State operating budget update: Temporary budget enacted

For only the third time in the past 28 years, and for the first time since 2009, the Ohio General Assembly failed to pass a two-year state operating budget by the June 30 Constitutional deadline. The House and Senate passed temporary spending measures, which Governor DeWine signed late on Sunday, June 30, to continue state government operations.

The House and Senate entered the weekend needing to agree on final changes to H.B. 166 (Oelslager). Both chambers passed their versions of the legislation with overwhelming bipartisan votes, leaving many to believe the legislature would be able to resolve the approximately 500 differences between the competing budget plans before the June 30 deadline. However, negotiators realized late Saturday night, June 29, that no deal was in sight and began preparing temporary funding measures.

The House and Senate were reconciling differences on education policy, including revisions to the state’s law for state takeover of local school districts, health care transparency, including new regulations on pharmacy benefit managers, and tax policy, including the motion picture tax credit and a small business income tax deduction.

The legislature also failed to pass the Bureau of Workers’ Compensation budget, failing to settle differences over PTSD coverage for first responders. The legislature passed a 30-day extension of the BWC budget.

The interim state operating budget provides funding at FY19 levels for 17 days, keeping state government open while legislators continue negotiations. The new deadline is July 17.