Complete Story
01/08/2026
Finance Chair Calls Out Mandamus, Medicaid Cuts as 2026 Budget Challenges
Unresolved Medicaid funding obligations may delay or complicate Ohio’s capital budget this year, according to Senate Finance Committee Chair Jerry Cirino (R-Kirtland), as lawmakers assess the state’s overall fiscal outlook.
Cirino said legislative leaders have not yet received direction on a capital budget and noted that, unlike the operating budget, a capital bill is not constitutionally required. While leadership in both chambers has expressed interest in advancing a capital budget, Cirino said new and uncertain financial pressures are prompting a cautious approach.
Among those pressures is the Ohio Supreme Court’s decision finding that nursing facilities were underpaid through the Medicaid quality incentive payment formula. Although lawmakers enacted House Bill 184 to clarify how the Ohio Department of Medicaid will calculate quality incentive payments prospectively, the method and timing for addressing prior underpayments remain unresolved.
Cirino said the uncertainty surrounding the potential repayment obligation makes it difficult to commit to additional spending. He also cited other Medicaid-related pressures, including increased state responsibility for administrative costs under federal law and the possibility of higher state contributions to nutrition assistance programs if error rates are not reduced.
While capital projects are typically financed through bonds, Cirino emphasized that debt service and administrative costs ultimately draw from operating funds, requiring lawmakers to consider all known and potential liabilities.
Cirino indicated the General Assembly is likely to move forward with a reappropriations bill to support projects already underway and may continue to address additional operating budget corrections following enactment of HB 96 and HB 184. However, the timing and scope of a capital budget remain uncertain.