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THE STATEHOUSE REPORT
January 7, 2022
A publication of the County Commissioners Association of Ohio                         Printer Friendly Version

US Treasury releases final ARPA rule with additional flexibility for counties
 
On Thursday of this week, the US Department of the Treasury released the Final Rule for the American Rescue Plan Coronavirus State and Local Fiscal Recovery Funds. Counties and other state and local governments have eagerly anticipated the release of the Final Rule and any additional flexibility it may provide.
 
While CCAO and NACo continue to review the details of the Final Rule (over 400 pages), several key provisions are highlighted below:
 

  • The rule now allows local governments the option to elect a standard allowance for revenue loss rather than calculating revenue loss through the more complicated revenue loss formula. The allowance is set at $10 million. Recipients do not have to complete the complicated revenue loss formula in order to spend up to $10 million of ARPA funds for eligible governmental services. Local governments still have the option of using the revenue loss formula as established in the final rule. This important change should provide significant flexibility many small to medium-sized counties.
  • The non-exhaustive list of uses of funds for COVID-19 response has expanded to include capital expenditures to respond to public health needs and services to address negative economic impacts, including childcare, early education, addressing learning loss and affordable housing.
  • Expanded support for public sector hiring capacity.
  • Streamlined options to provide premium pay for essential workers.
  • Broadened eligibility for water, sewer and broadband infrastructure projects.

 
The Final Rule is schedule to take effect April 1, 2022. However, counties make take advantage of the Final Rule’s new flexibilities now, ahead of the April effective date.
 
The press release from US Treasury regarding the Final Rule can be accessed here. An overview document of the Final Rule provisions can be found here: Final Rule Overview Document. The entire text of the Final Rule can be accessed here: Final Rule Text.
 
The US Treasury Department will be hosting several briefings in the coming days to explain the details of the Final Rule.
 
January 7th at 1:00PM
A recording of this briefing will be made available shortly.
 
January 10th at 4:00PM
Register
 
January 12th at 1:00PM
Register
 
Also, NACo is holding a national membership call on Monday, January 10 at 1 p.m. EST for an overview of the Treasury’s Final Rule for the Recovery Fund and key highlights for counties.
 
CCAO and NACo continue to review the details of the Final Rule. Any questions about the rule’s contents can be directed to CCAO Senior Policy Analyst Jon Honeck.

BWC cuts rates for public employers

 The Ohio Bureau of Workers’ Compensation (BWC) announced earlier this week that public employers will receive a 10 percent rate cut. The rate cut is effective January 1, 2022, and will save public employers nearly $17 million in compensation premiums.
 
This marks the 13th rate cut for public employers since 2009.
 
“I applaud Ohio’s employers who continue to adopt a culture of workplace safety, which helps to allow for continued rate reductions,” Gov. Mike DeWine said in a release. “By lowering premiums, our public employers can take this $17 million in savings and invest in their employees and workplaces.”
AG Yost issues opinion on new election collaboration statute
 
Attorney General Dave Yost this week released an Attorney General’s opinion that interprets how elections officials and private entities may interact. The opinion was sought after a new law took effect, included in a late-stage amendment to the annual state operating budget bill, which prohibits elections officials from accepting grants from private entities. It also bars government officials from collaborating with private organizations on many elections-related purposes.
 
The law was passed in response to state and local governments accepting grants in 2020 from the Center for Tech and Civic Life, a nonprofit founded and funded by Facebook CEO Mark Zuckerberg. The funds were used to fund election items like absentee ballot supplies, PPE, temporary staffing, and other election-related expenses.
 
Following the law’s enactment, county elections officials raised concerns that the statute’s limitations could prevent elections officials from participating in routine activities, such as serving on a county political party.
 
Several county prosecutors sought clarity from the AG’s office on the details of the new statute, particularly how “collaboration” between elections officials and private entities is defined.
 
In response, the AG’s office determined that “collaboration” entails the joint administration of a project. Furthermore, the opinion stated that the statute does not override existing state laws which allow for elections officials to provide information about voting to the general public.
 
The opinion provides greater clarity on the issue, but there may still be lingering questions over what specific collaboration activities between elections officials and private groups may be allowable.
 
The full AG opinion can be found here.
School district group files lawsuit challenging state voucher system as unconstitutional
 
A coalition of 100 school districts are challenging the state’s EdChoice voucher program as unconstitutional as part of a lawsuit filed this week in Franklin County Common Pleas Court. Filed by the Ohio Coalition for Equity and Adequacy of School Funding, the group argues that the Article VI, Section 2 of the Ohio Constitution requires the General Assembly to “secure a thorough and efficient system of common schools throughout the state” and that “no religious sector, or sects, shall ever have any exclusive right to, or control of, any part of the school funds of this state.”
 
The EdChoice program provides tuition vouchers for qualifying public school students, generally based around school academic performance and income eligibility. The program has grown over the years, with the cap on vouchers being raised, new eligibility categories and growth in per-student payments.
 
Lawsuit proponents argue that the voucher system creates a separate school system in the state at the expense of public education. They further argue that religious schools benefit at the expense of public education, as many vouchers go toward private, religiously-affiliated schools. The voucher program also provides more state funding to voucher recipients than is provided in per-student payments in some districts.
 
Senate Republicans along with school choice and religious education groups came out in opposition to the lawsuit, with the Senate Majority Caucus releasing a statement:
 
"This shows the deep disdain these greedy big government elitists have for parents to make decisions that are best for the education of their children. It is shameful and a direct attack on Ohio families.”
 
The full complaint filed with the court can be accessed here.
Copyright © 2022 CCAO, All rights reserved.


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