Week in Review: Dec. 11, 2022

FY22-23 BUDGET

Major tax sources each netted tens of millions of dollars over estimates in November to bring the fiscal year overage to-date close to half a billion dollars, according to preliminary figures from the Office of Budget and Management (OBM). Overall tax collections reached $2.48 billion, exceeding estimates by $128.6 million or 5.5 percent. Income taxes contributed the most to that performance, reaching $771.2 million, 6.9 percent or $50 million ahead of expectations. For FY23 so far, income taxes are up by 6.6 percent or $262.5 million.

ECONOMIC DEVELOPMENT

With a working-age population smaller than in 2010 and likely to be smaller still in 2030 under current trends, Ohio's main focus must be on people and their talents, Lt. Gov. Jon Husted told an economic development conference in Columbus on Friday. The lieutenant governor addressed those gathered at Ohio State University for Economic Development 411, the annual meeting of One Columbus, the central Ohio partner for JobsOhio. "It's shrinking in Ohio and in every state that borders us," Husted said of the working-age population. He said businesses that don't have personnel dedicated to interacting with educational institutions in the area are missing an opportunity.

The DeWine administration announced Tuesday approval of funding for demolition at 2,277 sites in 42 counties, enabling new economic development and housing opportunities as part of the Ohio Building Demolition and Site Revitalization Program. The projects are being funded through set-aside grants announced for each county in July, as part of an overall total of nearly $150 million for the program. The Tuesday funding totals $54.44 million, including $20.08 million in the county set-aside amounts and $35.3 million in additional funds to cover expenses beyond the set-aside amount.

Gov. Mike DeWine's administration announced Wednesday support for 12 mixed-use development projects across Ohio, saying they are expected to create over $1.29 billion in new payroll and $2.3 billion in investments. The Tax Credit Authority approved $100 million in tax credits during its Wednesday meeting.

The DeWine administration announced Wednesday the approval of assistance for 14 projects expected to create 1,663 new jobs and retain 3,457 jobs statewide. During its monthly meeting, the Ohio Tax Credit Authority (TCA) reviewed economic development proposals brought by JobsOhio and its regional partners. The projects are expected to collectively result in more than $99.7 million in new payroll and spur more than $202.6 million in investments across Ohio.

ELECTIONS

The Senate Local Government and Elections Committee Tuesday accepted a substitute version of HB458 (Hall), adding among other provisions a requirement that Ohioans have a valid photo ID to vote in Ohio. The bill, which would eliminate August special elections, is expected to get a committee vote next week as the 134th General Assembly looks to wrap up its business. Under the photo ID requirement, all Ohioans will be eligible to receive a free state identification card. The bill would also require absentee ballots to be received by boards of elections by 7:30 p.m. on Election Day. Currently, boards of elections can accept late arriving absentee ballots as long as they are postmarked by Election Day.

EMPLOYMENT/UNEMPLOYMENT

The U.S. Bureau of Labor Statistics (BLS) said Friday that total nonfarm payroll employment increased by 263,000 in November while the national jobless rate remained at 3.7%. The number of unemployed persons was essentially unchanged at 6.0 million. BLS said that among the major worker groups, the unemployment rates for adult men (3.4 percent), adult women (3.3 percent), teenagers (11.3 percent), Whites (3.2 percent), Blacks (5.7 percent), Asians (2.7 percent), and Hispanics (3.9 percent) showed little or no change over the month. Among the unemployed, the number of permanent job losers rose by 127,000 to 1.4 million in November. The number of persons on temporary layoff changed little at 803,000. The number of long-term unemployed (those jobless for 27 weeks or more) was little changed at 1.2 million in November. The long-term unemployed accounted for 20.6 percent of all unemployed persons.

UNEMPLOYMENT COMPENSATION

The state of Ohio is one of the lowest-ranked states for new unemployment claims, according to financial advisory website WalletHub. Ohio ranked 49 in states where jobless claims decreased the most week-over-week, with "1" being the best and "51" being the worst. South Dakota ranked 1, while Connecticut ranked 51. West Virginia ranked the highest among Ohio's neighbors at 16, followed by Kentucky (26), Michigan (27), Indiana (41) and Pennsylvania (44). Ohio ranked 43 in jobless claims per 100,000 people in the labor force, with "1" having the fewest claims and "51" having the most claims. Virginia ranked 1, while Alaska ranked 51. Kentucky was 16, followed by West Virginia (24), Indiana (27), Michigan (35) and Pennsylvania (42). "The U.S. has reduced unemployment from record highs during the COVID-19 pandemic to near record lows. Now, however, high inflation and the looming threat of a recession could cause unemployment claims to spike once more. For the time being, the job market is still in good shape, with new unemployment claims decreased by 6.6 percent week-over-week," WalletHub said.