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ACEC Ohio Legislative Update--June 7, 2022


ACEC Ohio Legislative Update--June 7, 2022

$3.5 B Capital Bill Passes Legislature--Community projects and Intel among funded projects

Lawmakers put the finishing touches last week and passed a two-year capital appropriations measure for FY 2023-24 (HB 687)with more than $1 billion in riders intended to assist the multibillion-dollar Intel development project near New Albany.

The Intel components of the measure entail about $1.1 billion in direct subsidies that include $600 million in "Ohio Onshoring Incentive" funds; $300 million to build a water reclamation plant; $101 million for local water and sewer infrastructure improvements; and $95 million for road upgrades.

Lawmakers also amended the state's "mega project" statutes to provide additional tax breaks under the Commercial Activity Tax and Community Reinvestment Area programs, as well as the Job Creation Tax Credit.

The package includes a "clawback" provision should the company not follow through on its development plans.

Community Projects: The capital bill includes set-asides for local community projects such as arts and recreation initiatives totaling $191 million. See community project list here.

The legislature also used the bill as a vehicle for $100 million in school safety grants and $50 million in local jail funding.

Most of the $3.5 billion in appropriations in the bill go toward K-12 and higher education facilities as well as local infrastructure improvements through the Public Works Commission (PWC).

Key funding includes:

  • $608 million in matching funds for K-12 buildings through OFCC.
  • $557 million in PWC money distributed through regional planning districts.
  • $515 million for Department of Natural Resources projects.
  • $457 million for college and university facilities.
  • $353 million for state prisons.
  • $179 million for the Department of Administrative Services.
  • $103 million for juvenile facilities.
  • $86 million for the Department of Agriculture.

While most of the funding in the bill was originally presented by the Office of Budget and Management as coming through state-backed debt sales, the DeWine Administration and legislative leaders agreed to use as much as $3 billion in current surplus funds to pay for the projects in lieu of issuing bonds.

*Source Gongwer News

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