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Statehouse Update

March 15, 2019 Monday, March 11, 2019 Obhof Says Gas Tax Hike May Be Lowered Again In Budget Bill On the same day members of a Senate panel were told the current version of the state's transportation budget does not include enough funding to maintain roads, the chamber's leader suggested even less could be available.

Senate President Larry Obhof (R-Medina) said Monday that it is likely the 10.7 cents-per-gallon increase in the gas tax currently in the two-year transportation budget (HB 62) passed by the House is likely to be reduced by the time it gets through the upper chamber.

"It is likely to be less," he told reporters after the Senate's non-voting session.

"We are working with the administration collaboratively to identify basically line-by-line what the needs are," President Obhof said. "I think we are all focused on the same things: making our infrastructure system as great as it can be while protecting the taxpayers of the state of Ohio."

Department of Transportation Director Jack Marchbanks, meanwhile, told members of the Senate Transportation, Commerce and Workforce Development Committee the House's version of the bill (HB 62) "falls far short of Ohio's real need."

The $7.94 billion bill (HB 62) last week cleared the House in a bipartisan vote after it was drastically altered from the two-year spending outline Gov. Mike DeWine proposed.

The governor's proposal would have boosted the state's gas tax by 18 cents per gallon, bringing in $1.2 billion annually. The House, however, lowered the figure to $10.7 cents phased in over two years accompanied by an increase of 20 cents in the diesel fuel tax over a three-year period.

"We are very encouraged by the bipartisan actions taken by the Ohio House to approve a long-overdue revenue increase for Ohio's roads and bridges," Director Marchbanks said. "It is certainly a step in the right direction and any revenue increase is better than no revenue increase. However, it is clear from the House's actions that I have not done my due diligence in detailing how ODOT arrived at the figure of 18 cents."

The director said ODOT recently undertook a needs analysis and found that in the coming fiscal year it has a funding shortfall of about $734 million. The needs rise by about $60 million each subsequent year, he added.

"In Fiscal Year 2020 alone, our needs analysis determined it needs about $2.84 billion for maintenance and operations," he said. "This is what we would need to simply maintain the status quo. It does not leave any room for any additional improvements of any kind. $2.84 billion."

Chairman Sen. Rob McColley (R-Napoleon) noted that in his testimony Director Marchbanks said the state's highway system is basically built out but he also spoke of several major new improvements.

The director said those projects are largely designed to address "pinch points" and ease congestion.

"These are very expensive fixes in urban areas, which drive up the price of those projects," he said.

The governor had also proposed that the 18-cent increase be indexed to inflation. Sen. Nickie Antonio (D-Lakewood) asked about the removal of that language.

The director said it makes it more difficult for the department to keep pace with needs.

Mr. Marchbanks also addressed several other changes made in the House, including increasing funding for public transit from $40 million to $100 million.

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"If it is the will of the General Assembly to dictate how much of ODOT's discretionary funding should be dedicated to public transit, so be it," he said. "However, I do need to point out that, under the House-passed version of the bill, this is money we would otherwise be able to spend on road and bridge maintenance. We are not talking about trading major new improvements for public transit, we are talking about siphoning money away from basic road and bridge maintenance."

President Obhof hinted that the public transit funding issue will be addressed in the Senate, saying the amount is "certainly not going to go up." He added that it might be better addressed in the operating budget.

"I think there is a broad bipartisan understanding that more needs to be done on that front," he said. "Whether that's the specific proposals that are in front of us now, that remains to be seen."

Tony Long, director of tax and economic policy at the Ohio Chamber of Commerce, warned that the 20-cent increase in the diesel fuel tax will dampen the state's business climate.

"While the trucking companies are the ones who will directly pay the higher cost at the pump, the impact to the trucking industry would be negligible," he said. "That's because the accepted method to deal with the changes in the fuel costs is via a fuel surcharge. In other words, the trucking companies will pass the additional cost along to their customers. And just who are their customers? The thousands of Ohio businesses that rely on trucking companies to ship materials, parts, and finished goods."

Aldo Filippelli, president of the Ohio Deputy Registrars' Association, called on lawmakers to retain a House-added provision boosting the deputy registrar fee by $5.

"This cost of inflation adjustment will allow agencies to maintain office space within their communities, and invest in qualified employees, as well as other benefits to agency operations while saving taxpayers and the state of Ohio tens of millions of dollars annually," he said.

"The state has stopped providing DR services having closed their last state operated location because it is cost-prohibitive for the state to run these locations. The private sector, even with a fee reflective of cost of services in 2019, is a more efficient operation and return on the tax payer dollar for these services."

Department of Public Safety Director Tom Stickrath said a proposal in the House version of the measure to levy a fee of $200 on electric vehicles and a fee of $100 on hybrid vehicles is "very doable" but called on lawmakers to provide for six months to prepare.

The Senate hopes to pass its version of the transportation budget by March 20.

"It is a very short time frame for some very important, very complex issues," President Obhof said. Controlling Board Approves Money For Broadband Coverage Study A contract to determine what parts of Ohio are unserved or underserved by broadband internet providers cleared the Controlling Board Monday.

The $905,000 request from the Development Services Agency covers a contract with Connect Ohio Initiatives LLC in Columbus to collect and analyze data on broadband deployment across the state.

The Third Frontier Commission initiative stems from legislation (SB299, 132nd General Assembly) intended to encourage more broadband development, said Rachel Near, director of legislative affairs for DSA. That legislation lays out six steps for the contractor to go through in its evaluation.

"What the commission asked Connect Ohio, the vendor, to do is to go through those six steps, produce maps so that we could, going into the future, know more about the broadband landscape in Ohio," Ms. Near said.

Sen. Jay Hottinger (R-Newark) asked if the mapping project is an update of previous efforts or if the state has mapped broadband access before.

The state has had contracts with the same vendor to do similar work in the past, but not to the extent and level of detail in this effort, Ms. Near said.

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"We'll be working with the vendor to get as detailed as we can," she said.

The six specific things the research will focus on are laid out in the legislation, she said.

"How does that move us forward in terms of being able to serve some of those unserved areas?" Sen. Hottinger asked.

Ms. Near said that's a broader conversation than just this contract or DSA's involvement. "I think having the data at the beginning is a good first step," she said.

In total, the board on Monday approved 40 requests for funding.

Three items on the Controlling Board's agenda were deferred by agencies.

They were: the Adjutant General's $394,316 request for a power and communications line project in Ravenna; the Department of Commerce's $325,000 proposal for the Underground Storage Tank Program; and an Opportunities for Ohioans with Disabilities $1 million plan for program management.

Other items approved by the board included:

• $15.1 million – Ohio State University – for construction manager services for a new laboratory building in Wooster.

• $1.1 million – Sinclair Community College – to replace a building air handler.

• $1.8 million – University of Toledo – for a building envelope and weatherproofing project.

• $1.3 million – DSA – for a contract to expand media buying and increase digital media placement for TourismOhio.

• $600,000 – Environmental Protection Agency – to spend supplemental cash awarded by a federal grant and to make a subgrant to the Pike County Emergency Management Agency.

• $5.5 Million – Lottery Commission – for contract changes with Intralot based on significant Mega Millions and Powerball jackpots and to temporarily cover printing costs after the Lottery's printing vendor went out of business.

• $3.7 million – Department of Mental Health & Addiction Services – for patient area safety improvements at Heartland Behavioral Health in Stark County.

Local Tax For Transportation Infrastructure Faces Legal Challenge While lawmakers debate how to best fund the maintenance of the state's road and bridges, one village's method for doing so is under scrutiny.

Mark Mathys and the Islander Inn are asking the Ohio Supreme Court to strike down a Put-in-Bay ordinance that imposes a license fee on owners of vehicles used for the transportation of persons or property for hire.

The annual fee ranges from $300 for buses to $15 for bicycles. The ordinance states that all revenue derived from its enforcement is to be used for the sole purpose of repairing streets within the village.

The case stems from a 2015 criminal citation issued to Mr. Mathys and the Islander Inn for an alleged violation of the ordinance.

The trial court granted a motion to dismiss on the grounds that the ordinance violates the Ohio Constitution.

The village appealed to the Sixth District Court of Appeals. After the entire court was recused, Ohio Supreme Court Chief Justice Maureen O'Connor appointed three Tenth District Court of Appeals judges to hear the case.

Judge Betsy Luper Schuster found the ordinance to be "a valid exercise of the village's taxing power" in an opinion joined by Judge Susan Brown.

In a separate opinion concurring in part and dissenting in part, Judge Jennifer Brunner took issue with the majority's conclusion that the high court overturned a previous ruling in 1998.

"While some would say that resolving the tension between these enactments is our role, I do not agree with the majority that we can simply say Cincinnati Bell overruled Firestone, when the Supreme Court did not, itself, say so," she wrote. "Taking all of these enactments together, which is necessary to answer the question, I find a lack of clarity about whether the ordinance applies to appellees."

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Mr. Mathys and the company make a similar case in their memorandum in support of jurisdiction. They also argue that because the state licenses vehicles for use on all public roadways no municipality may levy an additional tax for similar purposes.

"Ohio drivers pay the BMV an annual tax on their motor-vehicles in exchange for an Ohio license to use all roads in this state. Baked into the state tax is a so-called 'piggyback' tax enabled by the General Assembly to benefit municipalities. The deputy registrar collects the moneys at the point of licensing and redistributes the funds to the state and appropriate localities for the purpose of maintaining roadways," they write.

"Because vehicles are inherently mobile and traverse many municipalities, the state legislature must necessarily control this intricate system of licensing vehicles and the parallel level of taxation. Any other way is unworkable as illustrated by the decision below, which could require that crisscrossing Ohio by vehicle requires a state license and all manner of additional local municipal licenses only obtainable by paying untold local taxes."

They also contend that the ordinance is unconstitutional and that if allowed to stand it could lead to a "sea change."

"If one village may forbid some state-licensed-vehicle owners from using local public roadways without paying an additional 'municipal tax,' then every municipality may enact sweeping licensing ordinances extending to all vehicles," Mr. Mathys and the company wrote. "And if reflexively invoking the phrase 'municipal tax' now qualifies towns to raise unrestricted funds through vehicle-licensing measures, then nothing stops enactment of other inventive ordinances enjoining all manner of statewide licenses absent payment of some imaginative municipal 'tax.'" Back And Forth Continues Over Need For Proposed AEP Solar Farm Not only should the Public Utilities Commission of Ohio approve a proposed 400-megawatt solar farm, but it should do so on an expedited basis, AEP Ohio is now arguing.

That's the request made by the company in its initial post hearing brief as the PUCO continues pondering whether to permit the proposal to move forward despite claims from critics that adequate need for the facility hasn't yet been demonstrated.

It's the first round of briefs filed since both sides went head-to-head in hearings earlier this year over the project, which is part of the company's overall commitment to develop 900 megawatts of renewable generation.

AEP argues that the commission should speed up the timeline of the case to ensure a decision by October. That would potentially tee up construction to begin before Jan. 1, 2020, which is the cutoff for the project to quality for certain investment tax credits, AEP said.

But whether that approval will come continues to hinge on whether the company has met the legal threshold of proving the project is needed.

"In short, the evidence presented by AEP Ohio and supporting intervenors demonstrates that there is a resource planning need for developing economical renewable resources in the company's service territory that the market is not meeting, and that developing those resources would meaningfully further the Ohio energy policies codified in (Revised Code)," AEP wrote.

But opposition remains among groups who argue customers shouldn't be forced to pay for a project that isn't needed. Notably, PUCO staff issued a report in January opining that the company hasn't met that bar.

Staff went further in its recent brief, opining that the benefits AEP attributes to the proposal are not unique to this proposal and would exist regardless of who was pursing the project and how it was financed. The purported benefits are therefore, staff argued, "not a reason to endorse this proposal."

"This case is not a referendum on the wisdom of constructing renewable generating resources," staff continued. "Rather it is the first step of a process to determine if all ratepayers should bear the cost burden of new resources. The General Assembly has determined that the commission can only consider forcing ratepayers to bear this burden if the facilities are needed to maintain electric service. No matter how wonderful the idea of adding 900 MW of renewable generation may be, forcing all ratepayers to pay the bill can only be considered if those facilities are needed and the record here shows they are not."

Others submitting arguments against the plan include the Ohio Consumers' Counsel and its allies, the Ohio Manufacturers' Association, Industrial Energy Users-Ohio, Direct Energy and others.

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But AEP allies in the case, which include environmental groups, the Ohio Partners for Affordable Energy, the Mid-Atlantic Renewable Energy Coalition and the Ohio Energy Group, say the project will benefit consumers and point to survey data showing consumers want more investment in renewable energy.

In a joint brief, the Ohio Environmental Council, the Natural Resources Defense Council and the Sierra Club argued "more than enough information" has been provided to show need exists.

"The commission is presented here with a proposal that will help to responsibly transition Ohio's coal-dependent communities to more sustainable economies as the state moves toward cleaner and healthier sources of energy; all while saving money and stabilizing bills for the electricity customers of AEP Ohio," the groups wrote. "The commission should approve Phase I of this project because AEP Ohio has proven its case for need under the statute." Tuesday, March 12, 2019 Public Transit Advocates Continue Call For More Funding Local government officials on Tuesday continued to push for additional funding to maintain their transportation infrastructure.

Allen County Commissioner Cory Noonan, testifying on behalf of the County Commissioners Association of Ohio, called for an increase in the motor vehicle fuel tax to remain in the state's transportation budget (HB 62).

"Ohio's motor fuel tax is now lower than all of our surrounding states except Kentucky," he told members of the Senate Transportation, Commerce & Workforce Committee. "Given the projected growth in demand for electric and other energy efficient vehicles, consideration should also be given to leveling the playing field between electric, hybrid or fuel cell vehicles and conventional gasoline or diesel-powered vehicles, and we are encouraged that the House version of the bill has a provision to do this."

However, Mr. Noonan also called for the chamber to restore the proposed increase in the gas tax to 18 cents per gallon, as Gov. Mike DeWine proposed before the House reduced the figure to 10.7 cents per gallon.

Sen. Kristina Roegner (R-Hudson) questioned if allowing localities to not abide by the prevailing wage law would allow their dollars to go further.

Mr. Noonan said that could help.

Delaware County Engineer Chris Bauserman said counties across the state are 60% short of the funding they need to properly maintain their transportation infrastructure and an increase in the gas tax is the most efficient way to fill that gap. He also called for lawmakers to come up with a long-term solution.

"Ohio's growing transportation funding crisis will not be solved with a singular short-term patch. The shortfall will only grow over time as inflation, improved vehicle fuel economy, and slower growth in driving continue to erode revenues," he said.

"Maintenance, repair and reconstruction requirements on our existing transportation infrastructure can only be expected to grow. The time is now to design a comprehensive infrastructure-funding solution that is more sustainable and equitable in delivering the needed funds to Ohio's state and local road infrastructure."

Chairman Sen. Rob McColley (R-Napoleon) questioned whether Delaware County has taken full advantage of permissive license fees.

Mr. Bauserman said the county is currently at $20, which generates about $5.7 million annually.

Sen. Nickie Antonio (D-Lakewood) asked about the cost of deferred maintenance.

"It's much cheaper to preserve it than it is to build it," Mr. Bauserman replied.

Clinton County Engineer Jeff Linkous said permissive license fees are not enough to cover the cost of transportation infrastructure needs in many places.

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"Ohio's gas tax rate has not been updated in over a decade, causing significant declines in my purchasing power," he said. "Those declines are negatively affecting the funding of economically vital infrastructure projects not just in my county, but in all 52 rural counties."

Public transit advocates also continued to advocate for more funding. The executive version of the budget contained $40 million for public transit, a figure that was boosted to $100 million in the House.

Carly Allen of the Amalgamated Transit Union Local 697 said the issue is one of safety.

"While transit vehicles are built to last, there are limitations on what even the most skilled mechanics can do when the miles pile up," she said. "Potholes, weather conditions and heavy usage take their toll on our buses quickly. When funds run dry, replacement parts come out of the scrap pile rather than the manufacturer."

Stu Nicholson, public affairs director at All Aboard Ohio and spokesperson for MOVE Ohio, called the House version of the bill "an essential investment for capital expenditures on equipment as well as infrastructure upgrades for Ohio's transit systems."

"In addition, it is vital that an additional $85 million in General Revenue funds be directed at the operational needs of our transit systems, the dollars that go enable the hiring of drivers, route planners, mechanics and maintenance crews," he said. "New equipment or a new light rail or bus route needs people to run them."

Tom Balzer, president and CEO of the Ohio Trucking Association, said the industry is positioned to deal with increased costs to diesel fuel. He also called for a House inserted provision lifting a 150-mile limitation on heavy haul permits to remain in the bill.

"Regional heavy haul permits allow vehicles to travel up to five destinations under one permit," he said. "The routes are approved by ODOT and fees are collected for each additional destination. Unfortunately, when created, the regional heavy haul permit was limited to trips under 150 miles. This arbitrary 150-mile limitation is particularly unfair to trucking companies located outside central Ohio that are forced to travel beyond 150 miles to get to the other side of the state."

He also asked that "a definition of an independent contractor in the trucking industry for workers compensation, unemployment insurance, and wage and hour" be included in the bill.

Sen. Antonio asked about the number of independent contractors in the field, and Mr. Balzer said more than half of the trucking companies in the state fit that bill.

Opponents, however, called on members of the panel to make changes to the measure. Ryan Howard, COO of truenorth, raised a host of issues with the bill, including failure to restore the dealer allowance for collecting and remitting the motor vehicle fuel tax.

"For decades Ohio provided a dealer allowance to compensate wholesale and retail dealers for their service and their burdens in collecting and remitting motor vehicle fuel tax. The allowance was set at 3%," he said. "That 3% was split 2% for wholesale dealers and 1% for retail dealers. Some years ago, during transition caused by tax reform in 2005, the state altered the allowance. The 3% allowance was reduced to 1%. We were advised that the reduction was temporary, but it has been held there."

Attorney Nicholas Green, testifying on behalf of peer-to-peer car-sharing company Getaround, took issue with language currently in the bill to achieve parity with rental car companies.

"The rental car companies are quick to claim that they are just seeking 'parity' with peer-to-peer carsharers. But their argument relies on a false equivalency, in which vehicle owners are acting like rental car companies," he said.

"They are not. Rental car companies earn the majority of their revenue from airport transactions; the vast majority of Getaround transactions, by contrast, are local people making local trips. And unlike rental car companies, our vehicle owners don't enjoy an exemption from sales tax on the purchase of new vehicles, nor can they claim tax deductions against federal income tax for costs like insurance, maintenance, or repairs."

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Lydia Mihalik, director of the Development Services Agency, touted the Roadwork Development Grant, which the House boosted from $15.2 million to $17.3 million each year. House Energy Subcommittee Begins Briefings On Ohio Generation A House subcommittee Tuesday contemplated the scope of the state's coal and renewable resources in advance of several controversial energy-related legislative items expected to return this session.

Rep. Dick Stein (R-Norwalk) and Rep. Michael O'Brien (D-Warren), co-chairs of the House Energy & Natural Resources Subcommittee on Energy Generation, said in interviews their goal is to educate members of the panel so the group can hit the ground running once legislation is assigned to the newly formed subcommittee.

"We've got a lot of new members that haven't had an opportunity to have a lot of background related to energy and it will give all of us an opportunity to get a refresher course on who are generators are in Ohio, what percentage, what mix they play in terms of that generating capacity for the state," Rep. Stein said.

Added Rep. O'Brien: "They can talk and boast about their own particular portfolios of energy. We're looking forward to that information as well as any information we can gather to make the best decision possible on any legislation in the future to move the state ahead."

The chairs said the subcommittee in the coming weeks will continue receiving presentations from various parties on Ohio's energy landscape. First up Tuesday were representatives of the wind industry, who highlighted the state's renewable energy standards and current wind turbine setbacks.

Dayna Baird Payne, representing the American Wind Energy Association, called Ohio "a tremendous success story" when it comes to wind energy. But that doesn't mean there aren't regulatory hurdles lawmakers can help fix, she said.

Advocates are continuing to press policymakers to loosen wind turbine setback restrictions adopted in 2014, which the industry says halted applications for new wind farms. Prior legislative efforts to revise those setbacks failed facing resistance from prior House leaders. A bipartisan pair of House lawmakers is currently working on a proposal to provide the requested relief.

"We're hopeful we can eliminate some of these regulatory obstacles here in the industry and continue to change energy generation," Ms. Payne said.

Rep. Glenn Holmes (D-McDonald) questioned how much a setback revision might provide the industry a competitive advantage.

"You'd unleash a couple billion dollars if you did that," said Terrence O'Donnell, legal counsel for several wind developers. "You'd have investment in line with what we're seeing in other states."

Mr. O'Donnell said the industry could also benefit from more certainty surrounding the state's renewable energy portfolio standards.

"Every year or two since the standards were passed in 2008 the legislature has either significantly amended, pulled back, frozen, attempted to freeze, attempted to repeal or otherwise made changes to the standards," Mr. O'Donnell said. "Suffice it to say on behalf of the wind industry it's really challenging if the General Assembly's going to set a target and say, 'Oh, by the way, we're going to change it every year, or change it every two years.'"

House legislation last session (HB114, 132nd General Assembly) to render the standards voluntary failed to advance after Senate efforts to strike a compromise fizzled. Lawmakers came closer to reducing the standards during the 131st General Assembly, only to be thwarted by a gubernatorial veto (HB554, 131st General Assembly).

Subcommittee members also heard from the coal sector with a presentation from Brett Amheiser, regional vice president for coal operations for Vistra Energy subsidiary Luminant. The company has 5,132 megawatts of generating capacity in Ohio with four gas, two coal and two oil-fueled plants, he said.

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Mr. Amheiser described how the company has adjusted under pressure from cheaper natural gas. Among the steps taken, he said, was the launch of an Operations Performance Initiative to identify savings and efficiencies in revenue, fuel, operation, maintenance and other areas. Still, some plants deemed no longer economically viable have been closed, he said.

"In none of those cases did Luminant ask for any sort of subsidy or bailout," he said. "We firmly believe in the competitive market and our employees work extremely hard every day to ensure our plants are the safest and most efficient in the country."

Rep. Holmes questioned whether the company, in operating its coal plants, did anything differently than FirstEnergy Solutions, which owns two nuclear plants poised to shutter. Mr. Amheiser replied that he can't speak to FES' business practices.

FES and its allies continue pressing lawmakers to enact legislation to financially support those nuclear plants. Proposals from last session failed to gain majority party support, but House lawmakers are thought to be close to reintroducing another bill aimed at accomplishing that goal. Faber Says Office Will Step Up Reviews Of Public Records Compliance Future state audits will include an expanded review of public records compliance, State Auditor Keith Faber said Tuesday.

At a Statehouse press event marking Sunshine Week, the auditor also said he anticipates legislation to expand an existing public records complaint and appeal process to include disputes about open meetings compliance.

With the public records audit changes, the office will look at state agencies' and local governments' compliance with public records law every time the entity would be up for a regular audit, meaning every year or two, Auditor Faber said.

The auditor's office will also produce a scorecard showing a government entity's compliance with various aspects of the public records law.

"The real idea behind it is to give the public more information about what their local government is doing," he said. "I believe that sunshine makes people act better."

During 2018, the auditor's office received 4,727 reports of public record violations, and issued 325 citations, mostly dealing with public records training.

The scorecards will also allow the auditor's office to identify best practices and establish benchmarks for them, he said.

The other expected change deals with the state's public records mediation program, which allows for those disputes to be handled through the Court of Claims.

The auditor said the Ohio News Media Association suggested that the same process be used to handle disputes concerning open meetings.

"I think it's a great idea," he said. "I think the process would lend itself well to that dispute as well."

Auditor Faber said he expects legislation to be introduced soon in the Senate.

"What you're going to do is effectively take the same process we did for public records and apply it for open meetings violations," he said. "A process that can resolve that kind of dispute for $25 just makes a world of sense."

Dennis Hetzel, executive director of the ONMA, said the current draft of the proposal would allow the Court of Claims to nullify actions taken during an illegal meeting. Overall, he said the goal is to promote transparency.

"I think it'll be a very good thing for citizens and journalists," he said.

Auditor Faber also said he anticipates more transparency from JobsOhio under the DeWine administration, and that he has met with the economic development entity to discuss ways to make it more open.

"They agreed to additional transparency with regard to compensation," he said. "Candidly, I got assurances from them that they are reporting all compensation."

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He said he wants to see JobsOhio be more open about projects after the fact.

"I don't think there's any reason, after the fact, for them not to disclose what they've spent their money on," he said.

As to whether the auditor should have more authority to audit JobsOhio, he said that's an issue for lawmakers to decide.

"We will audit them until the cows come home if the legislature gives us the authority," he said. "I am concerned that we make sure that we don't get into the business of the state auditor's office auditing private entities." Agency Briefs: Flood Emergency Declared; AG Releases 'Sunshine' Manual; Auditor; ODI Gov. Mike DeWine has declared a state of emergency in 20 Ohio counties impacted by damaging floods last month.

The severe storms and rainfall from Feb. 5-13 led to "dangerous and damaging conditions affecting the health, safety and welfare of the citizens of Ohio," according to the governor's proclamation.

The impacted counties are: Adams, Athens, Brown, Gallia, Guernsey, Hocking, Jackson, Jefferson, Lawrence, Meigs, Monroe, Morgan, Muskingum, Noble, Perry, Pike, Ross, Scioto, Vinton, and Washington.

"Many of these counties were still recovering from last year's severe flooding when they were hit hard yet again," Gov. DeWine said in a statement. "This is a key step in getting these 20 counties the assistance they need."

The counties incurred "significant infrastructure damage" to roads and culverts, according to the governor's office. Under the emergency declaration, various state and federal agencies will coordinate a response to assist local governments.

Representatives from FEMA and the Ohio Emergency Management Agency will meet with county and township officials to conduct a joint damage assessment.

Sunshine Week: Mr. Yost kicked off Sunshine Week Monday with the release of the 2019 edition of Ohio's Sunshine Laws Manual, a one-stop resource for information on the state's Public Records and Open Meetings Acts.

The "Yellow Book" includes the past year's law changes and legal decisions affecting Ohio's open government laws.

"Most days, what happens at city hall or the county courthouse has much more impact on your life than the latest installment of outrage from Washington, D.C.," Mr. Yost said. "Our ability as a people to stay informed and hold local politicians accountable hinges on the freedom to access government information through public records and open meetings."

State Auditor Keith Faber recently announced findings for recovery against Rebecca Hopkins, former manager of the Village of Lincoln Heights.

Ms. Hopkins made over $70,000 in inappropriate purchases and was overpaid by more than $1,500, according to the Auditor's Office. She pleaded guilty to the theft in February, was sentenced to five years of probation, and must pay $61,110.

"Those in public office should be held to a high standard and face strict penalties when they abuse public trust," Mr. Faber said. "We will continue to fulfill our duty to protect Ohio taxpayers from those that lie, cheat, and steal."

The result of a separate audit was two findings for recovery against Cincinnati Generation Academy, both of which were repaid while the charter was still under audit.

The academy failed to forward $949 of employees' state income tax and, based on attendance numbers, was overpaid by ODE by $3,929, the auditor reported.

Department of Insurance Director Jillian Froment reminds that March 15 is the final day to purchase federal crop insurance coverage for 2019.

"Crop insurance provides a strong protective umbrella for farmers," Ms. Froment said. "They should speak with an insurance agent to purchase their coverage before the March 15 deadline."

Crop insurance is sold and delivered solely through private crop insurance agents. The federally-subsidized private insurance covers specific weather, pest, and revenue related losses dependent on crop and country.

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Wednesday, March 13, 2019 Senate Passes Bills On Theft In Office, Poll Workers A priority bill for Senate Republicans aimed at equalizing penalties for corrupt public officers with other thieves was sent to the House Wednesday.

Also passing unanimously on what was otherwise a contentious session focused on abortion measures (see separate story) was legislation to reduce precinct poll workers in certain circumstances.

The theft-in-office measure (SB 10) sponsored by Sen. Steve Wilson (R-Maineville) and backed strongly by Senate President Larry Obhof (R-Medina) would strengthen penalties for public officials convicted of the crime.

Sen. Wilson said it would "protect taxpayers from corrupt public officials."

The state auditor's office has charged 85 officials with theft in office since 2011, but the penalties have been inconsistent with those for people convicted of stealing in the private sector, the sponsor said.

The measure would also prevent someone who is convicted from serving in a public position again and would give local governments a way to recoup the cost of investigatory audits that resulted in the conviction, Sen. Wilson said.

"Sometimes a political subdivision spends more to find it out than the amount they get in restitution for what was stolen," he said.

A provision was added in the Government Oversight & Reform Committee to assert that restitution is not dischargeable in a bankruptcy. The measure cleared the committee Tuesday.

The voting precinct bill (SB 22) would give county election boards the authority to reduce the minimum number of election officials at a multi-precinct location that uses electronic pollbooks.

Sponsor Sen. Joe Uecker (R-Loveland) said it does not change the bipartisan composition of poll workers. He said it will help counties who have trouble finding enough poll workers, especially for smaller elections.

"When I began working on this issue four years ago, only 21 counties used electronic pollbooks. Now they're being utilized by nearly every county in Ohio," he said.

Previous versions of the measure had drawn concerns from Democrats, who wanted assurance any decision to do so would be bipartisan.

Sen. Uecker said an amendment accepted in committee specified that three of the four county board of election officials must approve of the decision, ensuring at least one member from each party agreed.

Sen. Hearcel Craig (D-Columbus) praised the change.

"I think it furthers the ability of bipartisanship with regard to our elections," he said.

Death Penalty: After the session, Sen. Obhof told reporters he expects the chamber will look into possible changes to the state's current death penalty process.

"I think if we have legal challenges that are not favorable to the state right now, obviously we should start looking at other alternatives and we're happy to do that," he said.

That will include a look into what other states have done, he said.

He also said the chamber will likely consider legislation similar to a measure introduced last General Assembly by Rep. Bill Seitz (R-Cincinnati) to exempt people with serious mental illness from the death penalty. Speaker Says More Committee Cameras To Come Online The House is weeks away from turning on cameras in additional committee rooms, Speaker Larry Householder said Wednesday.

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The speaker provided the update following a brief session that saw the chamber pass a single legislative item – a procedural resolution (HCR 7) that assigns members to prepare arguments for and against amendments to the constitution, which passed 90-0.

The Glenford Republican promised upon winning the speaker's gavel in January that he would ensure more House committees are streamed live online.

Since then, staff have been working to install cameras and data systems to accommodate the change and the speaker said after session that some equipment is nearly ready to be switched on.

"We're two weeks away from having additional committee rooms up and running here in the House and we're still on schedule that by the end of summer we should have all the House committee rooms up and running," he said.

In other organizational matters, Speaker Householder has hired Beth Gianforcaro as press secretary for the House GOP. Ms. Gianforcaro began her role this week and previously served in similar capacities in a number of state offices, including most recently for attorney general and former auditor Dave Yost.

Speaker Householder also said leadership has done some "pretty extensive work" to interview and narrow down applicants vying for the 3rd House District vacancy. He said he anticipates some news on filling that seat within the next 10 days. Nine people have applied for the job.

JobsOhio: The speaker also expressed continued concern over JobsOhio.

"I've always been concerned about the transparency or lack thereof of JobsOhio," Speaker Householder said. "I understand they provide a significant economic tool for the state, but I'm always concerned about the transparency. I'm going to have some discussions with some people about it and see where that leads."

Auditor Keith Faber said Tuesday he anticipates more transparency from JobsOhio following his discussions with leaders and that he wants to see the entity become more forthcoming about information after the fact.

Mr. Faber's predecessor previously attempted to convince lawmakers to give the office the ability to audit JobsOhio.

Asked about former auditor Yost's previous proposal, the speaker said, "I think it's important to have discussions and find out what the advantages and disadvantages are with the way any agency operates or anyone who does business with the state.

"We fully recognize they're an independent corporation, but they receive a lot of Ohio tax dollars," he added. "And so, I think it's important to have discussions and see what's on their mind and why things are the way they are."

When asked whether JobsOhio is doing a good job, the speaker replied with a laugh, "I don't know. That's part of our transparency problem."

Transportation Budget: As the Senate continues deliberating on the transportation budget (HB 62), Speaker Householder said he's "looking forward to conference committee. It's going to be good."

He declined to comment in detail on the debate unfolding in the upper chambers, including Senate President Larry Obhof's (R-Medina) remarks this week that the chamber may further cut the proposed gas tax increase.

"We'll just see what the Senate comes up with and when we get to conference committee, we'll figure it all out," he said. "The House is the House, the Senate is the Senate. They've got their opinion and we'll figure it out." Budget Previews Address Economic Development, Lead Paint More details of Gov. Mike DeWine's first biennial budget emerged Wednesday with separate announcements regarding "opportunity zones" and a problem plaguing the state's older homes and apartments.

The latter proposal entails a broad approach to addressing lead poisoning across the state. The governor announced during a stop in Cleveland that he would recommend more than $10 million be spent over the next two years on the initiative.

"It is unconscionable to me that in 2019, there are still children whose opportunities are stifled because they live in homes where they are exposed to lead paint," Mr. DeWine said in a statement.

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"Every year, thousands of Ohio children under the age of six test positive for unsafe lead levels. Undoubtedly, there are countless more who have never been tested. This effort focuses on making homes safe for families, helping to ensure kids are tested, and getting affected kids the early intervention they need to address the damage caused by lead. No child should be poisoned in their own home."

The governor's plan entails:

• Additional testing for children. Pointing to only a 60% rate for testing all Medicaid-eligible children, he said he would push for more by "holding providers and managed care organizations accountable" in that regard.

• Early Intervention Services. An additional $24 million for the Department of Developmental Disabilities' Early Intervention Program would go toward services such as physical, speech, and occupational therapy for children with dangerously high levels of lead in their blood.

• Lead Investigations and Abatement. The Department of Medicaid would provide a 50% matching requirement for eligible families to participate in the state-sponsored lead abatement program when a child tests positive for dangerous levels of lead, and the Department of Health will earmark $10 million in State Child Health Insurance Program funding over the biennium to fund the investigations and abatement.

• An abatement income tax credit of up to $100,000 for eligible individuals who have incurred expenses to make their homes lead-safe.

• Expanding the lead workers and contractors workforce with the help of a $450,000 set-aside in ODH to reimburse individuals the costs of becoming licensed.

• Improved coordination among state agencies to tackle the issues.

Opportunity Zones: While speaking at a business roundtable event organized by the University of Akron, the governor expanded on an economic development initiative he broached during the State of the State address earlier this month.

Building on federal legislation that created incentive-laden "Opportunity Zones" in economically challenged areas across the nation, Mr. DeWine said he'd propose an Ohio add-on as part of his two-year spending plan.

Under his plan, the state would provide a 10%, nonrefundable income tax credit to those who make investments in the state's 320 designated Opportunity Zones. Those areas were previously identified by local communities as having "high potential for new investment, development, and job creation," according to the governor's office.

"Communities nationwide are competing for private investment in their Opportunity Zones, and we want to give Ohio communities the edge," Gov. DeWine said of his "budget neutral" proposal. "This will make it more attractive for investors to direct their investments here."

Legislation pending in the Senate (SB 8), sponsored by Sen. Kirk Schuring (R-Canton) would also piggyback Ohio incentives onto the federal program. House Transportation Budget Changes Come Under Fire Diverting funding from oil and gas production to eastern Ohio, bifurcating the gas and diesel fuel taxes and regulating e-scooters were among the complaints raised Wednesday with the House's version of the transportation budget.

The concerns were aired before the Senate Transportation, Commerce and Workforce Committee, where critics urged members to remove or modify various provisions in the bill (HB 62).

Matt Hammond, executive vice president of the Ohio Oil & Gas Association, blasted language that requires annual transfers of $5 million from the Oil and Gas Fund for infrastructure needs in counties with at least one well producing oil or gas in the Utica or Marcellus shale formation.

He said the industry is already contributing significantly to transportation infrastructure in those areas.

"In eight counties alone, from 2012-2016, the oil and natural gas industry has spent over $300 million to support, repair and construct over 630 miles of public infrastructure," he said. "In 2018 alone, one oil and gas producer invested over $22 million in public infrastructure in their operating footprint. Also in 2018, one producer spent $2 million in one county."

"As you can see, we are quickly approaching $350 million in investments in public infrastructure. We are not aware of another private entity in the state of Ohio that invests more in public infrastructure. Reports stating that this industry is not providing funds for these public infrastructure needs are simply not accurate."

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Chris Zeigler, executive director of the Ohio office of the American Petroleum Institute, also spoke out against the provision.

"We do not believe that such a significant policy change impacting the natural gas and oil industry was fully vetted before being added to the bill," he said in written testimony.

Former lawmaker Ross McGregor, testifying on behalf of the Ohio Manufacturers' Association, spoke out against House changes that would boost the gas tax by 10.7 cents per gallon and the diesel fuel tax by 20 cents per gallon.

"Like most states, Ohio has one simple motor fuel tax rate that applies equally to all vehicles that consume motor fuel," he said. "The bill pending before you confounds the established simple tax and will result in diesel fuel being taxed at a rate of 25% greater than gasoline."

Mr. McGregor also said the costs will be passed on to customers.

"It's a common practice in shipping contracts for the carrier to pass along the total fuel costs to the shipper (that is, for example, a manufacturer)," he said. "So, in effect, when you raise taxes on diesel fuel, you are increasing costs on economic drivers of our state's prosperity."

Sen. Nickie Antonio (D-Lakewood) asked for specifics on why the bifurcated rates is a problem.

"I believe in all cases simplicity is a desirable goal," Mr. McGregor said, before adding, "The case just hasn't been made as to why we would want to do that."

Patricia Kovacs, secretary of the Ohio Bicycle Federation, spoke highly of the regulatory framework the House proposed for e-scooters, but she took issue with a provision that would prohibit those under the age of 16 from operating one.

"Many children are currently using e-scooters in residential neighborhoods," she said. "Will children currently owning and operating these e-scooters lose that right? If this age restriction is imposed, then these children who are involved in traffic crashes will be inherently at fault, even if they are following all traffic laws and are hit by motorists who fail to yield."

She also opposes language requiring e-scooters to be operated at no more than 15 miles per hour, imposing graduated penalties on violations and defining violations as strict liability offenses.

Sen. Michael Rulli (R-Salem) asked Ms. Kovacs if she believes e-scooters should fall under bicycle laws or moped laws.

Ms. Kovacs said they are more like bicycles.

Donovan O'Neil also took issue with the language that would impose age restrictions on e-scooters.

"While a legal definition is welcome, quite candidly, the language in the House passed sub bill will outlaw kids from using their toys on sidewalks, parks, or their own neighborhood," he said.

Proposed fees on compressed natural gas and alternative fuel vehicles also came under fire, with Dave Mrowzinski, director of IGS CNG Services, saying that taxing CNG will harm the industry.

"Companies have invested millions of dollars in building out CNG fleets in the state of Ohio for both economic and sustainability reasons," he said. "A large per gallon increase in price could put these deals out of budget, without any warning or ability for customers to plan for an increase over time. For having such a small role in assisting the state repair and improve its roads, a new tax on CNG has real-life impacts on job creators in the state."

Sam Spofforth, executive director of Clean Fuels Ohio, said any fee on CNG should be phased in over time.

"Many companies have acquired CNG vehicles based on carefully calculated fuel costs relative to diesel fuel," he said. "New taxes on CNG, imposed all at once, would cause CNG costs to be much higher relative to diesel. A phase in period of ten or even five years would allow businesses time to adjust."

Miranda Leppla, clean energy attorney for the Ohio Environmental Council Action Fund, said the House's version of the bill that imposes a $200 fee on electric vehicles and a $100 fee on hybrid vehicles will discourage their purchase.

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She said the fee on hybrids should be eliminated because the owners of those vehicles do pay the fuel tax. The fee for electric vehicles should be no more than $100 and the money generated should be used for electric charging stations, Ms. Leppla added.

Bexley Mayor Ben Kessler suggested the fee be lowered to $45 per year.

Matt DeTemple, executive director of the Ohio Township Association, asked that townships be eligible for funding under a new line item for catastrophic snowfall and that lawmakers remove language designed to curtail the use of traffic cameras.

Other Testimony: Chris Runyan, president of the Ohio Contractors Association, told members that indexing the gas tax is not about retaining the status quo into the future.

"Indexing is about fighting off the impacts of inflation which we do not control," he said. "Year-after-year the purchasing power of the motor fuel user fee declines. Our neighbors to the north and west have recognized that fact. Ohio should address those inflationary pressures as well by including indexing in this legislation."

Mr. Runyan said he understand the hesitancy to allow for an automatic increase without further legislative action but offered a solution that he believes will ease the minds of lawmakers.

"I would suggest an annual adjustment made on July 1 of each year and the amount be applied to the then-existing motor fuel user fee rate in effect," he said. "Instead of adjusting by rounding up to one cent, the adjustment should be in tenths-of-a-cent increments with an annual cap of one-cent. I believe this would moderate the rate of increase and place a cap for years where there is sudden spike. Once the amount of the adjustment is determined, it should be reported to the legislature in a manner of your choosing so than you are informed of the change."

Grace Gallucci, executive director of the Northeast Ohio Areawide Coordinating Agency, warned that a cutback in transportation infrastructure spending could have severe consequences.

"Reduced funding makes it more difficult to keep us safe and could delay improvements to the state's top crash locations," she said. "Reduced funding will also inhibit our communities' ability to attract and retain businesses, jobs, and skilled workers. Whether it's maintaining the system we have, or updating and modernizing our infrastructure, Ohio must address this funding problem. This is not a rural issue; this not an urban issue; this is an Ohio issue."

Chris Kershner, executive vice president of the Dayton Area Chamber of Commerce, called for more funding for transportation infrastructure.

"Ohio is on strong path forward and it is critical that as a state, as a business community, as elected leaders and as a department of transportation, we are able to support the future economic needs of Ohio and keep our roadways safe," he said.

The panel also continued to receive calls for more funding for public transit from several groups, including Transit Columbus, the NAACP and Policy Matters Ohio.

Amanda Woodrum, senior researcher at PMO, said a lack of investment in public transit has been a detriment to the economy.

"By limiting our transportation options, we limit access to education and opportunity, jobs, health care, healthy foods, and much more," she said. "This hurts job seekers, workers, employers, the elderly and people with disabilities. Ohio must start investing to build a transportation system that works for everyone. Despite the fact that Ohio is the seventh most populated state, we rank 40th among states for commitment to public transit. We can and should do better."

Clifford Ursich, executive director of Flexible Payments of Ohio, said his organization fully support the governor's proposed 18-cent increase in the gas tax. He also said that if Department of Transportation spending falls, it will have an impact on private sector employment.

Michael Filomena, vice president and general manager of Enterprise Holdings, endorsed language designed to create parity between car rental companies and peer-to-peer carsharing services.

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"This bill would clearly state that the e-commerce companies should be collecting and remitting the sales tax on the transactions," he said. "We have met with the Ohio Department of Taxation and they acknowledge that these peer-to-peer carsharing companies are and always have been vendors, and thus should already be collecting and remitting sales tax."

Linda Bailif, director of the Ohio Public Works Commission, praised the House for recognizing the need for increased Emergency Funds, but noted there is a fixed amount of overall funds and the change comes with consequences.

"So the increase results in a reduction to the annual allocations made to the 19 District Integrating Committees," she said. "Since existing language is permissive and to lessen the financial impact to the Districts, we would prefer to delay the increase until FY 22" when it would be less of a financial impact due the timing of a previous voter-approved increase in the allocations, and adjustments due to 2020 decennial census data.

Gallia County Engineer Brett Boothe offered several suggestions on changes to the measure, including to require that overweight fines be used for the maintenance or repair of transportation infrastructure. Ohio Poised For Hemp Industry Growth, Groups Say Agriculture and business groups pressed Wednesday for quick passage of legislation to decriminalize industrial hemp, arguing it would unshackle an industry and place Ohio on par with other states.

But estimates on just how much legalizing the commodity might impact Ohio's economy were hard to come by during a Senate Agriculture & Natural Resources Committee hearing.

It was the second hearing for the bill (SB 57) to decriminalize industrial hemp and require the Department of Agriculture to submit a plan to regulate cultivation to the federal government.

A dozen witnesses in person or writing urged committee members to support the measure. They emphasized that hemp is not marijuana – it contains less than 0.3% THC – and said the sooner lawmakers act, the sooner Ohio can join other states already profiting from the economic opportunity at hand.

"It is imperative we act now to clarify the Ohio Revised Code to bring Ohio law up to date with our neighboring states where hemp-derived products are sold legally every day so that Ohio retailers can compete and utilize this emerging market," said Kristin Mullins, president of the Ohio Grocers Association.

Among supporters of the legislation is the U.S. Hemp Roundtable, the national group that help secure passage of the 2018 Farm Bill provision legalizing hemp.

"It would help launch Ohio as the 42nd state with a hemp program," the group's general counsel Jonathan Miller said of the measure. "We've seen there is tremendous interest in growing the crop…as well as producing products Ohioans will want and desire."

Responding to questions, Mr. Miller sought to push back against critics in other states who have opined such legalization could open the door for marijuana legalization. "These are two different things," he said.

Responding to Chairman Sen. Frank Hoagland (R-Adena), the witness said there is concern over individuals testing positive on drug tests depending on how detailed the test is. "It's only a matter of time before we're going to have affordable tests that will be able to distinguish that...but admittedly we're not there yet," he said.

Ohio Farm Bureau Federation director of state policy Tony Seegers said farmers are ready and willing to step up should the product become authorized. Members of the bureau in December voted to support the prospect.

"Rest assured, there is an interest from farmers," Mr. Seegers said. "While I do not have estimates, it is believed that hemp cultivation and production will benefit Ohio's farm economy and the economy overall."

Sen. Steve Huffman (R-Tipp City) floated the idea of a checkoff program, in which dollars could be leveraged into commodity research and market development.

"We do support a checkoff program," Mr. Seegers replied, adding that he's unclear on the specifics of how that program would look. "Having never been around hemp I can say it's going to be a lot different than the corn or beef checkoff."

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Beth Wymer, executive director of the Ohio Wholesale Marketers Association, described the challenges her members faced following the 2018 Board of Pharmacy ruling that banned the sale of such products in Ohio.

"Some of my members already had anywhere from $5,000 to $23,000 of inventory in their warehouses that they could no longer sell," Ms. Wymer said. "Because retailers would have to pull the product, they were bracing for returns of $2,000 to more than $30,000 that they would have to refund to the retailers."

Tom Haren, executive vice president for the Ohio Hemp Association, said the group supports "expeditious passage" of the measure as well as the addition of an emergency clause. The U.S. hemp industry grow to $820 million in 2017 and is expected to reach $1.9 billion by 2022, he said.

He also expressed support for the aforementioned checkoff program, which he said will benefit hemp farmers "since this commodity has not had the opportunity to develop based on its historical prohibition."

Although calling it an "excellent piece of legislation," he proposed several changes including stating a "hemp product" has the same THC level as "hemp" and establishing a reasonable setback requirement for hemp crops from medical marijuana licensed facilities to prevent cross-pollination that could weaken the marijuana.

Sen. Huffman, agreeing with the setback concern, questioned whether it would be better to tackle that through the rulemaking process. Mr. Haren said that approach would be adequate.

The measure's other lead co-sponsor, Sen. Brian Hill (R-Zanesville), said sponsors are willing to work with proponents on revising the effective date of the measure. But he seemed less inclined to add an emergency clause as some proponents suggested.

"This is something new," Sen. Hill said. "We want to make sure we're doing it right."

Also testifying in support of the plan were hemp-start up Zativa, the American Massage Therapy Association, the Ohio Cannabis Chamber of Commerce, the Meigs Fertilizer and Ohio Hemp Farmers Cooperative.

Written proponent testimony was also submitted by the National Federation of Independent Businesses, the Ohio Council of Retail Merchants, and the Ohio Chamber of Commerce. Thursday, March 14, 2019 DeWine Set To Unveil Biennial Spending Blueprint, With Mental Health Among Priorities Boosting prevention is one of the recommendations Gov. Mike DeWine's RecoveryOhio Advisory Council announced Thursday as the state's chief executive ended a tour that offered previews of his forthcoming budget.

The unveiling of Gov. DeWine's proposed two-year spending plan comes Friday, and signs point to a focus on targeted spending designed to support the state's future.

"The budget that we're going to have tomorrow I think is a very conservative budget in the sense that we're investing," he told reporters Thursday. "I think it's a conservative thing to invest – invest in our future; invest in our kids; invest in our infrastructure. That's really going to be the emphasis of the budget that we unveil tomorrow."

The administration is expected to release the budgetary "Blue Book," highlight documents and other materials Friday following the governor's 10 a.m. news conference, but actual legislation isn't expected until next week. Budget Director Kimberly Murnieks is tentatively slated to testify before the House Finance Committee on Tuesday.

The RecoveryOhio report details 75 recommendations ranging from dealing with stigma and education to prevention, harm reduction, treatment and recovery supports. The governor said those recommendations will serve as a "framework for the next four years in our administration."

For the budget, he said the recommendations will help guide spending and state programs.

"You're going to see a lot of prevention in there," the governor said. "We're going to give significant assistance to our local boards. There are 51 boards throughout the state and they're the ones on the front lines."

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While prevention, starting with K-12 education in schools, will play a major role in the administration's proposals on substance use and mental illness, there will also be help for treatment needs, he said.

"You've got to look at the short term," Gov. DeWine said. "Short term is more money for crisis situations. The biggest complaint we get as we travel around the state is that people who have a health crisis, people who have an addiction crisis, they need help now. So, we put more resources in diagnosing the problem, getting the initial help. You'll see that in our budget tomorrow."

The governor earlier this week announced that the budget will include money to expand specialty court dockets and to boost funding for local mental health boards.

Members of the RecoveryOhio Advisory Council said the recommendations will provide the state with a road map toward improving a system in crisis.

Terry Russell, executive director of the National Alliance on Mental Illness of Ohio, pointed specifically to recommendations dealing with children's mental health.

"It will save lives," he said. "Although the total report is remarkable, the area regarding kids stands out."

Early investments in prevention and mental health will help save taxpayer dollars down the line, whether through reducing needs for crisis treatment or for law enforcement, Mr. Russell said.

Cheri Walter, CEO of the Ohio Association of County Behavioral Health Authorities, said the recommendations give the state a comprehensive statewide plan to address behavioral health issues.

"We now have to come together so that we can begin to roll this out locally, because that's really where the rubber hits the road," she said.

Marcie Seidel, executive director of Prevention Action Alliance, praised the proposal's focus on prevention.

"This report embraces the full continuum of care and it move through the entire spectrum of prevention, intervention, treatment, recovery and after care help," she said. "Too often prevention is forgotten, and it's put on the back burner as the devastation of these diseases demand immediate attention and resources."

Teresa Lampl, CEO of the Ohio Council of Behavioral Health & Family Services Providers, touted the recommendations in a statement.

"Today's release of the RecoveryOhio Advisory Council report provides a comprehensive set of actionable strategies that address everything from insurance parity, stigma reduction, behavioral health workforce development, and establishment of a full continuum of prevention, treatment and recovery services necessary to help children and families access the care they need, when they need it and where they live," she said.

Other Budget Previews: Gov. DeWine has held a variety of events over the past two weeks to tease budget proposals ahead of Friday's rollout.

The governor laid out the broad strokes of his policy agenda earlier this month in his first State of the State address, including calls for investments in the state.

On Thursday, the governor also stopped in Toledo, where he provided details on his proposed H2Ohio Initiative to fund water quality initiatives.

He unveiled proposals Wednesday to spend more than $10 million combating lead paint and to create a state tax credit for opportunity zones.

Last week, the governor announced his intent to seek another $50 million to expand home visiting programs through the Department of Health. The governor said he hoped to triple the number of families participating in those programs – seen as a way to help lower the state's high infant mortality rate.

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He has also proposed nearly doubling funding for children services programs, boosting the state's contribution by $74 million to $151 million per year.

The governor and his administration have also expressed plans to increase the eligibility threshold for public child care funding from 130% of the federal poverty level to 150%.

As for the Department of Higher Education, Chancellor Randy Gardner told a House subcommittee earlier this week to expect "a lot of action" on certificates and credentials.

Not expected in the budget: A proposed hike of the oil and gas severance tax like that proposed repeatedly by Gov. John Kasich and rejected by Republican lawmakers. Lt. Gov. Jon Husted confirmed that news to the Ohio Oil and Gas Association last week.

Preliminary budget requests filed by state agencies last year in the closing months of the Kasich administration also shed light on a host of issues that could arise in Gov. DeWine's proposal. Governor Outlines Plan For Water Quality Fund Gov. Mike DeWine's forthcoming budget plan would create a specialized fund to support up to $900 million in water quality initiatives over the next decade.

The governor's operating budget proposal, scheduled for a formal unveiling Friday morning, will request $85 million to start the H2Ohio fund, with subsequent allotments to be determined over upcoming budget cycles.

The money would support land-based management and water-based restoration programs as well as science and research efforts, Gov. DeWine said.

"Water is vital to everyone, yet communities throughout the state face real and different challenges, such as algae blooms, failing septic tanks, nutrient pollution, and threats of lead contamination," he said in a statement. "We cannot continue to lurch from water crisis to water crisis. I am proposing an H2Ohio initiative that would allow us to invest in targeted, long-term solutions to ensure safe and clean water across the state of Ohio."

He highlighted the fund during an Impact Ohio conference in Toledo, with the governor saying that he deemed it more workable than pursuing a bond issue to address Lake Erie and other water quality challenges. Democrats in recent years have proposed the issuance of up to $1 billion in bonds for the purpose and continued to do so Thursday. (See separate story)

"Rather than borrowing to pay to fix our water problems, we want to create a special account where we can deposit funds to be used specifically for water quality across Ohio," Gov. DeWine said. "We believe that this is a responsible approach to address a critically important issue."

Gov. DeWine first announced the fund during his State of the State address earlier this month, saying, "This will not be easy. Nor will it be inexpensive. But the cost of doing this now, the right way, will be far lower than the cost of not doing it at all."

The plan is a departure from that of his predecessor; former Gov. John Kasich in his last year in office sparked friction with lawmakers and the agriculture industry when he attempted to enact more stringent rules on farmers in watersheds contributing high amounts of phosphorus into Lake Erie. Farm groups and GOP lawmakers at the time pushed for a more collaborative approach and the DeWine Administration has put the plan on hold while discussions continue.

"The governor's approach to water quality is refreshing for Ohio agriculture," Ohio Farm Bureau Federation Executive Vice President Adam Sharp said. "The H2Ohio initiative and its extensive resources shows an understanding of the complexities that come with this issue. This funding is a great example of how this governor is fully committed to work with farmers throughout the state toward the common goal of clean water. We look forward to working with the administration as the initiative moves forward."

Gov. DeWine in February addressed Farm Bureau members, promising his budget would include a heavy focus on improving water quality while also adding that it will take plenty of dollars and that "we can't expect farmers to carry the whole burden."

Heather Taylor-Miesle, president of the Ohio Environmental Council Action Fund, praised Mr. DeWine's announcement, saying Lake Erie provides $14 billion in annual economic benefits to the state.

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"The H2Ohio initiative is a prime example of the bold thinking needed to set Lake Erie back on track," she said. "I commend Gov. DeWine for this proposal and encourage folks from both sides of the aisle to work together on solutions that will result in a healthier Lake Erie and safer drinking water for families. We look forward to working with the administration on these efforts and hope to provide a healthy lake for generations of Ohioans to come."

The governor's announcement was the latest in a string of previews he's given about the contents of his forthcoming spending plan. Past announcements have including details on his request for children's services and economic development funding. Friday, March 15, 2019 Targeted Spending, No Major Tax Changes Headline DeWine's $150.4B Budget Proposal Gov. Mike DeWine's initial budget proposal increases spending in programs dealing with children, workforce development, recovery and natural resources without raising taxes, he said Friday.

Mr. DeWine provided a broad overview of his spending plan at a Columbus news conference, saying investments the state will make over the next two years will produce results for generations to come.

"We're taking the long view," he said, comparing his approach to the tree saplings planted by his 80-year-old grandfather.

"Candidly, for too long, we've tinkered at the margins…Now is the time to tackle our unfinished business," he said. "Time is not going to wait for Ohio to get this right."

Following his event, details of the package were unveiled online. The bill language is pending introduction in the coming days.

The proposed spending outline for Fiscal Years 2020-2021, which includes nearly $70 billion in General Revenue Fund and $150.4 billion in all funds appropriations, reflects increases compared to the $65.5 billion in GRF and $132.8 billion all funds appropriations approved by the legislature for FYs 2018-2019.

The largest chunk of the GRF budget remains in Medicaid, which accounts for 46.1% and includes the federal component. Primary and secondary education spending is second at 24.5%, with higher education spending accounting for 7.9%. Excluding federal money, primary and secondary education funding accounts for 34.6% of the total $48.8 billion state spending. Medicaid is 23.8%.

Lt. Gov. Jon Husted, who addressed efforts to boost workforce development and Ohioans' job skills, said he looks at the budget through his eyes as a former legislator. "It's balanced. It doesn't raise taxes, and it invests in Ohio's future," he said.

He said the bill will significantly boost funding for the Ohio College Opportunity Grant and focus on the issuance of thousands of certificates. State Share of Instruction – a key component of higher education funding – is set to increase by 1% per year.

Gov. DeWine said his budget would add $550 million to help schools partner with local organizations to provide support services to aid students in need, including mental health counseling, health care, wraparound services, mentoring and after-school programs. All of the additional money for K-12 education is included in that wrap-around funding, he said.

"Our budget is aimed directly at dealing and helping these educators help these children," he said.

State support for indigent defense would also triple, from $30 million to $90 million, the governor said.

Another significant change in the budget: A proposal to increase the minimum age to purchase tobacco products from 18 to 21.

The change would affect cigarettes, other tobacco products, alternative nicotine products such as vapor products and cigarette papers, according to the governor's recommendations.

The administration anticipates the change would affect sales and use tax revenue and cigarette and OTP tax revenue. The sales and use tax would be reduced by $6.7 million over the biennium, and the cigarette and OTP tax by $33 million.

Office of Budget & Management Director Kimberly Murnieks said revenues supporting the spending are based on an expectation of slow but steady economic growth.

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The director also added that revenue estimates included in the bill are conservative and projected spending levels haven't been padded. "This budget seems more realistic," she said.

She said economic growth is expected to slow in part because of the state's aging population, although it appears average wages have risen to account for some of those demographic changes.

"We are basing our budget on slowed but steady continued growth in our current revenue sources," she said. Overall revenues are projected to rise by 3.9% in the first year and 1.7% in the second year of the biennium based on projections of a national economic slowdown.

The budget does not use funds from the budget stabilization fund, or add money to it, Mr. DeWine said. Further, it does not include additional non-tax revenue from sources such as sports betting, although the governor indicated that the legislature could eventually enact that option during the budget period.

Gov. DeWine said he saw the budget as an opportunity to make investments, not to cut or raise taxes.

"There's a time and a place for everything. This is a time and place to invest in Ohio and to invest in Ohioans," he said. "These are long-term investments that we must make in the state of Ohio."

Lt. Gov. Husted said the tax cuts over the past several years have helped address concerns businesses had at the time, but those concerns have now changed to focus more on the state of the workforce.

"At that time, the biggest complaint we got from business was that taxes were too high on them. We responded to that with some pretty aggressive tax cuts," he said. "Today businesses are telling us it's because they can't find people. They can't find people with the skills that they need to grow."

Ms. Murnieks said the proposal includes a few reductions in spending, such as her office eliminating the Office of Health Transformation.

The House Finance Committee is set to begin its formal review of the budget next week, scheduling three meetings at which it will hear from a number of Mr. DeWine's cabinet directors. Governor Proposes More Funds For State Parks, Orphan Wells, Water Quality The three state agencies charged with protecting what Gov. Mike DeWine deemed Ohio's "natural wonders" would receive a funding boost under a budget plan the governor unveiled Friday.

Among the added support: $85 million via a new dedicated H2Ohio fund to tackle water quality issues; $43 million more for state park improvements; and a $31 million effort to replace diesel-powered buses and cargo vehicles.

The governor's announcement provided more detail on how the administration is proposing to utilize the proposed H2Ohio fund, which the governor a day prior said he expects to reach up to $900 million over 10 years.

In the budget proposal, $85.175 million would be placed in the fund in Fiscal Year 2020 to be divvied up between three state agencies. No dollars would be appropriated to the fund in FY 2021. The spending proposal includes:

• $46.2 million for the Ohio Department of Natural Resources Watersheds and Water Resources Program to be used to create coastal and upland wetlands in Lake Erie's western basin, targeted land acquisitions, and grants to organizations to create wetlands.

• $30.3 million for the Department of Agriculture's Soil and Water Program to support best management practices in the western basin, including equipment purchases and soil testing assistance.

• $8.675 million for the Environmental Protection Agency's Surface Water Protection Program to support additional watershed planning in sub-watersheds and continued scientific research and data collection.

"This is being done for the long-term health and support of all Ohio water," Gov. DeWine said of his proposal. "This fund will help us preserve our most precious resource for many more generations and because we're not going to be borrowing through bonding, we'll be saving approximately $475 million in interest payments."

During his gubernatorial campaign, the then-candidate endorsed pursuing a bond issue to tackle water quality issues. But by paying up front, he said, money that would have gone to interest payments can be used elsewhere.

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"That is money that we will have now every year that we will be able to include in our budget," he said. "It is the prudent, it is the conservative thing to do to set this money aside now…so we're not lurching from budget to budget to budget in regard to Lake Erie and other water priorities."

ODNR: For FY 2020, the agency would be in line for $127.7 million in General Revenue Fund dollars (+16%) and $495.9 million from all funds (+32.5%). Funding for FY 2021 under the plan would amount to $134.6 million (+5.4%) from the GRF and $414.4 million in all funds (-16.4%).

The budget calls for an additional $43 million in state park improvements to expand capacity, upgrade utilities and otherwise renovate nine lodges, 294 cabins, and 9,085 campgrounds.

Of that total, nearly $29 million would be placed into the state park operations line item – which would see a 93.2% increase to $60 million in FY 2020. Nearly $10 million that fiscal year would be put toward rebuilding the Hocking Hills lodge, which was destroyed in a 2016 fire.

Another $4.5 million would be requested to fund measures to shield nature areas and preserves from invasive species and to increase public outreach and activities.

The budget plan would boost funding for the plugging of orphan oil and gas wells for FY 2020 to $24.9 million from its current $15 million (+66%) and implement another 12% increase for FY 2021, pushing funding to $28.17 million that year.

"The increased funding will enable significant program on plugging orphan wells, with a goal of fixing 300 wells during the biennium," reads the administration's fact sheet.

The DeWine administration is also calling for an additional $500,000 in FY 2020 for ODNR's efforts in dam safety, water and floodplain management.

Gov. DeWine also said his budget contains an increase in fees for sportsmen and women, although specifics of that increase have yet to be released. The Ohio Sportsmen's Alliance asked lawmakers during the last budget cycle to raise hunting and fishing license fees to better fund the Division of Wildlife – a concept that led to a staff shakeup in that division later that year.

OEPA: In GRF funding, the spending plan calls for $11.2 million in FY 2020 (+25.4%) and $11 million (-1.3%) for FY 2021 to fund the OEPA. The proposed all funds allotment would number at $219.7 million (+8.7%) for FY 2020 and $220.6 million (+0.4%) for FY 2021.

The plan requests $31 million a year to replace aging diesel school and transit buses, heavy duty trucks and cargo handling equipment. The funding could also be used to repower diesel engines in tug boats and locomotives. The administration believes that effort could eliminate 400 tons of air pollutants.

The budget would put $1 million toward the state's efforts to restore Mentor Marsh, Ohio's first nature preserve. The administration also plans to ask the Controlling Board in the future for the ability to use money from a recent lawsuit settlement – which will net the state more than $10 million – to bolster the Mentor Marsh effort.

Also proposed under OEPA's purview: $5 million annually for electric vehicle charging infrastructure and $1 million for environmental education programs.

ODA: Proposed GRF funding for FY 2020 amounts to $54.5 million (+14.4%) and $54 million (-0.9%) for FY 2021. The agency would receive $144 million (+35.5%) and $114.2 million (-20.7%) in all funds for those respective years.

The spending plan maintains $20 million a year in the coming biennium for the agency's Soil and Water Phosphorus Program to assist in reducing phosphorus in Lake Erie's western basin. The program received the same amount of funding in FY 2019 but received zero dollars from FY 2016-2018.

"Gov. DeWine's budget respects the requests so many Ohioans have made to me – to support and promote our food and agriculture industry," ODA Director Dorothy Pelanda said in a tweet. "The priorities in this budget, from H2Ohio to consumer safety, will help our department invest in long-term solutions that move our state forward."

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Reaction: Initial feedback from environmental and agricultural industry stakeholders was positive as they began digesting the governor's plan.

Scott Higgins, president of the Ohio Livestock Coalition, welcomed the H2Ohio proposal in particular.

"Ohio farmers have never wavered in our commitment to restoring and protecting Lake Erie and have worked for years to implement creative solutions to reduce agriculture's impact on water quality," he said. "Our work has resulted in more than $3 million invested in programs to address nutrient management and water quality challenges, not including personal investments many farmers voluntarily made in their own operations. Today's budget announcement, which includes investments that support our efforts, is a welcome acknowledgement of our work, and we look forward to continuing that work with the DeWine administration, environmental organizations and the conservation community."

Peter Bucher, water resources director for the Ohio Environmental Council Action Fund, issued a similar statement, praising both the H2Ohio initiative and the proposed added support of state parks.

"Governor DeWine's budget proposal includes significant new or increased investments to improve Ohio parks, water quality, and agricultural conservation," Mr. Bucher said. "Ohio's natural resources improve the quality of life for millions of Ohioans and bring in billions of dollars in economic benefit. Although these budget proposals are drastic improvements more funding will be needed to truly protect these economic and recreation benefits." Executive Budget Proposal Earns Plaudits, Skepticism Gov. Mike DeWine's two-year budget proposal drew praise from Democratic lawmakers and several groups.

Republican lawmakers, meanwhile, were largely silent on the proposal that would increase spending on a host of programs and keep the status quo when it comes to tax policy. In statements, Democrats said they are encouraged by the spending outline but warned that "the devil will be in the details."

One of the few Republicans to speak out on the budget was Ohio Republican Party Chairwoman Jane Timken, who praised the governor for supporting 10% income tax credits for investors in "opportunity zones."

"The governor's budget proposal proves his commitment to strengthening Ohio families, improving our workforce, supporting local communities and combatting the drug crisis," she added. "Although we may not see immediate results, this budget is forward-thinking and aimed at ensuring that future generations of Ohioans will have the skills and opportunities to have a brighter tomorrow in Ohio."

John Fortney, spokesman for Senate President Larry Obhof (R-Medina), said members of the upper chamber majority have not yet had a chance to review the proposal.

"As with any budget proposal, there is a process and our members will thoroughly review it," he said.

Beth Gianforcaro, press secretary for Speaker Larry Householder (R-Glenford), said similarly, "the House looks forward to reviewing the budget recommendations released today by Governor DeWine."

"The Executive Branch did not seek input from the legislature prior to today. But we appreciate the considerable work and effort that must have been made by the Governor to prepare this proposal," she said.

House Minority Leader Emilia Sykes (D-Akron) said she is encouraged "by the governor's commitment to supporting Democratic policies of investing in children and families, maintaining access to quality, affordable healthcare and cleaning up Lake Erie."

However, she also expressed concern about the fiscal stability of the proposal.

"We can't build a budget on broken economic assumptions or wishful thinking. We need to be honest and realistic about where new spending comes from," she said.

"A budget is a promise and restoring our promise as an opportunity state begins by investing in the future and modernizing our tax system to put more money back in the pockets of working- and middle-class people to pay the bills, send their kids to college or save for retirement."

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Rep. Jack Cera (D-Bellaire), who is the ranking member on the House Finance Committee, echoed those sentiments.

"Investing in education and in children is important, but we need to be realistic about our fiscal responsibility to taxpayers. We cannot continue to shift taxes onto middle class families to fund tax giveaways to millionaires and billionaires. We need to look at ways we can modernize our tax system to benefit working people, invest in local communities and grow our economy," he said.

Senate Minority Leader Kenny Yuko (D-Richmond Hts.) said many of the governor's priorities are also priorities of Democrats.

"Our caucus will look at how the proposed budget impacts working Ohioans," he said. "We want to make sure every proposal and every line item helps us create an economy that works for everyone – not just the wealthy few. We have a lot of challenges to address, but when we're focused on a fair Ohio, we can strengthen our economy, create jobs and move our state forward."

Unlike his Democratic counterparts, Ohio Democratic Party Chairman David Pepper came out swinging against the proposal, blasting it for failing to restore the Local Government Fund.

"If you're not reversing this destruction to public school funds and local communities, you're not investing in the future -- you're rearranging deck chairs on a sinking ship. But that's exactly what Mike DeWine's budget is doing. It does little to nothing to restore these devastating cuts," he said.

Other Reaction: Interest groups in statements largely praised the budget proposal. However, some criticized the lack of changes in tax policy.

The Ohio Council of Behavioral Health and Family Services Providers called the budget proposal a "bold vison."

"Governor DeWine's budget proposal effectively responds in various ways to the addiction and mental health public health crisis facing our state, and we are very pleased the governor is seeking a robust investment in behavioral health services across the continuum of care," it said.

"Indeed, today's budget announcement includes specific resources to expand prevention, treatment and crisis stabilization services, and directs additional resources to child welfare services to intervene earlier and help children and families impacted by addiction and mental illness sooner."

Ohio Children's Alliance CEO Mark Mecum said Gov. DeWine delivered on his commitment to children with his first spending outline.

"The budget significantly increases funding to community agencies who are change makers to vulnerable families and children," he said. "By targeting funding to child welfare, behavioral health, and education, the governor's plan builds a foundation for all kids, families, and communities to thrive."

The Ohio Alliance of YMCAs lauded the proposed investment in early childhood and school age programs.

The governor's investment of an $198 million will strengthen the system, which will then support teaching and caring for current and additional children in higher quality settings," it said. "Additionally, the governor's investment of $550 million to schools to work with community partners to provide wraparound supports, mentoring, and after school programs also is critical to ensuring that children in need of support can be successful in school."

The Ohio Children's Hospital Association said it is "thrilled" with the budget proposal.

"The DeWine Administration budget proposal elevates the importance of investing in Ohio children and ensures Ohio's children have access to critical services and quality health care they need to thrive," added Deborah Feldman, chair of the group's board of directors and president & CEO of Dayton Children's Hospital.

"This includes opening telehealth policies to increase access to behavioral and physical health services in partnership with schools; Medicaid funding for children's wellness to improve outcomes, including comprehensive primary care services for

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pediatricians; and continuing the children's hospital quality program that has saved thousands of lives and millions of dollars since its inception."

The Ohio Hospital Association highlighted health care investment to address infant mortality, opioid abuse and mental health and addiction services.

"The health care challenges facing our state are significant and Ohio hospitals need stable and predictable funding to ensure the health care needs of our communities are adequately met," it said. "The governor's executive budget promises to help address the daily challenges faced by thousands of hardworking Ohioans and families who need access to appropriate health care services."

Amanda Wurst, spokesperson for Ohio Medicaid Works, praised the governor for maintaining the expansion of the public health insurance program for low-income Ohioans.

"Ohio's Medicaid expansion provides a pathway for people to get the treatment they need to fight back against addiction and return to their families, jobs and communities," she said. "We are pleased to see that Gov. DeWine's budget reflects his commitment to addressing the opioid and drug crisis in Ohio and keeps Ohio's Medicaid expansion working toward that goal."

National Alliance on Mental Illness of Ohio Executive Director Terry Russell said the group is "elated" with portions of the budget.

"His proposal to expand mental health prevention and treatment services to children and adults in this budget is unprecedented," he said. "The funding that he is providing to local communities will help save millions of tax payer dollars and untold amounts of pain and suffering by people with mental illness. If these proposals are made into a reality, the mental health system will now have the capacity to respond to mental health crises for children and adults, and to provide sub-acute care, housing supports, prevention, and community education to every Ohioan no matter who they are or where they live."

On the education front, Jack Hershey, president and CEO of the Ohio Association of Community Colleges, said the budget proposal "has the potential to be one of the most dynamic in Ohio history for the students we serve."

"We are delighted that Ohio's community colleges are a priority in this state budget, with an increased investment to Ohio's performance-based funding formula that has already resulted in an 8.5% increase in the number of students earning credentials," he added. "When combined with the governor's proposal to substantially increase funding for micro-degrees and other short-term training programs, the proposal will move more Ohioans into rewarding careers by preparing them for a rapidly changing economy."

Bruce Johnson, president of the Inter-University Council, praised the call for additional support for recipients of the Ohio College Opportunity Grant and the Choose Ohio First Scholarship.

"By expanding support for these programs, more students will be able to attend a public university in Ohio, stay in school, and graduate with a degree," he said. "This, in turn, will bolster Ohio's economic strength by ensuring a ready workforce for businesses across the state. It is imperative that Ohio's public universities, with support from the state for these programs, work to make graduation possible for every student."

The Association of Independent Colleges & Universities of Ohio also singled out those portions of the spending outline.

"The proposed increase to the Ohio College Opportunity Grant represents the largest singular investment in this program since 2009. The governor's support of the Choose Ohio First Scholarship aligns with the vital role that Ohio colleges play in graduating STEMM majors, preparing them to fill job openings in these fields throughout Ohio," said C. Todd Jones, president and general counsel.

Kevin Bacon, president and CEO of School Choice Ohio, said the budget's student-focused spending is crucial to making sure all students succeed.

"Specifically, Governor DeWine's proposed increases to the EdChoice Income-Based Expansion Scholarship Program and additional funding for high-quality charter schools mark a continued investment directly for students and shows a commitment to empowering families with options for their children's education," Mr. Bacon said. "The Income-Based

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program is being phased in, one grade level per year, and it is oversubscribed every year. High-quality charter schools are a great option for many Ohio students. Thousands of families across Ohio are counting on the state to provide them with these educational options, and I applaud Governor DeWine for standing with all families."

The Ohio Association of Area Agencies on Aging spoke favorably about the increase in funding for the State Long Term Care Ombudsman program and for the Senior Community Services program.

"Investment in services that help prevent elder abuse, keep people safe in their homes and in nursing homes are essential," CEO Larke Recchie said. "Senior Community Services provide dignity, self-determination, and quality of life for older Ohioans. The funds provide low cost, less intensive interventions such as meals, transportation, personal care and other services that connect older people to our communities and keep people from entering nursing homes or entering the Medicaid program."

The Ohio Association of Community Health Centers welcomed the announcement, emphasizing its focus on several areas.

"Ohio's Community Health Centers are uniquely positioned to lead on the full integration of primary care with behavioral health, substance use disorders, and prevention initiatives in our network of advanced, modernized primary care settings," OACHC president Randy Runyon said. "Approximately 75 percent of Health Centers in Ohio now provide Medication-Assisted Treatment onsite and have integrated behavioral health into their primary care practices."

The Buckeye Institute, though, said it has serious reservations about spending increases of 7% over the next two years.

"We are concerned that when economic conditions take a negative turn, revenues decline, and Medicaid costs rise, policymakers will be forced to make deep and painful cuts as they had to do in the early 2000s," President and CEO Robert Alt said.

The American Cancer Society Cancer Action Network applauded the governors' plan to increase the age to legally purchase tobacco products to 21, but said he missed an opportunity reduce tobacco using by raising taxes on the products.

"This year alone in Ohio, 5,400 kids will become new daily smokers and 20,200 adults will die from smoking," Jeff Stephens, ACS CAN's state director of government relations, said. "By not increasing the state's cigarette tax, the other tobacco products tax including e-cigarettes or properly funding the states Tobacco Use Prevention and Cessation Program, the governor has missed an opportunity to keep kids from starting tobacco and help those already using tobacco to quit."

Innovation Ohio President Janetta King called the proposal "underwhelming."

"Gov. DeWine has assumed office following eight years of massive tax giveaways to the rich, leaving very little left for everyday Ohioans," she said. "Without a real discussion of new revenue, this budget cannot be viewed as a serious investment in our state."

Policy Matters Ohio also decried what it believes is a lack of investment.

"While there are good things in DeWine's first budget, he needs to strengthen state revenues and improve the fairness of the tax system," Wendy Patton, senior project director, said. "Until then, the structural deficit in investment caused by years of tax cuts and breaks will limit his ability to invest in Ohio's children and families." PUCO Approves AT&T Ohio Lifeline Exit AT&T Ohio can cease providing discounts to low-income customers through the federal Lifeline program, the Public Utilities Commission of Ohio ruled.

The commission's order this week ends this leg of the case in which the company sought to depart the high cost program as its number of those participants continue to shrink.

Under the commission's order, AT&T will be permitted to exit the program June 11, 2019. The company serves more than 7,000 customers in the program – down from more than 10,000 in 2016, according to the company.

Customers wishing to continue receiving Lifeline service must now line up an alternate provider and may contact the PUCO by Aug. 10, 2019, for assistance. If no other provider resides in a customer's area, the company must continue providing the discount for another year, under the order.

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Consumer advocates and the company have been at odds over the plan for months, with opponents arguing it would leave some of Ohio's most vulnerable residents without adequate service. But a PUCO staff report earlier this year said 99.85% of impacted customers are in the territory of at least one other Lifeline carrier. The commission backed that assertion in its finding.

"The commission notes that when comparing the address of all 10,482 AT&T Ohio Lifeline subscribers within the relinquishment area with the wireless coverage data, staff determined that only two addresses were outside the coverage area of any of the underlying wireless carriers," the commission wrote.

The commission's order establishes a 60-day grace period to follow the effective relinquishment data. But commissioners rejected consumers groups' request that window be extended to 120 days, adding that "Lifeline customers already are being provided 150 days from the date of the Finding and Order to find another provider of Lifeline service."

The order also stipulates certain requirements the company must follow in notifying impacted customers about the change.

The Ohio Consumers' Counsel, the Ohio Poverty Law Center and their allies had urged commissioners to reject the company's proposal to exit the program and for commissioners to require the company to continue serving those without access to another Lifeline provider.

"The discounts would end after one year, regardless of whether the customers have an alternative Lifeline available at their homes," the groups wrote in a filing this week. "Under this circumstance, the customers would either pay more for telephone service or do without. The proposal would harm consumers and is contrary to (U.S. Code)."

But AT&T has argued throughout the proceeding that it will continue to offer basic service and that other Lifeline providers should be able to fill the void.

"Subscribers in the relinquishment area who seek to retain their Lifeline discount will…need to find another provider, but that is not a cause for concern," the company wrote. "In the other 15 states where AT&T (incumbent local exchange carriers) have relinquished their…designation, AT&T is not aware of any instance where a customer has complained that he or she could not find another Lifeline provider."

Reprinted with permission of Gongwer News Service, Inc.