Budget Nears Finish Line; OMA Calls for Changes

This week, House and Senate leaders continued to negotiate differences between their respective versions of Ohio’s two-year budget (House Bill 33). On June 26, the OMA issued an action alert to members and urged lawmakers to remove two key budget provisions that threaten the competitiveness of Ohio’s manufacturing sector.

As highlighted in this press release, the OMA seeks the removal of proposals that would:

• Significantly narrow the Commercial Activity Tax (CAT) base. Despite some division within the business community, the budget plan — as passed by the Senate — would undo the benefits of Ohio’s 2005 tax reform, which has made manufacturers more competitive. See this one-page summary and this quote from Ross McGregor, a smaller manufacturer in Springfield.
• Allow utility companies to charge customers more to build infrastructure for speculative economic development, while eroding customer protections. See this two-page summary, as well as the related story in this Leadership Briefing.

The OMA has also provided budget conferees with its recommendations to ensure competitive markets in the development of Ohio’s electric vehicle charging infrastructure.

Under the Ohio Constitution, the budget is supposed to be completed by June 30. However, the House this week informally approved a temporary measure to keep state government operating in case the new budget isn’t finalized by the deadline. When the new budget has been passed and signed, the OMA will report on the provisions that affect manufacturers. 6/29/2023