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The $4 billion capital budget passes along with a lot of other bills.

Reflections on Wednesday's marathon session with two senators.

This weekend, the state of Ohio.

Welcome to the state of Ohio.

I'm Karen Kasler.

In a 12 hour long session Wednesday, that's likely the last one before the fall election, Ohio lawmakers voted to advance more than 50 bills, and that doesn't include individual measures.

They folded into bigger bills.

The most pressing issue was the $4.2 billion capital budget, thought to be the largest in state history, with $3.5 billion in state spending, $150 million for community projects, and $717 million in one time funds for local items, including a convention center and tennis tournament in Cincinnati, a land bridge connector in Cleveland, visitor centers and major parks, and money for the Rock n Roll Hall of Fame, the Pro Football Hall of Fame, and the Columbus Symphony Orchestra.

There were also bills passed requiring heart shocking ads in nearly all Ohio schools and sports facilities, allowing human trafficking survivors to erase some criminal records.

That also included a requirement that schools adopt policies on religious expression days, changing the way state ballot issues are numbered to avoid what happened with issue one last year.

And that also includes an extension of some property tax exemptions and a bill modernizing county records that also includes provisions on racial, religious, and ethnic harassment called the Campus Accountability and Modernization to Protect University Students or Campus Act, which was by Partizan.

The list did not include Senate Bill 83, the controversial conservative backed bill requiring intellectual diversity on certain topics such as electoral politics, marriage and abortion, and limiting the use of diversity training at Ohio's universities.

Republican Senator Jerry Serino told reporters he has been told there are the votes to pass it in the House, and that he will not meet with House Speaker Jason Stevens this summer to discuss possible changes to Senate Bill 83, suggesting it will either pass as is in the lame duck session this fall or that he'll reintroduce it next session.

Republicans in the House also passed changes to the College Credit Plus program, after adding in a so-called bathroom bill requiring K through 12 schools and public and private colleges and universities to ensure students and adults use the bathroom of the gender on their birth certificates.

No one is talking about this.

This is a made up problem and you are targeting children.

Children?

They are the ones who become the victims of this because you have targeted them time and time again, because they are different.

They are different.

And yes, God made them different and you have used them and you are demonizing them for your own political purposes.

And shame on you.

This isn't about demonizing anyone.

This is about protecting our children.

The majority of Republicans, independents, and yes, Democrats agree with this.

And so do I urge my colleagues to do the right thing for the children of Ohio and say yes to this amendment.

Senators left long before the House voted on that change, and they need to approve it for it to go to governor Mike DeWine.

I talked about the capital bill and what's ahead, as well as Senate Bill 83 with Senate Finance Chair Matt Dolan.

it's thought that this may be the largest capital budget in state history.

And this is from a legislature that prides itself on returning money back to Ohioans and very, very careful spending.

How did we get to the largest capital budget in state history here?

Yeah.

Well, let's make sure we understand what what we are saying.

The capital bill was a vehicle for which a lot of money was spent.

But the actual capital bill, which is the state's responsibility to fund our state buildings throughout parks, school buildings, universities, prisons, that is a big part of the capital budget.

And because of inflation, because of other cost drivers, and because there's an extraordinary investment in mental health facilities in this budget, the capital budget itself was a little higher than normal, $3.5 billion now included in that $3.5 billion was a pared down community budget.

And that that is the idea that there are there are projects within each, centers or reps district that require bonding.

And so we we do that through the capital budget that was down to $150 million, which was significantly less than has been years past.

But the big number that is what's driving what I think you're saying is the largest capital budget ever is the $700 million turned out to be 717 million that the legislature in their budget, after giving taxpayers $3.1 billion in tax relief, said, with this surplus dollars that you do not build ongoing operations on, we said we're going to give it back through through projects that will either be economic development for the regions or improve quality of life.

And that's what we also passed yesterday, in the bill.

So it is a lot of one time money, which will obviously not be back.

And because of the cost drivers of inflation, the buildings that require work throughout the state, it require a little bit more money.

It did get a couple of Doe votes from Republicans, notably in the Senate.

Senator Niraj Anthony, who I believe was the only no vote in the Senate.

He said the spending was unsustainable.

He wanted tax relief to the people who actually own the money, even though that would have been about $65 per Ohioans.

So why that?

Why spend the money the way that you did that 17 $717 million?

Well, look, Senator, and I can say whatever he wants, but he really hasn't earned my respect as a public servant.

So what he said yesterday was all politics.

The reality is you don't build, ongoing operations, including tax cuts, which take, you know, which have to be paid for with one time money.

And so we all agreed a few months ago that said, the best way to get this money back to taxpayers is through innovative projects.

And I think it and I think as you, as I worked the bill and talked to people from all over the state, I think what we've seen, we've seen some large economic projects, like the tennis tournament that's going to come to Warren, Ohio, and we've seen some small ones that are just improving theaters in Lake County, Ohio, so that they can provide local community theater.

That is what we return to taxpayers.

And I think what we have is we have a lot of voices who understood this, who are now going back into their districts saying, look, this was a unique opportunity.

Take advantage of it, but make sure you're producing, make sure you're driving economic, production or make sure you're improving quality of life.

We are almost to the end of this fiscal year.

In fact, it's coming this weekend.

the state is required to have a balanced budget.

Of course, tax collections are off by $429.4 million, according to Obama's monthly report for May.

That came out on June 10th.

So are you concerned about that at all?

Well, concern is too strong.

I think I want to see we're going to we're going to get really into the weeds here.

But there is a provision that we put into law a few years ago, which allowed pass-through entities to deduct their federal on their state.

We also gave them a two year lookback period to do that.

And so what I think what we're seeing is the refunds on those lookback periods are coming out.

If you look at the numbers in terms of refunds, they're high, extraordinarily high.

And that's not just from normal income.

So I think what we're going to see if that is, in fact the case, a stabilization of the revenues from from the income.

and I also think what you'll typically see now is an increase in the sales tax as we get closer to the holiday season.

we always, you know, everyone wants to look at the budget as it passes out of the chamber, but that includes a guesstimate on terms of what Medicaid's spending is going to be.

We always overestimate.

And when we did that again, and so that's significantly less spending, happening there.

And of course, you know, a part of it is investments because the interest rates are higher.

So collecting when you see all of that, plus the $3.8 billion we have in the rainy day fund, I don't think we're at a level of concern, because I think we're we'll see a stabilization and we will maintain a balanced budget all the way through.

your term is up at the end of the year.

there's been a lot of talk about the next capital budget, which you won't presumably be involved in, potentially.

But, specifically about state money for a Cleveland Browns new stadium or a renovated stadium, potentially with the dome.

I just want to ask you, do you think the state should be making a significant investment in something like that?

And if so, how much?

Well, again, we're getting in the weeds.

So do does the state have the responsibility to help our public stadia sports stadiums?

That is the question is you separate.

But I don't know that that the Browns offer is being accurately portrayed in the media.

They are coming to the state.

But what they're actually saying to the state is, look at our plan and look at the return on investment over the over the next 30 years.

And what we're saying is, if the state would give us the full faith and credit and go bond out $600 million, not write a check, but bond out those dollars, the Browns are saying we can show a return where the state actually will benefit from this.

And so it's not the legislature or the governor writing them a check.

It's an innovative, innovative way to use the full faith and credit of the state.

And just like any investor who I look at this project and go, is there a is there a likelihood of return?

And that's the deep dive that we're doing on their actions.

Not, not we're just going to write a check for $600 million, which is what some legislators are portraying this as.

And that's not what the Browns are asking for.

If you do that, though, don't you set a standard that other teams, such as the Columbus Blue Jackets, the Cincinnati Bengals, the Cleveland Guardians might want to do the same thing?

And would that put it on the hook for that?

First of all, the Guardians don't own their stadium, so I mean, you can't you can't suggest that.

Yeah the yeah that's why I said the the the initial question is should the state be in this business at all.

That's a question that should be asked and answered.

But what the Browns are saying is if the state's going to get involved, why not get involved in a transaction that will show a return to the state and does not require a huge upfront chunk of money coming out of the general revenue funds?

So it is a partnership, and if that partnership is going to be a win win, why wouldn't we look at other stadiums?

But that's what we first have to determine.

Is this, in fact a win win situation.

And I think as as you study it, I think more and more people are going to begin to understand really what's happening and then make a determination is will the state benefit from this transaction?

Do you think it's a win win?

Well, I'm doing the deep dive now.

I think the concept concepts a win win.

But like any investment you take your term.

Is there a real return and the risk for the state of Ohio is if there is not a return, then we need the state of Ohio.

Taxpayers are on the hook for that.

The bond of $600 million.

So you do not jump into this lightly.

But if you can make a determination, just like people do all over the state now, when they make an investment, do it.

Will I see a return?

And if the determination is yes, there will be a return, then I think it is a good investment.

But we're not there yet.

And finally, should Senate Bill 83 pass, I mean, you voted for it.

You've got hundreds of faculty members and students saying it's going to actually quash free speech on campus.

It could prevent Ohio from getting some of the best and brightest academics and professors and students.

Should Senate Bill 83 pass it?

Well, since it's a three pass the Senate, there has been much more discussion on the bill.

And I think it's clear that we want to make sure the university presidents can run their campus in a fiscally responsible way, and also in an environment where everyone gets to feel free to, to to give free speech, irrespective of whatever your positions are.

And I think Senate A3 has drawn great attention to that.

And I think the universities are engaging.

So it it whether or not as we go forward, do we need to put any of this in statute any more?

I don't know, because as I've talked to University of Presidents, they have said, look, we are making the changes that we think are important to encourage for free speech.

We are also asking for allow us to run the universities a little bit more like a business.

and that allows them the flexibility to, to invest the money in the degrees that the business, the companies and employers want and maybe de-emphasize the degrees that, that maybe aren't producing, for Ohioans.

So you sound it sounds like you're saying that might not be needed.

I think that's a discussion that needs to be had before we just run, because clearly there are changes being made in the house, and I am not involved in those negotiations, but I am involved in talking to the university presidents, and I do hear them say, I understand the point that A3 is trying to make.

Let's see how we can address it.

So look, sometimes if you draw attention to an issue, you get behavioral change too.

And I think that's what Senate Bill A3 has done.

It has created behavioral change as we move into a new semester.

You know that this is a time I think we as legislators should reflect and go, okay, what changes have come apart in the community in excuse me, in the universities, you know.

And what are the what are people talking about on campus?

Is, is is there is there something more that needs to be done?

I also sit down with the Senate Minority Leader, Nikki Antonio.

I asked her if her caucus had any beefs with the capital budget, which she said showed a very fair distribution across the state.

So do you have any beefs with the capital budget as it passed?

You know, my members have beefs.

there is never enough distributed in our local communities.

It's.

It's probably the complaint of every single one of my members in both the Senate and the House.

but overall, I really believe that there's a very fair distribution of these funds across the state.

I, I think with a very difficult process.

It was it was a very fair process.

Do you have any concerns about the one time money?

the funding, the projects that were chosen or anything like that, the focus of that spending on that one time money?

Well, I'll tell you, the place where I have the most concern is the places where one time money.

And we're still going through the list, throughout the state.

So it's a lot to get through.

I have concerns about dedicating money to for profit projects.

I think if there's one beef I have with that, your words, it's, It's the fact that I don't believe we should have funded for profit projects.

There are so many nonprofit entities, organizations that provide public service.

Now, I know those projects will spur on the economic base.

And, they are very innovative in some ways.

transformational, maybe, but, but they're for profit.

So ultimately, I really believe all of the funds should have been used really strictly focusing on nonprofit and governmental entities.

We're at the end of the fiscal year.

The state is required to have a balanced budget.

Tax collections are off by $429.4 million, according to Obama's monthly report from Senator Matt Dolan and OPM Director Kim Martin have pointed out that this is the end of a two year lookback period for pass-through entities being able to duck their federal and their state, and it means that they were due refunds.

Now, Dolan says he thinks things will stabilize.

Certainly there's a question, though, about whether tax cuts are the reason for this.

Well, and, Democrats always, questioned tax cuts and questioned the fact that where will you fill in, if you have a loss and always what is mentioned is increasing the sales tax, which disproportionately affects low income people.

I don't believe that's ever the answer.

I think the tax cuts have something to do with the fact that there's less revenue coming in.

Absolutely.

And Dolan said that he thinks as things stabilize, the tax sales tax will come in and kind of fill that gap.

But that's a concern.

Well, it's a concern going forward, especially if we're talking about additional tax cuts.

And you know, one of the things again, that I have and many of my Democratic colleagues have long talked about is a refundable EitC that earned income tax credit.

And, we get crickets when we when we ask or talk about it.

we did finally get the earned income tax credit, at least in the last budget, but not refundable.

And to me, if you're really going to focus on tax credit, then how about we provide one to the lowest income people in the state of Ohio, because we know that they will spend that money locally in the communities, and it's a win win.

One of the bills that passed in this marathon session in the House and Senate on Wednesday was a college college credit plus program that includes a provision that would require K through 12 schools and public and private colleges and universities to ensure students and adults use the bathroom of the gender on their birth certificates.

are you surprised that this was added in it at this time?

You know, the 11th hour, adding something that is, you know, culture war at its highest point, for, for a talking sound bite, which is what I believe these bills are intended to do, I think is is disappeared.

It's beneath the legislature to constantly, allow a minority of members to drumbeat on an issue that isn't even an issue.

It affects less than 1% of 1% of the population.

And frankly, to be obsessed about young people and children's genitals seems beneath the legislature to me.

It seems to me like we have so many more issues that are important that we should be focused on.

And frankly, I wanted to mention, I heard from some high school students who did a survey of the condition of bathrooms in their high schools, and they talked to me about the fact that not only are their bathrooms in disrepair, in many of the high school students that they talked to, they're inaccessible often.

and kids have to wait too long to even use a restroom.

So if the Ohio Legislature is going to focus on restrooms and bathrooms, we should be focusing on how to make them operational for all the children that need to use them every day.

It's a health and safety issue.

Not to mention that there are studies that show it's transgender students who are the most at risk in bathrooms.

Situations of assaults.

Not yes.

Yes, absolutely.

And I want to ask you to about Senate Bill 83.

It did not pass.

But Senator Jerry Serino says it's not dead yet.

It could come back in lame duck.

And he said if it comes back next year, he will not make the concessions that he made this time.

Senator Matt JoEllen suggested to me that it may not even be needed because colleges and universities are making the changes that were brought to light through this bill.

What are your thoughts on Senate Bill 83?

Well, first of all, it I have always been very concerned about that bill.

I think it if it were instituted, it would actually destroy higher ed in a lot of ways, quash the ability of people to have a conversation and open, honest conversation.

The premise of the bill suggests that there are groups of people who only for, but for their ideology, are not allowed to speak or, participate.

And I don't believe that to be true.

Every time an example is used, it's it's one national example that gets brought out of a time when somebody was was booed when they were giving a presentation.

Well, I, I think that most people are a little thicker skinned.

And kids, if they're if they're speaking about controversial issues that they're, that they're used to sometimes people not agreeing with them and expressing that, and if not, they probably should do something else for a living.

I, I just am it's a nationwide, Strategy.

I mean, this is going on across the country to try to really rein in the ability of students to and, and professors to have free speech on campuses.

I think we should be very concerned about that.

I do not understand the senators, putting it out there that he's not going to that he's been what nice this year and next year he won't be nice about having a conversation.

That is no way to legislate.

Part of what our job is, is to put an idea out there to bring in interested parties.

People who would be affected have a conversation and then come to some kind of, I've got a word for Senator Serino compromise.

That is what our our government was built on.

Twitter Democra AOC was built on it is what is part, a huge part of our job.

We need to figure out how to go to the middle and compromise, because ultimately that end result is going to be the best for most people, and that's what we should be working towards.

Because the capital budget has an emergency clause attached.

It will take effect immediately after governor Mike DeWine signs it.

And that is it for this week for my colleagues at the statehouse.

News Bureau of Ohio Public Radio and Television.

Thanks for watching.

Please check out our website at State news.org or find us online by searching State of Ohio Show.

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Look for it every Monday morning wherever you get your podcasts, and please join us again next time here for the State of Ohio.

A.

Support for the Statehouse News Bureau comes from Medical Mutual, dedicated to the health and well-being of Ohioans, offering health insurance plans, as well as dental, vision and wellness programs to help people achieve their goals and remain healthy.

More at Med mutual.com.

The law offices of Porter, right, Morris and Arthur LLP.

Porter Wright is dedicated to bringing inspired legal outcomes to the Ohio business community.

More at porterwright.com.

Porter Wright inspired Every day in Ohio Education Association, representing 120,000 educators who are united in their mission to create the excellent public schools.

Every child deserves more at OHEA.org.