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Week in Review: Oct. 9, 2022

Written on Oct 9, 2022

FY22-23 BUDGET

State revenues for the month of September came in nearly $155.5 million or 7.2% over estimates, according to preliminary figures released Thursday by the Office of Budget and Management (OBM). That brings Ohio's revenues to $238.2 million or 3.6% over estimates through the first quarter of FY23.

The state has collected a total of $6,845.6 million over the three months compared to the estimate of $6,607.4 million. Leading the way in September 2022 was the personal income tax which came in nearly $114.6 million or 11.5% above estimate. Also over estimate for the month were the Commercial Activity Tax (CAT) by $15.0 million or 138 percent and the auto sales tax by $27.6 million or 18.4%.

BUSINESS/CORPORATE

Under Ohio law automatically increasing the state minimum wage in line with inflation, the hourly minimum wage will increase from $9.30 to $10.10 in 2023, or from $4.65 per hour to $5.05 per hour for tipped employees. The 2006 amendment to the Ohio Constitution setting parameters for minimum wage increases calls for the wage to be tied to the Consumer Price Index for urban wage earners and clerical workers (CPI-W) for the 12-month period prior to September. From September 2021 through August 2022, CPI-W increase 8.7%, according to the Ohio Department of Commerce (DOC). For employees at smaller companies with annual gross receipts of less than $371,000 per year after Jan 1. 2023, and for 14- and 15-year-olds, the state minimum wage is $7.25 per hour. For these employees, the state wage is tied to the federal minimum wage of $7.25 per hour.

WORKERS' COMPENSATION

The Ohio Bureau of Workers' Compensation (BWC) Special Investigations Department (SID) saved the state insurance fund $90 million in FY22, according to a new report. "We saw impressive results in 2022: 1,431 closed cases, 69 convictions and $90 million in identified savings to our system -- our second highest annual savings since FY07," BWC SID Director Jim Wernecke wrote in his department's FY22 annual report. The fraud report was one of several items discussed during Friday's BWC Board of Directors meeting in downtown Columbus. BWC SID received 2,661 allegations and closed 1,431 cases in an average of 230.6 investigative days, according to the report.

This feature was provided by Hannah New Service and selected for you by OSCPA Government Relations Staff.