Ohio Legislative Service Commission
As shown in the table above, as of December 1, 2018, $258.2 million (69.1%) of the
373.6 million in total prior year encumbrances was expended, $94.6 million (25.3%) was still
outstanding, and the remaining $20.8 million was canceled so the corresponding funds would
subsequently lapse back into the GRF. ODE had the largest share (25.1%) of the total
outstanding encumbrances as of December 1, followed by the Department of Higher Education
DHE) at 24.6%, ODJFS at 16.8%, the Development Services Agency (DSA) at 11.9%, and ODM at
.7%. Together, these seven agencies had $80.6 million (85.2%) of the $94.6 million in total
outstanding prior year encumbrances. The nature of these outstanding encumbrances is
Of ODE's outstanding encumbrances as of December 1, which totaled $23.7 million,
5.0% ($10.7 million) was encumbered in item 200550, Foundation Funding. These
encumbrances will be used mainly to meet year-end school foundation payment adjustments.
Foundation payments are allocated to districts based on a variety of data. Some of these data
are not finalized until the following fiscal year. Funds are generally encumbered each year in
order to make adjusted payments based on these updated data. Other significant outstanding
encumbrances were in items 200408, Early Childhood Education, ($4.4 million, 18.5%); 200511,
Auxiliary Services, ($2.3 million, 9.7%); 200540, Special Education Enhancements, ($1.7 million,
.3%); 200572, Adult Diploma, ($1.5 million, 6.4%); and 200437, Student Assessment,
($1.5 million, 6.2%). These encumbrances will be used for making final payments and
adjustments for early childhood education service providers, schools, and institutions that
assist adults in acquiring their high school diploma and an industry-recognized credential, as
well as final payments on school assessment contracts.
DHE had $23.3 million in outstanding prior year encumbrances as of December 1, of
which $23.2 million occurred in item 235438, Choose Ohio First Scholarship. Item 235438 is
used to pay the state's obligations to scholarship recipients.
ODJFS had $15.9 million in outstanding prior year encumbrances as of December 1.
Numerous line items had outstanding encumbrances, but the three most significant are items
00416, Information Technology Projects ($5.9 million, 36.8%), 600321, Program Support
($2.9 million, 18.0%), and 600523, Family and Children Services ($1.5 million, 9.4%). Funds
encumbered in item 600416 will be used mainly for the development, implementation, and
maintenance of information technology systems used by ODJFS. The encumbrances in item
Assistance Program. Finally, item 600523 is used for foster care and child protective services.
00321 are mainly for contracts with vendors to provide administrative support for the Food
DSA had $11.3 million in outstanding prior year encumbrances as of December 1. The
vast majority of DSA's outstanding prior year encumbrances were for various economic
development grants. Many of these grant programs are operated on a reimbursement basis,
under which grantees have to carry out the programs and certify that certain requirements or
objectives have been met before they are reimbursed by the state. Depending on the scope of
a project, the grantee may not actually receive the award until several years after the award
was originally made. The line items with the largest outstanding encumbrances are 195453,
Technology Programs and Grants, ($6.7 million, 59.6%) and 195455, Appalachian Workforce
Assistance, ($3.2 million, 28.1%).
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