2026-2027 Biennium Budget Testimony — Randall J. Meyer, Inspector General, House Development Committee

Summary

Written testimony of Randall J. Meyer, Inspector General, on the Ohio Inspector General’s Office budget for the 2026-2027 biennium, presented to the Ohio House of Representatives House Development Committee on February 12, 2025. It states that after disbursing approximately $7.6 billion in pandemic-related unemployment benefits during fiscal year 2021, ODJFS later identified nearly half a billion dollars of the disbursals as fraudulent. It states that the office opened 23 investigations related to the Pandemic Unemployment Assistance program between 2021 and 2024 and has released 14 reports of investigation on the program, identifying over $20.5 million lost and 95 criminal charges. The testimony also describes the office’s three revenue sources and a staff of 17 professionals, and says the requested appropriation is sufficient to support current staff.

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                          2026-2027 Biennium Budget Testimony
                         Before the Ohio House of Representatives
                              House Development Committee
                                    February 12, 2025
                     Presented by Randall J. Meyer, Inspector General


Good morning, Chairman James Hoops, Ranking Member Munira Abdullahi, and
Distinguished Members of the Committee. I am Randall Meyer, Inspector General for
the state of Ohio, and I am pleased to appear before the committee to discuss the Office
of the Inspector General’s budget for fiscal years 2026 and 2027.

The Inspector General Office’s mission is to serve as an independent watchdog for the
state of Ohio and to identify fraud, waste, and abuse in the executive branch of state
government. The jurisdiction of the office extends to the Governor and his staff,
agencies, boards, commissions, state universities, and medical colleges who in total
employ more than 130,000 employees. The office’s jurisdiction also includes vendors
and contractors who conduct business with the state of Ohio. The Inspector General’s
Office investigates and makes recommendations concerning alleged wrongful acts and
omissions; identifies weaknesses of state processes; and develops and promotes
improvements on the procedures used by the executive branch of state government.
Since my appointment in 2011, the office has released over 790 reports of investigation,
issued 1,614 recommendations to agencies, and identified over $¼ billion dollars lost to
the state of Ohio.

During the last four years, the office’s resources were focused on investigating the
fraudulent disbursement of millions of tax-payer dollars involving the Ohio Department
of Job and Family Services and the Pandemic Unemployment Assistance program. The
Pandemic Unemployment Assistance program was established to provide unemployment
benefits to Ohioans who lost their jobs because of the COVID pandemic. Because of the
large number of unemployment claims submitted and loosened eligibility requirements,
bad actors found new ways to exploit opportunities for fraud. After disbursing
approximately $7.6 billion in pandemic-related unemployment benefits during fiscal year
2021 alone, ODJFS later identified nearly half a billion dollars of the disbursals as
fraudulent.

Between 2021 and 2024, the office opened 23 investigations related to the Pandemic
Unemployment Assistance program. Significant staff resources were assigned to these
cases to perform various investigative actions including issuing subpoenas for records,
           Rhodes State Office Tower ◊ 30 East Broad Street – Suite 2940 ◊ Columbus, Ohio 43215-3414
   Phone: 614-644-9110 ◊ FAX: 614-644-9504 ◊ Toll Free: 800-686-1525 ◊ E-mail: oig_watchdog@oig.state.oh.us
                The Ohio Inspector General is on the World Wide Web at www.watchdog.ohio.gov
completing forensic analysis, conducting interviews, assisting in search warrants,
administering prolonged surveillance of targeted individuals, and collaborating with state
and federal partners and local prosecutors. Last year, five of these cases were completed
and released by the office, identifying a total loss of $13.3 million to the State of Ohio.
To date, the Inspector General’s Office has completed and released 14 reports of
investigation specifically related to the abuses of the PUA program, identifying over
$20.5 million lost and 95 criminal charges issued. In some instances, these cases have
resulted in indictments for multiple offenses including first- and second-degree felonies
that carry up to 10 and eight years in prison, respectively.

Budget Appropriation Request

The Inspector General’s Office receives funding from three different revenue sources:
the General Revenue Fund and two transfers; one from the Ohio Department of
Transportation, and the other from the Ohio Bureau of Workers’ Compensation and
Industrial Commission. During my tenure as Inspector General, the office has managed
its budget conservatively, ensuring that its operations function efficiently and effectively
to meet its statutory requirements. The office is driven by a staff of 17 professionals who
are needed to conduct its various, wide-ranging investigations. Over 80 percent of our
budget is related to payroll costs. The remainder is used for a wide variety of costs
directly associated with investigations such as IT hardware and software applications,
office rent, fleet vehicles, telecommunications, staff trainings, professional certifications
and licenses, and miscellaneous supplies. The office’s requested appropriation for the
2026-2027 biennium is sufficient to support current staff and maintain the level of
oversight needed for the state of Ohio.

Conclusion

For 35 years, the Inspector General’s Office has been entrusted to investigate, without
bias and outside influence, instances of fraud, waste, and abuse committed by public
officials, private persons, and entities doing business with the state. The responsibilities
tasked to the Inspector General’s Office by the General Assembly and Governor are
critical in ensuring state of Ohio employees and those doing business with the state
conduct themselves ethically and perform their duties with integrity and with the highest
of standards. Our office is dedicated to fulfilling its statutory obligations and
safeguarding integrity in state government.

Respected members of the committee, I would like to thank you for the opportunity to
testify today and I am pleased to answer any questions you may have.


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