OML UPDATE AT-A-GLANCE
Here are the top five things you need to know from this past week:
· On Thursday, Governor DeWine signed HB 614, legislation distributing the remaining $650 million in CARES Act funds to Ohio’s local governments on a per capital basis. You can find a spreadsheet HERE from the Legislative Service Commission (LSC) detailing what local governments can expected to receive from a per capita distribution. The bill also extends the deadlines by which municipalities must return all unused funds to November 20. Read more in the article below.
· On Thursday, the State Auditor’s office held a webinar hosted by the League in partnership with other local government associations regarding accounting procedures for federal CARES Act dollars, how those funds will be audited, best practices and additional resources. You can find the slides from that presentation HERE. Additionally, last week, the Ohio Office of Budget and Management (OBM) also held a webinar for local government associations on the allowable uses and subgranting of CARES Act funds distributed to political subdivisions. You can access the slides from that presentation HERE. We want to thank OBM Dir. Murnieks and Auditor Faber and their teams for their work on these presentations and for providing this valuable information to our members.
· The Ohio Department of Commerce announced on Wednesday that Ohio’s minimum wage will increase on January 1, 2021, from $8.70 to $8.80 per hour for non-tipped employees and from $4.35 to $4.40 per hour for tipped employees. A constitutional amendment passed by Ohio voters in 2006 mandates that Ohio’s minimum wage, which is tied to the Consumer Price Index, must increase each year on January 1 by the rate of inflation.
· The Ohio Department of Taxation (ODT) now has an interactive website for local governments to track their share of revenues from the state motor vehicle fuel tax (MFT). This site can be used to see what actual distributions were in the past for each county, municipality and township. Currently. The Ohio Department of Transportation (ODOT) is estimating gas tax revenues are down over $200 million year to date, which equates to an $81 million decrease in revenue for local projects. You can access the site HERE.
· The Bureau of Workers' Compensation (BWC) Board of Directors voted last week to approve $1.5 billion in dividends from the State Insurance Fund. This vote followed Gov. DeWine's recommendation for another dividend payment to ease the financial strain of the pandemic. The BWC has stated that their hope is these funds provide additional help for businesses as the federal Paycheck Protection Program (PPP) is running out. Checks are expected to go out by the end of October.
GOVERNOR DEWINE SIGNS BILL DISTRIBUTING REMAINING $650 MILLION CARES ACT FUNDS TO LOCAL GOVERNMENTS
On Thursday, Governor DeWine signed HB 614, legislation distributing the remaining $650 million in CARES Act aid to local governments. In attendance at the virtual bill signing were the League’s Executive Director Kent Scarrett, League Board President and Cambridge Clerk of Council Sharon Cassler, Past President and Sidney Mayor Mike Barhorst, First Vice President and Kettering City Manager Mark Schweiterman, and Second Vice President and Newton Falls councilmember Lyle Waddell.
Due to an emergency clause in the legislation, the bill became effective immediately upon the governor’s signature and distributions should begin as early as next week. Instead of the slightly-modified LGF formula used to allocate CARES Act funds previously, HB 614 allocates these funds on a per capita basis. Municipalities that have already passed a resolution to receive previous distributions of CARES Act funds do not need to pass another resolution. However, those who have not participated in previous distributions and have not passed the required resolution and registered their DUNS number with OBM will have to do so to receive this distribution of CARES Act funds. HB 614 also extends the deadlines by which local governments must return any unused funds. You can read the League’s full press release detailing the legislation HERE.
The League is also grateful for the legislature’s passage of this legislation and for the governor’s quick action in signing and enacting this important bill. We are also grateful that this legislation moves back the deadlines for when local governments can encumber CARES Act funds, allowing cities and villages more time to use the federal aid available to them. You can read the League’s full statement of support HERE.
FEDERAL UPDATE: U.S. HOUSE PASSES NEW COVID-19 RELIEF PACKAGE WITH $89.5 BILLION FOR MUNICIPALITIES
We want to thank the National League of Cities (NLC) for an update on the most recent COVID-19 relief package. A summary of the update can be found HERE.
On Thursday evening, the U.S. House passed a new COVID-19 relief package. The package, which at a $2.2 trillion total price tag is a scaled-down version of the previously-introduced HEROES Act, incorporates the spending priorities of the original HEROES Act at about one-half the original appropriation proposal amounts.
The bill includes $89.5 billion to municipalities using a modified Community Development Block Grant (CDBG) allocation method, as well as an expansion CARES Act fund eligibility to cover lost revenues and an extension of the expenditure deadline through the end of calendar year 2021. A summary of the state and local section of the bill can be found HERE.
While these provisions may be good news for cities, this bill lacks bipartisan support and will not pass out of the Senate. The bill narrowly passed the House by a 214-207 vote with 18 Democrats voting against the legislation. The White House has confirmed that U.S. Treasury Secretary Steven Mnuchin countered with a $1.62 trillion offer in talks with Pelosi, who viewed the sum as too low. Currently, negotiations between the two parties on coronavirus relief legislation are continuing. We will keep our members apprised of all actions Congress takes towards the passage of a phase 4 coronavirus relief bill.
We also encourage our members to continue to contact their congressional delegation and impress upon them the need to ensure local governments receive more robust and flexible federal funding in order to ensure local economies, and in turn the national economy, can recover from the ongoing impacts of the COVID-19 pandemic.
LEAGUE URGES CONGRESS TO ADOPT 2020 CENSUS DEADLINE EXTENSTION ACT
This week, the League signed on to a letter drafted by the National League of Cities (NLC) urging bipartisan support in Congress for S. 4571, the 2020 Census Deadline Extension Act. The legislation is in response to the actions taken by the administration to shorten the enumeration period by one month by moving the end date from October 31 to September 30. This constraint is imposed as local officials are understandably directing immediate attention toward assisting residents impacted by extraordinary wildfires, hurricanes, the traditional flu season and the unprecedented, lasting health and fiscal disruptions due to COVID-19.
A rushed count for municipalities could mean the full share of $1.5 trillion in federal funding across more than 300 federal programs in the next decade will not be properly distributed as Congress intended. These funds are allocated based on census data. A rushed count now, one which may not accurately reflect the composition in character and numbers of our communities, may compromise municipal response and services for a decade of economic recovery to come following the COVID-19 pandemic. You can read the letter in full HERE.
The courts have also taken up the issue of the 2020 Census deadline. Last week, a U.S. Federal District Court in California granted a preliminary injunction to stop the Census Bureau from ending the count on September 30 and requiring them to continue counting until October 31. The order also stopped the Census Bureau and Commerce Secretary Wilber Ross from delivering apportionment data on December 31, giving the Census Bureau more time to produce a fair and accurate count.
However, the federal government has appealed the District Court’s ruling to the U.S. 9th Circuit Court of Appeals, which may or may not take up the case. This appeal will cause the Census Bureau to work on dual tracks. The first track will have the Bureau and Commerce Secretary deliver the apportionment data on December 31. This is due to the appeal and the uncertain nature of the lawsuit. The second track would have the apportionment data delivered early next year in April 2021, assuming the 9th Circuit affirms the lower court’s decision, and the Supreme Court does not intervene in favor of the federal government. We will keep our members updated on this matter.
LEAGUE’S MUNICIPAL FINANCE OFFICERS ASSOCIATION OF OHIO ANNOUNCES VIRTUAL CONFERENCE
The League’s Municipal Finance Officers Association of Ohio (MFOA) have announced that they are developing a virtual conference from October 26 through 29 for their membership. Because the conference will be virtual, the cost to attend the conference will be reduced to $50 for an MFOA member and $75 for a nonmember.
This conference will provide attendees with the training needed to ensure they perform their job with excellence, all from the convenience of the location of your choice. To learn more and to register, click HERE.
UPDATE ON OHIO COVID-19 RESPONSE
· As of Thursday afternoon, Ohio is reporting 155,314 cases of coronavirus, 4,817 deaths, 15,606 hospitalizations and 3,297 ICU admissions.
o Upgraded to Level 3 (Red): Clermont, Hamilton, Muskingum, and Richland*
o Remaining at Level 3 (Red): Ashland, Butler, Mercer, Montgomery, Pike, Putnam, and Scioto
o Downgraded to Level 2 (Orange): Delaware and Stark
o Richland County is on the Watch List
Coronavirus Wastewater Monitoring Network Update:
· Since the launch of the Ohio Coronavirus Wastewater Monitoring Network, which tests wastewater for gene fragments of COVID-19, the Ohio Department of Health (ODH) has notified health authorities in six communities of a sustained increase in gene fragments found in their wastewater: Dayton, Columbus, Akron, Oregon, Sandusky, and Mansfield. ODH is currently monitoring 36 sites across the state and an additional 25 sites will be added during the coming month. The Ohio Department of Rehabilitation and Correction (ODRC), in partnership with Ohio State University, has also begun monitoring wastewater at Ohio's prisons to prevent spread among staff and inmates.
Business and Employment Update:
· Ohioans filed 17,944 initial jobless claims last week, according to statistics the Ohio Department of Job and Family Services (ODJFS) reported to the U.S. Dept. of Labor today.
· Over the last 28 weeks, ODJFS has distributed more than $6.8 billion in unemployment compensation payments to more than 813,000 Ohioans. Of the more than 1 million applications the agency has received, more than 94% have been processed, with less than 6% pending. In addition, ODJFS has issued more than $6.3 billion in Pandemic Unemployment Assistance (PUA) payments to more than 585,000 PUA claimants.
· Ohioans can now access training at no cost through 12 training providers under the Individual Microcredential Assistance Program (IMAP). Ohioans who are low income, partially unemployed, or totally unemployed can visit the IMAP landing page at IMAP.Development.Ohio.gov to work directly with the awarded training provider of their choice to enroll in the training program that works best for them. Ohio businesses interested in connecting with the Ohioans earning these credentials can contact the Governor’s Office of Workforce Transformation at Workforce@OWT.Ohio.gov.
· The Greater Cleveland Partnership (GCP), Fifth-Third Bank, and JobsOhio have offered financial support so 10 companies will be able to participate in the London Stock Exchange ELITE program. The London Stock Exchange’s ELITE Program is opening their first headquarters in the Americas in Cleveland, Ohio, which Lt. Governor Husted announced while on a business development mission to the United Kingdom in 2019.
Education Update:
· The Free Application for Federal Student Aid – also known as FAFSA - opens on October 1. All students, high school seniors, current students, and adults interested in attending or returning to college can complete the FAFSA. Each year, Ohio families miss out on available financial aid because they don’t complete the FAFSA.
· The August 2020 TechCred Application period set a record in approving 4,468 credentials through 288 Ohio companies. Prior to their election, Governor DeWine and Lt. Governor Husted promised to fund the completion of at least 10,000 micro-degrees per year – a commitment that has been met through this latest round.
Broadband Update:
· The Foundation for Appalachian Ohio has coordinated efforts between Facebook and T-Mobile that will provide Wi-Fi hotspots to libraries in Southeast Ohio. These internet-enabled devices will be available to patrons to check out in the same way they would borrow a library book or film. The effort aims to give opportunities for at-home internet usage for those who do not have reliable access to broadband. Facebook donated the devices at no charge and paid for 6 months of unlimited network usage on the T-Mobile network. T-Mobile will fund an additional 6 months of connectivity for the devices as well as help get the hotspots ready for use and provide ongoing technical support.
Medicaid Update:
· The Ohio Department of Medicaid will open a new application for businesses interested in providing managed care plans for children and adults within the Medicaid program. The request for proposals is part of a new vision for Ohio’s Medicaid program that focuses on people - not just the business of managed care. Changes to Ohio’s managed care plans will not disrupt Ohioans' coverage or access to care.
