COLUMBUS, OH — State Senator Tim Schaffer (R-Lancaster) has introduced a new legislative effort to tighten the leash on how non-governmental organizations (NGOs) and private businesses spend Ohio taxpayer dollars.
Senate Bill 372, introduced on March 4, 2026, aims to create a first-of-its-kind centralized financial reporting system for any non-government entity receiving state grants, loans, or economic development incentives.
Closing the Accountability Gap
The bill is a direct response to growing concerns over the lack of transparency in how private groups handle public funds. Under the proposed law, the Director of Budget and Management would be required to build a reporting portal where recipients must detail their spending annually.
Key features of the legislation include:
- Cost Clarity: Groups would have to clearly separate “direct costs” (project-specific spending) from “indirect costs” (overhead and general operations).
- Progress Updates: Recipients must provide project status reports to ensure the work they were paid for is actually being completed.
- Compliance Verification: Organizations must formally confirm they are following all applicable laws and regulations.
“We’ve seen the abuses by NGOs in other states, and we want to make sure those abuses of the taxpayer don’t go on here in Ohio,” Senator Schaffer said. “Holding various groups who are receiving public money to a high standard of accountability is critical to preventing fraud.”
Backed by Recent Audits
The push for SB 372 comes on the heels of a stinging report from State Auditor Keith Faber. In December 2025, Faber revealed that the state’s oversight of job creation incentives was severely lacking.
According to that audit, 39 out of 55 companies receiving Job Creation Tax Credits failed to meet their minimum requirements—such as promised hiring numbers or payroll levels. Auditor Faber has officially endorsed Schaffer’s new bill, stating that it “strengthens transparency and accountability for Ohio’s taxpayers.”
What’s Next for SB 372?
The bill is currently awaiting assignment to a Senate committee for initial hearings. If passed, the centralized reporting system would be required to be fully operational within one year of the bill becoming law.
Failure to comply with the new reporting standards would carry penalties, ranging from minor misdemeanors to fines for knowingly submitting false information.
