Week in Review: July 14, 2024

AUTOMOBILE INDUSTRY

The Ohio Department of Transportation (ODOT) and DriveOhio recently announced the opening of two new vehicle charging stations built using federal funds through the National Electric Vehicle Infrastructure (NEVI) program. The two new stations are located at Casey's Gas and Convenience near Interstate 75 and National Road near Lima and at Pilot Travel Center near I-71 and State Route 61 in Marengo. Both locations have four ports with at least 150 kW, capable of charging four electric vehicles simultaneously in around 30 minutes, according to ODOT.

FY24-25 BUDGET

Despite lagging tax revenues, investment earnings and underspending helped Ohio end the FY24 with a $1.1 billion balance. Preliminary revenue data from the Office of Budget and Management (OBM) for June, the final month of FY24, showed the tax revenue shortfall for the year growing to $484.6 million or 1.7 percent, with sales tax underperformance for the month exceeding over-estimate collections for the income tax. Total FY24 tax revenues came in just shy of $28 billion. The sales tax brought in $1.18 billion in June versus expectations of $1.23 billion, a variance of $53.1 million or 4.3 percent. The auto sales tax was off $39 million or 21 percent, while the non-auto sales tax was down $14 million or 1.3 percent. For all of FY24, sales taxes generated $13.7 billion, below estimates by $90.6 million or 0.7 percent. Income taxes generated $916.9 million versus expectations of $887.8 million, ahead of estimates by $29.1 million or 3.3 percent. For all of FY24, income taxes missed estimates by $457.8 million or 4.6 percent, with total collections of $9.5 billion.

ECONOMIC DEVELOPMENT/URBAN REVITALIZATION

JobsOhio recently released its 2023 annual report and a strategic plan for the rest of the year, including across the four strategic initiatives that include sites, talent, small business and communities, and innovation. The report said the four initiatives "provide companies and Ohio's towns with a competitive advantage." Regarding sites, the Ohio Site Inventory Program (OSIP) for site selection efforts completed 21 projects in 2023 and the 2024 goal is for completion of 22. Other goals include authenticating three SiteOhio properties -- one more than in 2023 -- and completing 50 site visits.

ECONOMY

The U.S. Bureau of Labor Statistics (BLS) announced Friday that the nation added 206,000 jobs in June, with the unemployment rate little changed at 4.1%. Job gains occurred in government, health care, social assistance and construction. The monthly job increase was similar to the average monthly gain of 220,000 over the prior 12 months. BLS said the number of unemployed people, at 6.8 million, was also little changed. Those numbers were higher than a year earlier, when the jobless rate was 3.6% and the number of unemployed people was 6.0 million. Among the major worker groups, the unemployment rates for adult women (3.7%) and Asians (4.1%) increased in June. The jobless rates for adult men (3.8%), teenagers (12.1%), Whites (3.5%), Blacks (6.3%) and Hispanics (4.9%) showed little or no change over the month.

GAMING/GAMBLING

Casinos, racinos, sportsbooks and the Ohio Lottery saw higher revenues in May 2024 than they did in May 2023, according to data provided by the Ohio Casino Control Commission (OCCC) and Ohio Lottery Commission (OLC). The state's four casinos reported $84.6 million in revenue in May 2024, up from $80.6 million in May 2023. Ohio's seven racinos reported $119.8 million in revenue in May 2024, up from $115.3 million in May 2023. Ohio's sportsbooks took more money in bets and saw higher revenue in May 2024 compared to May 2023. Sports betting gross receipts (handle) for May 2024 totaled $611.6 million, up from $446.3 million in May 2023. Total taxable revenue from sports gambling totaled $67.4 million in May 2024, up from $57.9 million in May 2023. Operating transfers to the Lottery Profits Education Fund (LPEF) totaled $129 million in May 2024, up from $122.6 million in May 2023.

The Lottery Profits Education Fund (LPEF) received its largest fiscal year transfer ever in FY24, according to Ohio Lottery Director Michelle Gillcrist. "For the fiscal year, which ended June 30, total transfers to the LPEF for this year were an all-time record of $1.514 billion," Gillcrist said during Wednesday's Ohio Lottery Commission meeting. "That is $90 million over our commitment, and $49.8 million more than what we transferred last year," she continued. "So we've set a high bar for this coming fiscal year, and I'm confident we're ready to take on this challenge. Our commitment, as specified in the biennial budget, is $1.44 billion for this fiscal year." Ohio Lottery Chief Fiscal Officer Edward Slyman said draw-based game sales were $2.16 billion in FY24, which was $35.3 million higher than FY23. Scratch-off sales were $2.38 billion in FY24, which is $44.8 million higher than FY23.