Agencies circumvent legislators’ fund cuts

COLUMBUS (AP) — State agencies are finding a way around Ohio lawmakers’ budgets cuts, to the chagrin of Republican critics.

To restore some funding, state administrators are turning to the seven-member state Controlling Board, which signs off on hundreds of millions of dollars in contracts and adjustments.

Republican critics say agencies are using the Democrat-controlled board to get around limits placed by the Legislature in the $50.5 billion state budget. The Controlling Board, a panel of lawmakers headed by an executive appointee, has the last word on state capital projects and economic-development expenditures.

“I am frustrated by state agencies’ running through the back door and saying, ‘We really can’t live with what you’ve given us, so make an exception for us,’” said Sen. Mark Wagoner, a Toledo-area Republican and Controlling Board member. “I think it’s been a continuing theme since we passed the last budget.”

The transfers restore funding to levels sought by Gov. Strickland in his executive budget — money that was supposed to be restored during the budget process but “fell through the cracks,” said Allison Kolodziej, a spokeswoman for Strickland, who is a Democrat.

“These are levels the governor feels are necessary to effectively operate these agencies,” Kolodziej said.

The Ohio Department of Development received an additional $9 million Monday for five programs that lawmakers cut from the current two-year budget. The money approved by the Controlling Board comes primarily from funds in the department that are paid for with fees that are assessed to businesses and others and aren’t accounted for in the state’s operating budget.

Wagoner and fellow Republican member Rep. Jay Hottinger of Newark objected to the development transfer of about $1 million between accounts to pay for pool cars, office supplies and the salaries of two employees. The board approved the transfer in a 5-2 vote.

The money shift was needed because senators didn’t restore cuts made to the department during the budget process, said Ed Jerse, the development department’s legislative director.

“You’re going to see a lot of these coming in front of the Controlling Board,” Jerse said.

Mark Barbash, the department’s chief economic development officer, said the money wasn’t a budget increase and was in existing accounts. Other departments are being allowed to do similar shifting, he said.

Hottinger said transfers should be reserved for extraordinary situations and not because agencies say they can’t manage on the budgeted amounts.