House Committee Approves School Door Barricade Bill (HB114)
The Ohio House State Government Committee approved HB 114 May 20 after the Ohio Association of Chiefs of Police endorsed the bill.
The bill requires the Board of Building Standards to adopt rules for the use of a barricade device on a school door in an emergency situation and would prohibit the State Fire Code from prohibiting the use of the device in such a situation.
No opposition to the bill has surfaced. It was amended in committee to include Ohio’s College and Universities as well as K-12 schools.
Construction, Engineering Groups Support Bill Banning Residency Requirements
Representatives from six stakeholder groups spoke Tuesday in support of a bill that would ban residency requirements for construction and engineering projects.
Others submitted written testimony before the House Commerce and Labor Committee relaying opposition to the practice, which one speaker likened to “discrimination by Zip Code” that the bill (HB 180
) seeks to outlaw.
“Employee residency mandates imposed by public entities limit the mobility of the construction workforce and discriminate against those tradespeople living in the wrong zip code or just outside the city limits,” said Andrea Ashley, vice president of government relations for the Associated General Contractors of Ohio. “Ohio residents should have the right to live and work where they choose and residency requirements infringe on that right by placing barriers around a city.”
One after another the witnesses argued that enacting such restrictions can harm local workers and result in an advantage for out-of-state companies who legally cannot be bound by those in-state ordinances.
One driver behind those ordinances is the idea that communities will see an economic benefit if the workers originate within that community. But Greg Stewart, CEO of Superior Electric Group, said in written testimony that communities will see an economic benefit from workers on a project for more than 20 days regardless of where they live.
“Finally, the restrictions are unfair to the workers themselves,” he said. “As this state struggles with unemployment and underemployment, it is astonishing to me that any government entity would construct barriers to employment as opposed to pathways to employment.”
The practice can also hamper recruiting efforts, said Don Mader, executive director of the American Council of Engineering Companies of Ohio. Unlike construction companies, engineering firms compete for work based on professional qualifications rather than low bids, he said.
Such measures would make it challenging for firms to recruit outside talent, he said, and could “do real, long-term economic damage to Ohio’s construction and design industries.”
“So as an engineering firm manager, I not only have to make sure 30% of my office staff lives in the city, I’ve somehow got to make sure that two-thirds of the hours worked on any given project are performed by city income taxpayers,” he said. “I have been associated with this industry for nearly 35 years and I’d like for someone to explain to me how – on any engineering project – one might reasonably manage this.”
A chief concern among those that have testified in support of the bill is that residency restrictions shackle in-state businesses and give out of state workers an unfair advantage.
Rep. Mike Duffy (R-Worthington) asked Mr. Mader, “How common is it for out of state workers to work on construction projects in Ohio?”
“In the engineering industry it’s very common,” Mr. Mader replied.
The same is true on the construction side, said Mark Totman, legislative director for the International Union of Operating Engineers Local 18.
“We cover two states basically,” Mr. Totman said. “You could have a crew of people from Kentucky that could come to Cincinnati and work on this project without having to meet the requirements. If I were large enough and I had crews in two, three states, if there’s not work here they’re willing to mobilize to keep their business running.”
Rep. Ron Hood (R-Ashville) asked Mr. Totman how burdensome the new law would be on his association’s operations.
Mr. Totman responded by asking him to imagine how much added time it would take to screen each potential worker based on their place of residence each time a contractor calls looking for employees.
“It’s very burdensome,” Mr. Totman replied. “It would slow down our process of us putting people to work, slow down the process of doing jobs. It would definitely impact our business.”
Also testifying in support of the bill were representatives from the Ohio Contractors Association, Mechanical Contractors Association of Ohio, Allied Construction Industries, Associated Builders and Contractors, the Transportation Advocacy Group of Northwest Ohio and the Ohio Aggregates & Industrial Minerals Association.
article_id=840960208#sthash.i0BY3IAC.dpuf
Controlling Board to Hear $100 Million School Projects Request
An Ohio commission will ask the Controlling Board on Monday for release of $100 million from lottery profits to finance more than 30 school district projects.
The Ohio School Facilities Commission (SFC) is asking for approval of $100 million from a larger $350 million sum approved in a mid-biennium review (MBR) bill and the previous capital budget. Bills 130-HB497 (Amstutz) and 130-HB492 (Scherer) provide for the commission to receive the money for the Classroom Facilities Assistance Program through the Lottery Profits Education Fund.
The commission is seeking release of the $100 million that will come partially from video lottery terminal licensing fees from the Ohio Lottery, according to the request. The requested amount “will be used to provide the state share of basic project costs” to school districts approved by the SFC.
A district’s relative wealth “as measured through its three-year average adjusted valuation per pupil and the need to replace classroom facilities as assessed by SFC” are the determinants for its eligibility and priority in the program. The appropriation would fund 38 school districts.
Strips Most Kasich Tax Proposals from Budget Bill
House Approves 6.3% Income Tax Cut
After weeks of studying the sweeping proposals from Gov. John Kasich in his executive budget for FY16-17, House Republicans unveiled their version Tuesday that largely strips out the proposed sales tax expansion to consultants and others as well as the severance, tobacco and CAT taxes and dedicates more money to school districts so that fewer will lose funds in the next biennium.
The House proposal will give a 6.3 percent across-the-board income tax cut beginning in Tax Year 2015 worth $1.2 billion over the biennium, which will lower the top tax rate to 4.997 percent. The substitute bill will also make the 75 percent small business tax deduction that was adopted by the 130th General Assembly permanent.
House Speaker Cliff Rosenberger (R-Clarksville) says he believes in the direction Kasich is trying to take the state long term, but said he wanted to give businesses tax certainty and get everyone on the same page as they move along the path that Kasich has laid out in his executive budget.
To that end, the substitute bill includes the creation of the 2020 Tax Policy Study Commission, which will examine the state’s tax policies in comparison to other states. Rosenberger said it will include members of the House and Senate as well as the tax commissioner and budget director to look at tax policies and make recommendations. Among the items that will be studied by the commission will be an increase in the severance tax, something Kasich has pushed for but which has been resisted by lawmakers and the oil and gas industry, who have argued for a much lower tax than proposed by the governor.
Personal and Business Income Tax Cuts Still in Play: House House Set To Strip Kasich Tax Plan From Budget
Personal and Business Income Tax Cuts Still in PlayHouse Republicans as expected will delete nearly all of Gov. John Kasich‘s ambitious tax overhaul from the biennial budget when the chamber unveils its first rewrite of the $72.3 billion spending plan.
The majority caucus will roll out its substitute version of the bill (HB 64) during a House Finance & Appropriations Committee hearing Tuesday. The committee will hold further hearings on the new measure Wednesday-Friday with plans to put the final touches on the bill and send it to the Senate the following week.
The House GOP’s plans to gut most of the governor’s tax package should come as no surprise to Capitol Square observers, as many in the caucus have been vocal about their opposition. Most of the testimony and comments fielded thus far have also been negative, including a resounding thumbs-down from the state’s key business groups, including the Ohio Chamber of Commerce.
And last month several caucus members expressed support for scrapping most of the proposal, which would have cut personal income taxes by about $5.7 billion while raising sales and other taxes to cover some $5.2 billion of that revenue loss.
Mr. Kasich has pushed the wide-ranging tax code rewrite as the next step in shifting Ohio’s tax base away from income and toward a consumption-based system to better reflect the state’s increasingly service-based economy. However, already-leery lawmakers have been witness to a parade of naysayers who questioned whether higher sales taxes and other aspects of the plan would truly propel the state’s economy as envisioned by the governor.
As big fans of tax cuts, majority Republicans are still pushing for a sizeable reduction based on projections for continued strong revenues and the retention of a few aspects of the governor’s package. Sources say the chamber is targeting a $1 billion overall cut.
Expected to survive the legislative surgery next week is a reduced version of the tobacco tax increase, people with knowledge of the discussions said. Mr. Kasich’s plan to “means test” some tax breaks, which would provide an estimated $318 million in revenue over the biennium for tax cuts, is also expected to remain in the bill.
One big selling point for conservatives is the permanent enactment of the formerly temporary 75% personal income tax cut for small businesses, sources said.
Gone will be the shake-up of the sales tax, including the proposed broadening to several services and the half-cent increase. The governor’s oil and gas severance tax increase, versions of which had previously been rejected twice by his fellow Republicans, is also out as is the Commercial Activity Tax hike.
The tax changes along with several other amendments have been signaled by policymakers as the House has worked its way through extensive deliberations over the last several weeks.
AIA Ohio Testifies For “Good Samaritan Bill”
On March 26 AIA Ohio Immediate Past President, Elizabeth Corbin Murphy, FAIA asked members of the Senate Civil Justice Committee to pass HB17 which would provide civil immunity for architects, contractors, engineers, surveyors, and tradespersons providing volunteer services during a declared emergency.
Murphy said that currently architects are not able to volunteer in emergencies due to their status as licensed professionals. They risk losing their license by offering opinions on damaged structures without contractual language in place.
In an emergency, help is needed right away, but creating contracts is not a quick process, she explained. And if there is no contract, the architect will not be covered by insurance and would have to decline to help unless they had immunity, as she hopes will be achieved with the bill.
“Following a large-scale disaster, hundreds or thousands of buildings may be damaged,” she said. “Average citizens won’t know whether their homes and businesses are safe to enter or occupy.” That’s why she believes architects are essential during and after a declared emergency.
Sen. Skindell asked how architect volunteers are coordinated with the government in an emergency situation. Murphy said the architect has to be invited by a city, county or state official, as stated in the bill.
Representatives of the Associated General Contractors of Ohio, and the Professional Land Surveyors of Ohio also provided similar testimony.
AIA Ohio “Good Samaritan” Bill Has Senate Hearing (HB17)
The Senate Civil Justice Committee took Sponsor Testimony April 18 regarding AIA Ohio’s “Good Samaritan” Bill, HB 17. The bill would provide civil immunity for architects who are providing volunteer services during a declared emergency.
The sponsors said the measure was brought to them by the Ohio Chapter of the American Institute of Architects whose members have expressed a desire to help out during declared emergencies but currently have no immunity when working in a volunteer capacity. Rep. Landis said there currently is not civil immunity for engineers, architects and surveyors so volunteering “It’s not a leap in logic to assume that few, if any, of these people would risk their eight years of investment in their profession – the amount of time it takes to become a registered engineer, survey or architect in Ohio – for volunteer work. While altruism should be applauded, it should not be expected,” he said.
Rep. Blessing explained that In order to be eligible for the immunity, the emergency must be officially declared a national, state or local emergency and services must be uncompensated and requested by someone working in an official capacity such as law enforcement or the governor. He added that at no point is there any immunity from wanton, willful or intentional misconduct.
“During a declared emergency, we want our A Team in the game, not sitting on the sidelines,” Rep. Landis said in support of the bill.
Ohio Architects Board Asks Reinstatement of On-line Renewals
Amy Kobe, executive director of the Ohio Architects Board and the Ohio Landscape Architects Board explained the Board’s mandate during March 17 testimony before the Ohio House of Representatives Finance Committee studying the Governor’s Budget proposal, HB 64. Kobe said, “The mission of the boards is to protect the health, safety and welfare of the citizens of Ohio. The boards uphold the national standards of the professions through licensure, regulation and enforcement. The board office operates with a staff of four. There has been no increase in the number of staff since 1981. During that time, the number of active registrants has more than doubled and the number of exam candidates has quadrupled. The number of licensed firms tripled since 2004.
“In the coming biennium (FY16-17), the boards are projecting total revenues of approximately $1.47 million. The board requested an FY16 appropriation of $507,614 for FY16, and $551,264 in FY17, for a total request of $1.058 million. The recommendation was for $507,614 in FY16 and $517,492 for FY17, which is not sufficient to maintain the levels of service we should be providing to our customers. During the recession, the board’s non-payroll budget was cut by 30 percent. In order to meet this goal, among other reductions, online renewals were discontinued. We desperately need to reinstate this service.
“The board also achieved other cost savings by reducing the number board meetings, which lowered travel and meeting expenses. Adopting a consent agenda reduced the length of the meetings, and emailing board meeting materials has reduced printing expenses. The board almost exclusively communicates with licensees electronically, which has reduced postage and printing expenditures. Our frequent emails to customers are well-received and we receive many compliments on our communications.
“As the Internet has expanded, consumers have come to expect the convenience of online services. The boards are requesting restoration of the funding needed to provide online renewals as well as new applications. The problem with online services is the high cost of credit card fees, which average $3.05 per transaction. The estimated two-year cost of providing online services for renewals and new applications is $36,600, plus IT development expenses. At $110 per hour, IT developments costs are conservatively estimated at $11,000 (biennial cost) for online renewals and new applications.”
Chairwoman Grossman asked how long it would take to get the renewal process online. Kobe said in the past it was given a 90 day window. Grossman asked if Kobe was having discussions with the appropriate people to start the process. Kobe said the renewal process doesn’t start for another nine months so she has not started the process. Rep. Green asked if the increase in rent was something happening to all agencies or just this one. Kobe said, “We don’t have any more space but they have changed the way rent is calculated.” Rep. Clyde asked if applicants and licensures are the bulk of Kobe’s customers. Kobe said applicants and licensures are the bulk of their customers, but they also deal with complaints and general inquiries.
Senate Begins ‘Deep Dive’ into Tax Expenditures Including Historic Renovation Credits
The Senate Ways and Means Committee Wednesday began what Chairman Sen. Bob Peterson (R-Sabina) characterized as a “deep dive” over the next several weeks into the issue of tax expenditures here in Ohio as they prepare to take up the FY16-17 budget in the near future.
Tax Expenditures include such things as Historic Renovation Tax Credits and tax exemptions provided to non-profit entities like AIA Ohio.
Questions he said they want to address are how did the tax expenditure “get there”? What does it do? What does it cost? Who are the constituencies?
Next week, the committee will be focusing on tax expenditures in the sales tax. Peterson said he welcomes testimony in support of any of those exemptions, etc. or testimony questioning any of them, such as the one raised by Sen. Sandra Williams (D-Cleveland) in Wednesday’s hearing regarding sales tax exemptions for nonprofits including for the Cleveland Clinic.
House Committee Approves School Door Barricade Bill (HB114)
The Ohio House State Government Committee approved HB 114 May 20 after the Ohio Association of Chiefs of Police endorsed the bill.
The bill requires the Board of Building Standards to adopt rules for the use of a barricade device on a school door in an emergency situation and would prohibit the State Fire Code from prohibiting the use of the device in such a situation.
No opposition to the bill has surfaced. It was amended in committee to include Ohio’s College and Universities as well as K-12 schools.
Construction, Engineering Groups Support Bill Banning Residency Requirements
Representatives from six stakeholder groups spoke Tuesday in support of a bill that would ban residency requirements for construction and engineering projects.
Others submitted written testimony before the House Commerce and Labor Committee relaying opposition to the practice, which one speaker likened to “discrimination by Zip Code” that the bill (HB 180) seeks to outlaw.
“Employee residency mandates imposed by public entities limit the mobility of the construction workforce and discriminate against those tradespeople living in the wrong zip code or just outside the city limits,” said Andrea Ashley, vice president of government relations for the Associated General Contractors of Ohio. “Ohio residents should have the right to live and work where they choose and residency requirements infringe on that right by placing barriers around a city.”
One after another the witnesses argued that enacting such restrictions can harm local workers and result in an advantage for out-of-state companies who legally cannot be bound by those in-state ordinances.
One driver behind those ordinances is the idea that communities will see an economic benefit if the workers originate within that community. But Greg Stewart, CEO of Superior Electric Group, said in written testimony that communities will see an economic benefit from workers on a project for more than 20 days regardless of where they live.
“Finally, the restrictions are unfair to the workers themselves,” he said. “As this state struggles with unemployment and underemployment, it is astonishing to me that any government entity would construct barriers to employment as opposed to pathways to employment.”
The practice can also hamper recruiting efforts, said Don Mader, executive director of the American Council of Engineering Companies of Ohio. Unlike construction companies, engineering firms compete for work based on professional qualifications rather than low bids, he said.
Such measures would make it challenging for firms to recruit outside talent, he said, and could “do real, long-term economic damage to Ohio’s construction and design industries.”
“So as an engineering firm manager, I not only have to make sure 30% of my office staff lives in the city, I’ve somehow got to make sure that two-thirds of the hours worked on any given project are performed by city income taxpayers,” he said. “I have been associated with this industry for nearly 35 years and I’d like for someone to explain to me how – on any engineering project – one might reasonably manage this.”
A chief concern among those that have testified in support of the bill is that residency restrictions shackle in-state businesses and give out of state workers an unfair advantage.
Rep. Mike Duffy (R-Worthington) asked Mr. Mader, “How common is it for out of state workers to work on construction projects in Ohio?”
“In the engineering industry it’s very common,” Mr. Mader replied.
The same is true on the construction side, said Mark Totman, legislative director for the International Union of Operating Engineers Local 18.
“We cover two states basically,” Mr. Totman said. “You could have a crew of people from Kentucky that could come to Cincinnati and work on this project without having to meet the requirements. If I were large enough and I had crews in two, three states, if there’s not work here they’re willing to mobilize to keep their business running.”
Rep. Ron Hood (R-Ashville) asked Mr. Totman how burdensome the new law would be on his association’s operations.
Mr. Totman responded by asking him to imagine how much added time it would take to screen each potential worker based on their place of residence each time a contractor calls looking for employees.
“It’s very burdensome,” Mr. Totman replied. “It would slow down our process of us putting people to work, slow down the process of doing jobs. It would definitely impact our business.”
Also testifying in support of the bill were representatives from the Ohio Contractors Association, Mechanical Contractors Association of Ohio, Allied Construction Industries, Associated Builders and Contractors, the Transportation Advocacy Group of Northwest Ohio and the Ohio Aggregates & Industrial Minerals Association.
article_id=840960208#sthash.i0BY3IAC.dpuf
Controlling Board to Hear $100 Million School Projects Request
An Ohio commission will ask the Controlling Board on Monday for release of $100 million from lottery profits to finance more than 30 school district projects.
The Ohio School Facilities Commission (SFC) is asking for approval of $100 million from a larger $350 million sum approved in a mid-biennium review (MBR) bill and the previous capital budget. Bills 130-HB497 (Amstutz) and 130-HB492 (Scherer) provide for the commission to receive the money for the Classroom Facilities Assistance Program through the Lottery Profits Education Fund.
The commission is seeking release of the $100 million that will come partially from video lottery terminal licensing fees from the Ohio Lottery, according to the request. The requested amount “will be used to provide the state share of basic project costs” to school districts approved by the SFC.
A district’s relative wealth “as measured through its three-year average adjusted valuation per pupil and the need to replace classroom facilities as assessed by SFC” are the determinants for its eligibility and priority in the program. The appropriation would fund 38 school districts.
Strips Most Kasich Tax Proposals from Budget Bill
House Approves 6.3% Income Tax Cut
After weeks of studying the sweeping proposals from Gov. John Kasich in his executive budget for FY16-17, House Republicans unveiled their version Tuesday that largely strips out the proposed sales tax expansion to consultants and others as well as the severance, tobacco and CAT taxes and dedicates more money to school districts so that fewer will lose funds in the next biennium.
The House proposal will give a 6.3 percent across-the-board income tax cut beginning in Tax Year 2015 worth $1.2 billion over the biennium, which will lower the top tax rate to 4.997 percent. The substitute bill will also make the 75 percent small business tax deduction that was adopted by the 130th General Assembly permanent.
House Speaker Cliff Rosenberger (R-Clarksville) says he believes in the direction Kasich is trying to take the state long term, but said he wanted to give businesses tax certainty and get everyone on the same page as they move along the path that Kasich has laid out in his executive budget.
To that end, the substitute bill includes the creation of the 2020 Tax Policy Study Commission, which will examine the state’s tax policies in comparison to other states. Rosenberger said it will include members of the House and Senate as well as the tax commissioner and budget director to look at tax policies and make recommendations. Among the items that will be studied by the commission will be an increase in the severance tax, something Kasich has pushed for but which has been resisted by lawmakers and the oil and gas industry, who have argued for a much lower tax than proposed by the governor.
Personal and Business Income Tax Cuts Still in Play: House House Set To Strip Kasich Tax Plan From Budget
Personal and Business Income Tax Cuts Still in PlayHouse Republicans as expected will delete nearly all of Gov. John Kasich‘s ambitious tax overhaul from the biennial budget when the chamber unveils its first rewrite of the $72.3 billion spending plan.
The majority caucus will roll out its substitute version of the bill (HB 64) during a House Finance & Appropriations Committee hearing Tuesday. The committee will hold further hearings on the new measure Wednesday-Friday with plans to put the final touches on the bill and send it to the Senate the following week.
The House GOP’s plans to gut most of the governor’s tax package should come as no surprise to Capitol Square observers, as many in the caucus have been vocal about their opposition. Most of the testimony and comments fielded thus far have also been negative, including a resounding thumbs-down from the state’s key business groups, including the Ohio Chamber of Commerce.
And last month several caucus members expressed support for scrapping most of the proposal, which would have cut personal income taxes by about $5.7 billion while raising sales and other taxes to cover some $5.2 billion of that revenue loss.
Mr. Kasich has pushed the wide-ranging tax code rewrite as the next step in shifting Ohio’s tax base away from income and toward a consumption-based system to better reflect the state’s increasingly service-based economy. However, already-leery lawmakers have been witness to a parade of naysayers who questioned whether higher sales taxes and other aspects of the plan would truly propel the state’s economy as envisioned by the governor.
As big fans of tax cuts, majority Republicans are still pushing for a sizeable reduction based on projections for continued strong revenues and the retention of a few aspects of the governor’s package. Sources say the chamber is targeting a $1 billion overall cut.
Expected to survive the legislative surgery next week is a reduced version of the tobacco tax increase, people with knowledge of the discussions said. Mr. Kasich’s plan to “means test” some tax breaks, which would provide an estimated $318 million in revenue over the biennium for tax cuts, is also expected to remain in the bill.
One big selling point for conservatives is the permanent enactment of the formerly temporary 75% personal income tax cut for small businesses, sources said.
Gone will be the shake-up of the sales tax, including the proposed broadening to several services and the half-cent increase. The governor’s oil and gas severance tax increase, versions of which had previously been rejected twice by his fellow Republicans, is also out as is the Commercial Activity Tax hike.
The tax changes along with several other amendments have been signaled by policymakers as the House has worked its way through extensive deliberations over the last several weeks.
AIA Ohio Testifies For “Good Samaritan Bill”
On March 26 AIA Ohio Immediate Past President, Elizabeth Corbin Murphy, FAIA asked members of the Senate Civil Justice Committee to pass HB17 which would provide civil immunity for architects, contractors, engineers, surveyors, and tradespersons providing volunteer services during a declared emergency.
Murphy said that currently architects are not able to volunteer in emergencies due to their status as licensed professionals. They risk losing their license by offering opinions on damaged structures without contractual language in place.
In an emergency, help is needed right away, but creating contracts is not a quick process, she explained. And if there is no contract, the architect will not be covered by insurance and would have to decline to help unless they had immunity, as she hopes will be achieved with the bill.
“Following a large-scale disaster, hundreds or thousands of buildings may be damaged,” she said. “Average citizens won’t know whether their homes and businesses are safe to enter or occupy.” That’s why she believes architects are essential during and after a declared emergency.
Sen. Skindell asked how architect volunteers are coordinated with the government in an emergency situation. Murphy said the architect has to be invited by a city, county or state official, as stated in the bill.
Representatives of the Associated General Contractors of Ohio, and the Professional Land Surveyors of Ohio also provided similar testimony.
AIA Ohio “Good Samaritan” Bill Has Senate Hearing (HB17)
The Senate Civil Justice Committee took Sponsor Testimony April 18 regarding AIA Ohio’s “Good Samaritan” Bill, HB 17. The bill would provide civil immunity for architects who are providing volunteer services during a declared emergency.
The sponsors said the measure was brought to them by the Ohio Chapter of the American Institute of Architects whose members have expressed a desire to help out during declared emergencies but currently have no immunity when working in a volunteer capacity. Rep. Landis said there currently is not civil immunity for engineers, architects and surveyors so volunteering “It’s not a leap in logic to assume that few, if any, of these people would risk their eight years of investment in their profession – the amount of time it takes to become a registered engineer, survey or architect in Ohio – for volunteer work. While altruism should be applauded, it should not be expected,” he said.
Rep. Blessing explained that In order to be eligible for the immunity, the emergency must be officially declared a national, state or local emergency and services must be uncompensated and requested by someone working in an official capacity such as law enforcement or the governor. He added that at no point is there any immunity from wanton, willful or intentional misconduct.
“During a declared emergency, we want our A Team in the game, not sitting on the sidelines,” Rep. Landis said in support of the bill.
Ohio Architects Board Asks Reinstatement of On-line Renewals
Amy Kobe, executive director of the Ohio Architects Board and the Ohio Landscape Architects Board explained the Board’s mandate during March 17 testimony before the Ohio House of Representatives Finance Committee studying the Governor’s Budget proposal, HB 64. Kobe said, “The mission of the boards is to protect the health, safety and welfare of the citizens of Ohio. The boards uphold the national standards of the professions through licensure, regulation and enforcement. The board office operates with a staff of four. There has been no increase in the number of staff since 1981. During that time, the number of active registrants has more than doubled and the number of exam candidates has quadrupled. The number of licensed firms tripled since 2004.
“In the coming biennium (FY16-17), the boards are projecting total revenues of approximately $1.47 million. The board requested an FY16 appropriation of $507,614 for FY16, and $551,264 in FY17, for a total request of $1.058 million. The recommendation was for $507,614 in FY16 and $517,492 for FY17, which is not sufficient to maintain the levels of service we should be providing to our customers. During the recession, the board’s non-payroll budget was cut by 30 percent. In order to meet this goal, among other reductions, online renewals were discontinued. We desperately need to reinstate this service.
“The board also achieved other cost savings by reducing the number board meetings, which lowered travel and meeting expenses. Adopting a consent agenda reduced the length of the meetings, and emailing board meeting materials has reduced printing expenses. The board almost exclusively communicates with licensees electronically, which has reduced postage and printing expenditures. Our frequent emails to customers are well-received and we receive many compliments on our communications.
“As the Internet has expanded, consumers have come to expect the convenience of online services. The boards are requesting restoration of the funding needed to provide online renewals as well as new applications. The problem with online services is the high cost of credit card fees, which average $3.05 per transaction. The estimated two-year cost of providing online services for renewals and new applications is $36,600, plus IT development expenses. At $110 per hour, IT developments costs are conservatively estimated at $11,000 (biennial cost) for online renewals and new applications.”
Chairwoman Grossman asked how long it would take to get the renewal process online. Kobe said in the past it was given a 90 day window. Grossman asked if Kobe was having discussions with the appropriate people to start the process. Kobe said the renewal process doesn’t start for another nine months so she has not started the process. Rep. Green asked if the increase in rent was something happening to all agencies or just this one. Kobe said, “We don’t have any more space but they have changed the way rent is calculated.” Rep. Clyde asked if applicants and licensures are the bulk of Kobe’s customers. Kobe said applicants and licensures are the bulk of their customers, but they also deal with complaints and general inquiries.
Senate Begins ‘Deep Dive’ into Tax Expenditures Including Historic Renovation Credits
The Senate Ways and Means Committee Wednesday began what Chairman Sen. Bob Peterson (R-Sabina) characterized as a “deep dive” over the next several weeks into the issue of tax expenditures here in Ohio as they prepare to take up the FY16-17 budget in the near future.
Tax Expenditures include such things as Historic Renovation Tax Credits and tax exemptions provided to non-profit entities like AIA Ohio.
Questions he said they want to address are how did the tax expenditure “get there”? What does it do? What does it cost? Who are the constituencies?
Next week, the committee will be focusing on tax expenditures in the sales tax. Peterson said he welcomes testimony in support of any of those exemptions, etc. or testimony questioning any of them, such as the one raised by Sen. Sandra Williams (D-Cleveland) in Wednesday’s hearing regarding sales tax exemptions for nonprofits including for the Cleveland Clinic.