Transportation Budget Passes Ohio Senate, Conference Committee Hearings Scheduled Next WeekThe Ohio Senate co ncluded hearings on the Governor's $7.6 billion Trans portation Budget proposal (HB 2) this week. Am Sub HB 2 passed 22-9 in the Ohio Senate, and is now scheduled for a Co nference Committee to work through the differences. The Senate version was dramatically different than the Governor's proposal and the Hou se-passed version, and is a preview of what is likely to occur with the main Operating Budget ( HB 1) in the coming weeks and months. On Tuesday evening, the Senate Highways and Transportation Committee passed an omnibus amendment , which among other issues, removes the Department of Public Safety (DPS) from the Transportation Budget. The Senate determined the T ransportation Budget source of funding is derived from the state gas tax. DPS no longer receives funding from this revenue and should therefore be included in the main operating budget with the other state and executive agencies. Senators were als o concerned that not enough time would be allowed to properly study the impact of the numerous fee increases before the March 31 st deadline. Of those fees, approximately $106 million were earmarked to deal with a fiscal shortfall in the Ohio State Highway Patrol. Public Safety is concerned there will be a shortfall of $25.6 million due to the dela y in collection of the proposed fee increases if their budget is included in the operating budget, which does not go into effect until July 1, 2009. The Senate also removed Governor Strickland's proposal for primary seat belt law enforcement, use of speed cameras in highway construction zones, creation of local Transportation Authorities (TIA), new toll roads, and elimination of $ 54 million in payments to gasoline wholesalers and retailers. The Senate version did keep the Governor's proposal to allow the Ohio Department of Transportation and Ohio Rail Development Commission to apply for the $8 billion in federal grants available for rail passenger service. However, the Senate version requires approval by the General Assembly to spend the money. In the House version, the Controlling Board would have the authority to release any federal funds the agencies receive. This proposal allows the state to compete for federal stimulus dollars to invest in passenger rail service connecting the state's three largest cities. The bill is now scheduled for Conference Committee next week for Tuesday , March 24 th , Wednesday, March 25 th and Thursday , March 26 th to consider the differences between the House and Senate versions of the bill. By law, the bill must be enacted by April 1, 2009. Medicaid Budget The Ohio House Subcommittee on Health and Human Services heard testimony this week regarding Medicaid related issues in the operating budget HB 1. State Medicaid Director John Corlett offered testimony regarding the Governor's proposed franchise fee increases on nursing homes, hospitals and intermediate ca re facilities for the mentally
