11/18/2020

Message from Beth--November 18, 2020

ACEC Ohio continues to monitor the budget situation in Ohio as well as offer any key information from a national perspective. Presented by OBM Director, Kimberly Murnieks, in her monthly report, October revenues continue to perform at a greater level than expected in a recovering economy with GRF non-auto sales and use tax collections 10.1% above budgeted estimate. According to JobsOhio, Ohio is positioned to emerge strong with the #1 fastest recovery in the Midwest.  See OBM Monthly Report Here

From a construction spending side, the US Census Bureau estimated  an annual rate of $1.4 T in September 2020 which was 1.5% above 2019 levels. The consensus among forecasters is continued growth in the fourth quarter of 2020 with the GDP to fully recover to levels seen in the fourth quarter of 2019 not until fourth quarter  2021.

ACEC Vice President, Erin McLaughlin presented an economic outlook to the ACEC Ohio Private Sector Forum last week stating the economy will likely follow a “U” shaped recovery for the A/E market with the federal stimulus, tax revenues to the public sector and regional reaction to the virus impacting recovery. See Erin's Slides

With traffic volumes still down, the motor fuel user fee revenues have not reached the 30% decline originally estimated by the Ohio Department of Transportation. ODOT saw a decline in State Motor Fuel Tax in FY2020 of approximately $150m. The projected shortfall for FY2021 is 10% or a $208m decrease.   

Updated consumption percentages from ODOT have August at the exact forecasted projection of 10% reduction and July at a 7% reduction.

July:

7% reduction for July gallons taxed.

All year long, but especially during this season, we're grateful for wonderful members like you, Happy Thanksgiving!

~Beth