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Legislative Bulletin
July 15, 2022

OML UPDATE AT A GLANCE:

STATE HAS RECORD BALANCES IN GENERAL FUND AND BUDGET STABILIZATION FUND FOLLOWING FY22
The Ohio Office of Budget and Management released an update on the state's revenue collections following the close of Fiscal Year 2022. See the full numbers below.

IMPORTANT CHIPS ACT UPDATE
The U.S. Senate is planning to vote on a slimmed-down version of the United States Innovation and Competition Act (USICA) that will contain the Creating Helpful Incentives to Produce Semiconductors for America Act (CHIPS for America Act). With the Intel development coming to Ohio and the many benefits associated with it, passage of the legislation is important to Ohio and the nation. See a full update from the National League of Cities below.

FEDERAL SAFER COMMUNITIES ACT SIGNED
President Biden recently signed the Bipartisan Safer Communities Act into law. The act includes:

  • $750 million to help states implement "red flag" laws to remove firearms from people deemed to be a danger to themselves or others, as well as other violence prevention programs
  • Funding for a variety of programs aimed at shoring up the nation's mental health apparatus and securing schools
  • Enhanced background checks for gun buyers under the age of 21 by giving authorities up to 10 business days to review the juvenile and mental health records of young gun purchasers
  • The so-called "boyfriend loophole" so individuals in serious dating relationships who are convicted of domestic abuse will be prevented from purchasing a gun

CRIME REDUCTION GRANT RECIPIENTS ANNOUNCED
Gov. Mike DeWine announced an additional $9.9 million in grants that will go to 25 local law enforcement agencies to help combat violence in their communities. The grants are part of the fourth round of the Ohio Violent Crime Reduction Grant Program. To date, the administration has awarded $19.5 million to 69 Ohio law enforcement agencies. A total of $58 million will be awarded as part of the grant program overall. Learn More

MUNICIPAL INCOME TAX SEMINAR HELD
Tax administrators and others attended OML's annual Municipal Income Tax Seminar, held July 13-14. The event provided the opportunity to further discuss remote work and municipal tax withholding, ethics, confidentiality, the basics of being a tax administrator, current legislation, and more. Thanks to all who attended and made it a successful conference!

UPCOMING REGIONAL CONFERENCE IN FINDLAY
OML's upcoming regional conference taking place in Findlay on Aug. 5 is a great opportunity to network with other elected officials and staff members from nearby cities and villages, while also learning more about topics relevant to municipalities, including policy issues, ethics, public records, home rule, cybersecurity, and economic development. Register HERE before the July 29 deadline.

RAILROAD CROSSING ELIMINATION GRANT ANNOUNCED
The U.S. Department of Transportation is accepting applications for the Railroad Crossing Elimination discretionary grant program. More than $573 million is available this year, and the program will fund projects that create grade separations – such as overpasses and underpasses – as well as closures, track relocations, and improvement or installation of warning devices at crossings if related to a separation or relocation project. Applications are due by Oct. 4. More Info
OHIO OFFICE OF BUDGET AND MANAGEMENT UPDATE:

Ohio’s Fiscal Year 2022 General Revenue Fund receipts finished at $40.6 billion (10.8% or $2.7 billion above estimate) – the highest on record. June revenues exceeded the monthly estimate by $179.7 million (7.1%).

The Budget Stabilization Fund – aka “Rainy Day Fund” – is at the highest level ever at $2.7 billion.

REVENUE COLLECTIONS

Non-Auto Sales & Use Tax 
  • FY22 – $11.1 billion collected
  • $625.9 million (6%) above estimate
  • $746.6 million (7.2%) above FY21
  • For June, $103 million above estimate (11.6% positive variance) 

Personal Income Tax 
  • FY22 – $10.7 billion collected
  • $550.8 million (5.4%) above FY21
  • FY22 – personal income tax variance exceeded all other tax sources, accounting for 2/3 of total GRF revenue variance 
  • For June, receipts totaled $1 billion; $50.1 million (5.1%) above estimate 

Commercial Activity Tax (CAT)
  • FY22 – $2 billion collected
  • $196.1 million (10.9%) above estimate
  • $328.8 million (19.7%) over FY21
  • For June, $3.4 million below estimate (-22.5%)

Auto Sales & Use Tax
  • FY22 – $1.9 billion collected
  • $88.9 million (4.8%) above estimate 
  • $92.4 million (5%) over FY21 
  • For June, revenues were $179.1 million, $21.6 million (13.7%) above estimate
NATIONAL LEAGUE OF CITIES UPDATE:
Action Requested on Bipartisan Innovation Act, including CHIPS

The Bipartisan Innovation Act is currently in conference committee, bringing together the United States Innovation and Competition Act (USICA) in the Senate and COMPETES in the House. This comprehensive measure brings together two innovative competitiveness bills from the House and Senate to invest in solutions that will expand access to opportunity, create good jobs, and enhance global competitiveness, thereby benefiting cities and villages. 
 
The Senate is planning to vote on a slimmed-down version of this bill on Tuesday that will contain the Creating Helpful Incentives to Produce Semiconductors for America Act (CHIPS for America Act) which, along with an investment tax credit, would invest $52 billion in semiconductor manufacturing incentives and research initiatives over the next 5-10 years to strengthen and sustain American leadership in chip technology.
 
In April, NLC sent this letter to the congressional leadership and conference committee members uplifting key provisions within the House COMPETES legislation that NLC hopes will be retained in the final package including the Recompete Pilot Program, the JOBS Act, and reauthorization of the National Apprenticeship Act. There is critical job creation and workforce funding in this competition package. While much of this will not be in the slimmed-down version, it is still important to advocate for these other messages now while there is a big push on the bill.
 
NLC will put out several tweets in the coming days, which we encourage OML members to amplify, and NLC is re-upping its letter to congressional offices. We encourage you to amplify this message to Senator Brown and Senator Portman.
NEW BILLS OF MUNICIPAL INTEREST:

The following legislation was introduced this week and is of potential interest to municipalities:

  • HB 706 (Rep. Dick Stein) – Subjects foreign temporary agricultural workers to municipal income taxes and modifies the withholding rules for such workers Bill Text

  • SB 354 (Sen. Louis Blessing III) – Regards who is eligible to bid in a foreclosure sale and creates the Ohio Housing Study Committee Bill Text
UPCOMING EVENTS:

Ohio Municipal Attorneys Association Law Institute (Summer Conference)
July 20-22 @ Ohio University Dublin Integrated Education Center
The Ohio Municipal Attorneys Association's Municipal Law Institute is quickly approaching – taking place July 20-22. Whether you're focused on civil or criminal law, this conference has a great program and will be of use to you. Register as soon as possible, and contact Garry Hunter or Chrissy Blake with questions.

Northwest Regional Conference
Friday, Aug. 5 @ Hancock Hotel in Findlay
If you haven’t yet attended one of our regional summer conferences, this will be your final chance. Join like-minded professionals in northwest Ohio to learn more about the most current issues facing municipalities. The registration deadline is July 29. More Info
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