State Budget

Possible Cabinet Shake-Up: New Department of Children and Youth

By Sarah Hudacek, AOF Policy Associate

In Governor DeWine’s Executive budget, many advocates were surprised by the proposal of a new cabinet-level department, the Ohio Department of Children and Youth. The creation of this new department would cement the Governor’s legacy of investing in kids following his creation of the Governor’s Office of Children’s Initiatives in January 2019.

The creation of a new cabinet department is a major undertaking by the administration, so we’re diving into what the current cabinet looks like, the last time a cabinet department was created, and what role the new department would play.

The Current Cabinet

Governor DeWine’s current Cabinet is made up of 26 departments and offices:

  • Department of Administrative Services

  • Department of Aging

  • Office of Budget and Management

  • Bureau of Worker’s Compensation

  • Governor’s Office of Children’s Initiatives

  • Department of Commerce

  • Department of Development

  • Department of Agriculture

  • Department of Taxation

  • Department of Developmental Disabilities

  • Ohio Environmental Protection Agency

  • Department of Health

  • Department of Higher Education

  • Department of Insurance

  • Department of Job and Family Services

  • Ohio Lottery

  • Department of Medicaid

  • Department of Mental Health and Addiction Services

  • Department of Natural Resources

  • Opportunities for Ohioans with Disabilities

  • Department of Public Safety

  • RecoveryOhio

  • Department of Rehabilitation and Corrections

  • Department of Transportation

  • Department of Veterans Services

  • Department of Youth Services

Recent Cabinet Changes

Name changes for existing cabinet agencies are fairly common, such as the renaming of the Board of Regents to the Department of Higher Education in 2015, the change from the Rehabilitation Services Commission to Opportunities for Ohioans with Disabilities in 2013, and the long, long overdue renaming of the Ohio Department of Developmental Disabilities in 2009 away from the previously named department that included extremely outdated and derogatory language.

The creation of new cabinet agencies occurs less frequently. The majority of the governor’s cabinet agencies are more than 50 years old. The most recent cabinet creations are as recent as the Governor’s Office of Children’s Initiatives and RecoveryOhio in 2019, but both of these offices are distinct from the other cabinet agencies because they are much smaller and are contained within the Governor’s office and its 33 employees.

The last time a new department was created was when the Department of Medicaid split from the Department of Job and Family Services in 2013. Also in 2013, the Department of Mental Health and Addiction Services was created by the merger of the Department of Mental Health and the Department of Alcohol and Drug Addiction Services. Before that, the Ohio Department of Job and Family Services was created by the merger of the Department of Human Services and the Bureau of Employment Services in 2000. The most recent case of a governor’s office expanding into a department was in 2008 when the Governor’s Office of Veterans Affairs became the Department of Veterans Services.

It’s interesting to note that each of the three previous Ohio governors - John Kasich, Ted Strickland, and Bob Taft - all oversaw the creation of at least one new cabinet department.

The New Department

The new Ohio Department of Children and Youth (ODCY) would incorporate programs from six other Cabinet agencies: the Departments of Job and Family Services, Health, Developmental Disabilities, Education, Mental Health and Addiction Services, and Development.

The programs that would be consolidated under ODCY include:

  • Help Me Grow: Provides maternal health and wellness screenings, child health and development screenings, parenting education, referral to social supports and more for families under 200% FPL.

  • Healthy Beginnings at Home: Currently in pilot phases, supports stable housing initiatives for pregnant mothers to improve maternal and infant health outcomes.

  • Infant Vitality Programs: Funds maternal health programs, services and supports to pregnant mothers, including safe sleep programs, group prenatal care, preconception education, patient navigators, community health workers, newborn screening, safe birth spacing, gestational diabetes support, smoking cessation for pregnant women, breastfeeding support, and care coordination.

  • Early Intervention: Programs and funding for kids ages three and under with disabilities or at risk of developmental delays.

  • Strong Families Strong Communities: Assists families in avoiding crisis and in crisis intervention.

  • Dolly Parton Imagination Library: Program that provides free books to children

  • Early Care and Education: Publicly Funded Child Care program, including tiered Step Up To Quality incentive payments that recognize and promote quality child care programs.

  • Early Childhood Education: Funds to increase the number of low-income children, children with disabilities, and children with limited English proficiency in quality early learning programs. Provide incentives to help programs implement continuous quality improvement.

  • Kinship Permanency Incentive Program: Time-limited incentive payments to kinship caregivers who have been awarded legal custody or guardianship of a child by a court. Gross income cannot exceed 300%. Provides a maximum of 8 payments - initial payment of $525 per child, then $300 every six months.

  • Adoption Services: Adoption payments and adoption subsidies for families who adopt children with disabilities, behavioral health needs, older children, a group of siblings, or children with medical needs.

  • Infant Health Grants: Funds to continue and expand the pathways community HUB model to reduce infant mortality.

  • Early Childhood Mental Health: Identification and intervention for early childhood mental health to reduce preschool through 3rd grade classroom expulsions.

  • Family and Children First: Funds to state level and local governments to enhance community capacity, coordinate services and engage families

  • Children’s Trust Fund: Ohio’s primary funding agent for programs to prevent child abuse and neglect.

  • Preschool Special Ed: Special education and services to children with disabilities ages 3-5.

  • Foster Care: Funds monthly foster care payments to foster parents or institutions to support an out-of-home placement for a child. Currently, payments vary by county and by the needs of the child. This line item would create a new tiered foster care payment structure to establish consistent foster care payment rates and incentivize caring for higher needs children and youth. Also funds Independent Living services for youth 14 years or older who are in substitute care to help with the transition into adulthood and self-sufficiency.

  • Maternal and Child Health Block Grant: Funds to reduce maternal and infant mortality, improve nutrition of children, reduce adolescent and young adult suicide, prevent and mitigate adverse childhood experiences, and more.

  • Child Welfare: Programs preventing child abuse and neglect, providing services to abused and neglected children, licensing foster homes, investigating abuse and neglect, and some family preservation and reunification services. Administered by county public children services agencies.

  • Family and Children Services: Includes Kinship Care Navigator Program, Kinship Supports Program, Kinship Guardianship Assistance Program, Multi-System Youth funds, State Child Protection funds. Also funds Wendy’s Wonderful Kids Program for professional recruiters who find permanent homes for Ohio foster care children.

It’s also notable that the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) would remain under the Ohio Department of Health, and that programs funded through the Temporary Assistance for Needy Families (TANF) grant would be split between ODJFS and ODCY, with the Ohio Commission on Fatherhood, Ohio Works First cash assistance, and the Prevention, Retention and Contingency emergency supports program all remaining under ODJFS. TANF funds must be used for families with children, and Ohio continues to struggle with getting TANF funds out to families in need, as evidenced by our growing TANF underspend balance, so it will be interesting to see how ODCY and ODJFS are able to tackle this administrative challenge.

The current Director of the Governor’s Office of Children’s Initiatives, Kara Wente, is widely expected to become the first Director of the Department of Children and Youth. If approved in this year’s operating budget, ODCY would begin operations on January 1, 2025.

Budget Priority Deep-Dive: Tax Credits

by: Sarah Hudacek, AOF Policy Associate

Budget priority: Reward work and make a difference for low-income families by making the state Earned Income Tax Credit (EITC) fully refundable and creating a state-level family tax credit

In 2021, the national child poverty rate fell to a record low of 5.2 percent, a drop of almost 30 percent. This decrease is largely attributed to the temporarily expanded federal Child Tax Credit (CTC), which benefited more than 2.1 million Ohio children across 1.2 million Ohio families. The CTC expansion ended in December 2021, and millions of children fell back into poverty. Although the Governor’s proposed state budget includes a $2,500 per child tax deduction, a deduction won’t result in a cash benefit for families each tax season. Instead, the child tax deduction would subtract $2,500 from a family’s taxable income and for a single mother of one making $40,000, would reduce her tax liability by only $69. The deduction would also not benefit the lowest income families who earn less than $26,050 in taxable income and therefore do not pay income taxes.

There are other, more substantial ways to reward work and support low-income families. Our partners at Policy Matters Ohio have developed two separate proposals for a state Thriving Families Tax Credit, which would provide a refundable credit to 1.8 million children across 985,000 households that make less than $85,000 per year. One proposal suggests a $700 annual tax credit per child, while the other proposes a $1,000 annual credit for children under 6 and a $500 annual credit for children age 6-17. AOF supports Policy Matters Ohio’s proposals to put more cash in families’ pockets and support Ohio children.

AOF has also long advocated for a refundable Earned Income Tax Credit (EITC). With Ohio’s nonrefundable EITC, the credit amount can only be applied towards a low-income Ohio worker’s outstanding tax liability, but doesn’t result in an increased cash return. A refundable EITC would allow low-income Ohio workers to receive a cash refund for the amount of the credit not applied towards any outstanding tax liability. The federal EITC is refundable.

Ohio adopted a state EITC in 2013 and increased the value of the credit in 2019. Thirty-one states have a state EITC, but only six states, including Ohio, have a nonrefundable credit. A bill pending in the Ohio legislature would make the state EITC refundable at 10 percent of the federal EITC amount. This partially refundable EITC would take an important first step towards rewarding work and supporting low-income Ohioans, but would still leave Ohio with one of the weakest EITC programs in the nation.

Budget Priority Deep-Dive: Medicaid Double Edition

by: Sarah Hudacek, AOF Policy Associate

Budget priorities: Expand general Medicaid eligibility up to 300% FPL for families and children AND Allow for continuous Medicaid coverage for children up to six years old

Medicaid eligibility is incredibly complex. There are almost a dozen different pathways into Medicaid coverage, each with their own eligibility requirements. Currently, eligibility for pregnant women is capped at 200 percent of the federal poverty level and eligibility for children up to age 19 is capped at 206 percent of the federal poverty level.

Last September, Governor DeWine announced the Bold Beginning Initiative, which included the priority to expand eligibility for pregnant moms and children under age 19 up to 300% of the federal poverty level - a priority that was included in the Governor’s Executive Budget proposal. AOF supports this provision, which will expand access to important health care services for an additional 30,000 children and an estimated 3,500 pregnant people in Ohio.

Continuous Medicaid coverage for children means that once a child enters the Medicaid program, they can remain on the program even if their family’s eligibility situation changes. Families receiving Medicaid coverage and earning close to the eligibility limit often experience fluctuations in their incomes that could result in them entering, leaving, and re-entering the Medicaid program on an endless cycle. Allowing children under age 6 to remain on the Medicaid program even if their family’s income fluctuates above the eligibility limit would ensure that Ohio’s youngest children have continued access to health screenings, developmental checks, and doctor’s visits needed to ensure their health and well-being for the rest of their lives.

We know that children who fall behind in vital benchmarks tend to stay behind. Including continuous coverage for children up to age 6 is a vital piece of a family-focused budget.

Budget Priority Deep-Dive: The End of the COVID-Era

by: Sarah Hudacek, AOF Policy Associate

Budget Priority: Ensure coverage protections and strengthen supportive services as enhanced COVID-era benefits and program flexibilities expire

As we’ve shared in many newsletters and blogs over the past 18 months, AOF has kept a close eye on temporary pandemic-related program expansions and flexibilities, especially Medicaid continuous coverage and SNAP Emergency Allotments. With the final SNAP Emergency Allotment issued at the end of February and Medicaid terminations beginning next month, Ohioans and their families will be faced with an average SNAP benefit loss of $90 per person per month, and with finding new health insurance if they are no longer eligible for Medicaid.

AOF has long been advocating for investments in a number of areas to prepare for the COVID Cliff - when these temporary pandemic programs end in short succession. It’s not too late to bolster services to support Ohioans facing these cliffs.

Among the proposals that AOF supports adding to this budget are:

  • $50 million per fiscal year to help the Ohio Association of Foodbanks meet the increased need at food banks and pantries across the state with the end of SNAP emergency allotments

  • $5 million for Get Covered Ohio’s in-person health insurance enrollment assisters, who will continue to provide free help to Ohioans navigating the Medicaid eligibility renewal process over the next 15 months of unwinding

  • $21 million per fiscal year to provide a $50 state-supplemented minimum SNAP benefit to all Ohioans age 60 and up, as proposed by the Ohio Association of Foodbanks. The current federally-funded SNAP minimum benefit is just $23 per month.

  • Up to $350 million per fiscal year to provide free school breakfast and lunches to all students in Ohio, an initiative led by the Hunger Free Schools Ohio Coalition. School meals were free during the height of the pandemic, and school meal debts have accumulated to record numbers in many school districts and school meal participation is down across the board.

Each of these proposals would support vital local services across the state and help Ohioans survive the changes that are quickly coming down the pike.

Budget Priority Deep-Dive: SNAP Older Adult Minimum Benefit

by: Sarah Hudacek, AOF Policy Associate

Budget priority: Increase the minimum benefit for SNAP for older adults without earned income to $50 per month

In the Supplemental Nutrition Assistance Program (SNAP), a household’s monthly benefit amount depends on that household’s earned income, the number of people in the household, and any deductions the household is eligible for, like costs for child and dependent care, out of pocket medical costs, rent and utility deductions, and more.

In Ohio, only 50 percent of eligible older adults participate in SNAP. Of older adults who do participate in SNAP, some receive the minimum benefit amount of just $23 per month. Ohio has recently taken steps to increase participation among older adults, including implementing the Elderly and Disabled Simplified Application Project (EDSAP), which allows Ohioans 60 and older with no earned income to undergo the SNAP eligibility recertification process every three years, rather than every six months.

Supplementing the federally funded $23 per month minimum SNAP benefit with a state-funded boost to bring older adults up to at least $50 per month would remove another barrier to participation - the belief that the eligibility process isn’t worth the time and hassle for such a low benefit.

Early calculations indicate that the cost of a state-supplemented $50 minimum SNAP benefit for Ohioans aged 60 and older would be $21.4 million each fiscal year - a small price tag that could go a long way towards addressing food insecurity among Ohio’s older adults.

Other states are taking similar actions. In response to the end of SNAP Emergency Allotments, New Jersey is implementing a $95/month state-funded minimum benefit for all SNAP recipients, and Maryland has a $40/month state-funded minimum benefit for adults aged 65 and up, which was first implemented as a $30 state-funded minimum back in 2015.

AOF Testifies Before the HHS Finance Subcommittee

Kelsey Bergfeld 
Director, Advocates for Ohio’s Future  

Susan Jagers 
Public Policy Chair, Advocates for Ohio’s Future 
Director, Ohio Poverty Law Center  

Will Petrik 
Executive Committee Member, Advocates for Ohio’s Future 
Project Director, Policy Matters Ohio  

Nick Bates 
Co-Chair, Advocates for Ohio’s Future 
Director, Hunger Network in Ohio 

Chairwoman Carruthers, Ranking Member Liston, and members of the House Finance Health and Human Services Subcommittee, my name is Kelsey Bergfeld and I am the Director of Advocates for Ohio’s Future. Advocates for Ohio’s Future (AOF) is a nonprofit, nonpartisan coalition of over 500 state and local health and human services policy, advocacy and provider organizations that strive to strengthen families and communities through public funding for health, human services, and early care & education. We work to empower and support nonprofit organizations and the health and human services workforce in the critical work they do, especially as it relates to lifting up and caring for all Ohioans. I am joined today by a number of my Executive Committee leaders. A full list of AOF Steering Committee members is included at the end of our testimony and also available at www.advocatesforohio.org.   

As a coalition of a broad range of health and human service organizations, we unite to identify and prioritize the greatest needs of people and families across the state. We couldn’t agree more with Governor DeWine’s goal of making Ohio the best state to live, work and raise a family. The proposed budget bill before you today includes policies and investments that will help move Ohio towards that goal. In addition to the provisions to be covered by my accompanying members we are encouraged to see: 

  • a proposed $4 million per year increase to the adult protective services line item 

  • increased funding for the Help Me Grow Program  

  • and increased funding for children’s services agencies. 

Though we’d like to think the challenges of the public health and economic crises are far behind us, the impacts are still being felt across our state. Today, hundreds of thousands of children, adults, and families struggle to afford food, rent, utilities, and other basic necessities. Currently, Ohio’s hunger relief network provides take-home groceries, meals, and personal care items to 1 million Ohioans each month, 1 in 4 Ohio renter households spend more than half their income on rent and utilities, and nearly 17 percent of Ohio’s children live in poverty. Growing up hungry or in an unstable family situation have been identified as adverse childhood experiences, or ACEs, by the CDC and Kaiser Permanente that can have lasting, negative effects on health, well-being, as well as life opportunities such as education and job potential.  

AOF is also concerned that thousands of Ohioans who are already struggling to make ends meet will lose resources to keep food on the table and lose healthcare coverage as COVID era flexibilities and enhanced supports unwind. We are thankful for past investments made by the previous general assembly to help support basic needs like food and housing, while also supporting our county jobs and family services agencies who connect people to the help and supports they need to get back on their feet.  

This is why we support public programs that provide economic security, help people get to work, support a strong recovery, and empower Ohio residents. 

Among the proposals that AOF supports adding to this year’s budget are: 

  • $50 million per year to help the Ohio Association of Foodbanks meet the increased need at food banks and pantries across the state. With the end of SNAP emergency allotments last month, all SNAP recipients saw an immediate loss of at least $90 per person, per month in fully federally-funded food assistance benefits. Ohio’s network of foodbanks cannot support the increased demand following this loss without additional investment. 

  • $2.5 million per year for in-person health insurance enrollment assisters, who will continue to provide free help to Ohioans navigating the Medicaid eligibility renewal process over the next 15 months of unwinding and to assist in connecting former Medicaid members to the federal Marketplace for health coverage. 

  • $21 million per year to provide a $50 per month state-supplemented minimum SNAP benefit to all Ohioans age 60 and up. With the end of SNAP Emergency Allotments, older adult households will see a loss of $250 per month in federally funded assistance, or more. Approximately 70,000 of these older adults will return to the SNAP minimum benefit of just $23 per month. A state SNAP supplement would go a long way to ensure Ohio’s older adults don’t have to solely rely on the charitable food network to eat. 

  • Up to $350 million per year to provide free school breakfast and lunch to all students in Ohio. During the height of the pandemic, school meals were free for all students. Since the end of this temporary pandemic program, school meal debts have accumulated to record numbers in many school districts and school meal participation is down across the board. When a student reaches a certain level of debt, a hot meal is taken away from the student in the lunch line and a brown-bag lunch is provided. Students can’t learn when they’re hungry, which is why AOF supports free, healthy school meals for all. 

  • The creation of a dedicated SNAP Employment & Training line-item and an investment of $10 million per year to support county Job and Family Services offices in helping unemployed and under-employed SNAP recipients find and retain employment. This investment will draw down a federal 50/50 match. 

  • The restoration of the Employment Incentive Program for Critical Jobs line item at $5 million per year in flexible funding to counties to help address the benefit cliff and fill gaps between programs, such as helping with health insurance costs if an individual is no longer eligible for Medicaid, or assisting with informal child care arrangements before or after school. 

Any discussion of supporting the health and recovery of Ohioans cannot be complete without addressing the direct care workforce crisis faced by every sector of the home and community-based services spectrum. Different rates and requirements for similar work result in competition for a small number of workers and an imbalance in the system. Although we were encouraged to see an increase in the hourly wage for direct care workers up to $16 per hour in the Governor’s proposed budget, AOF supports our member organizations, disabled Ohioans, and older adults in respectfully requesting an increase up to a minimum wage of $20 per hour for all direct care workers across the Departments of Aging, Medicaid, and Developmental Disabilities. Direct care work has been undervalued and under compensated for so long that our care systems are hitting a breaking point. Unless Ohio recognizes and rewards direct care workers for the valuable work they provide in communities across Ohio, our care systems will continue to see high turnover, high vacancy rates, long wait lists, and more agency closures. 

In addition to increasing wages, AOF supports investments in programs that remove barriers to work for critical occupations such as direct care, including the new program to establish a child care scholarship for direct care workers that will be further discussed by our panelists. 

Equity should be an explicit consideration in constructing the budget. Laws and policies have institutionalized racism and bias against marginalized groups. Ohio should allocate resources and services to at-risk populations to ensure an individual’s well-being and success are not predictable by race, class, geography, language, gender, or other relevant social factors. Governor Mike DeWine formed the COVID-19 Minority Health Strike Force on April 20, 2020, in response to the disproportionate impact of COVID-19 on minorities in Ohio. The strike force contracted with the Health Policy Institute of Ohio (HPIO) to develop the “COVID-19 Ohio Minority Health Strike Force Blueprint” which contains actionable recommendations to improve health outcomes and overall well-being for communities of color in Ohio. We recommend that this committee and the full general assembly consider these recommendations and commit to promoting equity and better health outcomes for all Ohioans. 

This budget is an opportunity to invest in improving the quality of life of all Ohioans. AOF and our partner organizations support policies that build an Ohio where all people and families live healthy lives in quality communities with pathways to prosperity for all. 

Susan Jagers, AOF Public Policy Chair and Director of the Ohio Poverty Law Center 

Chair Carruthers, Ranking Member Liston, and Members of the House Finance Health and Human Services Subcommittee, thank you for the opportunity to provide comments on the portions of the budget that address Medicaid and lead poisoning prevention, treatment, and mitigation.   

My name is Susan Jagers and I am the director of the Ohio Poverty Law Center. Our mission is to reduce poverty and increase justice by expanding the legal rights of Ohioans living, working, and raising their families in poverty. We work with Ohio’s network of legal aid offices that provide free legal services to low-income Ohioans. I also serve as chair of Advocates for Ohio’s Future’s policy committee.  

Medicaid 

Ohio’s Medicaid program delivers healthcare access and related community support services to more than 3.4 million Ohioans, including children, pregnant women, adults, seniors, and individuals with disabilities, across the life spectrum. The following statistics highlight this significant role in serving Ohioans: 

  • More than 1.3 million children are served by Medicaid.  

  • Over half of Ohio births are covered by Medicaid. 

  • More than 16,500 children are enrolled and receiving specialized services through OhioRISE. 

We appreciate your investments in the last budget to expand coverage to new mothers for 12 months postpartum and to fund initiatives including OhioRISE which seek to improve care and prevent custody relinquishments for children with complex health care needs.  

Advocates for Ohio’s Future is pleased to support several initiatives included in House Bill 33 including: 

  • Proposed rate increases for Medicaid providers to address health care provider shortages. Many of our member organizations have provided testimony and information about workforce shortages and the need for rate increases.  

  • Expanding Medicaid coverage to include pregnant women and children up to 300% of the federal poverty level and privately adopted children. This change will cover an additional 30,000 children and an estimated 3,500 pregnant women. 

  • Completing the full implementation of the Next Generation of Managed Care Program, which includes the continuation of the OhioRISE Program. The Next Generation of Managed Care Program comes with requirements for improved care coordination, streamlined grievances and appeals, and significant investments in social determinants of health.  

We do ask that you consider complementing Governor DeWine’s proposal to improve eligibility and coverage for children by adding two provisions to the budget: 

  • Extend continuous coverage for children up to age six. With continuous coverage, once young children are eligible for Medicaid, their parents would not have to worry about re-enrolling them until they start elementary school making it more likely that these young children will get their regular doctor visits, health screenings and developmental checks.  

  • Provide Medicaid reimbursement for doula services to strengthen maternal and infant health outcomes. This body supported coverage for doula services when you passed House Bill 142 last year with near unanimous support. 

Lead Poisoning Prevention, Treatment, and Mitigation 

Lead is a toxin, and there is no safe level of lead in the blood. Childhood lead poisoning can cause irreversible brain and nervous system damage leading to learning and behavioral challenges, lower academic achievement, and other poor outcomes. Ohio has the second highest rate of children testing positive for elevated blood levels in the country.  

The number one source of child lead poisoning is lead dust from old lead paint in houses built before 1978.  

In last session’s House Bill 45, you invested American Rescue Plan dollars for lead abatement, including funding for lead poisoning prevention projects and workforce development for lead contractors—these programs are administered by the Ohio Department of Development.  

This investment is a critical boost to Ohio’s lead mitigation efforts. Thank you.  

House Bill 33 contains several critical investments in primary prevention and treatment, and we ask you to support these investments: 

  • $10.8 million in FY24 and $11.7 million in FY25 for the lead abatement fund at the Ohio Department of Health and budget language to support lead prevention programs that provide grants to local communities, ensure lead safe work protocols during renovations and repairs, and provide education and resources for parents. We ask you to support his funding. 

  • Funding for Early Intervention for Lead Poisoned Children for supportive, home-based services for children under three years old who test for elevated blood lead levels at $23.4 million each fiscal year. We ask you to support this funding.  

  • H2Ohio funding to OEPA for Clean Water to replace lead service lines and support water affordability measures is funded at $31.3 million in each fiscal year. We ask you to support this funding.  

  • The State Children’s Health Insurance Program (SCHIP) Lead Program for High-Risk Children removes lead hazards in homes built before 1978 with children under 6 years of age or pregnant women. We ask that you increase the current Ohio Department of Medicaid spending authority from $5 million to $10 million per fiscal year.  

Finally, we ask that you create a position within the new proposed Department of Children & Youth to focus on lead issues and streamline coordination and communication between the various agencies and committees working on lead poisoning prevention. This will ensure continuity and collaboration to maximize the impact of public funds dedicated to lead prevention. 

Investments in these prevention programs will reap financial and other benefits for the state of Ohio and most importantly will keep kids safe and healthy. 

Will Petrik, AOF Executive Committee Member and Project Director with Policy Matters Ohio 

Chairwoman Carruthers, Ranking Member Liston and members of the Subcommittee, my name is Will Petrik. I am the Project Director with Policy Matters Ohio, a nonprofit, nonpartisan organization. Our mission is to create a more prosperous, equitable, sustainable and inclusive Ohio. Thank you for the opportunity to testify today on House Bill 33.  

In my testimony, I will highlight priorities we support in Gov. DeWine’s proposed budget and share ways we can work together to ensure that all Ohioans, no matter where we live or what we look like, have stability, economic security and basic human dignity. 

Budget priorities that support the well-being of children and families 

The proposed budget will prepare more of our youngest children to be ready to start kindergarten and help parents stay in the workforce. It will help an estimated 15,000 children get the care they need by expanding eligibility for publicly funded child care to more working parents.[1] Gov. DeWine’s budget also proposes a significant new investment in public preschool, which would mean an additional 11,525 3- and 4-year-old children in families with low incomes will have an opportunity to get high-quality early childhood education.[2] High-quality early care and education gives children a strong start and improves their long-term health and economic opportunities.[3] 

H.B. 33 appropriates $150 million in SFY 2024 from one-time American Rescue Plan Act (ARPA) funding to help ensure that child care professionals and professionals in other critical occupations can afford child care for their own children. It will establish a child care scholarship program for critical occupations and direct-service professionals who make up to 200% of the federal poverty level ($49,720 for a family of three), expanding access to child care, including infant and toddler care.[4] 

We support these investments, and we must do more to make sure more Ohioans have the resources to pursue their dreams.  

More than 460,000 Ohio children lived in poverty in 2021.[5] Four of the 10 most common jobs in our state don’t pay enough to feed a family of three without food assistance.[6] Ongoing inflation is making it harder for parents to afford groceries, child care, and heat for their homes. 

Compared to their more economically secure peers, children who are hungry or who grow up in poverty are more likely to do worse in school, have health problems or behavioral issues, and get involved with the criminal legal system as adults.[7] On the other hand, when kids have economic stability and enough to eat, they are healthier and do better at school.[8]  

As my colleagues have highlighted, things are about to get worse for many of our neighbors. An estimated 673,000 households in Ohio will have fewer resources to keep food on the table and 220,000 Ohioans are at risk of losing health coverage.[9] We must expand opportunity for these Ohioans and make sure our neighbors can live with stability and economic security. 

Increase family stability and security: Change the tax code to support families  

The proposed child tax deduction in H.B. 33 won’t support the families who need it most. Under the proposal, a family with two kids making $200,000 a year would save nearly $200 each year. A family with two kids making $29,000 won’t get a dime from the deduction.[10] 

Policy Matters Ohio recently released a report that outlines a new solution: the Thriving Families Tax Credit. This proposal would support nearly a million families making less than $85,000 and benefit an estimated 1.8 million children with an average annual tax refund of roughly $1,000 per family. A state thriving families tax credit would help families pay for the basics. We estimate that 77% of Black children in Ohio would benefit and an estimated 300,000 families in the 32 Appalachian counties would be eligible for the credit.[11] 

A 10% refundable Earned Income Tax Credit would also put more money in the pockets of Ohioans who work hard every day. Ohioans who are paid low wages would have additional resources to help with food, safe housing, health care and other basic family expenses. According to a 2020 analysis from the Institute on Taxation and Economic Policy, adding a 10% refundable state EITC would help an estimated 748,000 families in Ohio. It would provide an annual average payment of $324 to families earning between $22,000 and $40,000 a year.[12]  

Instead of more tax giveaways to the wealthiest Ohioans, we encourage lawmakers to change the tax code to make sure all Ohioans can live with security and thrive. 

Expand opportunity: Help more parents participate in the workforce  

State lawmakers can ensure all Ohioans are able to support their families and participate in the economy. The proposed budget takes a step to make child care more affordable for some working families, child care professionals and Ohioans in critical occupations. We encourage you and your colleagues to take a larger step and make child care affordable for all who need it. Under the proposed budget, a single mother with a 2-year-old and a 4-year-old earning $40,000 annually would spend roughly 44% of her income on child care, but she makes too much to qualify for public support. She’d have little left over for housing, groceries, healthcare, and other basic necessities. 

State lawmakers can change that by boosting initial eligibility for publicly funded child care up to 200% of the federal poverty level. At that level, a family of four could make up to $55,500 and be eligible for public support to help pay for child care. Expanding access to child care will help more parents participate in the workforce, and better prepare our children for the future. When families and communities thrive, we all benefit from a stronger economy and a more prosperous state. 

Thank you for your commitment to building an Ohio where all of us can live with dignity and security. Together, we can ensure all Ohioans can thrive. I welcome any questions or concerns you have about the content of my testimony.  

Nick Bates, AOF Co-Chair and Director of the Hunger Network in Ohio 

Thank you, Chairwoman Carruthers and Ranking Member Liston for the opportunity to testify today as part of this very insightful panel.  

My name is Nick Bates. I am a Deacon in the Evangelical Lutheran Church in America (ELCA) and serve as the director of the Hunger Network in Ohio. I currently also serve as co-chair of Advocates for Ohio’s Future. I would like to thank my colleagues today for their ongoing research, scholarship, and expertise on how we can improve lives and strengthen communities. As we enter the final weeks of sub-committee hearings, I want to ask you three questions to guide your deliberations in shaping Ohio’s next two-year operating budget.  

The first is if this Budget will be a roadmap toward strengthening communities?  

The old adage says that an ounce of prevention is worth a pound of cure. When we invest now to reduce poverty, hunger, and long-term health consequences we will save money down the road. For example, 50% of children who experience hunger will need to repeat a grade.[13]  Investments to reduce hunger, expand housing, and lift Ohio families out of the constant crisis of poverty will save Ohio money in the long run and strengthen our communities.  

My second question - does this budget improve the lives of our neighbors?  

In our faith communities and social ministry organizations, families don’t ask for assistance after the first or second crisis. Many families don’t ask for the help they need until the towering pile of crisis moments topples over and begins to suffocate them. 29% of Ohio families live at or below 200% of the federal poverty level.[14] These families are working hard to climb out from the pile of crisis moments each day. We have the opportunity to provide the structural supports needed to help families move toward stability. 

My final question - does this budget meet our moral commitment to our future?  

The budget process is filled with line items and legal language, but I encourage you to step back for a moment. Take a step back from LSC notes, analysis, and economic forecasts. Ask yourself what type of community do you want to build up? What type of community do you want Ohio to be and does this budget move us in that direction? 

We can build a state where our children will have better schools and food security. Where our seniors are cared for and loved. We can build a community where those who are suffering with mental and physical health conditions can receive the care they need.  This budget can invest into an Ohio where those who are called the least of these receive their daily bread.[15] None of us know what tomorrow holds. We encourage you to invest in services, structures and supports that guarantees Ohioans, basic dignity, stability, and support. Thank you. 


[1] Suveksha Bhujel and Ryan Sherrock, “Redbook, LBO Analysis of Executive Budget Proposal, Ohio Department of Job and Family Services,” Legislative Service Commission, accessed on March 7, 2023, https://bit.ly/41Um1oc  

[2] The State of Ohio Executive Budget, Fiscal Years 2024-2025, Ohio Office of Budget and Management, Jan 21, 2023, Department of Children and Youth, Agency Budget Highlights (pg. 199), https://bit.ly/3LjWv5X; Jaxquelyn Schreoder and Suveksha Bhujel, “Redbook, LBO Analysis of Executive Budget Proposal, Department of Children and Youth,” Legislative Service Commission, accessed on March 14, 2023, https://bit.ly/3lbgglv  

[3] James Heckman and Ganesh Karapakula, “Early childhood education strengthens families and can break the cycle of poverty.” The Heckman Equation, accessed on March 6, 2023, https://bit.ly/3ZOMl0Y  

[4] Suveksha Bhujel and Ryan Sherrock, “ODJFS Redbook,” op. cit. 

[5] Will Petrik, “New census data show Ohio lags most states in median income and childhood poverty,” Policy Matters Ohio, September 15, 2022, https://bit.ly/3T4lN8P  

[6] Michael Shields, “New data show wages up for many, but four of Ohio’s 10 most common jobs pay near poverty,” Policy Matters Ohio, April 28, 2022, https://bit.ly/3Sje5qQ  

[7] “A Roadmap to Reducing Child Poverty,” National Academies of Sciences, Engineering, and Medicine, 2019, https://bit.ly/3DIKAKT  

[8] Irwin Garfinkel, Laurel Sariscsany, Elizabeth Ananat et al., “The Benefits and Costs of a Child Allowance,” Journal of Benefit-Cost Analysis, Cambridge University Press, September 23, 2022, https://bit.ly/3Lovga7  

[9] “February 2023 Supplemental Nutrition Assistance Program Extension Approved,” Ohio: COVID-19 Waivers & Flexibilities, USDA Food and Nutrition Service, accessed on March 8, 2023, https://bit.ly/3J30GA5    

[10] Guillermo Bervejillo, Gov. DeWine’s $2,500-per-child state tax deduction does nothing for those who need it most,” Policy Matters Ohio, February 14, 2023, https://bit.ly/3L5SyBJ  

[11] Will Petrik, “Increase family security and expand opportunity in Ohio,” Policy Matters Ohio, November 14, 2022, https://bit.ly/3ZNT6AI  

[12] Patton, Wendy, “Rebalance the income tax to build a better Ohio for everyone,” Policy Matters Ohio, October 15, 2020, https://bit.ly/3hT5xYE  

[13] https://www.feedingamerica.org/hunger-blog/3-ways-hunger-affects-your-body#:~:text=The%20American%20Academy%20of%20Pediatrics,on%20a%20person's%20mental%20health. 

[14] https://www.kff.org/other/state-indicator/population-up-to-200-fpl/?currentTimeframe=0&sortModel=%7B%22colId%22:%22Location%22,%22sort%22:%22asc%22%7D 

[15] Matthew 25:32-46 Matthew 6:11 

AOF Announces 2023 Budget and Policy Priorities

Advocates for Ohio’s Future (AOF) is a nonprofit, nonpartisan coalition of over 500 state and local health and human services policy, advocacy and provider organizations that strive to strengthen families and communities through public funding for health, human services, and early care & education. We work to empower and support nonprofit organizations and the health and human service workforce in the critical work they do, especially as it relates to lifting up and caring for all Ohioans.

Today, hundreds of thousands of children, adults, and families struggle to afford food, rent, utilities, and other basic necessities. Currently, Ohio’s hunger relief network provides take-home groceries, meals, and personal care items to 1 million Ohioans each month, 1 in 4 Ohio renter households spend more than half their income on rent and utilities, and nearly 17 percent of Ohio’s children live in poverty. AOF is concerned that thousands of Ohioans who are already struggling to make ends meet will lose resources to keep food on the table and lose healthcare coverage as COVID era flexibilities and enhanced supports unwind. This is why we support public programs that provide economic security, help people get to work, support a strong recovery, and empower Ohio residents.

Equity should be an explicit consideration in constructing the budget. Laws and policies have institutionalized racism and bias against marginalized groups. Ohio should allocate resources and services to at-risk populations to ensure an individual’s well-being and success are not predictable by race, class, geography, language, gender, or other relevant social factors.

The upcoming state budget is an opportunity to invest in improving the quality of life of all Ohioans. AOF and our partner organizations support policies that build an Ohio where all people and families live healthy lives in quality communities with pathways to prosperity for all.

In 2023 AOF, in collaboration with partner organizations will focus our advocacy efforts to:

Ensure coverage protections and strengthen supportive services as enhanced COVID-era benefits and program flexibilities expire. AOF will continue to coordinate and help lead the work of the Ohio COVID Recovery Coalition to ensure state and local government entities, providers, community organizations and public program recipients are prepared for the expected widespread loss of health coverage and nutrition supports.

Maintain and expand Medicaid eligibility so all Ohioans get the health care and coverage they need. AOF will continue to advocate to ensure Ohioans seeking health care and mental health and addiction treatment can continue to access vital services. AOF will work with partner organizations to:

  • Expand general Medicaid eligibility up to 300% FPL for families and children

  • Allow for continuous coverage for children up to six years old

Convene a dedicated coalition of AOF partners, community organizations and business leaders to develop comprehensive strategies to address the benefits cliff and strengthen work and family supports across public programs. While developing a broader agenda to address the benefits cliff and promote work supports that help parents participate in the workforce, AOF will collaborate with partner organizations to:

  • Expand initial eligibility for publicly funded child care from 142% FPL to 200% FPL.

  • Increase the minimum benefit for SNAP for older adults without earned income to $50 per month.

  • Reward work and make a difference for low-income families by making the state Earned Income Tax Credit (EITC) fully refundable and creating a state-level family tax credit.

We also pledge to elevate and support the following policy proposals championed by our partner organizations:

Support and stabilize Ohio’s growing workforce and address rising costs by investing in affordable housing and easing food insecurity.

Maintain and expand behavioral health, aging and disability services, including home and community-based services, across all populations and systems and increase access to quality providers in all communities. Different rates and requirements for similar work result in competition for a small number of workers and an imbalance in the system. We support prioritizing efforts to retain and expand the direct care workforce and ensure parity across all systems.

Promote quality and equity for all students in K-12 education by fully funding the Ohio Fair School Funding Plan, encourage healthy school meals for all and increase access to wraparound services including physical and behavioral health care in schools.

Increase access to broadband to help all low-income families afford high-speed internet access and incentivize internet service providers to update and improve their networks in low-income areas so all Ohio families and businesses have the ability to participate in education, telehealth and Ohio’s economy.

To support the state’s intention to approach the budget with a focus on results and improved outcomes, clear and available data surrounding programs and investments must be accessible by the public to effectively evaluate the impact of taxpayer dollars. Transparency and opportunity for public input throughout the legislative process must be fortified to foster participation and policies that move Ohio forward.  

Download a PDF of our policy priorities HERE.

Budget 101: Preparing for the Fiscal Year 2024-2025 State Budget

by: Sarah Hudacek, AOF Policy Associate

Budget season is here again! If you haven’t started preparing for the marathon 6-month process yet, it’s not too late. Here’s everything you need to know about the process and how to prepare.

Blue Book

It all starts with the Governor’s budget proposal. The Governor must release his executive budget proposal by January 31st, also called the Blue Book. The Blue Book is an extensive report of the Governor’s recommended policies, programs and appropriations to be included in the operating budget for Fiscal Years 2024-2025. The Blue Book is formulated using budget requests from each executive agency that were submitted to the Governor in the fall.

Red Books

To accompany the release of the Blue Book, the Legislative Service Commission prepares deep-dives into the budget recommendations for each executive agency, known as Red Books.

House of Representatives

The budget process always begins in the House of Representatives, with the budget expected to be introduced by the Chair of the House Finance Committee by February 14th. Notably, standing committees in the House have not yet been assigned, meaning the legislators who will be undertaking the budget process in Finance Committee (including the Finance Chair) are still unknown. In the Senate, Senator Matt Dolan is returning as Finance Committee chair. In the House, however, former Finance Chair, Representative Scott Oelslager, has been appointed as Speaker Pro Tempore of the House. With this leadership assignment, Oelslager is out of the running for Finance Chair. The division between factions of the Republican party in the House makes predicting committee assignments even more difficult.

Typically, the House will assign Finance sub-committees to focus on specific topics of the budget. Budget committee assignments are up to the discretion of the Speaker of the House, though, and it’s possible that the Speaker will choose a different approach other than sub-committees. However, as a best practice, these subcommittees will begin with budget hearings in early February, including testimony from agency directors on the Governor’s recommendations, as well as opportunities for community stakeholders to testify on the as-introduced budget.

Following weeks of testimony, each sub-committee will submit a report to the full Finance Committee with its recommendations. Based on these recommendations, the Finance Committee will introduce an amended version of the budget, known as a Substitute Bill, or sub-bill. At each step of the process, the legislature can change anything from the Governor’s recommended budget, including adding, removing, expanding, reducing or altering existing items in the Executive budget.

Additional weeks of testimony will be heard on the sub-bill. The Finance Committee will draft additional changes to the bill based on that testimony and on comments from stakeholders in legislative meetings and will introduce an omnibus amendment - one sweeping addition that includes dozens of changes to the bill which are adopted all at once.

Typically, once the omnibus amendment is approved by the Finance Committee, the committee will then quickly vote on moving the bill out of committee and to the House floor, without additional opportunities for public input. Amendments on the House floor can be offered, but typically most amendments added to the budget are done in the committee process. Once approved, the bill moves to the Senate to repeat the same process.

At every step along the way - the as-introduced version, sub-bill, House-passed version, etc. - LSC will release updated comparison documents, or comp docs, comparing every line item of the budget against the different versions.

Spring Break

Typically, between the passage of the budget in the House and the bill’s introduction in the Senate, the legislature takes a week-long spring break, likely sometime around late March or early April.

Senate

The Senate process closely mirrors the process in the House. In the 2021 budget process, Senate President Matt Huffman opted to forgo the typical sub-committee process, and instead tasked Senate standing committees with hearing budget testimony on their assigned topics and submitting recommendations to the Senate Finance Committee. President Huffman has yet to announce if the same process will be followed this year.

Concurrence

Once the Senate passes its version of the budget, the bill is sent to the House of Representatives for a concurrence vote on the Senate’s changes - which are typically extensive. Without exception, the House will reject the Senate’s changes, which will trigger a referral to conference committee.

Conference Committee

An equal number of Representatives and Senators will be assigned to the conference committee, and this committee’s work will happen largely behind closed doors. The conference committee does not accept public testimony and will work privately to reconcile changes between the two versions before releasing a final version of the budget, which is then quickly approved by both the House and Senate and sent to the Governor for his signature.

Because parts of the process, such as conference committee, are not open to public input, it’s even more important to be vocal in your advocacy throughout the preceding process and to meet with legislators from your district and members of the committees focusing on the issues you work on to ensure your message is heard prior to non-public budget decisions.

Governor’s Desk

The Governor must sign the final budget by July 1st, when the next state fiscal year begins. Because the budget is an appropriations bill, the Governor can line-item veto any item in the budget. The Governor cannot, however, add or alter existing budget provisions - only approve or deny them.

There is typically limited time for advocacy on line-item vetoes after the final budget has passed the legislature. It’s vital to be informed on the current version of the budget and speak out against harmful provisions as soon as possible, as things move very quickly in this process.

Green Books

Following the end of the entire budget process, LSC will study the passed budget and produce Green Books, which are deep-dives into the impact of the budget on each executive agency. Green Books are typically released in October or November of budget years.

Preparing

If you haven’t yet, the time to start preparing for the budget is now! Check out this great blog from our partners at The Center for Community Solutions for a five step to-do list to get started.