COLUMBUS, Ohio (AP) — Small businesses and local communities would receive hundreds of millions of dollars to help with recovery from the coronavirus pandemic under a $1 billion initiative announced by Ohio Gov. Mike DeWine that also includes aggressive marketing of Ohio as a place to work and live.
The small business aid includes $20 million for businesses that opened only last year and missed out on pandemic aid dollars, $40 million for indoor entertainment venues and $200 million in grants for bars and restaurants.
Pandemic help for communities includes $200 million in local infrastructure projects and $250 million to boost broadband access for Ohioans who lack it.
“We have a unique opportunity to make significant investments that will spur growth and economic renewal across the state,” DeWine said of the “Investing in Ohio Initiative.”
The plan also includes spending $50 million on promotion of the state as a place where people can move to, work and raise their families.
That money will help “tell a national audience about Ohio’s excellent career opportunities, top-tier colleges and universities, amazing getaways, and the inviting communities we have for people to call home,” DeWine said.
The $1 billion comes from a combination of savings through a reduced workforce and frozen state spending, and the temporary availability of increased federal dollars. It’s meant as a one-time investment only, the governor said.
DeWine unveiled the initiative as part of Ohio’s two-year, $75 billion budget for the business year beginning in July. The governor’s plan increases state spending 3.4% the first year and 11% the second.
The $1 billion plan signaled that recovery from the pandemic was expected to be a key theme of the budget plan. For example, the proposal boosts money for public health programs and particularly the ability to improve data collection, DeWine said.
“Public health has been underfunded in this country for generations,” the governor said. “If there’s a lesson from this pandemic — and I guess there’s a lot of lessons — one of the lessons certainly should be is we can no longer afford to do that, if we ever could.”
State spending on K-12 schools rises 3.2% next year and drops 0.4% the following year. The governor said he deliberately didn’t propose a new school funding method in expectation of a new funding plan coming later this year from Republican lawmakers.
The budget plan also boosts spending on local governments and public libraries. It does not tap the state’s rainy day fund, currently at about $2.69 billion.
Last month, DeWine ordered $390 million across-the-board budget cuts for the rest of the fiscal year, citing the ongoing economic impact of the coronavirus pandemic. But DeWine also released $260 million for schools and universities, noting the revenue shortfall this year wasn’t as bad as last year.
Increased tax revenue available for the budget reflects pandemic-driven spending on taxable goods — everything from exercise equipment to home office furniture — that came at the expense of decreased spending on non-taxable services such as haircuts and tennis lessons, said State Budget Director Kimberly Murnieks.
Spending $50 million to market Ohio drew fire from the top House Democrat, Rep. Emilia Sykes of Akron, who said too many Republican policies harm women, people of color and LGBTQ people. Both DeWine and GOP Lt. Gov. Jon Husted defended the state’s openness.
“We’ve got small towns with conservative values, we’ve got some cities with progressive values,” Husted said. “All across the scope, Ohio is a place where no matter what you want, we’ve got it.
The two-year budget pays for a vast chunk of Ohio government programs, from funding for schools and universities, the cost of running parks and prisons, and the price tag of Medicaid, the joint state-federal health care system for poor children and families.
House lawmakers will consider the plan first and produce their own proposal. The Senate comes next, and a final plan approved by the House, Senate and DeWine must be signed into law by July 1.
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Contributing to this report was Farnoush Amiri, a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.
Highlights of Ohio governor’s proposed 2-year spending plan
COLUMBUS, Ohio (AP) — Ohio Gov. Mike DeWine unveiled a two-year, $75 billion state budget on Monday that includes a $1 billion initiative to help bring the state back from the economic downfall of the pandemic.
The budget proposal was crafted “with the goal of emerging even stronger from the COVID-19 pandemic,” DeWine said as he announced the plan with Lt. Gov. Jon Husted.
The $1 billion comes from a combination of savings through a reduced workforce and frozen state spending, along with an increase in federal Medicaid dollars. It’s meant as a one-time investment only, the governor said.
Some details of the budget:
PANDEMIC RELIEF:
—More than $450 million in relief for small businesses struggling since the pandemic began. The types of businesses include movie theaters, concert venues as well as bars and restaurants. The funding will allocate $20 million to new businesses started in 2020 as well as enhanced services to minority-owned businesses.
—In an effort to “strengthen Ohio communities, $450 million will be invested in key infrastructure projects, with $250 million of that going toward expanding broadband access to rural parts of the state.
—The state will use $50 million to promote Ohio to a “national audience,” in a PR campaign meant to bring new residents to the state as well as convince former residents to return.
—To advance Ohio’s workforce, an investment of $70 million will be made to both ensure businesses have access to top-quality candidates and candidates receive the training, tech-focused credential needed to move up in their careers.
EDUCATION:
—More than $13 billion in total will be allocated each year to schools and districts across Ohio, including $1.1 billion to support Student Wellness and Success Funds, a program launched by DeWine during the last budget that fosters continued partnerships between schools and districts and local organizations providing social services to students.
—Close to $1.6 billion of the education budget will go to support child nutrition programs, which provide school breakfast and lunch meals as well as summer food service to millions of students.
—In response to the COVID-19 pandemic’s impact on schools, more than $2.4 billion in federal emergency relief funding will go to extend learning programs.
HIGHER ED:
—In an effort to make college more affordable for students with financial needs, the budget will set aside $211 million in order to raise the per-student Ohio College Opportunity Grant award by $500.
—The state will provide $53 million in scholarships to at least 2,000 students to continue efforts to strengthen Ohio’s competitiveness within the fields of science, technology, engineering, math and medicine.
PRISONS:
—The budget will allocate funding to provide incarcerated Ohioans struggling with substance abuse or mental health problems with access to resources for recovery. The investment plans to expand access to counseling, peer support, technology and medication within the state’s correctional facilities.
H2OHIO
—The H2Ohio water quality initiative, introduced in 2019, will receive nearly $250 million to continue the state’s effort to clean up toxic algae in Lake Erie and protect other lakes and rivers throughout Ohio.
The funding will include $100 million to enroll and engage 1,900 agriculture producers to help farmers implement practices to prevent nutrient runoff, the biggest contributor to the algae in western Lake Erie.
OHIO STATE HIGHWAY PATROL
—While DeWine said the budget would not include any tax increases, he did introduce an increase in the state’s motor vehicle fees to help fund the Ohio State Highway Patrol. The governor proposed a $10 increase in motor vehicle registration fees and a $2 increase to the title fee.
The law enforcement agency has been heavily involved in the state’s response to the Black Lives Matter protests last summer as well as patrolling the Ohio Statehouse after a number of violent protests over COVID-19 restrictions and the 2020 presidential election.
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Farnoush Amiri is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.