The state capital budget is expected to be introduced in mid-February and will focus primarily on maintenance and repairs instead of new construction projects. For the first time since 2009 however, the 2014 bill will include funding for community and arts projects as well. The capital budget will be on a fast track and is expected to reach Gov. Kasich's desk for signature by late March.

On the higher education front, the Higher Education Funding Commission announced its capital funding recommendations for colleges and universities last month. Recommendations total approximately $400 million and include $166 million for maintenance and repair; $71 million for roofing, electrical and mechanical projects that create more efficiency; $117 million for modernizing classrooms; $15 million for technology upgrades; $7 million to support college completion projects; $25 million for a few expansion projects; and $16 million specifically set aside for smaller community colleges.

After the General Assembly rebuffed previous attempts to increase severance taxes on oil and gas drilling, Rep. Matt Huffman (R-Lima) introduced HB 375 which would levy a severance tax from horizontal wells based on the value of the commodity at point of sale instead of the volume of oil and natural gas. The revenues raised under the initial proposal would pay for the Ohio Department of Natural Resources oil and gas regulatory program and fund closure of long abandoned orphan wells. Any remaining proceeds would be transferred to the Income Tax Reduction Fund. HB 375 has generated significant controversy and will likely see more revision as the measure navigates the legislative process.

Health Care

With Ohio's recent Medicaid expansion under the Affordable Care Act, the Kasich Administration is moving forward with providers, managed care organizations and consumers who are eligible to enroll. This process will not be without difficulty but remains a top priority for the governor.

The battle against opiate addiction has proven to be a constant discussion point within both chambers of the General Assembly and the Kasich Administration. With over a dozen bills introduced related to addiction issues, we expect a fair amount of action in legislature to continue to combat Ohio's growing epidemic.

For more information about pending legislation or the General Assembly's upcoming session, please contact Zach Holzapfel or Tony Brigano.  

All five statewide executive offices, two Ohio Supreme Court seats, all 99 Ohio House seats, half of the Ohio Senate and all members of Congress will be on the ballot this year. Ohioans will want to turn their TVs off after Labor Day!

At the May 6 Primary Election, Ohioans will vote on a 10-year, $1.875 billion bond issue to fund local roads, bridges and other infrastructure. The proposal won overwhelming bipartisan support in the legislature last month and is the third extension of the popular State Capital Improvement Program which was created in 1987.

In the race for governor, Democrat Ed FitzGerald has had a tough few months. Having dumped his first running mate due to unpaid taxes and weeks of bad press, FitzGerald has tried to jumpstart his campaign by selecting Sharen Neuhardt, a Dayton-area attorney, as his running mate. The FitzGerald-Neuhardt ticket was faced with another distraction until last week when Hamilton County Commissioner Todd Portune ended his brief flirtation with challenging FitzGerald. And just this week, Larry Ealy from Dayton filed petitions to run in the Democratic gubernatorial primary. While Ealy is unlikely to mount a serious challenge if his petitions are valid, the distractions continue for FitzGerald.

Governor John Kasich is not challenged in the GOP primary and will likely face FitzGerald and Libertarian candidate Charlie Earl in November. Earl is a former Republican member of the Ohio House and ran statewide for Secretary of State in 2010.

If "money is the mother's milk of politics" Gov. Kasich has been chugging from the gallon, while FitzGerald seems to be using a sippy-cup. To date, Kasich has raised $10 million, compared to just $2.3 million for FitzGerald. The governor has $7.9 million on hand while FitzGerald has less than $1.5 million in the bank. Four years ago, then-challenger Kasich outspent incumbent Governor Ted Strickland $17.2 million to $16.7 million. Governor Kasich appears well on his way to matching his budget from four years ago while his likely opponent has a lot of ground to make up.

Hicks Partners has been assisting clients access innovative growth capital for more than a decade. With the launch of MidAmerican Global Ventures last fall, we will be able to do even more to accelerate economic growth for our region.

MidAmerican Global Venture is a public-private partnership that will bring EB-5 investment opportunities to northwest, central and southeastern Ohio. EB-5, also known as the Immigrant Investor Program, was created by Congress more than 20 years ago to encourage foreign nationals to invest and create full-time jobs in the US in exchange for the opportunity to obtain a Green Card.

Since the foreign investor is motivated more by access to the Green Card than return on investment, EB-5 financing terms can be very competitive, making it an attractive financing option for many projects.

MidAmerican Global Ventures has partnered with eight regional economic development organizations, including the Toledo-Lucas County Port Authority, Columbus-Franklin County Finance Authority, Finance Fund, Columbus 2020, Stark Development Board, Jefferson County Port Authority, Athens County Economic Development Council and the Zanesville-Muskingum County Port Authority. In addition, The Ohio State University and the University of Toledo have joined with MidAmerican Global to promote international educational exchanges.

You can learn more at http://www.midamericanglobal.com/ or call Brian Hicks or Keith Conroy at (614) 221-2800 with any questions you may have on this innovative financing tool. Be sure to follow us on Twitter @MAGVentures.