Ohio Budget Update: Governor DeWine Issues Fourteen (14) Vetoes
In the early hours of July 1st, Governor DeWine issued fourteen (14) vetoes before signing the state’s $74 billion operating budget (HB 110) into law. The budget contained a new school funding formula as well as a three percent (3%) across the board income tax cut for Ohioans.
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 two-thirds vote of each chamber. A veto override is possible given the Republican supermajorities in both chambers; however, it is unclear if the legislature will act to override. If you would like to read the full veto message, please click here. Highlights of the governor’s vetoes are below.
COVID-19 fines:
The governor vetoed a section of the budget which would have returned nearly $100,000 to businesses fined for violating health orders during the pandemic.
Lawsuit Intervention by General Assembly:
A veto was used to eliminate a provision allowing the President of the Senate and Speaker of the House to use state money to hire outside attorneys to intervene in redistricting lawsuits.
Currently, the Ohio Attorney General defends the Legislature in redistricting lawsuits and this provision was vetoed at the request of Attorney General Dave Yost.
Note: Ohio’s statehouse and congressional districts will be re-drawn this year.
Medicaid rates and managed care procurement:
The governor eliminated a provision codifying certain Medicaid program rates.
Additionally, he vetoed a provision that affected the Department of Medicaid’s process for awarding contracts.
Open meetings violations:
The governor removed language creating a Court of Claims procedure for open meetings law violations. Open meetings disputes are currently handled in the Court of Common Pleas.
School vouchers:
The governor vetoed language allowing for an expedited approval of only one of the two types of EdChoice scholarships. By vetoing the language, the Ohio Department of Education will be able to expedite the approval of all EdChoice scholarships.
Nursing facility payments:
The governor vetoed language excluding certain nursing facilities from quality incentive payments.
According to Governor DeWine, this is a technical correction which aligns the statute with the designation by the Centers for Medicaid and Medicare Services.
Reducing CAT administration fees:
A veto was issued for language limiting how much the Department of Taxation collects each fiscal year to administer the Commercial Activity Tax.
Drug reimbursement program:
Governor DeWine vetoed a section of the budget bill limiting reimbursements from the Psychotropic Drug Reimbursement Program to county jails that already participate in the program, thus preventing new jails from utilizing the program.