Chapter 8 – Budgeting Process
8.2 Types of State Budgets
The state government creates several distinct budgets every two years to manage its finances effectively. These include the operating budget, capital budget, transportation budget, Bureau of Workers’ Compensation budget, and Industrial Commission budget, each serving different purposes and addressing various aspects of the state’s needs.
Operating Budget
The operating budget covers the day-to-day expenses of running the state government. This includes salaries for state employees, funding for public services like education and healthcare, and maintenance costs for state facilities. Essentially, it deals with recurring expenditures necessary for the state’s regular operations and services provided to the public.
Capital Budget
The capital budget, on the other hand, is used for long-term investments and infrastructure projects. This includes spending on construction, major repairs, and improvements to state buildings, roads, bridges, and other public infrastructure. Capital budget items are typically large, one-time expenses that provide benefits over many years, such as building a new school or upgrading the state’s transportation system.
Transportation Budget
The transportation budget specifically allocates funds for the construction, maintenance, and operation of Ohio’s transportation system, including highways, bridges, and public transit. This budget ensures dedicated funding for critical transportation projects, distinguishing it from the broader capital budget that covers a wider range of infrastructure projects.
By creating separate budgets for operating, capital, and transportation needs, the state can more effectively plan and manage its resources, ensuring that each area receives appropriate funding and attention.
Bureau of Workers’ Compensation Budget
The Bureau of Workers’ Compensation budget is a separate budget that provides for the compensation and medical benefits to workers injured on the job. This budget is distinct because it is funded primarily through administrative assessments charged to employers, rather than the General Revenue Fund, to address the specific financial management needs of workers’ compensation programs.
Industrial Commission Budget
The Industrial Commission budget supports the Industrial Commission of Ohio, which handles appeals for workers’ compensation claims. Like the Bureau of Workers’ Compensation budget, it is typically passed every two years and is funded through assessments on employers. This separation ensures focused financial management for the adjudication and appeals process in the workers’ compensation system.
References
Ohio Legislative Service Commission. 2023. Chapter 8 – The Ohio Budget Process.
