A recent Gongwer News Service article reported that in an effort to "restrain government spending" with his first capital appropriations measure, Gov. Kasich has raised the state-funding threshold for new construction to a point that will eliminate "state-backed bond funding for special local projects like theaters, arts and sports facilities." Despite a growing scarcity of general revenue appropriations in prior administrations; however, approximately $100 million was allocated for community projects in the last few capital bills, the article reports.
In a memo that was part of FYs 2013-2014 capital bill planning guidance documents, Office of Budget and Management Director Tim Keen wrote that the bill will "focus on necessary maintenance and upkeep." He advised state agencies, colleges and universities to "only request funding for those projects that are most essential."
This news may be unsettling to many communities around the state, since there was no capital bill last year, and many community projects, which are typically economic-development focused and have broad community support, rely on this revenue source to partner on major prospective or developing projects of regional significance. "If followed through by the legislature," the article reports, "the change would be a further blow to local governments that saw the historic revenue-sharing arrangement with the state cut considerably in the biennial budget (HB 153) – to the tune of hundreds of millions of dollars."
All agency capital requests are due to the budget office by Dec. 16, according to the OBM's guidance documents. Following the deadline, the budget office will spend approximately three months planning the bill for a spring rollout with legislative hearings to begin shortly thereafter.
