Senate Finance Committee Hears SAO/OSFC Merger Testimony
The Senate Finance Committee took testimony March 2 regarding HB 487, which among many other things would merge the State Architects Office (SAO) with the Ohio School Facilities Commission (OSFC) into a new Ohio Facilities Construction Commission (OFCC).
Ohio School Facilities Commission (OSFC) Executive Director Rick Hickman explained the bill’s changes regarding the merging of his office and that of the state architect into the Ohio Facilities Construction Commission. In answer to a series of questions from Chairman Widener, he noted the following:
– The language regarding the inclusion of aspects of the Ohio Department of Natural Resources’ (ODNR) engineering division relates to a study to be done by the end of the year about the efficacy of merging all or parts of the office with the new commission. He said talks with ODNR have started.
– Regarding how the two components of the office would work, Hickman said they would continue to operate as they do now but he would think the school facilities component would move toward the state architect’s model of actually managing construction projects.
– He said the two will move into the same office space and are in the process of looking for a new location in a state-owned property.
– Asked why rules are to be promulgated under Chap. 111 and not Chap. 119, Hickman said he did not know, saying OSFC operates under 119 rules now. He saw no problem with returning to that.
Ex-offender Professionals Could be Licensed (SB337)
Bipartisan sponsors of a proposal to help ex-offenders find employment brought their case to a Senate panel Tuesday.
The collateral sanctions bill, SB 337, is based on feedback from stakeholders during interested party forums that the Kasich Administration helped organize. Sen. Shirley Smith (D-Cleveland) told the Senate Judiciary Committee during sponsor testimony.
“We need to pass this legislation because it moves the conversation past how to punish people and toward how to help people be better people,” she said. “It opens up opportunities for those who have already paid their dues to society and want to move on with their lives.”
The measure would remove barriers to employment by allowing most ex-offenders the ability to take exams required to get professional licenses issued by the state for jobs in the construction industry.
The bill addresses a broad range of policy changes including language that would “prohibit the preclusion of individuals from obtaining or renewing certain licenses, certifications, or permits due to any past criminal history unless the individual had committed a crime of moral turpitude or a disqualifying offense.”
The bill also would define the terms moral turpitude and disqualifying offense as applied to certain employment and permit decision-makers to consider on a case-by-case basis whether it is appropriate to grant or deny the issuance or restoration of an occupational license or employment opportunity.
Joint co-sponsor Sen. Bill Seitz (R-Cincinnati) described the measure as the next step “in the continuum of criminal justice reform” that the legislature started last year when it overhauled criminal sentencing penalties in HB 86.
The measure would help reduce the likelihood of freed prisoners committing future crimes, he said, noting that one in every six Ohioans is an ex-offender.
Employers who hire ex-offenders with an Order of Limited Relief from the sentencing court would be protected from being held liable for negligent hiring, he said, noting House Bill 86 included a similar measure. However, the proposal would offer the same relief for those released prior to enactment of that legislation.
The removal of collateral sanctions would not apply in cases where a “direct nexus” exists between the offense and the employment opportunity, he said. For example, it would not allow someone convicted of check fraud to get a job in a bank.
AIA Ohio Seeks to Maintain Architect’s Talents/Influence
Kasich Proposal would Merge SAO with OSFC
Part of the Kasich Administration’s Mid Biennium Review (MBR) Proposal, Sub. HB 487 would merge the State Architects Office (SAO) with the Ohio School Facilities Commission (OSFC) forming a new Ohio Facilities Construction Commission (OFCC).
AIA Ohio was aware of the possible merger prior to the introduction of HB 487 and initiated a series of in-person meetings and conversations with OSFC Director, Rick Hickman, OSFC Construction Reform Program Director, Craig Weise AIA, State Architect, Lane Beougher, AIA, Senator Chris Widener, FAIA, his staff and other design and construction interests. These conversations are on going and address the Administration’s rationale for the merger as well as AIA Ohio’s desire to preserve the State Architect’s important roles and to maintain the talent, influence and visibility only architects can bring to the construction process.
These conversations are progressing while the Ohio House of Representatives is taking testimony on HB 487.
During House Finance Committee hearings on the merger proposal, Budget Director Tim Keen testified that the merger would “reduce costs and align related authority and resources within a single, responsive commission with oversight responsibility for all state non-transportation construction.” He said, “The impetus (for the merger) was the lack of an ongoing funding source for the state architect’s office.” The just passed Capital Bill provided for no new buildings.
Department of Administrative Services Director, Robert Blair, testified that “downsizing of state government has occurred under the leadership of both parties, partly due to budget constraints and partly due to the reality of doing more with less and that the new commission would combine most of state government vertical construction authority under a single entity with the authority to perform or administer all state facility construction, including schools.”
OSFC Executive Director, Richard Hickman said the merger would:
1) Bring the major components of state construction under a single umbrella benefiting public owners and taxpayers,
2) Establish a centralized construction authority,
3) Create consistent, streamlined construction oversight,
4) Lead to financial efficiency,
5) Allow for the leveraged expertise and resources,
6) Deliver capital projects even more efficiently and effectively by consolidating the tremendous construction experience and expertise that resides in both the State Architect’s Office and the Ohio School Facilities Commission,
7) Allow the state to take full advantage of the collective knowledge of construction to deliver the best facilities to all public owners in a consistent and streamlined manner.
The Associated General Contractors (AGC), the Buckeye Assn. of School Administrators, and ACEC Ohio also support the merger. No state legislator from either party has appeared in opposition.
As for the future, once the bill passes the Ohio House, the Senate Finance Committee, Chaired by AIA Ohio Past President, Senator Chris Widener, FAIA is expected to add its input to the merger proposal. Senator Widener has substantial state construction experience, played a significant role in Ohio’s adoption of construction reform and likely will play a key role in what happens to the State Architect’s Office… and how much influence architects will bring to bear on Ohio’s built environment.
AIA Ohio will continue to provide updates on the proposed merger.
House Republican Releases Tax Committee Report
The chairman of an ad hoc House panel on Ohio’s tax system issued a report Friday calling for more regular reviews of tax breaks and proposing changes to sales and business taxes.
Rep. John Adams (R-Sidney), the House majority whip and chairman of the Tax Structure Study Committee, announced the release of a “Chairman’s Report” based on input the panel received from business interests and other stakeholders.
The House GOP’s announcement said the report could serve as “a springboard for legislative initiatives.”
“During this General Assembly, we have focused on creating an economy where businesses can thrive and Ohioans can compete for jobs right here within our borders,” Rep. Adams said in the release.
“Creating economic prosperity starts with a tax structure that is conducive to business growth and job creation. The people of Ohio made their voices heard when we came to their areas of the state and helped us to put together this report of recommendations, which may serve as the genesis of future legislation.”
Among the reports recommendations:
- Tax expenditures should be reviewed every two years “for validity” by a standing subcommittee of the House Ways & Means Committee.
- Ohio’s sales tax should be applied to all economic activities including goods and services.
- The Commercial Activity Tax “should be modified to establish a tax liability of the lesser of two calculations: a tax on gross receipts, as established by the current CAT law, or a tax on net income.” Mr. Adams said the change would reduce discrepancies arising from “pyramiding” effects of CAT liability depending on industry type.
- A “continuing, open dialogue on tax issues” should be pursued.
The Tax Structure Committee met six times last summer and fielded testimony from more than 80 witnesses, according to House Republicans.
“This has been a productive process and I look forward to further discussing these findings with the legislature,” Rep. Adams said.
Kasich Signs Capital Budget
Gov. John R. Kasich Monday signed HB482 (Amstutz) — the capital budget bill — which allocates $1.74 billion for priority construction needs at state- and university-owned facilities — needs that had been identified by a collaborative effort led by Ohio State University President Gordon Gee.
Upon signing the bill, Kasich released the following statement:
“I’m incredibly grateful to Speaker Batchelder, President Niehaus, Chairman Amstutz and Chairman Widener for their leadership in the House and Senate. Without their strong support and their insistence on the fiscal restraint exhibited by the Legislature, we could not have succeeded in passing one of the of the leanest capital budget bills ever signed into law. This kind of leadership is what is required during challenging fiscal times like we’re in now, and together we’ve ensured that the taxpayers’ limited funds are allocated where needed most.
“When we started this process, we knew resources were extremely limited and the system in place to allocate funds was based primarily on power, not necessarily on prudence. I believed Ohio needed to change course to ensure we utilize these limited resources in a way that produces the greatest return on our investment, and I’m very pleased that my partners in the legislature embraced this new approach.”
Capital Reapprpriation Bill Passes Senate (SB312)
On March 21 Senator Chris Widener, FAIA (R-Springfield) won unanimous support for a comparatively small capital reappropriations bill (SB 312) that authorizes the use of unspent funds on previously authorized capital projects.
The senator said the measure allows the use of $1.234 billion, and noted that other recent reappropriations bills have authorized the spending of $2.5 billion and $5.8 billion.
Dayton Schools First to Complete Building Program; MBR Could Free up OSFC Dollars
The Ohio School Facilities Commission (OSFC) hosted a long-awaited celebration Thursday for Dayton Public Schools’ as the first of six urban districts to cross the finish line under its 10-year-old master facilities plan, originally pegged for a half billion dollars in state money.
District Superintendent Lori Ward was joined by school board President Ronald Lee and other district officers.
“It started out critical,” Ward said of the condition of Dayton schools in 2002 when OSFC approved a $488 million, 61
percent match to the district’s contribution of $298 million. (See The Hannah Report, 7/23/02.)
Other Big 8 districts participating in the program include Columbus, Cleveland, Cincinnati, Toledo and Akron. Youngstown and Canton city schools had launched their facilities master plan with OSFC prior to the 2002 omnibus, Hickman would later note.
Ward praised the district’s “partnership with Dr. Hickman,” who joined the building campaign as former Gov. Bob Taft’s OSFC appointment in 2005. He returned last year at the behest of Gov. John Kasich.
“Construction is not an easy business — in fact, it’s a very difficult business,” said Hickman, sharpening the analysis. “Urban school districts are very difficult to manage under a building program.”
The commission then broke for a rare executive session, during which members discussed litigation concerns over a proposed resolution to approve Cincinnati Public Schools’ energy conservation financing program. The commission emerged over a half hour later to approve the resolution in public session.
It went on to a typical list of commission business before receiving the monthly director’s report. Hickman said there had been number of positive developments since the February meeting.
“I think the most pleasing is what happened at the ballot box in the March election,” he said, noting all eight bond proposals for school construction had passed. “That represents over $500 million in commitments to school district construction in the state. It’s good for our staff; it’s good for districts.”
Hickman said OSFC is also pressing for several program modifications with the Mid-Biennium Review, including more liberty to free up money committed to construction projects as yet unfunded at the local level.
“We have a number of changes to the program that address our concerns at the end of last year about the ability to continue our building program,” he said of badly needed dollars, “because of the difficulty districts have had passing local bond issues.”
After the meeting, Hickman put the magnitude of the problem into perspective, noting only three of nine total school construction issues had passed in July 2010. The situation grew worse last November, when only four of 14 bond proposals passed.
“We were looking at the possibility of tying up as much as $300 million,” he said, noting several local matching proposals that failed last year were part of the eight successful bond packages approved this month. Hickman said the systemic problem is much larger than that, however.
“Are we tying up large sums of money that we should be using to build schools?” he said of the one-year hands-off requirement on OSFC commitments.
As a remedy, the Legislature is considering allowing the commission to divert construction awards lacking matching dollars to other districts that already have local funds in place.
Impetus for Merging SAO with OSFC: “Lack of Ongoing Funding Source”
Members of the House Finance and Appropriations Committee spent the better part of a March 20 hearing from the administration about the various proposals included in HB487 — the Mid-Biennium Review (MBR) bill.
Director Keen said much of the MBR results from a dialogue within the administration when cabinet directors were asked to consider ways to increase savings, with a focus on:
- Removing statutory barriers that impede agencies, local governments and school districts from operating more efficiently and sharing services.
- Eliminating outdated requirements that impose unnecessary burdens on agencies, local governments, and schools.
- Streamlining programs and service delivery.
- Making accounting changes to improve tracking.
- Making technical corrections.
Director Keen said the MBR proposes 232 revisions to line items in 32 agencies, mostly as a result of spending cuts.
“This was not intended as an across-the-board budget cut exercise, but rather to review the circumstances of individual state agencies,” he said. Agency reductions total $113.5 million, including $34.7 million in state share.
The director said several of the proposed changes would consolidate programs, improve agency communications, expedite the tax appeals process, and increase local governments’ ability to share services.
“Major programmatic and operational changes,” Keen said “include among others:
– Merging of the state architect’s office with the Ohio School Facilities Commission. He explained to the committee later that the impetus for this was the lack of an ongoing funding source for the state architect’s office.
House Finance Chairman: HB 487 Appears “Positive”
Following the House Finance Committee overview hearing on the Governor’s Mid Biennium Review (MBR) Bill, HB 487, which merges the State Architect’s Office (SAO) with the Ohio Schools Facilities Commission (OSFC), Chairman Ron Amstutz told reporters: “My sense continues to be that we have a comprehensive set of proposals that generally are positive for the state’s ability to provide services and that make a variety of policy tune-ups that don’t seem to be earthshaking individually but together are quite an array.”
“Now there are some substantial policy proposals as well contained in this. I don’t know that any of those have reared their heads as being red flags,” he said. “I have some concerns and I have more questions about the financial institutions proposal” such as “how this positions us competitively as a state….”
Chairman Amstutz said he expects the House to send the measure over to the Senate in the first or second week after the spring recess, which runs through the first two weeks of April.
Further hearings on various components of the bill are set to continue in a number of different committees. The SAO/OSFC merger sections will be taken up in the House State Government Committee.
Senate Finance Committee Hears SAO/OSFC Merger Testimony
The Senate Finance Committee took testimony March 2 regarding HB 487, which among many other things would merge the State Architects Office (SAO) with the Ohio School Facilities Commission (OSFC) into a new Ohio Facilities Construction Commission (OFCC).
Ohio School Facilities Commission (OSFC) Executive Director Rick Hickman explained the bill’s changes regarding the merging of his office and that of the state architect into the Ohio Facilities Construction Commission. In answer to a series of questions from Chairman Widener, he noted the following:
– The language regarding the inclusion of aspects of the Ohio Department of Natural Resources’ (ODNR) engineering division relates to a study to be done by the end of the year about the efficacy of merging all or parts of the office with the new commission. He said talks with ODNR have started.
– Regarding how the two components of the office would work, Hickman said they would continue to operate as they do now but he would think the school facilities component would move toward the state architect’s model of actually managing construction projects.
– He said the two will move into the same office space and are in the process of looking for a new location in a state-owned property.
– Asked why rules are to be promulgated under Chap. 111 and not Chap. 119, Hickman said he did not know, saying OSFC operates under 119 rules now. He saw no problem with returning to that.
Ex-offender Professionals Could be Licensed (SB337)
Bipartisan sponsors of a proposal to help ex-offenders find employment brought their case to a Senate panel Tuesday.
The collateral sanctions bill, SB 337, is based on feedback from stakeholders during interested party forums that the Kasich Administration helped organize. Sen. Shirley Smith (D-Cleveland) told the Senate Judiciary Committee during sponsor testimony.
“We need to pass this legislation because it moves the conversation past how to punish people and toward how to help people be better people,” she said. “It opens up opportunities for those who have already paid their dues to society and want to move on with their lives.”
The measure would remove barriers to employment by allowing most ex-offenders the ability to take exams required to get professional licenses issued by the state for jobs in the construction industry.
The bill addresses a broad range of policy changes including language that would “prohibit the preclusion of individuals from obtaining or renewing certain licenses, certifications, or permits due to any past criminal history unless the individual had committed a crime of moral turpitude or a disqualifying offense.”
The bill also would define the terms moral turpitude and disqualifying offense as applied to certain employment and permit decision-makers to consider on a case-by-case basis whether it is appropriate to grant or deny the issuance or restoration of an occupational license or employment opportunity.
Joint co-sponsor Sen. Bill Seitz (R-Cincinnati) described the measure as the next step “in the continuum of criminal justice reform” that the legislature started last year when it overhauled criminal sentencing penalties in HB 86.
The measure would help reduce the likelihood of freed prisoners committing future crimes, he said, noting that one in every six Ohioans is an ex-offender.
Employers who hire ex-offenders with an Order of Limited Relief from the sentencing court would be protected from being held liable for negligent hiring, he said, noting House Bill 86 included a similar measure. However, the proposal would offer the same relief for those released prior to enactment of that legislation.
The removal of collateral sanctions would not apply in cases where a “direct nexus” exists between the offense and the employment opportunity, he said. For example, it would not allow someone convicted of check fraud to get a job in a bank.
AIA Ohio Seeks to Maintain Architect’s Talents/Influence
Kasich Proposal would Merge SAO with OSFC
Part of the Kasich Administration’s Mid Biennium Review (MBR) Proposal, Sub. HB 487 would merge the State Architects Office (SAO) with the Ohio School Facilities Commission (OSFC) forming a new Ohio Facilities Construction Commission (OFCC).
AIA Ohio was aware of the possible merger prior to the introduction of HB 487 and initiated a series of in-person meetings and conversations with OSFC Director, Rick Hickman, OSFC Construction Reform Program Director, Craig Weise AIA, State Architect, Lane Beougher, AIA, Senator Chris Widener, FAIA, his staff and other design and construction interests. These conversations are on going and address the Administration’s rationale for the merger as well as AIA Ohio’s desire to preserve the State Architect’s important roles and to maintain the talent, influence and visibility only architects can bring to the construction process.
These conversations are progressing while the Ohio House of Representatives is taking testimony on HB 487.
During House Finance Committee hearings on the merger proposal, Budget Director Tim Keen testified that the merger would “reduce costs and align related authority and resources within a single, responsive commission with oversight responsibility for all state non-transportation construction.” He said, “The impetus (for the merger) was the lack of an ongoing funding source for the state architect’s office.” The just passed Capital Bill provided for no new buildings.
Department of Administrative Services Director, Robert Blair, testified that “downsizing of state government has occurred under the leadership of both parties, partly due to budget constraints and partly due to the reality of doing more with less and that the new commission would combine most of state government vertical construction authority under a single entity with the authority to perform or administer all state facility construction, including schools.”
OSFC Executive Director, Richard Hickman said the merger would:
1) Bring the major components of state construction under a single umbrella benefiting public owners and taxpayers,
2) Establish a centralized construction authority,
3) Create consistent, streamlined construction oversight,
4) Lead to financial efficiency,
5) Allow for the leveraged expertise and resources,
6) Deliver capital projects even more efficiently and effectively by consolidating the tremendous construction experience and expertise that resides in both the State Architect’s Office and the Ohio School Facilities Commission,
7) Allow the state to take full advantage of the collective knowledge of construction to deliver the best facilities to all public owners in a consistent and streamlined manner.
The Associated General Contractors (AGC), the Buckeye Assn. of School Administrators, and ACEC Ohio also support the merger. No state legislator from either party has appeared in opposition.
As for the future, once the bill passes the Ohio House, the Senate Finance Committee, Chaired by AIA Ohio Past President, Senator Chris Widener, FAIA is expected to add its input to the merger proposal. Senator Widener has substantial state construction experience, played a significant role in Ohio’s adoption of construction reform and likely will play a key role in what happens to the State Architect’s Office… and how much influence architects will bring to bear on Ohio’s built environment.
AIA Ohio will continue to provide updates on the proposed merger.
House Republican Releases Tax Committee Report
The chairman of an ad hoc House panel on Ohio’s tax system issued a report Friday calling for more regular reviews of tax breaks and proposing changes to sales and business taxes.
Rep. John Adams (R-Sidney), the House majority whip and chairman of the Tax Structure Study Committee, announced the release of a “Chairman’s Report” based on input the panel received from business interests and other stakeholders.
The House GOP’s announcement said the report could serve as “a springboard for legislative initiatives.”
“During this General Assembly, we have focused on creating an economy where businesses can thrive and Ohioans can compete for jobs right here within our borders,” Rep. Adams said in the release.
“Creating economic prosperity starts with a tax structure that is conducive to business growth and job creation. The people of Ohio made their voices heard when we came to their areas of the state and helped us to put together this report of recommendations, which may serve as the genesis of future legislation.”
Among the reports recommendations:
- Tax expenditures should be reviewed every two years “for validity” by a standing subcommittee of the House Ways & Means Committee.
- Ohio’s sales tax should be applied to all economic activities including goods and services.
- The Commercial Activity Tax “should be modified to establish a tax liability of the lesser of two calculations: a tax on gross receipts, as established by the current CAT law, or a tax on net income.” Mr. Adams said the change would reduce discrepancies arising from “pyramiding” effects of CAT liability depending on industry type.
- A “continuing, open dialogue on tax issues” should be pursued.
The Tax Structure Committee met six times last summer and fielded testimony from more than 80 witnesses, according to House Republicans.
“This has been a productive process and I look forward to further discussing these findings with the legislature,” Rep. Adams said.
Kasich Signs Capital Budget
Gov. John R. Kasich Monday signed HB482 (Amstutz) — the capital budget bill — which allocates $1.74 billion for priority construction needs at state- and university-owned facilities — needs that had been identified by a collaborative effort led by Ohio State University President Gordon Gee.
Upon signing the bill, Kasich released the following statement:
“I’m incredibly grateful to Speaker Batchelder, President Niehaus, Chairman Amstutz and Chairman Widener for their leadership in the House and Senate. Without their strong support and their insistence on the fiscal restraint exhibited by the Legislature, we could not have succeeded in passing one of the of the leanest capital budget bills ever signed into law. This kind of leadership is what is required during challenging fiscal times like we’re in now, and together we’ve ensured that the taxpayers’ limited funds are allocated where needed most.
“When we started this process, we knew resources were extremely limited and the system in place to allocate funds was based primarily on power, not necessarily on prudence. I believed Ohio needed to change course to ensure we utilize these limited resources in a way that produces the greatest return on our investment, and I’m very pleased that my partners in the legislature embraced this new approach.”
Capital Reapprpriation Bill Passes Senate (SB312)
On March 21 Senator Chris Widener, FAIA (R-Springfield) won unanimous support for a comparatively small capital reappropriations bill (SB 312) that authorizes the use of unspent funds on previously authorized capital projects.
The senator said the measure allows the use of $1.234 billion, and noted that other recent reappropriations bills have authorized the spending of $2.5 billion and $5.8 billion.
Dayton Schools First to Complete Building Program; MBR Could Free up OSFC Dollars
The Ohio School Facilities Commission (OSFC) hosted a long-awaited celebration Thursday for Dayton Public Schools’ as the first of six urban districts to cross the finish line under its 10-year-old master facilities plan, originally pegged for a half billion dollars in state money.
District Superintendent Lori Ward was joined by school board President Ronald Lee and other district officers.
“It started out critical,” Ward said of the condition of Dayton schools in 2002 when OSFC approved a $488 million, 61
percent match to the district’s contribution of $298 million. (See The Hannah Report, 7/23/02.)
Other Big 8 districts participating in the program include Columbus, Cleveland, Cincinnati, Toledo and Akron. Youngstown and Canton city schools had launched their facilities master plan with OSFC prior to the 2002 omnibus, Hickman would later note.
Ward praised the district’s “partnership with Dr. Hickman,” who joined the building campaign as former Gov. Bob Taft’s OSFC appointment in 2005. He returned last year at the behest of Gov. John Kasich.
“Construction is not an easy business — in fact, it’s a very difficult business,” said Hickman, sharpening the analysis. “Urban school districts are very difficult to manage under a building program.”
The commission then broke for a rare executive session, during which members discussed litigation concerns over a proposed resolution to approve Cincinnati Public Schools’ energy conservation financing program. The commission emerged over a half hour later to approve the resolution in public session.
It went on to a typical list of commission business before receiving the monthly director’s report. Hickman said there had been number of positive developments since the February meeting.
“I think the most pleasing is what happened at the ballot box in the March election,” he said, noting all eight bond proposals for school construction had passed. “That represents over $500 million in commitments to school district construction in the state. It’s good for our staff; it’s good for districts.”
Hickman said OSFC is also pressing for several program modifications with the Mid-Biennium Review, including more liberty to free up money committed to construction projects as yet unfunded at the local level.
“We have a number of changes to the program that address our concerns at the end of last year about the ability to continue our building program,” he said of badly needed dollars, “because of the difficulty districts have had passing local bond issues.”
After the meeting, Hickman put the magnitude of the problem into perspective, noting only three of nine total school construction issues had passed in July 2010. The situation grew worse last November, when only four of 14 bond proposals passed.
“We were looking at the possibility of tying up as much as $300 million,” he said, noting several local matching proposals that failed last year were part of the eight successful bond packages approved this month. Hickman said the systemic problem is much larger than that, however.
“Are we tying up large sums of money that we should be using to build schools?” he said of the one-year hands-off requirement on OSFC commitments.
As a remedy, the Legislature is considering allowing the commission to divert construction awards lacking matching dollars to other districts that already have local funds in place.
Impetus for Merging SAO with OSFC: “Lack of Ongoing Funding Source”
Members of the House Finance and Appropriations Committee spent the better part of a March 20 hearing from the administration about the various proposals included in HB487 — the Mid-Biennium Review (MBR) bill.
Director Keen said much of the MBR results from a dialogue within the administration when cabinet directors were asked to consider ways to increase savings, with a focus on:
- Removing statutory barriers that impede agencies, local governments and school districts from operating more efficiently and sharing services.
- Eliminating outdated requirements that impose unnecessary burdens on agencies, local governments, and schools.
- Streamlining programs and service delivery.
- Making accounting changes to improve tracking.
- Making technical corrections.
Director Keen said the MBR proposes 232 revisions to line items in 32 agencies, mostly as a result of spending cuts.
“This was not intended as an across-the-board budget cut exercise, but rather to review the circumstances of individual state agencies,” he said. Agency reductions total $113.5 million, including $34.7 million in state share.
The director said several of the proposed changes would consolidate programs, improve agency communications, expedite the tax appeals process, and increase local governments’ ability to share services.
“Major programmatic and operational changes,” Keen said “include among others:
– Merging of the state architect’s office with the Ohio School Facilities Commission. He explained to the committee later that the impetus for this was the lack of an ongoing funding source for the state architect’s office.
House Finance Chairman: HB 487 Appears “Positive”
Following the House Finance Committee overview hearing on the Governor’s Mid Biennium Review (MBR) Bill, HB 487, which merges the State Architect’s Office (SAO) with the Ohio Schools Facilities Commission (OSFC), Chairman Ron Amstutz told reporters: “My sense continues to be that we have a comprehensive set of proposals that generally are positive for the state’s ability to provide services and that make a variety of policy tune-ups that don’t seem to be earthshaking individually but together are quite an array.”
“Now there are some substantial policy proposals as well contained in this. I don’t know that any of those have reared their heads as being red flags,” he said. “I have some concerns and I have more questions about the financial institutions proposal” such as “how this positions us competitively as a state….”
Chairman Amstutz said he expects the House to send the measure over to the Senate in the first or second week after the spring recess, which runs through the first two weeks of April.
Further hearings on various components of the bill are set to continue in a number of different committees. The SAO/OSFC merger sections will be taken up in the House State Government Committee.