It was a winding path to the final state capital budget, as has been the case for most of the policy discussions in the 135th General Assembly. While initial conversations about the capital budget began at the end of 2023, and the House passed an initial version of a capital budget back in February, the Senate held off on making any definitive decisions on the capital budget until just a few weeks ago. On June 18th, Kimberly Murnieks, director of the Office of Budget and Management gave testimony in the Ohio House Finance Committee to review where the state stood, fiscally speaking, regarding the capital budget.
From placeholders to House Bill 2 greenlight
The House and Senate both used what were placeholder bills (House Bill 629 and Senate Bill 292, respectively) to begin formal deliberations on the capital budget, despite behind-the-scenes conversations happening for the last several weeks. The final vehicle for the capital budget ended up being House Bill 2, which ironically was the bill that the House passed back in February, although the as-passed version was much different. The Governor signed House Bill 2 at the end of June, greenlighting $3.5 billion in capital appropriations and $700 million in One Time Strategic Community Investment funds to make their way into communities across Ohio.
In a previous article, we outlined the Capital Budget process, as well as more appropriations provided by H.B. 33(the state appropriations budget) to create the One-Time Strategic Community Investments Fund. Let’s look at where everything landed, given all the moving parts over the last several months.
What funding was included in House Bill 2?
According to the Legislative Service Commission (LSC), the Ohio Capital Budget is passed in the second year of every biennium. The Capital Budget allocates funds for projects that improve the infrastructure of buildings and the amenities of agencies other than the Department of Transportation.
H.B. 2 makes capital appropriations totaling $3.5 billion for state fiscal year (SFY) 2025-SFY 2026, largely supported by debt. The legislation also includes $2.0 billion in reappropriated capital funds, which represents the estimated available balance on July 1, 2024. The actual reappropriation will be equal to the available money at the beginning of the new fiscal year.
Additionally,H.B. 2 appropriates $717.8 million in SFY 2025 from the One-Time Strategic Community Investment Fund. Projects are spread throughout the state and fundmany projects that would not have been capable of receiving funding through the traditional capital budget process due to the constraints that apply to capital funding.
Northeast Ohio gained $150 million in one-time investment funding
Cuyahoga County and its neighboring counties received $149.9 million from the One-Time Strategic Community Investment Fund for local projects.
Cuyahoga County received $83 million from the One-Time Strategic Community Investment Fund. In addition to this appropriation, the Capital Budget appropriated Cuyahoga County $53.3 million.
These funds will support projects across a variety of agency activities in Cuyahoga County to bolster, develop, and improve the region. The Legislative Service Commission (LSC) published a thorough fiscal analysis of earmarks in the Capital Budget. Below is a breakdown of support provided to Cuyahoga County, NE Ohio, and the broader statewide projects.
Capital Appropriations by Agency - OHIO
Developmental Disabilities
The Department of Developmental Disabilities received $56 million to support the Mental Health Facilities Improvement Fund (7033). DODD appropriated $25 million to support statewide Community Assistance Projects(C59004). Community Assistance Projects are funds that help create, acquire, or improve residential/day programs provided to individuals eligible for DODD services. These entities include county boards of developmental disabilities or DODD.
Beloware DODD appropriations to Cuyahoga County and other Northeast Ohio counties:
Department of Youth Services
The Department of Youth Services (DYS) received $178.1 million appropriated to the Juvenile Correctional Building Fund. Other notable statewide appropriations will be used for creating corrections facilities (C47003 – Community Rehabilitation Centers) and renovating juvenile detention centers (C47007 –Local Detention Centers).
In addition to these projects, there were two appropriations that will support Cuyahoga County. These two projects will expand, improve, or renovate juvenile facilities, their safety, and security.
Department of Mental Health and Addiction
The Department of Mental Health and Addiction Services (OMHAS) received $154.2 million appropriated to the Mental Health Facilities Fund. From these appropriations, there are three statewide initiatives which support individuals with behavioral health issues, provide project support at OMHAS operated facilities, or bolster projects to develop treatment services.
Below is a list of projects providing multi-county support for behavioral health services and treatment (C58050 – Community Support).
One-Time Strategic Community Investment Fund: A Refresher
The 135th General Assembly created the One-Time Strategic Community Investment Fund in H.B.33, the biennial operating budget, and transferred $700 million from the General Revenue Fund to the newly established fund to support local projects.
While H.B. 33 did not specifically outline the allowable uses for the fund, the hope was that it will fund meaningful, transformational one-time investments that positively affect Ohioans and will not need more state funding for completion in the future. The most noteworthy benefit of this newly established fund is that it is free from the many constraints that apply to the traditional capital budget.
Cuyahoga County and its neighboring counties received $149.9 million from the One-Time Strategic Community Investment Fund for local projects.
Of Cuyahoga County’s appropriated $83 million from the One-Time Community Investment Fund, $9.5 million is for projects in the health and human service space. Some of the funded projects include: $2.3 million for the Glenville and Greater Cleveland YMCAs, $800,000 for the Birthing Beautiful Communities Birth Center, and $500,000 for the Boys and Girls Club of Broadway in Cuyahoga County.
Lake County received $8.7 million from the One-Time Strategic Community Investment Fund with $1 million funding health and human service projects. Funded projects Resources for Restoring Lives and Providing Safety and Security, and University Hospitals TriPoint Breast Center.
Lorain County received $3.2 million for six health and human services projects funded through the One-Time Community Investment Fund. This includes $1 million for the Boys and Girls Club of Elyria South, $1 million for The Nord Center, and $500,000 for the Haven Center. All funded health and human services projects in Lorain County can be seen below.
Medina County received funding for three different projects in the health and human service space totaling $1.8 million. The three funded projects include Akron Children's Medina Health Center, Equine Assisted Mental Health Community Campus, and Majestic Equine Connections.
There are five funded health and human service projects funded in Summit County totaling $2.6 million. The Boys and Girls Club received $440,913, Special Education Cornerstone Community School received $76,393, and the Akron Community Health Center Addiction One Campus received $1.25 million.
Geauga County did not have any health and human services projects funded.
Conclusion
With H.B. 2 receiving Governor DeWine’s signature on June 28, 2024, the capital budget process officially ends. This allows The Center for Community Solution and other advocates in the state to turn our attention to the SFY 2026 – 2027 operating budget process. Community Solutions will actively engage in the operating budget process and will provide updates once the Governor releases his budget priorities later in the year.
