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March 06, 2026
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ACEC Ohio Legislative Update--March 6, 2026
This week, significant developments unfolded in the Ohio General Assembly as state agencies submitted nearly $3 billion in capital funding requests to the Office of Budget & Management (OBM) for the upcoming Fiscal Year 2027-2028 capital budget. These requests will shape the state’s bricks-and-mortar spending plan, which is expected to be introduced later this year. OBM Director Kimberly Murnieks stated Ohio’s financial outlook is strong, with a AAA credit rating and low debt service levels. She expects the state to maintain its credit rating even with a "normal-sized capital budget."
Key Points: Ohio Capital Budget Requests and Legislative Updates*
- Capital Budget Requests:
- State agencies submitted $2.9 billion in funding requests for the FY27-28 capital budget.
- Nearly half of the requests came from the Public Works Commission ($710 million) and Ohio Facilities Construction Commission ($611 million).
- Other notable requests:
- Department of Behavioral Health: $350 million for Miami Valley Hospital completion.
- Department of Administrative Services: $290.4 million, up from $235.2 million last cycle.
- Department of Rehabilitation & Correction: $266.2 million, down from $489.9 million last cycle.
- Department of Higher Education: $54.2 million, excluding facility upgrades at individual institutions.
- Reappropriation Plan:
- Lawmakers are considering a stand-alone $1.9 billion reappropriation plan (SB 371 & HB 730), which must pass by March 31 to ensure uninterrupted funding for ongoing projects.
- This is a shift from the previous cycle, where $2 billion in reappropriations were included in the capital budget package.
- Community Requests:
- Expected Budget Size:
- The FY27-28 capital budget is anticipated to be smaller than the prior plan due to the separation of reappropriations.
- Next Steps:
- The initial version of the capital budget is yet to be introduced, with passage targeted for June 2026.
*Gongwer News |
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