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OBM director tells Senate Finance panel SB 371 would reauthorize about $1.93 billion for ongoing capital projects
Summary
OBM Director Kimberly Mernix testified that Senate Bill 371 would reauthorize an estimated $1,930,000,000 in unspent capital balances to keep previously approved projects moving; she emphasized timing requirements (March 31 enactment for a July 1 effective date) and said section 509.14 will fix final amounts to June 30 unexpended balances.
OBM Director Kimberly Mernix told the Senate Finance Committee that Senate Bill 371 is a capital reappropriations measure designed to reauthorize unspent balances from prior capital budgets so ongoing projects can continue without interruption. "This bill contains capital reappropriations for the upcoming biennium, which begins on July 1," she said, adding that the bill is intended to reauthorize previously approved projects rather than create new capital spending.
Mernix framed the bill as a routine but necessary step under Ohio's constitutional two‑year appropriation limit and explained key timing and accounting mechanics. She pointed to section 509.14 of the bill, which "stipulates that the amounts actually reappropriated for each capital project is to be the exact unencumbered and unexpended balance at the end of the fiscal year on June 30." She also warned that capital appropriations require a 90‑day delay before taking effect, so the bill generally needs to be enacted by March 31 for reappropriations to be effective on July 1.
The director provided high‑level estimates in the bill: "The bill includes an estimated 1,930,000,000 in capital reappropriations," and she said roughly $1.1 billion — about 57% of the estimated total — is attributable to three statewide entities (the public works commission, the facilities construction commission, and higher education institutions). Mernix noted the dollar figures in the bill are estimates based on current OBM reviews and that the actual amounts will be the unexpended balances on June 30.
She placed the proposal in a favorable fiscal context, saying that seven months into the current operating biennium general fund tax receipts were 3.7% above forecast, Ohio holds a AAA credit rating, annual debt service per capita is at a recent low, and projected peak debt service remains well under the constitutional 5% cap. Committee members asked no substantive questions after the presentation; the chair thanked the director and reiterated a desire to coordinate with the House for expeditious passage.
Next steps: SB 371 received sponsor testimony at this hearing; committee members and staff will coordinate with the House to align the companion measure and with OBM for any technical follow‑up before further action.
