The next iteration of Ohio’s operating budget cycle officially began on July 19 with the release of the State Fiscal Year (SFY) 2026-2027 Operating Budget Guidance. This will be our first state budget update of many over this cycle. With this piece kicking off The Center for Community Solutions’ coverage of the budget, we will not only cover the Operating Budget Guidance but also include an overview of what is to come.
Operating Budget Guidance
The first step in every operating budget cycle, which is where we currently are in the process, is for the Governor to release their operating budget guidance. The operating budget guidance serves as the guiding document for state boards, commissions, and agencies while developing their budget requests.
The SFY 2026-2027 Operating Budget Guidance reaffirms Ohio’s commitment to results-focused budgeting.
The SFY 2026-2027 Operating Budget Guidance reaffirms Ohio’s commitment to results-focused budgeting through data collection and evaluation, which ensures the continuous improvement of services and responsible stewardship of taxpayer money. Requested program expansions, increases in current service levels, and new initiatives must be justified and appropriately documented in budget requests by completing the Results-Focused Budgeting Report Package and discussing it with the Ohio Office of Budget and Management (OBM) and the Governor’s Office prior to submission.
The Results-Focused Budget Report Package requires the requesting agency to provide a theory of change or logic model for the expanded or added programs, including a description of the program, short and long-term goals, outcome measures, data associated with those measures, and a determination on whether the program is considered evidence-based.
Required components of budget requests
The budget guidance also includes the required components of a budget request, seen in the table below. A few noteworthy aspects of the required components include that agencies must complete only one budget scenario, which represents their total budget request. There is not a required constrained budget, which is a budget request that includes a certain percent reduction in spending.
Agencies will have specific caps placed on their budget requests, which will be based on SFY 2024 spending adjusted for labor agreements. Agencies may request specific adjustments to budget caps throughout their budget and these requests will be analyzed by the assigned budget analyst. Adjustments to continue expenditures that were previously supported by non-recurring state funds or one-time federal relief grants will not be accommodated. Finally, requested program expansions are expected to be accompanied by corresponding reductions elsewhere in the requested budget, but are not required.
Reviewing required budget language
The budget guidance closes by reviewing the requirements for budget language that agencies wish to include in their budget request. It provides the difference between codified (permanent) law and uncodified (temporary law) and provides examples where budget language may be required and what the language may accomplish. It is imperative to remember that Article II, Section 15 of the Ohio Constitution prohibits bills having more than one subject. Language requests could be budget-related if it is related to expenditures or revenues, required to avoid costs or penalties, required to obtain federal funds, or needed to implement an agency’s budget.
It is imperative to remember that Article II, Section 15 of the Ohio Constitution prohibits bills having more than one subject.
With the release of the State Fiscal Year (SFY) 2026-2027 Operating Budget Guidance it is the ideal time for advocates to begin having discussions with the Governor’s Office and relevant boards, commissions, and agencies that operate the programs and initiatives of interest. The earlier in the budget process one can begin advocating, the better chance the advocate has of influencing the budget submission in some way. The projected operating budget timeline provided in the budget guidance is below.
