Chapter 8 – Budgeting Process
8.4 How the Capital Budget is Made
The process for the capital budget begins in late summer of odd-numbered years, focusing on long-term infrastructure projects.
Watch this report by NBC4 reporter Natalie Fahmy from Columbus on the legislature’s capital budget processes in 2024:
YouTube URL: https://www.youtube.com/watch?v=gkSpaIppDAQ
Duration: 2:33
Key steps in the capital budget process include:
- Initial Proposal – State agencies and institutions submit their project proposals and funding requests.
- Review and Recommendations – The Office of Budget and Management (OBM) reviews these proposals and makes recommendations.
- Governor’s Budget Proposal – The governor incorporates these recommendations into a proposed capital budget.
- Legislative Review – The legislature reviews the governor’s proposal, with various committees scrutinizing the details and making adjustments.
- Approval and Enactment – Both the House and Senate must approve the capital budget, which is then signed into law by the governor.
Throughout this process, various actors try to influence how state funds are allocated and who benefits from them. Different interest groups, such as local governments, nonprofits, businesses, and policy think tanks, lobby to ensure that their priorities are included. These actors provide data, advocate for specific projects, and sometimes collaborate to strengthen their influence. The final budget reflects a compromise between these competing interests, determining how resources are distributed across the state.
Some of this lobbying has the public interest at heart. For example, the Greater Cleveland Funders Collaborative is a coalition of local foundations and philanthropic organizations dedicated to enhancing the health and human services sector in the Greater Cleveland area. This group works together to influence Ohio’s state capital budget process by identifying and endorsing specific projects that address critical community needs. By combining their resources and expertise, the collaborative amplifies the impact of their advocacy efforts, ensuring that these projects receive the attention and consideration of state legislators. Their endorsements, grounded in thorough research and a deep understanding of regional needs, increase the chances of these projects securing state funding, thereby addressing vital local priorities in the state capital budget.
