Week in Review: Nov. 17, 2024

FY24-25 BUDGET

Variances in major tax sources balanced out to an on-target revenue haul in October, according to preliminary figures from the Ohio Office of Budget and Management (OBM). Monthly tax collections of $2.3 billion were $6.9 million or 0.3 percent above estimates. For the year so far, tax collections are $570.4 million or 6.7 percent ahead of estimates, although much of that total stems from the understated effects of Ohio's first expanded sales tax holiday. State leaders set aside more than $700 million to offset revenue losses from the holiday, but the actual effect on sales tax collections was nowhere near that figure. For October, the sales tax brought in $1.18 billion, up $13.6 million or 1.2 percent versus estimates. Better than expected non-auto sales tax performance, which is up almost $18 million or 1.8 percent, offset a dip in auto sales taxes, which were down $4.3 million or 2.5 percent versus estimates. The income tax saw the biggest variance by dollar amount, reaching $737.9 million, which was $70.4 million or 8.7 percent below estimates.

BUSINESS/CORPORATE

Lt. Gov. Jon Husted told members of the Ohio Manufacturers' Association (OMA) that "made in America" requires "made in Ohio" during the OMA workforce summit Thursday. As part of his keynote address, Husted detailed new and expanded manufacturing efforts in Ohio such as automobile and electric vehicle battery production; aircraft engine development by GE Aerospace and the electric aircraft Joby Aviation plans to build in Dayton; steel production around the state; and Intel's plans for semiconductor chip production. The summit also included a panel on Ohio's future workforce with Ohio Department of Higher Education (ODHE) Chancellor Mike Duffey, Ohio Department of Education and Workforce (DEW) Deputy Director Jeremy Varner, Ohio Department of Development (DOD) Chief Investment Officer Susan Restrepo and JobsOhio Senior Managing Director for Talent Kristi Clouse. It was moderated by OMA Managing Director of Workforce Services Jessica Borza.

David Sanger, White House and national security correspondent for the New York Times, addressed members of the Ohio Council of Retail Merchants (OCRM) during the organization's annual meeting Wednesday. He focused on the U.S. relations with Russia and China in particular, as well as what may come in the second administration of President-elect Donald Trump. Sanger is also the author of four books, including New Cold Wars: China's Rise, Russia's Invasion, and America's Struggle to Defend the West, which he referenced several times in his keynote remarks. He noted part of the focus of that book is U.S. competitiveness with China, particularly for semiconductors, and said the Intel facility would be a "big part of that."

FEDERAL

The Ohio Chamber of Commerce and 18 other business organizations from four states this week sent a letter to President Joe Biden and the U.S. Department of Commerce urging the immediate release of CHIPS and Science Act funding. The groups noted that since the passage of the CHIPS Act over two and a half years ago, multiple businesses have created new production facilities, expanded existing facilities, and entered into development agreements with federal, state and local government agencies to increase American manufacturing and guard against future supply chain disruptions in an industry critical to American national security and economic growth.

LOBBYISTS AND ASSOCIATIONS

Ohio's financial services sector generated $255.1 billion in sales in 2022 and employed 256,334 Ohioans, according to a recent report commissioned and released by the Ohio Chamber of Commerce Research Foundation and the Ohio Bankers League. Conducted in partnership with the University of Cincinnati Economics Center, the report argues that the state's financial services industry "is a powerhouse, fueling economic growth, job creation and tax revenue across the state." The Ohio Chamber said that by analyzing the economic footprint of banks, investment firms, and insurance companies, it can better serve its members and "empower local communities across the state." The report, "Fiscal Impact of the Financial Services Sector on the State of Ohio in 2022," additionally found that the industry supported 563,248 jobs in addition to the 256,334 the industry directly employed.