Latest OAR public policy news

Public Policy...Latest News

General Assembly News

Convention Update

This presentation was presented to the Legislative Committee during OAR's recent Annual Convention in Columbus, Sept. 11-14, 2011.

(May 2011) Senate Finance amends State Budget

On Tuesday, May 31, the Senate Finance Committee accepted a substitute version of House Bill 153, the state operating budget. Over the weekend, key members of the Senate and staff reportedly reviewed more than 1600 amendments that were proposed for inclusion in the budget bill. The substitute bill reflects the changes accepted, and they are numerous.

Among the changes are:

Adds $100 million to the Local Government Fund and eliminates the $100 million allocated by the House for the "Local Government Integrating and Innovation Committees;"
Provides specific authority for local governmental entities to merge and/or share in the provision of service delivery;
Removes many of the charter school amendments added in the House;
Increases funding for education;
Privatizes the administrative operations of the Ohio Lottery Commission;
Eliminates some of the Multiple Prime Contracting provisions;
Increases the maximum allowable alcohol content for beer from 12 percent to 18 percent; and
Creates the Auctioneers Study Commission.

Some major policy issues that were not changed include:

Elimination of the Estate Tax in 2013;
Application of the Corporate Activities Tax to gross gaming revenues; and
Additional funding for nursing homes.

Download the complete list of changes.

After more public testimony this week, the Senate Finance Committee is expected to consider additional amendments and vote the bill out on June 7. It is anticipated that the budget bill will be scheduled for vote by the full Senate on June 8 or 9. Then the bill will be sent back to the House where the Senate changes are likely not to be agreed to, forcing a conference committee to settle the numerous and sometimes significant differences between the two versions. The budget is due June 30.

(April 2011) Ohio Budget update

On Thursday, April 28, 2011, the House Finance and Appropriations Committee accepted a substitute version of HB153, the biennial budget bill. Significant changes were made but the thrust of the Kasich proposals were maintained--no additional tax revenues and significant cuts to the growth of government. For various reasons, including a smaller Medicaid caseload, greater tax revenue and higher estimates from the sale of state prison facilities, greater funding is projected.

Some areas of the budget saw additional funding, such as $40 million per year to the school foundation formula, and other items were removed altogether. Local governments would lose the estate tax revenue in 2013, but would gain access to $100 million for collaboration efforts.

As currently amended, HB153:

Repeals the estate tax starting Jan. 1, 2013;
Applies Commercial Activities Tax (CAT) on casinos to total dollars wagered;
Provides for $50 million per year for local governments that collaborate on services and programs;
Provides in-state tuition for Ohio high school graduates who leave the state and return within a 10-year period;
Adds a $2 million appropriation per year for childrenâ€™s hospitals;
Increases PASSPORT funding;
Funds the Clean Diesel Grant Program;
Permits privatization of county jail facilities;
Requires General Assembly approval of government privatization;
Clarifies that ODNR has oversight rights to the oil and gas industry; and
Requires the tax commissioner to administer a tax amnesty program from Jan. 1 to Feb. 15, 2012.

(Posted: May 2, 2011)

Federal & State Issues Update ... National Key Issues (FPC Conference Materials)

ARTICLE:

The Real Estate Lobby is Ready to Rumble (Business Week)

As lawmakers begin to overhaul the (housing finance) system, the housing lobby is mobilizing against its common enemy: a Republican plan to eliminate the federal government's guarantee of mortgages.

The group includes financiers who want to keep capital flowing on Wall Street, legions of real estate brokers and builders whose incomes depend on a robust housing market. Among the ranks are some of Washington's biggest players, including the National Association of REALTORS, whose members donated $3.9 million to candidates in the last election, making it the nation's biggest political action committee.

Week of March 14.

On March 15, 2011 Governor Kasich released his fiscal years 2012-2013 operating biennial budget and then later in the day held a town hall meeting with key cabinet members and staff to discuss his budget and address questions.

The total two-year budget is $55.5 billion, which includes a 1% increase in 2012 and 6% increase in 2013. This balanced budget proposal includes a mix of tax incentives, restructuring of state agency programs, reduction of local government funding and privatization of state functions. The proposal also addresses the estimated $8 billion deficit and the loss of one-time federal stimulus funds.

Please note that the actual legal/legislative language is currently being drafted and will not be available until the end of March. The information provided has been obtained from the "Blue Book" (http://obm.ohio.gov/SectionPages/Budget/FY1213/ExecutiveBudget.aspx), which is the official budget summary.

Some of the highlights of the Governor's budget proposal include:

General:

Preserving the $800 million two-year income tax cut - no tax increases;
Adding $34 million in tax incentives aimed at spurring job growth;
Reducing the number of employees at the Ohio Department of Taxation by 171 through the closing of regional offices in Akron, Cincinnati, Cleveland, Dayton, Toledo, Youngstown and Zanesville - estimated to save $ 1 billion;
Reforming prison sentencing to divert low-level offenders to community-based corrections programs;
Local Government:
Saving an estimated $2 billion through reductions in the Local Government Fund and Public Library Fund and through general tax changes;
Encouraging local governments to engage in shared services and back office functions;
Creating a health insurance program that local governments and school districts may join;

Healthcare:

Saving $1.4 billion through the newly-created Office of Health Transformation, which will completely replace Governor Strickland's Executive Medicaid Management Administration ("EMMA") with a new system of "outcome-based medicine" that will reward quality over quantity;
Modifying Medicaid payment rules to focus on health outcomes;
Not reducing Medicaid eligibility;
Reducing payments to nursing homes;
Reducing payments to hospitals;
Reducing payments to children's hospitals;
Integrating behavioral healthcare services with physical healthcare services;
Expanding long-term care services with a focus on home and community-based care;

Primary Education:

Increasing state basic K-12 funding by 2% in 2012 and 1.5% in 2013;
Repealing Strickland's Evidenced Based Model for funding;
Increasing EdChoice scholarships and removing cap on community schools;
Promoting merit-based teacher pay;
Establishing "Teach for America" in Ohio, a program that recruits recent college graduates and professionals to teach for two years in low-income communities;

Higher Education:

Capping tuition increases at 3.5%;
Increasing State Share of Instruction by 2.7% in 2012 and 0.9% in 2013;
Requiring universities to produce plans to offer some three-year bachelor's degrees;
Requiring public colleges and universities to increase their faculty teaching loads by one class each year;
Allowing colleges and universities to replace multiple prime contracting with single prime contracting and eliminate prevailing wage requirements to bring construction costs down;

Privatization:

Saving $6.6 million through the sale of five state prisons: the Lake Erie Correctional Institution in Ashtabula County; the North Coast Correctional Treatment Facility in Lorain County; the Grafton Correctional Institution; the North Central Correctional Institution in Marion; and the Marion Juvenile Correctional Facility;
Leasing the Division of Liquor Control for 20 to 25 years for $1.2 billion in up-front revenues to help fund the new JobsOhio economic development program (permitting will remain a function within the Ohio Department of Commerce);
Environment:
Opening 200 acres of public lands to oil and gas exploration.

Additional Policies Under Consideration:

While not included in the budget proposal, Governor Kasich is said to be considering additional reforms, such as the privatization of the state lottery and the Ohio Turnpike. It is estimated that the lease or sale of the Ohio turnpike would provide $3 billion in savings with $600 million to be applied to existing bonds. In addition, Governor Kasich is projecting a savings of $1 billion in local government spending through S.B. 5, the pending collective bargaining bill.

Week of Feb. 7...

Following House and Senate sessions this week, both bodies are now at full capacity. The Senate seated two new members and the House added one.

On Tuesday, the Senate filled the 1st Senate district seat vacated by Steve Buehrer when he was appointed administrator of the Bureau of Workers' Compensation. State Representative Cliff Hite was tapped for the seat. He is a former educator and coach from Findlay. The Senate also seated Larry Obhof in the 22nd district seat formerly held by recently-elected Congressman Bob Gibbs. Sen. Obhof is an attorney with Baker & Hostetler in Cleveland and teaches law at Case Western Reserve University.

The House filled its remaining vacancy on Wednesday. House Republicans selected Findlay City Auditor Robert Sprague to fill the 76th House district seat that was held by Cliff Hite before he moved to the Senate. Rep. Sprague owns a private management consulting business and also served as the Findlay treasurer.

Senate Bill 43: Trust Account Interest

Would require broker's trust account to earn interest and for the interest to be paid quarterly to the State to fund foreclosure prevention programs

Status: Introduced no hearings

OAR Position: Oppose

Rationale: While we recognize that many of Ohio's foreclosure prevention programs are in need of funding support due to the prolonged economic slowdown impacting our state, we do not believe this method should be implemented. Today's market would not allow for the accumulation of interest or dividends in sufficient amounts to adequately fund these efforts. Additionally, to put the onus on the broker to constantly monitor these accounts to ensure the quarterly reporting and forwarding of all interest and dividends to the state is an unfair burden on Ohio's real estate companies. It is for these reasons that we oppose SB 43.

House Bill 32 Definition of Surveying

Clarifies Ohio law so that persons other than engineers and surveyors could continue to prepare plans, drawings and make various measurements for purposes of siting or designing an onsite waste water treatment system.
The legislation would continue to allow competent sewage system designers, installers and registered sanitarians to perform those functions as has previously been the case thus minimizing design costs for homeowners.

OAR Position: Support

Rationale: The Ohio Association of REALTORS has from the onset been very concerned about the impact the new septic rules would have on the cost to homeowners in our state. The services of a professional surveyor will add greatly to the system cost and in many area of Ohio cause a significant delay securing a permit. This issues has been debated by the agencies and parties involved for over a year without reaching any compromise on the matter. Furthermore, the surveyors and engineers never mentioned the issue of surveying or siting waste water treatment systems despite the fact they have representatives on the commission. Finally, the state board for Professional Engineers and Surveyors never discussed or challenged siting and/or surveying activities during the nearly ten year legislative process on HSTS issue. Given the dynamics it has become necessary to resolve this issue through legislation.

Week of Jan. 24...

Senate President Announces Committee Assignments
Senate President Tom Niehaus (R-New Richmond) on Wednesday announced the chamber's committee assignments and chairs, in the process changing the panel lineup to some extent.

Among the changes: Senate Finance & Financial Institutions has been split into two committeesand Agriculture and Environment & Natural Resources committees were combined into one.

The committee chairs are (Full Committee Lists):

Sen. Hite (Ag, Env. & Nat. Resources)
Sen. Lehner (Education)
Sen. Daniels (Energy & Public Utilities)
Sen. Widener (Finance)
Sen. Hughes (Financial Institutions)
Sen. Seitz (Government Oversight & Reform)
Sen. Oelslager (Health, Human Services & aging)
Sen. Patton (Highways & Transportation)
Sen. Bacon (Insurance, Commerce & Labor)
Sen. Wagoner (Judiciary-Civil Justice)
Sen. Grendell (Judiciary-Criminal Justice)
Sen. Niehaus (Rules & Reference)
Sen. Jordan (State & Local Govt. & Veterans Affairs)
Sen. Schaffer (Ways & Means & Economic Development)

Source: Gongwer News Service

Week of Jan.10...This week the 129th Ohio General Assembly convened and elected its leaders. Over the next several weeks legislative leaders will announce committee assignments and prepare for the introduction of bills. The legislative session schedule for the first half of 2011 has been set. Committee hearings are scheduled to begin the week of Jan. 17 and floor sessions are scheduled for the first week of February.

The House elected Rep. Bill Batchelder (R-Medina) speaker, Rep. Lou Blessing (R-Cincinnati) speaker pro tempore, Rep. Matt Huffman (R-Lima) as majority floor leader, Rep. Barbara Sears (R-Sylvania) assistant majority floor leader, Rep. John Adams (R-Sidney) majority whip, and Rep. Cheryl Grossman (R-Grove City) assistant majority whip. On the Democratic side of the aisle, Rep. Armond Budish (D-Cleveland) was elected minority leader, Rep. Matt Szollozi (D-Oregon) assistant minority leader, Rep. Tracy Heard (D-Columbus) minority whip, and Rep. Debbie Phillips (D-Athens) assistant minority whip.

The Senate elected Sen. Tom Niehaus (R-New Richmond) president, Sen. Keith Faber (R-Celina) president pro tempore, Sen. Jimmy Stewart (R-Albany) majority floor leader, and Sen. Shannon Jones (R-Springboro) majority whip. Sen. Capri Cafaro (D-Hubbard) was elected minority leader, Sen. Shirley Smith (D-Cleveland) assistant minority leader, Sen. Edna Brown (D-Toledo) minority whip, and Sen. Jason Wilson (D-Columbiana) assistant minority whip.

House Republicans selected Rep. Richard Hollington to fill the seat that Sen. Tim Grendell was elected to fill in November. When Sen. Grendell opted to stay in the Senate, a vacancy was created in the 98th House district. Rep. Hollington was appointed to fill the same seat when Rep. Matt Dolan resigned from it last year. However, he did not run for the seat in November since Sen. Grendell was running. The full House is expected to vote on Rep. Hollington's appointment to the seat next week.

BOLD, IMPRESSIVE DEVELOPMENT PICK
Today, Governor-elect John Kasich announced that Mark Kvamme (pronounced kwam'-me), a prominent Silicon Valley venture capitalist, will help him make the transition to a private-sector economic development model. A privatizing economic development was a key component of the governor-elect's platform.

Kvamme, is a partner at Sequoia Capital in Menlo Park, California. He is expected to serve as Ohio's development director for several months while the economic development transition takes place. He is a personal friend of the governor-elect.

When the announcement was made, Andrew E. Doehrel, president and CEO of the Ohio Chamber, issued a public statement saying, "Governor-elect Kasich's selection of Mark Kvamme to help him reorganize Ohio's approach to economic development is a bold move that will facilitate our state's transition to a private-sector model. Mark has impressive credentials and will help provide the boost we need to rev-up Ohio's economy."

The statement went on to say, "As we work to make Ohio great again, it is exciting to have someone with Mark's background willing to help lead this important effort. His strong venture capital background and knowledge of what it takes to build businesses from the ground up are exactly what we need to reinvigorate our state's economic development efforts and get Ohioans back to work."

MORE CABINET MEMBERS ANNOUNCED
Governor-elect John Kasich continues to work on filling out his cabinet. During the last week of December he announced his selections to head the Ohio Environmental Protection Agency (OEPA) and the Ohio Department of Natural Resources (ODNR).

He tapped Scott Nally, assistant commissioner at the Indiana Department of Environmental Management to head the OEPA. Indiana's environmental department has a solid reputation for protecting the environment and performing its regulatory function in a predictable and efficient manner. Nally said he plans to make changes at OEPA that will dramatically improve the time it takes to issue permits.

To lead ODNR, Governor-elect Kasich chose David Mustine, a former senior vice president at American Electric Power. Mustine also has experience in oil and gas exploration. Scott Zody, a former ODNR deputy director, was selected to serve as assistant director.

On January 4th, Governor-elect Kasich announced his pick to head the Department of Rehabilitation and Correction. He selected Gary Mohr, a former prison warden and consultant. Mohr has more than 36 years of experience in both public and private sector corrections systems.

Directors of the departments of Developmental Disabilities, Alcohol and Drug Addiction Services, and Mental Health were announced by Governor-elect Kasich on January 6th. The current state Medicaid director, Tracy Plouck, will lead the Department of Mental Health; John Martin, director of the Department of Developmental Disabilities will continue in that position; and Orman Hall, executive director of the Fairfield Alcohol, Drug and Mental Health board, will head the Department of Alcohol and Drug Addiction Services.

Source: Ohio Chamber of Commerce Legislative Update

(updated: 01.07.11)

Free download for pdf documents:

	© 2007 OHIO ASSOCIATION OF REALTORS:privacy policy
	IRC Section 6104 requires this organization to make certain forms available for public inspection. Interested parties may contact Robert Fletcher, CEO at 614.228.6675 or fletcher@ohiorealtors.org