July 24, 2024
July 24, 2024
The money in Ohio’s budget belongs to all of us, and every Ohioan should have a voice in how we spend it. But budget language, documents, and processes can be mind-boggling, even for experts. That’s where Policy Matters comes in. We believe every Ohioan should be able to access, understand, and advocate for their priorities in our state budget. We created this guide to help make that a reality.
If there’s something missing, or a question you want answered, contact our Budget Researcher, Kathryn Poe, directly: kpoe@policymattersohio.org.
Ohio’s Fiscal Year (FY) runs from July 1st through June 30th the following year. It is referred to by the year in which it ends. For example, FY21 starts in July 2020 and ends June 30th, 2021.
Ohio has a two-year budget cycle. The current budget is for Fiscal Year 2024 through Fiscal Year 2025.
Budget season begins in January, six months before the current budget expires. That’s when legislators make decisions about the size and shape of the next budget. It’s our biggest window of opportunity to advance our budget priorities.
Budgets, Funds, and Appropriations
In conversations about the budget, three concepts are similar enough to cause confusion:
Budgets are plans for how to spend public dollars. They must go through a specific legislative process that’s different from how other bills are passed.
Appropriations are legal authorizations by the legislature to fund a program, department, or agency. They are included in budgets but can also be passed on their own or in other kinds of legislation.
Funds are “pots of money” from which public dollars are drawn to pay for programs, departments, or agencies.
“The Budget”
When we refer to “the Budget,” we usually mean the General Operating Budget. It includes three separate documents:
Other major spending bills not included in the General Operating Budget include the Capital Budget, which funds the acquisition, construction, equipment, or renovation of buildings and other facilities. The Capital Budget has its own budget cycle, alternating years with the General Operating Budget.
Agencies who receive money through the Capital Budget include:
Appropriations in the Capital Budget last for two years, but the big construction projects they fund often take longer to complete. Legislators use Capital Reappropriations Bills to provide additional funding for these projects.
State budgets include money from Ohio taxpayers and other sources, like the federal government. State-level advocates typically have more influence on decisions about the state-share: money that comes from the state of Ohio. For that reason, it may be helpful to focus on a program or department’s state-share funding percentage: the portion of its funding paid for with in-state dollars.
Earmarks set aside part of an appropriation for a specific purpose. These often have maximums (“up to”) or minimums (“not less than”). Earmarking can be written like this: “The appropriation item [ALI], NAME shall be used to…”
Earmarks typically include intent language, in which the legislature explains, qualifies, or elaborates on the spending being authorized in a line-item appropriation.
These are some of the most important terms for understanding budget-speak. Others come up in context throughout this guide. You’ll see them highlighted in bold and defined in the text. If there is something we missed, contact Policy Matters Budget Researcher Kathryn Poe at kpoe@policymattersohio.org.
In addition to the budget itself, the state also produces a variety of documents to help Ohioans understand the budget at every stage of the process. These documents make up their own little library that every Ohioan should be able to navigate.
Ohio’s color-coded budget books
A state budget must pass through a specific legislative process, different from the one used for other forms of legislation. This includes three important documents that are published in helpfully color-coded books:
Bluebooks contain the governor’s proposed budget. This Executive Budget is the starting point for the budget process, released by governor in late January or early February and describing the administration’s spending priorities for the next budget cycle. There are typically three parts: Budget Recommendations, Tax Expenditure Report, and Budget Highlights. The most recent Bluebook was released by Gov. DeWine in 2023, for the FY24-25 budget cycle. See his Bluebook Budget Recommendations here.
Redbooks contain the Legislative Service Commission’s (LSC) analysis of the Executive Budget, describing the past, present, and proposed funding for each state agency. Redbooks for the FY 24-25 budget cycle are available here.
Greenbooks contain the LSC’s analysis of the final version of the budget, as passed by the legislature and signed into law by the governor. Greenbooks for the FY24-25 budget cycle are available here.
“The Comp Doc”
During budget season, the LSC’s Comparison Document (aka Comp Doc) is probably the most useful document for advocates who want to see how funding proposals change throughout the budget process. The Comp Doc compares each new version of the bill (starting with the Executive Budget) as it moves through the legislature. The document is extremely detailed, going provision by provision and organized by agency. The final version of the Comp Doc compares the bill “as introduced” in the governor’s proposal, “as passed” by the House, “as passed” by the Senate, and “as enacted” when the governor signed it into law. (The LSC also produces “as introduced” versions at each stage of the process.) The final version of the Comp Doc for the 2024-25 budget is available here. Use your computer’s search function (CTRL+F on a PC; Command + F on a Mac) to find items you’re looking for, or discover when they were removed/added to the budget.
“COBLI”
In its Catalog of Budget Line Items (COBLI), the LSC describes the legal authority, purpose, and revenue source for every line item in the budget, agency by agency. COBLI also includes a six-year history of each line item, so you can see how its funding has changed in recent budgets. The 2023 COBLI (for the FY2024-25 budget) is available here.
Historical Revenues and Expenditures
For the true budget wonks, these spreadsheets show the history of Ohio’s revenue and expenditures for major taxes and federal grants. This is a good resource for figuring out how a certain type of revenue or spending has changed over time. The most recent versions of these records are available here.
The length and complexity of budget documents can make it difficult to find information about funding for a specific program. It helps to know which agency it’s funded through, and whether it’s federally or state-funded.
Finding specifics is even easier if you know which section of the budget covers your program, or the name of the specific line item. Most useful of all is knowing the Appropriation Line Item (ALI).
“ALI”
An ALI is a six-digit number or code that identifies a specific line item in the budget. The first three digits indicate the agency or division. The last three digits run from 100 to 600 and indicate the object of the expenditure.
Typically, these codes do not change between budget cycles, allowing us to track funding changes over time. However, an ALI will change if it is moved to another department, or if its department reorganizes. When this happens, changes are noted in the COBLI and the Executive Budget.
How to use a Greenbook
If you know what agency you’re looking for, start by searching the corresponding Greenbook.[1] (Search for keywords by using [CTRL+F] on a PC or [Command + F] on a Mac.)
At the top of every Greenbook, you can find a “Quick look” section that summarizes the department’s purpose and includes high-level facts about its funding. Figure 1 shows the summary section of the most recent Greenbook for the Ohio Arts Council.
The table gives an overview of funding in the previous budget and the current one:
Greenbooks also contain a general breakdown of line items for their department. Figure 2 shows the line item breakdown for the 2023 Department of Job and Family Services Greenbook. In addition to the Fund Group and ALI, this table also includes the ALI Name, and the number and name of the Category assigned by the agency.
Greenbooks also provide details about specific line items. For example, Figure 3 provides details for a line item called “Family Assistance — Local.” It describes what the line item is used for and provides the same sort of data described in Figure 1.
To find this line item in the actual text of the budget, use CTRL+F or CMD+F to search for the ALI Number in the “As Enacted” version of the FY2024-25 budget (HB 33). Figure 4 illustrates the results of a search for line item 600521.
To find the bill’s language about your line item, use the search window to skip down to the ALI’s appearance in the text of the bill. Figure 5 shows the in-text language about line-item 600521.
You can see the ALI highlighted in the lower part of the image. This language describes the line item and earmarks: “(B) … an additional 2.5 M in each fiscal year...” is an example of an earmark.
The upper part of Figure 5 shows the bottom of the previous page, which contains an important piece of information: This line item is held in Section 307.20: County Administration. Add that to your list of information about your line item; it can be used to find more information about this and related line items in a variety of budget documents.
“The GRF”
The General Revenue Fund (GRF) is the primary pot of money that the state uses to fund programs, agencies, and departments. The GRF is made up of state tax revenues and federal grants, including the federal shares of K-12 education funding and Medicaid, our two largest programs.
The largest portion of the state share of the GRF pie goes to K-12 education. (This includes lottery profits.) The federal government adds much more.
The second-largest portion goes to Medicaid, most of which is paid for by the federal government based on the Federal Medical Assistance Percentage (or FMAP). When factoring in federal funds, Medicaid is the largest program in the state budget.
The GRF is funded primarily by the Sales and Income Taxes, but also includes other kinds of taxes, including Sales & Use Tax, Personal Income, Cigarette Tax, Public Utilities Taxes (Public Utility Excise Tax, Kilowatt Hour Tax, and Natural Gas Distribution Tax), Business Taxes (Commercial Activity Tax [CAT], Insurance taxes, Financial Institutions Tax, Petroleum Activity Tax), as well as money from licensing and fees. The history of these taxes can be found here.
Ohio’s Office of Budget and Management (OBM) shares Monthly Financial Reports about the General Revenue Fund and the status of Ohio’s economy. Click here to receive these monthly reports.
Other “Big Budget” funds
The state budget draws mostly from the GRF, but also from the following funds:
Each of these funds is the source for discrete, predetermined allocations that don’t necessarily interact with the GRF, which is the source for most state spending.
The budget process begins in July of the year before budget season, when state agencies begin creating their budget requests. The Office of Budget and Management directs the state agencies on how to do so. Major agencies’ requests are due October 21st. During this process, both the transportation and the Workers Compensation Budget will also be passed. The Main Operating Budget must be passed and sent to governor by the end of the Fiscal Year.
January/February: The start of a two year general assembly, when the House is seated, is when the governor proposes a two year budget after the State of the State. Newly elected governors get more time and must submit their executive budget by March 15th, but this excludes the transportation budget which must still be submitted within four weeks of the beginning of the General Assembly session. The governor proposes the budget and sends the document to the House of Representatives.
From February to April: The House Finance Committee hears testimony from state agencies about the proposed governor’s budget. Sections of the “big” budget are broken up into smaller pieces and given to special subcommittees (committees that report to the main finance committee) that consider each section by topic. These subcommittees then hear testimony on their topic area, often by normal folks, state agencies, and topic-area specialists. Each sub-committee then edits their part of the “big” budget bill and sends it back to the main finance committee with amendments.
The House Finance committee then sends the budget to the House floor, where the entire House votes on whether to send it to the Senate. While on the floor, the budget can still be amended or changed. This is what’s called an “Omnibus Amendment” where numerous changes to the bill are made before it’s approved by the House.
Late April to Mid-June: Senate Finance Committee hears testimony on the House Budget. In this process, the Senate creates “the Senate version” of the budget and creates another “Sub-Bill” or “Replacement Bill” for the Main Operating Budget. This then goes to the full Senate for a vote.
June 30th/July 1: The governor signs the budget into law.
We created this graphic to highlight important moments on the budget timeline.
from LSC
from Policy Matters
[1] If you don’t find what you need, check the budget bill itself, or the agency’s Redbook. If that doesn’t work, check older Greenbooks or Redbooks. Sometimes information is listed when the line item originated, several Greenbooks back.
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