Workers’ Comp Refund Plan Would Return $113M to Ohio Schools, Cities

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Local governments and schools in Ohio could see almost $113 million in rebates from the state insurance fund for injured workers under a proposal from the governor.

Gov. John Kasich’s office released a breakdown of the schools, townships, cities and other public employers who could see a payout from the $1 billion rebate plan Kasich proposed earlier this month.

About 210,000 businesses and public employers could see the rebates in June or July, should the board of directors at the Ohio Bureau of Workers’ Compensation approve the plan. Checks would range from $5 to more than $3 million.

The board is scheduled to meet May 30 to consider the idea.

Money for the one-time rebate stems from solid investments by the agency, which provides workers’ compensation insurance for Ohio employers and covers about two-thirds of the state’s workforce. The agency’s net assets have grown to $8.3 billion.

Not all local governments or schools would get a rebate, because some employers are self-insured and don’t pay into the bureau’s system. But nearly 3,800 local governments and schools would see checks, the Kasich administration says.

Schools would receive about $42.5 million in total – the largest slice of the $112.8 million being returned to public employers. Cities would get $37 million, while counties would see $16.5 million. Townships could expect $7.6 million.

Kasich’s plan also calls for increasing the amount of money for safety grants to $15 million from $5 million. The bureau’s grant program provides matching funds to employers who purchase equipment to reduce injuries or illnesses on the job.

In addition, the bureau is asking the Legislature to approve an overhaul of how it bills its employers. And the agency says the changes would result in rate cuts of 2 percent for private employers and 4 percent for public employers.

Employers currently pay their workers’ compensation premium for the previous six months of coverage. The agency wants to move to “prospective” billing, so it can collect employer premiums for an upcoming policy period.

The bureau says it would ask its board for a $900 million credit for employers to help with the transition to the new billing system.