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From Capital Partnerships LLC

 

Continuing Resolution Provides Ohio with $99.4 Million in New Budgetary Resources

 

The Federal Highway Administration (FHWA) has doled out apportionments to the states based on the continuing appropriations resolution passed on October 1. The continuing resolution provided a total of $2.033 billion in highway contract authority to be divided among the states according to formula. $1.98 billion of this contract authority is subject to an obligation limitation, which was set at $2.78 billion under the continuing resolution. Because this total obligation authority set by Congress under the continuing resolution exceeds the contract authority by $797 million, states can only take advantage of these additional funds if they have available contract authority apportioned in previous fiscal years that has not lapsed.

Under the FHWA apportionment, Ohio has received approximately $99.4 million in new budgetary resources until the expiration of the continuing resolution. This figure accounts for the total obligation limitation apportioned for Ohio (approximately $97.4 million) and obligation-exempt funds ($2.0 million). However, Ohio has only received $70.2 million in contract authority with which to take advantage of the obligation authority (an excess of $29.2 million). As a result, Ohio and other states must utilize contract authority leftover from prior fiscal years to gain the full benefit of this apportionment.

Many states may lack the available contract authority to take advantage of the excess obligation authority as a result of the $8.07 billion rescission that took effect September 30. For example, the FHWA reports that Ohio will lose approximately $307 million in unobligated contract authority from prior fiscal years. However, Ohio will not experience any loss in real dollars because this contract authority did not have any corresponding obligation authority from which to draw funds nor was any of the rescinded authority exempt from an obligation limit.

 
 

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