674,715  
$1,756,659  
$78,088,441  
Canton, Massillon, Alliance/Stark County  
Cincinnati/Hamilton County  
Columbus/Franklin County  
Cleveland/Cuyahoga County  
Dayton, Kettering/Montgomery County  
Ohio Balance of State*  
15  
35  
32  
20  
18  
80  
Toledo/Lucas County  
20  
Youngstown/Mahoning County  
TOTAL  
11  
258  
*Ohio Balance of State CoC recipients are those within Ohio's 80 rural counties whose federal funding for  
homelessness is coordinated regionally and by the Development Services Agency.  
The CoC Program is a competitive grant program with annual grant awards. The  
funding may be used for permanent housing, transitional housing, supportive services,  
Homeless Management Information Systems (HMIS), and homelessness prevention.  
The projects that received HUD awards can be found at http://portal.hud.gov/  
hudportal/HUD?src=/program_offices/comm_planning/homeless/budget/2015.  
ODE Awards Grants for Secondary Transition  
Services for Students with Disabilities  
Jason Glover, Budget Analyst, 614-466-8742  
On March 23, 2016, the Ohio Department of Education (ODE) announced the  
recipients of the Innovative Strategies for Improving College and Career Readiness for  
Students with Disabilities grants. These grants will assist traditional and joint  
vocational school districts in using evidence-based predictors and practices to improve  
Budget Footnotes  
24  
May 2016  
Ohio Legislative Service Commission  
the coordination and delivery of secondary transition services for students with  
disabilities ages 14 to 21 in order to better prepare students for successful post-school  
outcomes in the areas of competitive, integrated employment, education and training,  
and independent living.  
ODE selected 20 proposals for funding under this initiative: one from each of the  
1
6 state support team regions and four from large urban districts. Each recipient will  
receive up to $125,000 per fiscal year in FY 2016 and FY 2017. The grants are funded  
through a set-aside in H.B. 64 of $2.5 million each fiscal year for secondary transition  
services from GRF line item 200540, Special Education Enhancements. Additional  
information about the grants is available on ODE's website by searching for the term  
"Secondary Transition Services Grant."  
Ohio Awarded Over $26 million in Additional  
Federal Funds to Support Manufacturing  
Tom Middleton, Budget Analyst, 614-728-4813  
On April 5, 2016, the Development Services Agency (DSA) announced that Ohio  
was awarded approximately $26.2 million in federal funding from the U.S. Department  
of Commerce to continue to support the Manufacturing Extension Partnership (MEP)  
program for the next five years (FY 2017-FY 2021). The program supports small- and  
medium-sized manufacturers by providing products, training, and consulting services  
to increase their productivity, growth, and global competitiveness. These functions are  
carried out by regional economic development organizations selected by DSA.  
The federal MEP funding flows to DSA through Fund 3080, line item 195672,  
Manufacturing Extension Partnership. Federal funding for the MEP program was  
$
5.4 million in FY 2016. The newly awarded funding is expected to be distributed in  
equal amounts of approximately $5.25 million per year. The program requires a 2:1  
federal to state and local match. The state match is provided through GRF line item  
1
95453, Technology Programs and Grants. The local matching dollars are provided by  
the designated regional economic development organizations.  
DSA currently administers the MEP program through six regional economic  
development organizations. These include the (1) Appalachian Partnership for  
Economic Growth Athens, (2) Center for Innovative Food Technology Toledo,  
(3) FastLane for Growth Solutions Dayton, (4) Manufacturing Advocacy and Growth  
Network (MAGNET) Cleveland, (5) PolymerOhio Columbus, and (6) TechSolve –  
Cincinnati. DSA will competitively select the regional partners that will be responsible  
for overseeing MEP initiatives under this new funding round in September 2016.  
May 2016  
25  
Budget Footnotes  
Ohio Legislative Service Commission  
Controlling Board Approves $2.5 million for Easements at Fernald Preserve  
Robert Meeker, Budget Analyst, 614-466-3839  
On April 4, 2016, the Controlling Board approved a request by the Ohio  
Environmental Protection Agency (Ohio EPA) to increase funding by $1.5 million in  
FY 2016 and $1.0 million in FY 2017 to purchase properties and conservation easements  
near the Fernald Preserve. Fernald is the site of a formerly contaminated federal  
uranium processing facility located within Crosby Township (Hamilton County) and  
Ross Township (Butler County). The site was remediated by the federal Department of  
Energy (DOE) in 2006, with the Ohio EPA having ongoing regulatory oversight.  
The additional funding will be disbursed to the Three Valley Conservation  
Trust10 for the acquisition of two properties (totaling $410,000) and seven conservation  
1
1
easements (totaling $2.1 million) as part of the Paddys Run Conservation Project. The  
project's purpose is to protect and improve water quality in Paddys Run and the Great  
Miami Aquifer. The money is being appropriated from the Federal Natural Resources  
Damages Settlement Fund (Fund 3CS0, line item 715688). This fund received  
$
13.75 million paid by DOE to the state of Ohio under a 2008 claim settlement for  
contaminating the area's groundwater. It is used to restore, replace, or acquire the  
equivalent of injured natural resources at and in the vicinity of Fernald. With the  
Controlling Board's approval of this latest request, a total of $10.2 million has been  
appropriated from the fund for property acquisition and conservation easements  
totaling nearly 10,000 acres in the Fernald area since 2012. The fund's cash balance as of  
March 2016 was $6.2 million, including investment earnings.  
Ohio EPA Announces $15.2 million in Diesel Emission Reduction Grants  
Jessica Murphy, LSC Fellow, 614-466-9108  
On April 19, 2016, the Ohio EPA announced the award of Diesel Emission  
Reduction Grants (DERG) totaling $15.2 million for 26 public and private sector diesel  
1
2
vehicle fleet projects (see table below). The grant awards will be used for projects that  
refurbish or replace aging diesel engines in the recipient's fleet with newer, cleaner  
diesel technology or alternative fuel technology. The Ohio EPA estimates these projects  
10 The Three Valley Conservation Trust is a nonprofit land trust that serves as the  
subcontractor to develop conservation easements on eligible lands in the Fernald Preserve area.  
11 A conservation easement is a customized legal agreement that permanently limits  
certain uses of the land, or a portion of the land, in order to protect its natural and agricultural  
values.  
12 Private sector fleets are required to apply through a public sector partner such as a  
metropolitan planning organization, local government, or state agency.  
Budget Footnotes  
26  
May 2016  
Ohio Legislative Service Commission  
will reduce air pollutants (fine particulates and nitrogen oxides) by an estimated  
7
45 tons annually. Each recipient's equipment is operated, for at least 65% of the time, in  
areas of Ohio that are eligible for the Congestion Mitigation and Air Quality Program  
13  
(CMAQ). These areas include 38 counties (or parts of counties), largely in Central,  
Southwest, and Northeast Ohio.  
DERG is administered jointly by the Ohio EPA and the Ohio Department of  
Transportation and is supported with federal CMAQ funds allocated to Ohio by the  
Federal Highway Administration. Grants awarded as part of the DERG program cover  
up to 80% of an eligible project's total cost. Recipients are required to provide a  
minimum 20% in matching funds, which cannot be sourced from other federal funds or  
from in-kind services. Projects selected for funding are then reimbursed up to the  
amount authorized for that project.  
Diesel Emission Reduction Grant Recipients ($15,194,957 Total Statewide)  
Private Sector Recipient  
(Project Location)  
Grant  
Amount  
Public Sector Recipient  
(Project Location)  
Grant  
Amount  
Advanced Drainage (Statewide)  
AK Steel (Butler)  
$254,251 Brunswick City School District (Medina)  
$1,000,000 Central Ohio Transit Authority (Franklin)  
$373,994 Champion Township (Trumbull)  
$531,811  
$984,880  
$58,541  
Bellaire Harbor Service (Belmont)  
Convoy Solutions/Idle Aire (Clark, Hamilton, $336,000 Greater Cleveland Regional Transit  
$796,000  
Montgomery)  
Authority (Cuyahoga)  
McGinnis (Lawrence)  
$323,576 Greater Dayton Regional Transit Authority  
$999,075  
(Montgomery)  
MightyFruit Trucking (Richland)  
Mondelez Global (Lucas)  
$87,894 LakeTran (Lake)  
$996,576  
$81,097  
$156,480 Licking County Commissioners (Licking)  
R&L Transfer (29 counties statewide)  
$996,403 Portage Area Regional Transportation  
Authority (Portage)  
$830,000  
Railserve (Montgomery)  
$568,443 Rocky River City School District  
$111,084  
$729,504  
(Cuyahoga)  
Republic Services (Stark)  
$936,255 Southwest Ohio Regional Transit Authority  
(Hamilton)  
Superior Marine Ways (Lawrence)  
$728,536 Stark Area Regional Transit Authority  
$1,000,000  
(Stark)  
Sysco Corporation (19 counties statewide)  
$501,271 Toledo Regional Transit Authority (Lucas)  
$796,000  
$678,541  
United Dairy Farmers (9 counties in Central  
and Southwest Ohio  
$338,745 Western Reserve Transit Agency  
(Mahoning)  
13 CMAQ is a federal program which provides funding to areas in nonattainment, or  
maintenance, for ozone, carbon monoxide, and/or particulate matter.  
May 2016  
27  
Budget Footnotes  
Ohio Legislative Service Commission  
TRACKING THE ECONOMY  
Thomas Kilbane, Economist, 614-728-3218  
Overview  
Growth of employment and total economic output has slowed  
thus far in 2016, though both remain positive. Inflation-adjusted gross  
domestic product (real GDP) grew just 0.5% (seasonally adjusted annual  
rate) in the first quarter. Consumer spending growth has also slowed  
nationwide after a strong 2015.  
Despite this, Ohio employment growth through March has not  
slowed at all. Over the past six months, Ohio has seen significant job  
gains and record setting labor force growth. Job gains have been highest  
in the Columbus metropolitan area. Zillow recently named Columbus,  
Ohio the hottest apartment market in America.  
The National Economy  
Employment and Unemployment  
Employment growth nationally has slowed slightly in 2016. In  
April, nonfarm payroll employment increased by just 160,000 according  
to the Bureau of Labor Statistics (BLS). BLS also revised its estimates of  
job growth in February and March downward by 19,000. Overall, job  
gains have averaged 192,000 per month in 2016, down from 229,000 in  
2
1
015. The mining industry continues to be the biggest drag, employing  
30,000 fewer people than one year ago. Health care, and food services  
and drinking places continued to see big employment gains.  
It was not all bad news for employment in April though. The  
unemployment rate stayed steady at 5.0% and the number of discouraged  
workers continued to drop. In April, 17,000 fewer workers were classified  
as discouraged compared to March, and an encouraging 188,000 fewer  
than April of last year. Workers are classified as discouraged if they are  
unemployed and want work but are not currently looking because they  
1
4
believe it is not available. Since they are not currently looking, they are  
not counted as part of the labor force, and therefore do not count as part of  
the unemployment rate. The number of discouraged workers in the U.S.  
has remained high compared to levels preceding the last recession.  
14 Specifically, discouraged workers must be currently available to work,  
have looked for work sometime in the past 12 months, but not looked in the last  
four weeks because they believe no work is available for them.  
Budget Footnotes  
28  
May 2016  
Ohio Legislative Service Commission  
Pay growth also continued its recent trend in April. Average  
1
5
hourly earnings were up 2.5% from one year ago. The chart below shows  
year-over-year employee earnings growth in the private sector since 2007.  
Beginning in the fourth quarter of 2015, pay began to rise more  
substantially than any time since the recession, however, growth remains Average  
below prerecession levels.  
earnings in the  
private sector  
are up 2.5%  
over the past  
year.  
Chart 5: U.S. Private Nonfarm Employee Earnings Growth  
4
3
3
2
2
1
1
.0%  
.5%  
.0%  
.5%  
.0%  
.5%  
.0%  
2
007  
2008  
2009  
2010  
2011  
2012  
2013  
2014  
2015  
2016  
Production  
Growth of economic output continued to slow in the first quarter  
of 2016. Real GDP grew 0.5% during the quarter, after 1.4% growth in the  
1
6
fourth quarter of 2015, according to the Bureau of Economic Analysis. A  
decline in nonresidential fixed investment was the main culprit for the  
slowdown so far in 2016. Economic growth has slowed in three straight  
quarters, but year-over-year 12-month growth has remained steady at  
Real GDP grew  
only 0.5%  
(annual rate) in  
about 2.0% (see chart below). Production growth in the second quarter of the first  
2
016 will need to be strong to remain at that 12-month rate.  
quarter of  
2016.  
15 On private, nonfarm payrolls.  
16 Seasonally adjusted annual rates.  
May 2016  
29  
Budget Footnotes  
Ohio Legislative Service Commission  
Chart 6: United States Real GDP Growth  
5
4
3
2
1
0
.0  
.0  
.0  
.0  
.0  
.0  
-
1.0  
2.0  
-
Single Quarter (Seasonally Adjusted Annual Rate)  
Twelve Month Growth  
Industrial production decreased in March for the sixth out of the  
last seven months, according to the Federal Reserve. The drop in  
production continued to be led by mining and utilities, however,  
manufacturing production declined for the second straight month as well.  
Consumer Spending  
"Growth in household spending has moderated," the Federal Open  
Market Committee (FOMC) said at the conclusion of its meeting at the end  
of April.17 After driving economic growth through much of 2015,  
consumer spending is beginning to slow a bit. Inflation-neutral spending  
in March was virtually flat from February, and over the first quarter of  
2
016 grew at a seasonally adjusted annual rate of 1.9%. The rate of growth  
Consumer  
sentiment  
remains near  
prerecession  
levels.  
in 2015 was 3.1%. A slowdown in spending on motor vehicles in March  
was a large factor. Consumer sentiment surveys show slight decreases in  
recent months, but overall sentiment remains near prerecession levels.  
Sales of motor vehicles rebounded to a strong level18 in April after  
dipping in March, temporarily allaying fears that demand had peaked.  
Sales of cars and light trucks set an all-time record in 2015. Early warning  
signs for the industry remain present though, as the percentage of  
1
9
nonperforming auto loans is on the rise.  
17 The FOMC is the body within the Federal Reserve that sets monetary  
18 Car and light truck sales in April were a seasonally adjusted annual rate  
policy.  
of 17.3 million units.  
19 http://blogs.wsj.com/moneybeat/2016/04/07/more-warning-signs-in-  
subprime-car-loan-market/.  
Budget Footnotes  
30  
May 2016  
Ohio Legislative Service Commission  
Real Estate  
Existing home sales, which represent the bulk of the residential real  
estate market, rebounded in March from a weak February. Sales volume  
was up 1.5% from one year ago. Housing starts and sales of newly built  
homes were down in March however. Overall, the housing market still  
seems to be growing, but like much of the economy, at a slowing pace.  
Home prices continue to rise faster than the pace of income  
growth. The median existing home price was up 5.7% from March 2015,  
the 49th consecutive month with year-over-year price gains. Inventories  
remain tight, keeping upward pressure on home prices. Homes are selling  
quickly, with 42% of properties on the market for less than a month.  
4
2% of  
properties put  
on the market  
are selling in  
Mortgage rates have remained low in 2016 as well however, helping to less than a  
offset long-term costs for buyers. The average 30-year fixed rate mortgage  
month.  
was 3.61% the week of May 5, according to Freddie Mac's Primary  
Mortgage Market Survey.  
Inflation  
These days, monitoring topline U.S. inflation has become an exercise  
in tracking volatile oil and gas prices. The price index of energy goods and  
services rose in March, and thus, so did overall consumer price levels in the  
U.S. economy. The energy price index had dropped in each of December,  
January, and February. The more stable measure of consumer prices, the  
price index of personal consumption expenditures (PCE) less food and  
energy, has increased steadily in each month since December of 2008. For  
the 12 months ended in March, it was up 1.6%. Prices for producers were  
down slightly overall, likely due to cheaper energy inputs.  
The Ohio Economy  
Employment and Unemployment  
Ohio added 18,300 jobs20 in March, continuing a recent period of  
strong job growth for the state. During the six months ended in March,  
2
1
only five other states added more jobs than Ohio's total of 69,300. The  
job gains are drawing people off the sidelines of the job market as well.  
Ohio's labor force increased during the first quarter of 2016 (seasonally  
adjusted) by more than any other three-month period since the BLS began  
tracking the data in 1976. In the three months ended in March, Ohio's  
labor force added 96,000 people, approximately equivalent to the  
combined population of the Ohio cities of Canton and Athens.  
20 Nonfarm payroll employment, seasonally adjusted.  
21 The five states to top Ohio were California (151,000), Florida (97,100), Texas  
81,000), Georgia (74,400), and Michigan (73,900).  
(
May 2016  
31  
Budget Footnotes  
Ohio Legislative Service Commission  
The labor force includes individuals who are employed or are  
2
2
actively looking for work. Many people left the labor force during the  
last recession for early retirement, school enrollment, or after losing a job  
and becoming discouraged trying to find a new one, all common events  
during economic downturns. However, labor force participation has  
struggled to bounce back during the recovery as expected, especially in  
Ohio. As people enter (or re-enter) the labor force, some immediately  
find jobs but others do not, sometimes leading to a rise in the  
unemployment rate (if they were not previously looking for work, they  
were not counted as unemployed). During the six months ended in  
March, Ohio added over 69,000 jobs, but its unemployment rate also rose  
from 4.6% to 5.1%. Because this was largely a product of the surge in  
labor force, it is generally regarded as a positive for the state.  
9
6,000 people  
joined Ohio's  
labor force in  
the 1st quarter  
of 2016.  
Equivalent to  
the combined  
population of  
Canton and  
The chart below shows the change in Ohio's labor force and total  
employment since 2010 and illustrates the steep rise in both over the last  
three months. The distance between total labor force and aggregate  
employment represents Ohioans who are counted as unemployed.  
Athens, it was  
the largest  
three-month  
gain on record.  
Chart 7: Ohio Labor Force Composition  
6
5
5
5
5
5
5
5
5
5
,000,000  
,900,000  
,800,000  
,700,000  
,600,000  
,500,000  
,400,000  
,300,000  
,200,000  
,100,000  
Employment  
Labor Force  
Unemployment  
Zillow named  
Columbus, Ohio  
its hottest  
2
010  
2011  
2012  
2013  
2014  
2015  
2016  
apartment  
market in  
Housing  
Ohio home sales remained healthy in March. Through the first  
America.  
quarter of the calendar year, total sales were up 9.3% from the same period  
in 2015. The average sale price this year was $147,190, 4.1% higher than the  
first quarter of 2015, according to the Ohio Association of Realtors.  
22 Specifically, the labor force is determined to be the number of civilians  
aged 16 and over who are either currently employed or unemployed but looked  
for work in the last four weeks.  
Budget Footnotes  
32  
May 2016  
Ohio Legislative Service Commission  
The market for multiunit buildings is particularly strong in central  
Ohio. Zillow, an online real estate database company, named Columbus,  
2
3
Ohio its hottest apartment market in America. The rating was based on  
the share of rental apartments built in 2011 or after, the percent of new  
apartment units built in the last year that rented within three months of  
being built, and the rent appreciation of apartments over the past year.  
Apartment rents in the Columbus metro area are up 6% over the past year  
according to the site. Following Columbus in the rankings were metro  
areas that have experienced high growth over the last decade such as  
Seattle, Denver, and San Jose.  
23 http://www.zillow.com/blog/columbus-hottest-rental-market-195204/.  
May 2016  
33  
Budget Footnotes