Director Lydia L. Mihalik, Ohio Department of Development — Ohio House Development Committee (February 26, 2025)
Summary
Testimony of Director Lydia L. Mihalik of the Ohio Department of Development to the Ohio House Development Committee on February 26, 2025, on House Bill 96, the state operating budget. The testimony says the budget reflects a return to more typical funding levels as federal dollars scale back to pre-pandemic numbers. It states that Development awarded $78.8 million through 600 low-interest loans this biennium, and that the budget proposes doubling Historic Preservation tax credits from $60 million per year to $120 million. It also describes a proposed $100 million Ohio Housing Investment Opportunity Program for border and rural counties and $7 million in new funding for cybersecurity.
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“Director Lydia L. Mihalik, Ohio Department of Development — Ohio House Development Committee (February 26, 2025).”
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Director Lydia L. Mihalik
Ohio Department of Development
Ohio House Development Committee
February 26, 2025
Chairman Hoops, Vice Chair Lorenz, Ranking Member Abdullahi, and members of the House
Development Committee, thank you for the opportunity to offer testimony on House Bill 96, the state
operating budget. My name is Lydia Mihalik, and I am the director of the Ohio Department of
Development.
Our mission at Development is to empower communities to succeed, which we are working to fulfill
by investing our resources in all 88 counties in ways that maximize the return on those investments for
our state’s people, businesses, and communities. Under the leadership of Governor Mike DeWine and
in partnership with the Ohio General Assembly, we’ve delivered some big wins as a result and
showcased why Ohio is the best place to live, learn, work, and visit.
The past few years have been nothing short of transformative for Ohio. From the shores of Lake Erie to
the rolling hills of Appalachia, from bustling cities to historic small towns, communities all across this
great state are experiencing growth. No matter where you go, you can see the results of strategic
investments, strong partnerships, and our shared commitment to building a stronger, more
prosperous Ohio.
The General Assembly has entrusted us with significant resources to invest in Ohio’s residents,
businesses, and communities. As we enter this Administration's final two years, we are focused on
ensuring the projects we have awarded are completed and deliver lasting impact. This budget builds
on that momentum by continuing funding for several proven programs, while also introducing select,
strategic initiatives designed to drive growth and address emerging needs. At the same time, it reflects
a return to more typical funding levels as federal dollars scale back to pre-pandemic numbers.
INVESTING IN OHIO’S BUSINESS COMMUNITY
Ohio's economic momentum is undeniable, and companies aren't just taking notice—they're
choosing to invest here. Time and again, industry leaders are recognizing why Ohio is the best state in
which to do business.
We have worked closely with JobsOhio and its regional partners to support job creation throughout
the state. We are continuing our streak of securing some of the biggest economic development
projects in Ohio's history—like Anduril Industries, the largest single job creation and new payroll
project in Ohio's history.
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Anduril is investing in a five-million-square-foot advanced manufacturing facility, Arsenal-1, in
Pickaway County. This project is expected to create more than 4,000 direct jobs and an additional
4,500 indirect jobs, injecting nearly $1 billion into Ohio’s economy. Anduril will deliver critical
technology for our national defense using Ohio’s skilled, hardworking workforce. It reinforces Ohio’s
position as a leader in advanced manufacturing and our state’s ability to attract cutting-edge
industries. The Ohio Tax Credit Authority (TCA) approved a 2.594 percent, 30-year Job Creation Tax
Credit (JCTC) to support the historic project.
Intel’s commitment to the State of Ohio to build a semiconductor manufacturing campus in Licking
County is the largest private-sector investment in Ohio’s history. As a result, suppliers, workforce
training programs, and infrastructure projects are taking shape, creating new opportunities in
communities far beyond Licking County. According to an annual report submitted in March 2024,
workers from 75 of Ohio’s 88 counties have been hired to work on the project and Intel’s Ohio supplier
footprint has also grown to more than 350 current suppliers across 47 counties. Intel has spent
approximately $1.5 billion through Dec. 31, 2023. With an additional $3 billion contractually
committed, this brings the total committed investment by Intel in Ohio to $4.5 billion. The company is
required to provide its next annual report in March.
Since the start of the current biennium, the Ohio Tax Credit Authority approved Job Creation Tax
Credits for 95 projects in 39 counties. The projects are set to create 17,379 jobs, result in $1.5 billion in
new payroll and spur more than $6 billion in investments across Ohio. Our team at Development
works hard to ensure all companies receiving these incentives deliver on the commitments they
make.
These investments demonstrate the confidence companies have in our state. They are a direct result
of the strategic efforts this Administration, in partnership with legislators like you, is making to drive
growth and opportunity across the state.
EMPOWERING OHIO’S SMALL BUSINESSES
As we continue to land major economic development deals, we have never lost sight of our
responsibility to support existing Ohio businesses. Small businesses are the heart of our economy,
employing more than two million Ohioans. We’re making it easier for entrepreneurs to thrive across
all 88 counties.
Take Primary Tool, LLC, for example, which received a loan of more than $513,000 earlier this year to
build a new facility in Holland (Lucas County), which will create four new jobs and retain 35 more.
Success stories like this one are playing out in cities and towns all across the state, fueling local
growth and creating brighter futures for more families.
This biennium, Development awarded $78.8 million through 600 low-interest loans to support under-
resourced businesses looking to expand their operations and create additional jobs in the state.
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That support extends to veteran entrepreneurs, ensuring those who served our country have the
resources they need to succeed in business. With help from his local Minority Business Assistance
Center (MBAC), entrepreneur Michael Miller received business training, financial advising, and key
certifications, allowing him to expand his laundromat into new locations in Akron and Youngstown.
We’re also seeing businesses take full advantage of other resources available to help them grow and
succeed. This biennium was the busiest in the history of Ohio’s Small Business Development Centers.
Our SBDCs helped more than 12,000 business owners statewide secure funding, grow sales, and
achieve their dreams. This has created more than 3,800 jobs and resulted in $129 million in increased
sales. Our proposed budget will provide $2 million in state funding for Ohio’s SBDC network to
leverage approximately $5 million in federal funding per fiscal year.
Development is committed to helping businesses grow by providing access to capital that may not be
available through private lenders. The Regional 166 Direct Loan program focuses on projects related
to industry, commerce and distribution, or research activities, providing low-interest loans to help
them expand and create/retain jobs. Since the start of the Administration, Development has provided
more than $53 million in loans to 95 projects in 34 counties.
This budget also reflects our commitment to fueling the next generation of entrepreneurs, ensuring
that bold ideas have the support they need to grow into thriving businesses.
Through Development’s Third Frontier initiative, programs like the Technology Validation and Start-
up Fund and the Ohio Venture Fund provide critical support to startup companies and Ohio research
institutions that commercialize technologies and early-stage technology companies in underserved
communities and populations across the state.
Whether an Ohioan runs a diner, a factory, or a tech startup, we are working to ensure they have the
support needed to succeed.
WORKFORCE
As we continue attracting new investments and expanding industries, we know workforce
development remains a top priority for businesses of all sizes in your districts.
The DeWine Administration recently reached a significant milestone on this front: awarding more than
125,000 credentials through the TechCred program. TechCred equips Ohioans with in-demand skills,
while also helping businesses grow stronger through workforce training. Over 3,500 unique Ohio
employers have been awarded opportunities to upskill or reskill their workforce. Programs like this
are paving the way for a more competitive labor force and keeping talent here in Ohio.
Through TechCred, we’re equipping Ohioans with the skills they need to succeed in today’s workforce.
But as we look ahead, we’re also investing in the industries that will define tomorrow’s economy —
creating new opportunities for innovation, collaboration, and high-paying jobs.
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When we talk about efforts to strengthen Ohio’s workforce, we have to acknowledge the success of
Ohio’s Innovation Hubs. This $125 million initiative is fueling research, strengthening industry
partnerships, and creating high-paying jobs in emerging fields across the state. Since launching the
Innovation Hubs initiative, the program has established three hubs: the Northwest Ohio Glass
Innovation Hub in Toledo, advancing glass and solar manufacturing; the onMain Innovation Hub in
Dayton, driving digital transformation and national defense research; and the Greater Akron Polymer
Innovation Hub, leveraging the region’s expertise in polymer science. These hubs are transforming
industries, fueling Ohio’s continued economic upswing, and ensuring we remain a leader in cutting-
edge technologies. Together, they are expected to create several thousand jobs. And we're not
stopping here — we expect to announce an additional Innovation Hub award in the very near future.
When it is all said and done, these hubs will have a collective economic impact of more than $1 billion.
We've also supported Industry Sector Partnerships, which help local communities build local
solutions to their unique workforce issues. We've also implemented the Individualized
Microcredential Assistance Program (IMAP), which allows unemployed and underemployed people to
earn career-enhancing credentials at no cost to them.
Our proposed budget reflects our continued commitment to these successful programs that are
preparing Ohioans for quality, higher-paying careers and helping companies fill in-demand jobs.
SUPPORTING OHIO’S COMMUNITIES
We know Ohioans care about their communities – about revitalized neighborhoods, affordable
housing, and safer streets. So, whether it’s repairing waterlines, lowering energy bills, or improving
housing conditions, we are empowering our communities to rewrite their stories and make real,
meaningful changes to the places we call home.
With the support of the Ohio General Assembly, for example, we’ve supported initiatives focused on
upgrading critical local infrastructure. Since the programs were created in 2021, we have awarded
$657.5 million for brownfield remediation and cleanup, more than $303 million for demolition and site
revitalization, and more than $620 million to provide our communities with safer drinking water and
more reliable sewer systems.
Through these programs and so many others, Development has provided hundreds of millions of
dollars in support of projects aimed at meeting the needs of Ohioans and paving the way for
communities across all 88 counties to experience even more growth and opportunity. Going forward,
our priority is working with our local partners to help get these projects across the finish line. Our
proposed budget is a reflection of that commitment, and we are grateful for your continued support.
But we're not just focused on tearing things down. Our state is full of so many beautiful, historic
buildings that give our neighborhoods the character that makes them unique. Through our highly
competitive Historic Preservation Tax Credit programs, we're helping revitalize historic buildings,
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transform vacant properties to unlock their potential, and create new spaces for retail, offices,
housing, and recreation.
In fact, in just this last calendar year, Development has awarded $130 million in Historic Preservation
Tax Credit program funding to 77 projects in 20 communities across the state. In total, the projects are
expected to yield more than $1.3 billion in investments, rehabilitate 92 historic buildings, and create
more than 2,900 new housing units.
The success of this program has been profound and undeniable, and this budget proposes building on
that momentum by doubling the total annual amount of Historic Preservation tax credits from $60
million per year to $120 million. This increase will create powerful opportunities for even more
developers to restore some of the state’s oldest and most beautiful structures.
Ohio's history isn't just found in grand commercial buildings — it's woven into the neighborhoods and
homes that have stood for generations. Across the state, historic homes line our streets, each with a
story to tell and a future waiting to be written. Investing in these neighborhoods isn't just about
preserving Ohio's architectural legacy — it's about strengthening communities, increasing property
values, and giving families the chance to put down roots in homes filled with history and character.
Home ownership is one of the most meaningful ways individuals and families can build stability and
generational wealth. We know owning a home is hard, and buying one can be even harder. And, for
many Ohioans, building new isn't always a viable option. We propose $10 million to provide Historic
Preservation Tax Credits to support the renovation of historic residential properties. By bringing this
proven program into residential neighborhoods, we’re making it possible for more families to reclaim
and revitalize homes with deep roots, ensuring these architectural treasures remain a part of Ohio’s
future — not just its past.
For many, the dream of buying a new home often feels out of reach. That's why we're committed to
creating additional pathways to homeownership by building the homes of tomorrow. Through three
rounds of the Welcome Home Ohio program – announced in May, August, and October 2024 –
Development has invested $60 million to support the creation of 440 houses across 24 counties. At the
same time, the Ohio Housing Trust Fund continues to be a lifeline for low-income Ohioans and
families, providing more affordable housing opportunities and emergency shelter assistance to those
who need it most.
As we work to expand homeownership opportunities, we're also taking a big-picture approach to
Ohio's housing challenges — finding innovative ways so our communities have the infrastructure they
need to grow. In this budget, we're proposing the Ohio Housing Investment Opportunity Program, a
$100 million initiative that will support infrastructure development in border and rural counties.
Economic opportunities are happening across the state—not just in our largest cities—and this
program will support the growth of these communities.
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As we work to ensure Ohioans have access to safe housing, we must also recognize the broader
challenges of growing communities. Governments and critical infrastructure are increasingly targeted
by sophisticated cyberattacks, threatening essential public services and sensitive data. A growing
Ohio needs modern protections—especially as technology advances and new threats emerge. To help
local governments stay ahead of cyber threats, our budget includes $7 million in new funding to
strengthen cybersecurity defenses. This funding will support risk assessments and the
implementation of critical safeguards, ensuring Ohio's communities can better protect their most
vulnerable infrastructure from cyber threats. As technology evolves, so must our efforts to defend it —
this investment will provide the tools and resources needed to keep Ohio secure.
CLOSING THE DIGITAL DIVIDE
Because broadband access is critical to economic development and overall quality of life for Ohioans,
we have spent the past five years partnering with the Ohio General Assembly, local community
leaders, and internet service providers to improve Ohio’s digital ecosystem and bring community-
based broadband solutions to life.
Our efforts to close the digital divide have been a game changer for communities all across the state.
In August 2024, for example, we announced a game-changing investment of $50 million to expand
broadband access to 13,000 households (more than 30,000 previously unserved Ohioans) in Adams,
Brown, and Clermont counties. One year earlier, in August 2023, we allocated $500,000 in grant
funding to boost internet coverage for more than 90 percent of Darke County residents – improving
internet service for roughly 50,000 residents.
That translates to more kids completing their homework without interruption, more businesses
connecting to new customers, and more families accessing high-quality medical care from the
comfort of their own home.
Our second round of Ohio Residential Broadband Expansion Grants, totaling $94.5 million, aims to
provide affordable internet access to more than 35,000 households. We are committed to working
with our federal partners to ensure that every Ohio home has broadband internet access.
By the end of the year, BroadbandOhio will have a plan to provide broadband internet access to the
remaining unserved households with at least one provider. Once started, we anticipate the work will
take 2-4 years to complete.
TRANSFORMING OHIO’S APPALACHIAN REGION
In alignment with the vision of the DeWine Administration, and thanks to the support of the
legislature, the Governor's Office of Appalachia (GOA) facilitated a long-overdue, comprehensive, and
unprecedented investment in Ohio's great Appalachian region — built on a promise to enhance
quality of life, help rebuild local economies and revitalize communities.
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Through the Appalachian Community Grant Program, this Administration has invested $500 million in
Ohio’s 32-county Appalachia region. Projects awarded include $64 million for the Appalachian
Children's Health Initiative, $154 million for the Appalachian Downtowns and Destinations Initiative,
$204 million for the Wonderful Waterways Initiative, as well as $50 million in development grants to
launch four transformational projects impacting communities in Athens, Carroll, Columbiana,
Coshocton, Gallia, Hocking, Jefferson, Mahoning, Meigs, and Perry counties.
We are already seeing great success in the program. For example, I am happy to share through the
Appalachian Children’s Health Initiative, we have four school districts with operating healthcare
centers. Since the start of the school year, these clinics have served nearly 1,000 patients, with more
than half of all visits serving pediatric behavioral health and pediatric acute care. We expect 15 more
health clinics to be operating by the end of the calendar year.
The first clinic to open is serving the Maysville Local School District (Muskingum County), where a
former classroom has now been turned into a fully operational clinic staffed by a team of nurses. In a
district where 94% of students are economically disadvantaged, this clinic is breaking down barriers
to care, reducing chronic absenteeism, and providing families with critical health services. Since
opening, the clinic has served 259 unique patients across 632 visits, with the majority focused on
behavioral health needs.
As part of the Appalachian Downtowns and Destinations Initiative, Ross County was awarded more
than $45 million to improve infrastructure at parks, trails, and museums; support enhancements to
historical native landmarks; renovate downtown spaces and main streets; and create new hubs for
education, economic development, healthcare, and community engagement in areas where these
opportunities have not previously existed. This includes investments that will leverage the recent
UNESCO World Heritage designation for the Hopewell Ceremonial Earthworks.
Development is actively working with grantees to ensure that every project funded through the
Appalachian Community Grant Program is completed by the end of this Administration. This includes
providing ongoing technical assistance, conducting regular progress check-ins, and working closely
with local leaders to keep projects on track and maximize their impact.
This effort builds on the many other GOA programs designed to address the unique needs of Ohio's
Appalachian communities. We are grateful for the collaboration of our four Local Development
Districts and the many regional partners who help drive this important work forward.
SHOWCASING OHIO
Ohio’s tourism industry continues to thrive, setting new records in both visitation and spending. In
2023, Ohio welcomed 238 million visitors — 5 million more than the previous year — leading to an
unprecedented $56 billion in total visitor spending. This economic activity generated $4.6 billion in
state and local tax revenue.
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TourismOhio’s marketing efforts are a key driver of this success. Research from Longwoods
International found that 70% of travelers in our target markets recalled seeing our ads, with each
dollar spent on marketing returning $66 in visitor spending and $5 in state tax revenue.
By shifting more of our advertising dollars to out-of-state markets — where we see a significantly
higher return — we are maximizing our impact and drawing even more visitors to the state. In 2023,
every $1 invested in Ohio’s out-of-state advertising campaign generated $137 in direct visitor
spending and delivered $10 in tax ROI. A $1.2 million ad investment in out-of-state markets brought
$163.2 million in incremental visitor spending, 475,000 incremental trips, and $11.9 million in
incremental visitor-generated taxes - revenue that wouldn’t exist without strategic marketing. This is
why TourismOhio is preparing to launch a new spring advertising campaign aimed at attracting even
more visitors—and even potential new residents—to experience all Ohio has to offer.
But tourism doesn’t just bring people to Ohio — it supports more than 436,000 jobs, making it one of
the state’s largest employment sectors. From small businesses and restaurants to entertainment
venues and hotels, the tourism industry fuels local economies, creates opportunities, and helps
communities across Ohio thrive. With strong visitor satisfaction ratings and a growing national
reputation, Ohio is well-positioned to continue this momentum in the years ahead.
IMPROVING CUSTOMER SERVICE
Serving Ohioans is at the heart of everything we do. This budget reflects our commitment to
improving the overall experience for those who rely on our programs by focusing on their needs first.
Too often, we can get too focused on making our programs work for us more than they work for the
people who actually benefit from them. By better-aligning assistance programs, we are making it
easier for individuals and families to access the help they need.
We are proposing to transfer the Home Energy Assistance Program (HEAP), the Percentage of Income
Payment Plan (PIPP), the Home Weatherization Assistance Program (HWAP), the Electric Partnership
Plan (EPP), and the Community Services Block Grant (CSBG) program to our partners at the Ohio
Department of Job and Family Services (ODJFS). These programs have a direct and meaningful
impact. Over the course of the biennium, we served a little more than 160,000 households through the
Ohio Home Energy Assistance Program (HEAP) and improved weatherization in more than 3,910
homes.
While we have historically operated HEAP, PIPP, HWAP, EPP, and CSBG through our Community
Services Division, it has become clear that ODJFS is the right home for these programs as they can be
more closely integrated with other services that directly support Ohioans who need them most. This
move will greatly improve the overall experience for the people who rely on this assistance—making it
easier for them to get the help they need when they need it.
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THANK YOU TO OUR PARTNERS
When I served as the mayor of Findlay, I learned early on that partnerships were the key to success.
Now, as the director of Development, I take the same approach in working to deliver on Governor
DeWine’s vision for Ohio.
Ohio families are at the heart of everything we do, and we know they are best served when we bring
local perspectives to the table. That’s why we couldn’t accomplish all we’re doing without the trust,
support, and collaboration of our state and local partners—including the General Assembly. Your
partnership has been instrumental in making these investments possible, and we appreciate the
confidence you have in us. We take that responsibility seriously and we are proud to be good stewards
of the resources you have entrusted us with.
We also know Ohioans are better served when we, as public servants, are at our best together. That is
why I am proud to say that, since October 6, 2023, Department of Development employees have been
reporting to the office full-time, five days a week.
At Development, we take pride in our role as a trusted partner to our business and community
leaders, and we aim to be bold, diverse, responsive, and solution focused. Our proposed budget
reflects our commitment to these core values and advances the DeWine Administration’s objectives to
accelerate economic growth and ensure economic vitality.
We’re confident prioritizing these focus areas will deliver a solid return on investment for Ohio
taxpayers.
Thank you for your time today. I am happy to answer any questions you have regarding our budget
proposals.
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