COLUMBUS, Ohio -- An Ohio House bill would de-fund hundreds of millions of dollars in previously approved state construction and building maintenance projects, proposed cuts that would take particular aim at state colleges and universities.
House Bill 670 proposes spending $697.6 million on previously approved state capital projects, compared to nearly $1.2 billion in the version before the Ohio Senate.
Accounting for much of the difference between the two is $325.2 million for the state Higher Education Improvement Fund that appears in the Senate version but not the House version. The House also proposes cutting $75.2 million from the state’s Cultural and Sports Facilities Building Fund, which would de-fund dozens of community projects around the state, including planned new professional soccer stadiums in Columbus and Cincinnati.
The Senate version reflects the full amount of money state lawmakers previously approved to be spent on projects, but that either haven’t begun or are incomplete. Not extending the deadline would mean funding could be cut off after June 30, the deadline under the budget bill state lawmakers previously approved.
Re-appropriating previously approved money is normally a routine accounting maneuver at the Statehouse. But State Rep. Derek Merrin, a Toledo-area Republican who sponsored HB670, told members of the House Finance Committee on Wednesday that the coronavirus crisis has changed conditions in Ohio, leading to closed schools and high unemployment.
“I think it’s important for every dollar to be examined and every project be justified,” Merrin said. “As a legislator, I think it’s important for projects that haven’t been completed, for those who were supposed to have completed them to explain why that project hasn’t been completed.”
“These are uncertain financial times for Ohio,” House Speaker Larry Householder, a Perry County Republican, said in a recent statement about the House re-appropriations bill. “The state is facing a multi-billion dollar budget shortfall. With all of the unknowns we face, I believe this is a responsible path forward.”
But state Sen. Matt Dolan, a Chagrin Falls Republican sponsoring the Senate bill, said the state can help boost the economy by maintaining its previous capital spending plans. Kim Murnieks, Gov. Mike DeWine’s budget director, also testified on Wednesday in support of the Senate bill during a separate Senate finance committee hearing.
“Each one of the projects in this bill means jobs, and we want to make sure that people we can get working we get working,” Dolan said during the Senate committee hearing.
Because the state borrows money to pay for the projects, which it then pays off over 20 years or so, cutting the $500 million in projects would only save around $11 or $13 million in spending, according to Dolan.
“I think that the economic impact of $600 million in construction spending and things like that significantly outweighs a savings of $11 million,” said Senate President Larry Obhof, a Medina Republican. “But that’s something we’ll have a conversation with the other chamber about over the next few weeks and we’ll be able to work things out.”
House and Senate committee members who asked questions Wednesday mostly were concerned about how the proposed cuts would affect projects in their districts.
A full breakdown of which specific projects would be de-funded under the House bill wasn’t immediately available.
But Merrin said his proposal preserves funding for projects directly related to health and public safety, while cutting off projects for colleges and universities, sports and cultural projects and the Ohio Department of Natural Resources.
For example, the House version proposes cutting $6.3 million previously approved for Cleveland State University, $2.5 million for Cuyahoga Community College, $11.2 million for Kent State University, $5 million for Lakeland Community College and $2.2 million for Lorain Community College.
Some examples of Cultural and Sports Facilities Projects on the chopping block include $20 million to help build a new stadium for the Columbus Crew, $4 million to build a stadium for the FC Cincinnati professional soccer team, $2.5 million for the Cleveland Museum of Natural History, $1.85 million for improvements in Playhouse Square and $1.25 million for the Cleveland Museum of Art.
Other projects include $1 million to renovate the Stambaugh Auditorium in Youngstown, $500,000 to rehabilitate the West Side Market in Cleveland and $400,000 to rehabilitate the Cleveland Music Hall in Public Auditorium.
Some specific projects under the Higher Education Improvement Fund that would be cut under teh House version include $1 million for the Pro Football Hall of Fame in Canton, $900,000 for University Hospitals Geauga Medical Center and $750,000 for Cleveland Clinic Children’s outpatient services facility in Medina.
State Rep. Scott Oelslager, a Canton Republican who chairs the House Finance Committee, said the House re-appropriations bill is just a starting point for a conversation about state construction spending. House members are encouraging recipients to explain why their projects deserve funding.
“This is a process. The Senate may have other priorities, but we’re a long way from the finish line here,” Oelslager said.
Statehouse reporter Laura Hancock contributed to this story