BUDGET UPDATE: Governor Issues 44 Vetoes Overnight

OHIO BUDGET UPDATE: GOVERNOR DEWINE ISSUES 44 VETOES

In the early hours of July 4th, Governor DeWine issued forty-four (44) vetoes before signing Ohio’s FY 24-25 operating budget into law. This is a considerable increase from the last state budget when the Governor only vetoed fourteen (14) provisions.

The Ohio Constitution grants the Governor line-item veto authority, which prevents certain provisions of a bill from being enacted into law. This authority only applies to legislation containing spending, such as the state’s biennial budget bill. The Legislature has the authority to override Gubernatorial vetoes with a three-fifths majority vote of each chamber. It is possible the Legislature returns over the summer for a veto override given the Republican supermajorities in both chambers. If you would like to read the full veto message, please click here. Highlights of the Governor’s vetoes are below.

VETO HIGHLIGHTS

• Eliminates the required data sharing of private patient level Medicaid data

  with Ohio Department of Health vendors.

• Addresses penalties around providers’ presumptively enrolling persons in the Medicaid program. The provisions in the budget may violate federal law.

• Reduces the reinstatement fee for noncompliance regarding driver’s licenses to $40. Under current law, reinstatement fees are $100 for the first offense, $300 for the second, and $600 for the third.

• Addresses the requirement of Medicaid to cover doula services for five years. The veto message noted that the sponsor requested the veto of this provision, and the DeWine-Husted Administration intends to regulate the practice of doulas and require Medicaid coverage of these services.

• Removes certain Medicaid provider rates from statute, with the Governor explicitly indicating he will work with the Ohio Department of Medicaid, Ohio Department of Developmental Disabilities, and the Ohio Department of Aging to implement the proposed legislative rate increases. It is common for Governors to veto statutory rate increases yet still work to implement the rate increases, nonetheless.

• Removes language requiring the Tax Commissioner set personal income tax rates and brackets, leaving that authority to the Legislature.

• Removes language designating workers living within 50 miles of the Ohio border as “Ohio-domiciled” under Qualified Energy Projects.

• Eliminates the retroactive provision regarding a sales tax exemption for construction materials and services sold or rented to government entities.

• Addresses a provision that would “inadvertently” open the door to the distribution of free tobacco products.

• Eliminates the prohibition on local governments to regulate tobacco products, including flavored tobacco products.

• Eliminates the FY24 expanded sales tax holiday, instead directing the Tax Commissioner, Director of the Office of Budget and Management and the County Commissioners Association to determine the length of the first expanded sales tax holiday in 2024.

• Addresses changes to the Ohio Auctioneer Consumer Protections enacted in 134-HB321, which ensured Ohio auctioneers use industry best practices by replacing an older apprenticeship program with a new eight (8) hour continuing education requirement.

• Eliminates the requirement that the Department of Medicaid exchange member information with local Alcohol, Drug Addiction and Mental Health (ADAMH) boards.

• Eliminates the exemption of federally qualified health centers from Ohio Mental Health and Addiction Services certification requirements for providing behavioral health services.

• Eliminates changes regarding who sets Ohio’s 26 hunting season dates.

• Addresses provisions regarding the Commercial Activity Tax (CAT).

• Addresses provisions around vaccine requirements for students at private colleges and state institutions.

• Addresses provisions which would have increased the number of childcare programs that would be exempt from the publicly funded childcare program Step Up To Quality.

• Eliminates the requirement that the Auditor of State conduct performance audits of various policy areas in the Departments of Medicaid and Job and Family Services.

• Addresses provisions that would give the Auditor of State unrestricted access to records and data of all state agencies and higher education institutions.

• Addresses new training and reporting processes for all public employees and public contractors regarding fraud, etc. to the Auditor of State.