Fiscal Note & Local Impact Statement

123 rd General Assembly of Ohio

Ohio Legislative Budget Office: a nonpartisan agency providing fiscal research for the Ohio General Assembly

77 South High Street, 8th Floor, Columbus, OH 43266-0347 ² Phone: (614) 466-8734

E-mail: BudgetOffice@LBO.STATE.OH.US ² Internet Web Site:http://www.lbo.state.oh.us/

BILL:

Sub. S.B. 245

DATE:

March 21, 2000

STATUS:

As Passed by the House

SPONSOR:

Sen. Ray

LOCAL IMPACT STATEMENT REQUIRED:

No —

Not required for budget bills

 


CONTENTS:

Capital reappropriations for fiscal years 2001-2002, new appropriations for Public Works Commission for fiscal years 2001-2002, various budget adjustments and technical corrections

 

State Fiscal Highlights

 

STATE FUND - Appropriations/Expenditures

FY 2000

FY 2001-02 BIENNIUM

Reappropriations

 

 

  General Revenue Fund

-0-

$13,263,923 increase

  Wildlife Fund

-0-

$15,777,983 increase

  Public School Building Fund

-0-

$56,478,749 increase

  Highway Safety Fund

-0-

$9,887,210 increase

  Waterways Safety Fund

-0-

$4,329,369 increase

  Underground Parking Garage Operating Fund

-0-

$1,010,000 increase

  Special Administrative Fund

-0-

$1,539,079 increase

  Capital Donations Fund

-0-

$1,322,720 increase

  Veterans’ Home Improvement Fund

-0-

$1,240,444 increase

  Highway Safety Building Fund

-0-

$25,008,939 increase

  Administrative Building Fund

-0-

$171,687,848 increase

  Adult Correctional Bldg. Fund

-0-

$234,417,370 increase

  Juvenile Correctional Bldg. Fund

-0-

$64,892,706 increase

  Arts Facilities Building Fund

-0-

$21,071,456 increase

  Ohio Parks and Natural Resources Fund

-0-

$94,406,919 increase

  School Building Program Assistance Fund

-0-

$43,012,408 increase

  Mental Health Facilities Improvement Fund

-0-

$41,221,751 increase

  Higher Education Improvement Fund

-0-

$624,303,122 increase

  Parks and Recreation Improvement Fund

-0-

$48,022,872 increase

  Capital Improvements Fund

-0-

$270,923,865 increase

  Capital Improvements Revolving Loan Fund

-0-

$33,903,659 increase

New Appropriations

 

 

  Capital Improvements Fund

-0-

$245,000,000 increase

  Capital Improvements Revolving Loan Fund

-0-

$34,500,000 increase

Budget Adjustments and Transfers

 

 

  General Revenue Fund

$4.9 million increase

-0-

  Ohio Care Fund – Dept. of Mental Health (Fund 4X5)

Up to a $1,004,277 increase

-0-

  Ohio Care Fund – Dept. of Human Services (Fund 4X3)

Up to a $499,962 decrease

-0-

  Medicaid Program Support – Federal (Fund 3P7)

Up to a $4,315 decrease

-0-

  Medicaid Program Support – State (Fund 5C9)

Up to a $500,000 decrease

-0-

  Local Transportation Improvement Program (Fund 052)

Potential $5 million increase

Potential $5 million increase

  Facilities Establishment Fund (Fund 037)

$1 million loss

$1 million loss

  Rural Industrial Park Loan Fund (Fund 5H1)

$1 million gain

$1 million gain

  Consumers Council Operating Fund (Fund 5F5)

$541,000 gain

$139,000 gain

  Ambulance Board Operating Expenses (Fund 4N1)

Potential gain

Potential $54,400 gain

  Children’s Trust Fund (Fund 198)

Up to a $25,930 gain

-0-

 

Note: The state fiscal year is July 1 through June 30. For example, FY 2000 is July 1, 1999 – June 30, 2000.

 

·        Total amount of moneys reappropriated is estimated at approximately $1.8 billion  ($1,777,722,392).

·        New capital appropriations contained in the bill are for the Public Works Commission. Of the $279.5 million in new appropriations, $245 million is for the State Capital Improvements Fund (Fund 038), with the remaining $34.5 million in the State Capital Improvements Revolving Loan Fund (Fund 040). These moneys would be provided to local governments to support new or ongoing capital improvement projects.

·        The bill also makes revisions to Amended Substitute House Bill 163 (Transportation Budget Bill) that could result in a potential $5.0 million increase in the Public Works Commission’s Local Transportation Improvement Program spending in both FY 2000 and FY 2001.

·        Up to $1.0 million is transferred from funds in the Department of Human Services Budget to the OhioCare Fund (Fund 4X5) in the Department of Mental Health to support the implementation of the Multi-Agency Community Services Information System (MACSIS).

·        The bill transfers $337,933 in fiscal year 2001 from the Attorney General (AGO) to the Secretary of State (SOS) to provide SOS with sufficient funding to maintain a centralized location while also permitting AGO to expand its current space in the Rhodes State Office Tower.

·        As of July 1, 2000, the Ohio Energy Credits program will be consolidated with three other low-income energy assistance programs and administered by the Department of Development, as directed by Am. Sub. S.B. 3 of the 123rd G.A., with appropriations transferred to the Department of Development.

·        The bill increases the appropriations for three line items relating to PERS pensions.

·        The bill reestablishes the tax refund line item in the Treasurer of State section of the budget, inserts the tax refund language in the Department of Taxation section, and increases the combined amounts appropriated for tax refunds to $1.1 billion for both FY 2000 and FY 2001.

·        The bill transfers $99,600 in FY 2000 and $79,600 in FY 2001 from the Department of Natural Resources GRF line item 725-507 to GRF 737-321 in order to support administration costs.

·        The bill affects an unspent $82.0 million appropriation for CAP-186, Close Security Prison and Camp, in that it reappropriates $5.0 million of the unspent appropriation and leaves it in line item CAP-186, while transferring $72.0 million of appropriation authority and reappropriating it across 30 different departmental capital line items for various statewide and institutional projects. The remaining $5.0 million in unspent CAP-186 appropriation authority will simply be allowed to lapse.

·         The bill increases reappropriations in Department of Youth Services (DYS) line item CAP-829, Local Juvenile Detention Centers, by $5 million. This line item in the Juvenile Correctional Building Fund (Fund 028) is used to fund county and multi-county juvenile detention centers.  While this will presumably increase DYS' future annual debt service costs, the decision not to reappropriate $5.0 million to the Adult Correctional Building Fund (Fund 027) creates sort of a trade off in which the net effect on future GRF debt service expenditures should be no more than minimal.

 

·        The bill creates a new $600,000 capital appropriation for DYS in line item CAP-830, Muskingum County Juvenile Justice Center. This amount was transferred from DOT line item CAP-007, Muskingum County Intermodal Facility.

·        The bill increases the set-aside for educational service centers by $1,000,000 in FY 2000 and by $500,000 in FY 2001. Appropriations for the Base Cost Funding line item remain unchanged in both fiscal years. The state funding for educational service centers is provided through an earmark within line item 200-501, Base Cost Funding.

·        The bill also includes language that would transfer the remaining balance of the Treasurer of State’s Children’s Trust Reimbursement Fund (estimated to be $25,930) to the Department of Human Services Children’s Trust Fund (Fund 198).

·        The bill directs the Director of Budget and Management to transfer, at the request of the Consumers’ Counsel, up to $541,000 in cash from the General Revenue Fund to the Consumers’ Counsel Operating Fund (Fund 5F5). The transfer includes $350,000 for costs associated with the Consumers’ Counsel’s moving expenses and tenant improvements and $191,000 to offset cancelled FY 1997 encumbrances.

·        The bill rewords the authorization to allow transfers to be made within appropriations within the Legislative Service Commission or from one fiscal year to another.

·        The bill amends Am. Sub. H.B. 283 of the 123rd General Assembly to increase fiscal year 2000 appropriations to the Department of Development appropriation item 195-412, Business Development Grants by $5.0 million. This provision thus produces a $5.0 million increase in fiscal year 2000 expenditures.

·        The bill increases the appropriation authority to the Consumers’ Counsel’s General Services Fund Group Fund 5F5, Consumers’ Council Operating Fund, by $541,000 in FY 2000 and $136,500 in FY 2001. The bill also reduces the GRF appropriation in the Legislative Service Commission’s Operating Expenses line item by $350,000 in FY 2000. This results in a net loss of $191,000 in the GRF.

·        As a result of an increase in the permit fee that may be charged by the Ohio Ambulance Board from $50 to $100, the bill will result in an estimated annual gain of $54,400 to Fund 4N1, Operating Expenses. Furthermore, the bill gives the Board authority to increase fees by up to fifty percent, authority that is currently possessed by many other state boards.

 

Local Fiscal Highlights

 

LOCAL GOVERNMENT

FY 2000

FY2001-2002 BIENNIUM

  Local Governments

 

 

    Revenues

-0-

$279,500,000 gain

    Expenditures

-0-

-0-

 

Note: For most local governments, the fiscal year is the calendar year. The school district fiscal year is July 1 through June 30.

 

·        The $279.5 million appropriated to the Public Works Commission would go to local governments in the form of loans and grants to support new or ongoing capital improvement projects.

 


 


 

 

Detailed Fiscal Analysis

 

Reappropriations

 

 

 

 

TOTAL REAPPROPRIATIONS1 BY FUND BY AGENCY

Fiscal Years 2001-2002

 

 

 

 

Divisions

Departments

GENERAL REVENUE FUND

 

 

  Department of Administrative Services

 

$3,138,178

  Department of Agriculture

 

$4,959,131

  Arts and Sports Facilities Commission

 

$127,000

  Ohio Historical Society

 

$382,100

  Department of Natural Resources

 

$3,957,514

  Department of Transportation

 

$100,000

  Department of Youth Services

 

$600,000

TOTAL GENERAL REVENUE FUND

 

$13,263,923

 

 

 

WILDLIFE FUND

 

 

  Department of Natural Resources

 

$15,777,983

 

 

 

PUBLIC SCHOOL BUILDING FUND

 

 

  School Facilities Commission

 

$56,478,749

 

 

 

HIGHWAY SAFETY FUND

 

 

  Department of Public Safety

 

$9,887,210

 

 

 

WATERWAYS SAFETY FUND

 

 

  Department of Natural Resources

 

$4,329,369

 

 

 

UNDERGROUND PARKING GARAGE OPERATING FUND

 

 

  Capital Square Review and Advisory Board

 

$1,010,000

 

 

 

SPECIAL ADMINISTRATIVE FUND

 

 

  Department of Job and Family Services

 

$1,539,079

 

 

 

VETERANS' HOME IMPROVEMENT FUND

 

 

  Ohio Veterans' Home

 

$1,240,444

 

 

 

CAPITAL DONATIONS FUND

 

 

  Arts and Sports Facilities Commission

 

$1,322,720

 

 

 

HIGHWAY SAFETY BUILDING FUND

 

 

  Department of Public Safety

 

$25,008,939

 

 

 

1 Amounts are estimates of what will be reappropriated effective July 1, 2000

 

 

 

 

 


TOTAL REAPPROPRIATIONS1 BY FUND BY AGENCY

Fiscal Years 2001-2002

 

 

 

 

Divisions

Departments

ADMINISTRATIVE BUILDING FUND

 

 

  Adjutant General

 

$7,334,654

  Department of Administrative Services

 

$95,677,127

  Department of Aging

 

$125,000

  Department of Agriculture

 

$5,811,372

  Attorney General

 

$2,326,227

  Capital Square Review and Advisory Board

 

$759,000

  Department of Commerce

 

$1,048,122

  Expositions Commission

 

$8,208,993

  Judiciary/Supreme Court

 

$32,600,000

  Department of Natural Resources

 

$7,816,798

  Department of Public Safety

 

$906,000

  School for the Blind

 

$884,222

  School for the Deaf

 

$3,990,333

  Ohio Veterans’ Home

 

$4,200,000

TOTAL ADMINISTRATIVE BUILDING FUND

 

$171,687,848

 

 

 

ADULT CORRECTIONAL BUILDING FUND

 

 

  Department of Rehabilitation and Correction

 

 

    Statewide

$120,287,173

 

    Belmont Correctional Institution

$2,465,000

 

    Chillicothe Correctional Institution

$17,171,228

 

    Correctional Reception Center

$472,278

 

    Correctional Training Academy

$2,262,294

 

    Dayton Correctional Institution

$644,500

 

    Franklin Pre-Release Center

$85,313

 

    Grafton Correctional Institution

$450,000

 

    Hocking Correctional Institution

$278,805

 

    Lebanon Correctional Institution

$10,311,572

 

    Lima Correctional Institution

$12,835,499

 

    London Correctional Institution

$3,338,464

 

    Mansfield Correctional Institution

$1,938,134

 

    Marion Correctional Institution

$4,295,250

 

    Northeast Pre-Release Center

$425,000

 

    Oakwood Correctional Facility

$18,800

 

    Ohio Reformatory for Women

$9,486,056

 

    Ohio State Penitentiary

$23,385

 

    Orient Correctional Institution

$8,036,492

 

1 Amounts are estimates of what will be reappropriated effective July 1, 2000.

 

 

 

 

 

 

 

 

 


TOTAL REAPPROPRIATIONS1 BY FUND BY AGENCY

Fiscal Years 2001-2002

 

 

 

 

Divisions

Departments

  Department of Rehabilitation and Correction- continued

 

 

    Pickaway Correctional Institution

$11,219,678

 

    Richland Correctional Institution

$207,825

 

    Ross Correctional Institution

$7,393,702

 

    Southeastern Correctional Institution

$16,600,579

 

    Southern Ohio Correctional Institution

$4,170,343

 

  TOTAL Department of Rehabilitation and Corrections

 

$234,417,370

TOTAL ADULT CORRECTIONAL BUILDING FUND

 

$234,417,370

 

 

 

JUVENILE CORRECTIONAL BUILDING FUND

 

 

  Department of Youth Services

 

$64,892,706

 

 

 

ARTS FACILITIES BUILDING FUND

 

 

  Arts and Sports Facilities Commission

 

$21,071,456

 

 

 

OHIO PARKS AND NATURAL RESOURCES FUND

 

 

  Department of Natural Resources

 

 

    Statewide and Local Projects

$59,296,273

 

    Civilian Conservation

$1,867,318

 

    Forestry

$1,476,441

 

    Mines and Reclamation

$250,000

 

    Natural Areas

$2,793,895

 

    Parks and Recreation

$23,239,816

 

    Soil and Water Conservation

$102,170

 

    Water

$5,381,006

 

  TOTAL Department of Natural Resources

 

$94,406,919

TOTAL OHIO PARKS AND NATURAL RESOURCES FUND

 

$94,406,919

 

 

 

SCHOOL BUILDING PROGRAM ASSISTANCE FUND

 

 

  School Facilities Commission

 

$43,012,408

 

 

 

MENTAL HEALTH FACILITIES IMPROVEMENT FUND

 

 

  Department of Alcohol and Drug Addiction Services

 

$2,536,189

  Department of Mental Health

 

 

    Statewide Projects

$6,478,187

 

    Appalachian Psychiatric Health Care System

$17,099

 

    Massillon Psychiatric Center

$25,969

 

    Northcoast Behavioral Health Care System

$526,216

 

    Pauline Warfield Lewis Center

$34,016

 

    Southeast and Central Regions

$44,450

 

    Southwest Region

$126,055

 

1 Amounts are estimates of what will be reappropriated effective July 1, 1998.

 

 

 

 

 

 

 

TOTAL REAPPROPRIATIONS1 BY FUND BY AGENCY

Fiscal Years 2001-2002

 

 

 

 

Divisions

Departments

  Department of Mental Health-continued

 

 

    Twin Valley Psychiatric System

$34,062

 

  TOTAL Department of Mental Health

 

$7,286,054

  Department of Mental Retardation and Developmental Disabilities

 

 

    Statewide Projects

$19,490,234

 

    Apple Creek Developmental Center

$1,115,931

 

    Cambridge Developmental Center

$900,789

 

    Columbus Developmental Center

$1,150,177

 

    Gallipolis Developmental Center

$836,637

 

    Montgomery Developmental Center

$863,066

 

    Mt. Vernon Developmental Center

$1,136,934

 

    Northwest Ohio Developmental Center

$1,374,962

 

    Southwest Ohio Developmental Center

$877,070

 

    Springview Developmental Center

$892,572

 

    Tiffin Developmental Center

$723,563

 

    Warrensville Developmental Center

$913,341

 

    Youngstown Developmental Center

$1,124,232

 

  TOTAL Mental Retardation and Developmental Disabilities

 

$31,399,508

TOTAL MENTAL HEALTH FACILITIES IMPROVEMENT FUND

 

$41,221,751

 

 

 

HIGHER EDUCATION IMPROVEMENT FUND

 

 

  Educational Telecommunications Network Commission

$4,225,246

 

  Board of Regents

$42,832,861

 

  University of Akron

$42,816,902

 

  Bowling Green State University

$26,746,635

 

  Central State University

$4,642,552

 

  University of Cincinnati

$57,427,610

 

  Cleveland State University

$24,439,770

 

  Kent State University

$25,584,320

 

  Miami University

$38,390,144

 

  Ohio State University

$172,939,232

 

  Ohio University

$36,944,831

 

  Shawnee State University

$3,951,590

 

  University of Toledo

$25,108,725

 

  Wright State University

$24,562,045

 

  Youngstown State University

$8,250,199

 

  Northeastern Ohio Universities College of Medicine

$2,479,683

 

  Medical College of Ohio

$10,724,434

 

  University Hospitals, Case Western Reserve University

$3,086,604

 

  Cincinnati State Technical and Community College

$2,418,741

 

1 Amounts are estimates of what will be reappropriated effective July 1, 2000.

 

 

 

 

 

 

 

TOTAL REAPPROPRIATIONS1 BY FUND BY AGENCY

Fiscal Years 2001-2002

 

 

 

 

Divisions

Departments

HIGHER EDUCATION IMPROVEMENT FUND-continued

 

 

  Clark State Community College

$412,364

 

  Columbus State Community College

$20,564,732

 

  Cuyahoga Community College

$11,003,365

 

  Edison State Community College

$390,778

 

  Jefferson Community College

$1,117,293

 

  Lakeland Community College

$793,197

 

  Lorain Community College

$1,594,589

 

  Northwest State Community College

$371,425

 

  Owens Community College

$2,936,109

 

  Rio Grande Community College

$753,275

 

  Sinclair Community College

$7,976,085

 

  Southern State Community College

$787,231

 

  Terra State Community College

$335,709

 

  Washington State Community College

$439,846

 

  Belmont Technical College

$630,576

 

  Central Ohio Technical College

$265,040

 

  Hocking Technical College

$4,286,859

 

  Lima Technical College

$2,824,039

 

  Muskingum Area Technical College

$2,491,815

 

  Marion Technical College

$438,245

 

  North Central Technical College

$1,476,145

 

  Stark Technical College

$4,842,281

 

TOTAL HIGHER EDUCATION IMPROVEMENT FUND

 

$624,303,122

 

 

 

PARKS AND RECREATION IMPROVEMENT FUND

 

 

  Department of Natural Resources

 

$48,022,872

 

 

 

STATE CAPITAL IMPROVEMENT FUND

 

 

  Public Works Commission

 

$270,923,865

 

 

 

STATE CAPITAL IMPROVEMENTS REVOLVING LOAN FUND

 

 

  Public Works Commission

 

$33,903,659

 

 

 

TOTAL REAPPROPRIATIONS, ALL FUNDS

 

$1,777,722,392

 

 

 

1 Amounts are estimates of what will be reappropriated effective July 1, 2000.

 

 

 

 

 

 

New Public Works Appropriations

 

          The bill appropriates a total of $279.5 million in new moneys for the Public Works Commission through the State Capital Improvements Fund (Fund 038), and the State Capital Improvements Revolving Loan Fund (Fund 040). These newly appropriated moneys include $245 million through Fund 038 to line item CAP-150, Local Public Infrastructure and $34.5 million through Fund 040 to line item CAP-151, Revolving Loan. Fund 038 is supported through the proceeds of bonds issued by the Treasurer of State, while Fund 040 is supported through the repayments of loans made by political subdivisions for capital improvements; investment earnings on moneys in the fund; moneys received from federal or private grants, or moneys received from other sources for the purpose of making loans used to finance capital improvement projects of political subdivisions.

           

Budget Adjustments, Fund Transfers, and Other Corrections

 

Department of Mental Health – MACSIS Implementation

 

This bill also contains a provision authorizing the Director of Budget and Management to make the following transfers from the Department of Human Services (ODHS) to the Department of Mental Health (ODMH):

 

Origin

Destination

Amount

Fund 4X3

Fund 4X5

Up to $499,962

Fund 3P7

Fund 4X5

Up to $4,315

Fund 5C9

Fund 4X5

Up to $500,000

Total Transfer

 

Up to $1,004,277

                                           

ODMH is to use the transferred cash to support the final costs of implementation of the Multi-Agency Community Services Information System (MACSIS), a new statewide data collection system that ODMH has developed in collaboration with the Ohio Department of Alcohol and Drug Addiction Services (ODADAS). The overall goal of MACSIS is to implement an information system that allows ODMH, ODADAS, and their associated local boards to manage, measure, and monitor the service utilization of Medicaid, state, and local public funds. MACSIS is designed as a client-focused, centrally managed care information system, that all alcohol and drug addiction services (ADAS) boards, community mental health (CMH) boards, and combined alcohol and drug addiction/mental health services (ADAMHS) boards may access through a state telecommunications network. The system is intended to replace two summary level reporting systems, the Mental Health Information System (MHIS) and the Alcohol and Drug Client Data System (ADCDS) currently operated by ODMH and ODADAS, respectively, as well as their Community Medicaid billing systems. The system is designed to meet all Ohio Department of Human Services (ODHS), Health Care Financing Administration (HCFA), Health Care Data Center (HCDC), and other mandated reporting requirements. The Medicaid billing portion of the system became operational for all of the local boards on January 1, 2000.

 

The Department must pay the vendors who are completing the system $926,000 in March or April. The funds will be transferred immediately upon the effective date of the bill so that the Department may pay the vendors on time. The cash transfers were not included in the budget act due to miscommunication between ODMH and the Office of Budget and Management.

 

Department of Alcohol and Drug Addiction Services

 

            Am. Sub. H.B. 283 of the 123rd General Assembly earmarked $400,000 in FY 2000 and $400,000 in FY 2001 in the department's GRF line item 038-401, Alcohol and Drug Addiction Services, to go to the Bellfaire/Jewish Children’s Bureau to provide substance abuse treatment services. The bill expands the allowable use of these earmarked funds to include prevention services also. Thus, this provision does not change the amounts of the earmarks, but simply the purposes for which they may be used.

 

Department of Education – Teacher in Residence

 

The bill also transfers current set-aside funding for a teacher in residence in the Governor’s Office from line items 200-100, Personal Services, and 200-320, Maintenance and Equipment, to line item 200-431, School Improvement Models. Due to retirement and benefit issues, this shift in funding would permit the teacher to technically remain an employee of their home school district by providing a reimbursement subsidy to the district in question. Since subsidy payments cannot be made from personal service and maintenance and equipment line items, the Department of Education has been making payments from item 200-431, School Improvement Models. While the change contained in the bill moves funding for the program to the School Improvement Model line item, overall funding for the program is unchanged.

 

Department of Education – Funding for Educational Service Centers

 

The state funding for educational service centers is provided through an earmark within line item 200-501, Base Cost Funding. The bill increases the set-aside for educational service centers by $1,000,000 in FY 2000 (from $50,000,000 to $51,000,000) and by $500,000 in FY 2001 (from $52,000,000 to $52,500,000). Appropriations for the Base Cost Funding line item remain unchanged in both fiscal years. State funds for educational service centers are distributed on a per pupil basis. Per pupil subsidy for multi-county centers is $40.52 in each fiscal year. Per pupil payment for educational service centers other than multi-county centers is $36 in FY 2000 -and $37 in FY 2001.

 

Attorney General and Secretary of State – Transfer of Funds for Relocation

 

The bill transfers GRF appropriations of $337,933 in fiscal year 2001 from AGO to SOS. This transfer would provide SOS with sufficient funding to maintain a centralized location at the Borden Building, while permitting AGO to expand their current space in the Rhodes State Office Tower. Based on discussions with the Office of Budget and Management, LBO believes that sufficient moneys are available in the AGO budget to support the proposed transfer without significantly impacting staffing levels or program expenditures.

 

Transfer from Taxation to Development of the Ohio Energy Credits Program

 

The Ohio Energy Credits program was established in 1979 and provides winter heating assistance to elderly and disabled Ohioans with an income less than $9,000 per year. For households who heat with gas, electricity, or propane, the department reimburses the energy provider for 30 percent of the bill if the applicant’s income is less than $5,000 and 25 percent of the bill if the applicant’s income is between $5,000 and $9,000. A direct cash payment is made to households who heat their homes with fuel, oil, coal, wood, kerosene, or non-pipeline propane and whose income is below $9,000.

 

The program has been administered by Taxation, primarily due to confidential income data used in determining qualification. Taxation’s budget includes two line-items: (1) actual subsidy payments to participants (Line item 110-506 Utility Bill Credits) and (2) administration cost funding (Line item 110-410 Energy Credits Administration). Subsidy payments are funded at $7,500,000 in both fiscal years and administration costs are funded at $697,653 in FY 2000 and $694,814 in FY 2001.

 

As of July 1, 2000, this program will be consolidated with three other low-income energy assistance programs (Percentage of Income Payment Program, Home Energy Assistance Program, and Home Weatherization Assistance Projects) and administered by the Department of Development, as directed by Am. Sub. S.B. 3 of the 123rd G.A. Therefore, Taxation will administer the program for the first half of the biennium and then will need to transfer the line-item appropriations to the Department of Development. Program costs would not change under the Department of Development. Taxation would still have some duties with respect to the determination of who would qualify for the program, since that is based on confidential income data, but the cost of verifying program eligibility should be minimal.

 

PERS Pension Appropriations

 

This bill also increases the appropriations for three line items relating to PERS pensions (090-510, PERS Cost of Living; 090-520, PERS Pension Benefits; and 090-530, PERS Ad Hoc Cost of Living). The actual costs incurred in FY 1999 were significantly higher than estimated resulting in upward revisions to the estimates for FY 2000 and FY 2001. The increases in appropriations reflect the new estimates. The combined increase for FY 2000 is $206,951 and the combined increase for FY 2001 is $289,919.

 

Tax Refunds

This bill also allows the Treasurer of State to collect, redeem, and refund taxes. H.B. 283 moved the Tax Refunds line item, 425 090-635, from TOS to TAX. This provision reestablishes this line item in the TOS section of the budget, inserts the tax refund language in the TAX section, and increases the combined amounts appropriated for tax refunds to $1.1 billion for both FY 2000 and FY 2001.

 

DNR Soil & Water CREP Administration

 

The bill transfers $99,600 in FY 2000 and $79,600 in FY 2001 from GRF line item 725-507, Conservation Reserve Enhancement Program, to GRF line item 737-321, Division of Soil and Water, in order to support administrative costs. H.B. 283 included a total of $4,000,000 to implement the Conservation Reserve Enhancement Program (CREP), which represents Ohio’s share of a federal conservation grant program. The Soil and Water grant submission included a $40,000 allowance for administrative costs, but these costs cannot be expended from the 725-507 subsidy line item. The transfer would permit the use of these funds for administrative purposes.

 

Use of Appropriations from Bond funds to Pay Judgments & Settlements

 

            The bill revises existing language in order to permit the use of appropriations from bond funds to pay judgments and settlements against the state. The amendment would permit the payment of these judgments and settlements to the extent that the payments are consistent with the purpose for which the appropriations were made and the bonds issued.

 

Department of Rehabilitation & Correction – Close Security Prison

 

The Department of Rehabilitation and Correction (DRC) currently has an $82.0 million appropriation lodged in CAP-186, Close Security Prison and Camp, that has never been touched, as any move to build another new close security prison has been put on hold. The bill affects that unspent $82.0 million appropriation in three ways. First, it reappropriates $5.0 million of the unspent appropriation and leaves it in line item CAP-186. Second, it transfers $72.0 million of the unspent CAP-186 appropriation authority and reappropriates it across 30 different departmental capital line items for various statewide and institutional projects. Third, the remaining $5.0 million in unspent CAP-186 appropriation authority will simply be allowed to lapse.

 

            The Ohio Building Authority provides funding for DRC capital projects from the sale of bonds. These bond proceeds are deposited into the Adult Correctional Building Fund (Fund 027). Debt service payments for these bonds are covered by GRF operating budget appropriations made to DRC in line item 501-407, Lease Rental Payments.

 

We do not know what would have happened to this unspent $82.0 million in capital money if it was simply reappropriated in CAP-186, given DRC has no immediate plans to build another close security prison. If the capital appropriation just sat there, but was never needed, then the state would realize a savings. Since the bill transfers $72.0 million from CAP-186 to fund other departmental projects, bond proceeds will presumably be needed and DRC will not realize as large a potential savings in its annual debt service payments. Such potential savings to DRC will in all likelihood be related to the $5.0 million in unspent appropriation authority that will lapse. It should also be kept in mind that, by reappropriating this unspent DRC capital funding, the amount of new funding to be appropriated for the department’s upcoming fiscal year 2001-2002 capital budget might be reduced.

 

In relation to the $5.0 million in unspent CAP-186 appropriation authority that will be allowed to lapse, the reader should be aware that the bill, increases the Department of Youth Services’s (DYS) reappropriated capital budget by adding the same amount ($5.0 million) to its Juvenile Correctional Building Fund (Fund 028). Presumably, this will raise DYS’s future annual debt service costs above what they would otherwise have been.

 

Under current conditions, the total cost for building a new close security prison, which includes professional design services, construction management services, site development, construction, and so forth, would probably easily check in at around $80.0 million. Given that, should the department decide to move forward on this project, the most that it could hope to accomplish with its reappropriated $5.0 million would be to enter into a professional design services contract. Getting to the point of actual construction of a new close security prison would require a considerable infusion of additional capital money.

 

The original $82.0 million appropriation in CAP-186, provided pursuant to Am. Sub. H.B. 850, the capital appropriations act of the 122nd General Assembly that covers fiscal years 1999 and 2000, was intended for the purpose of constructing a new 1,000-bed close security prison and supporting minimum security correctional camp. That close security prison has not been built and it appears, at this time, that DRC does not have any concrete plans to build any such correctional institution in the next couple of years. That being the case, none of the original $82.0 million capital appropriation has ever been spent.

 

The reasons behind DRC’s “not-to-build” decision were two-fold. First, its prison population has declined somewhat in the last few years after peaking at around 49,000 inmates in July 1998. As of the week of March 6, 2000, its total prison population count was 46,336. As of March 17, 1999, DRC was projecting its prison population out into the near-term future as follows: July 1, 2000 – 48,182, July 1, 2001 – 48,696, and July 1, 2002 – 49,200. We do not know at this time as to whether DRC has revisited those prison population projections. Second, over the course of the current biennium that covers fiscal years 2000 and 2001, DRC has received funding needed to activate and operate three new full-service prison and two new correctional camps that will create 2,900 additional inmate beds.

 

Department of Youth Services  Juvenile Detention/Juvenile Justice Centers

 

The bill increases reappropriations in DYS line item CAP-829, Local Juvenile Detention Centers, by $5 million. This line item in the Juvenile Correctional Building Fund (Fund 028) is used to fund county and multi-county juvenile detention centers. For these projects, state match is formula-driven and may represent up to 60 percent of the cost of construction projects. While this will raise DYS' future annual debt service costs above what they would otherwise have been, since the bill does not reappropriate $5.0 million for the Adult Correctional Building Fund (Fund 027) the net fiscal impact on future GRF debt service expenditures should be minimal.

 

The bill also creates a new $600,000 GRF capital appropriation for DYS in line item CAP-830, Muskingum County Juvenile Justice Center. Since this amount was transferred from DOT line item CAP-007, Muskingum County Intermodal Facility, the amount of total GRF reappropriations remain at $13.3 million.

 

 

Public Works Commission – Local Transportation Improvement Program

 

The bill also makes revisions to Amended Substitute House Bill 163 (Transportation Budget Bill) that could result in a potential $5 million increase in Public Works Commission spending in both FY 2000 and FY 2001. The original appropriation for line item 150-701, Local Transportation Improvement Program, is $62 million for each fiscal year. The bill increases these appropriation amounts to $67 million in each fiscal year. Revenue generated from $0.01 of the gas tax goes to this line item and is used by PWC to fund local government transportation projects. Therefore, any increase in spending that would be permitted by the appropriation increase would have to come from increased gas tax revenue.

 

Treasurer of State/Department of Human Services

 

The bill also includes language that would transfer the remaining balance of the Treasurer of State’s Children’s Trust Reimbursement Fund into the Department of Human Services Children’s Trust Fund (Fund 198). The bill then would abolish the Treasurer’s Children’s Trust Reimbursement Fund would then be abolished.

 

Department of Development – Appropriation Increase

The bill amends Am. Sub. H.B. 283 of the 123rd General Assembly to increase FY 2000 appropriations to the Department of Development appropriation item 195-412, Business Development Grants by $5.0 million. This provision thus produces a $5.0 million increase in FY 2000 expenditures.

Legislative Service Commission and Consumers’ Counsel

 

Existing law establishes a procedure for making transfers “between any appropriations made to” the Legislative Service Commission. The bill rewords the authorization to allow transfers to be made “of all or part of an appropriation within the commission or from one fiscal year to another.”

 

The bill also directs the Director of Budget and Management to transfer, at the request of the Consumers’ Counsel, up to $541,000 in cash from the General Revenue Fund to the Consumers’ Counsel Operating Fund (Fund 5F5). The transfer includes $350,000 for costs associated with the Consumers’ Counsel’s moving expenses and tenant improvements and $191,000 to offset cancelled FY 1997 encumbrances.

 

The bill increases the appropriation authority in the Consumers’ Counsel’s General Services Fund Group line item 053-601, Operating Expenses, by $541,000 in FY 2000 and $136,500 in FY 2001. The bill also reduces the GRF appropriation in the Legislative Service Commission’s line item 035-321, Operating Expenses, by $350,000 in FY 2000. This results in a net decrease of $191,000 in the GRF. The increase in appropriation authority to the OCC is due to three factors. $350,000 of the increase in FY 2000 is to cover the costs of moving expenses and tenant improvements. (The OCC is to move from the 15th floor of the Riffe Center to new offices in One Columbus some time this summer. The legislature will then house some conference rooms and legislative service agencies in the soon-to-be-vacated 15th floor. The original appropriation to LSC in H.B. 283 contemplated some of these moving expenses. The transfer of funds and appropriation authority to the OCC is to cover that agency’s costs.) The $136,000 increase in appropriation authority in FY 2001 is to cover the rent increase associated with the OCC’s move. (The square footage of the OCC’s new office space is approximately the same at the new location but the cost per square foot is higher.) The remaining $191,000 (transfer and increase in appropriation authority) in FY 2000 is to offset cancelled FY1997 encumbrances. This is a legacy of the Am. Sub. H.B. 215, which created the Consumers’ Counsel Fund. 

 

OCC is funded by assessments against utilities. The total assessment (paid in October of each year) is set equal to the current year’s appropriation less any lapses from the previous year. Prior to FY 1998 these revenues were deposited into the state GRF. Starting in FY 1998 the revenues were deposited in Fund 5F5. However, the assessments against the utilities in FY 1998 equaled the FY 1998 appropriations minus the prior year lapses (which included the cancelled encumbrances from FY 1997 of $191,000). The lapsed money remained in the GRF; it was not available to the OCC to spend. In FY 1999, assessments again equaled FY 1999 appropriations minus lapses from FY 1998. Since the revenue available to the OCC in FY 1998 fell short of appropriations by $191,000, they again could not spend it, so that it was included in FY 1998 lapses and therefore subtracted from FY 1999 assessments.  Consequently, the effective appropriation to the OCC each year is equal to the actual appropriation minus this phantom $191,000 lapse from FY 1997. This transfer of $191,000 from the GRF to Fund 5F5 should rectify the situation. 

The increased appropriation in FY 2000 is funded by a transfer to Fund 5F5 from the GRF and is partially offset by a decrease in appropriation authority to LSC. Hence, the net loss to the GRF in FY 2000 is $191,000. The increased appropriation in FY 2001 will be funded by increased assessments against utilities.

 

Ambulance Board – Authorize Fee Increase

 

The Ohio Ambulance Licensing Board currently inspects and permits ambulances and non-transport vehicles owned or leased by private ambulance companies.  The current associated fee for this service is $50 for initial issuance and renewal of the permits.  The fee is being increased to $100.  Under current law, certain cities are only required to pay 50% of assessed fees.  As a result of the fee increase, the board will annually accrue new revenues of approximately $54,400 annually to Fund 4N1, Operating Expenses.

 

This is comprised of the currently permitted 850 vehicles that will require an additional $50 per permit be paid and 200 vehicles from cities with reduced fees that will require an additional $25 per permit be paid.  In addition, approximately 150 vehicles enter and leave the fleets of board licensees.  127 vehicles would be would require an additional $50 be paid and 23 vehicles from cities with reduced fees would require an additional $25 be paid.  No refunds are provided for vehicles that leave fleets therefore only additional revenues would accrue to the board.

 

In addition, the amendment allows the board, with the Controlling Board’s approval, to increase fees up to fifty percent.  Many state boards currently have this authority.  This could further increase revenues sometime in the future.

 

q LBO staff:    Jeff Newman, Budget/Policy Analyst, Laura Bickle, Budget/Policy Analyst

Nelson Fox, Budget/Policy Analyst, Jeff Golon, Principal Analyst

Elisabeth Gorenstein, Budget/Policy Analyst, Sybil Haney, Budget/Policy Analyst

Alex Heckman, Budget/Policy Analyst, Erik Karolak, Budget/Policy Analyst

Allan Lundell, Economist, Doris Mahaffey, Economist

Jeff Petry, Economist, Chuck Phillips, Principal Analyst

David Price, Budget/Policy Analyst, Kathy Schill, Senior Analyst      

Wendy Zhan, Senior Analyst

                                   

 

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