COLUMBUS — The Ohio Bureau of Workers’ Compensation (BWC) has recommended a reduction in next year’s rates for Ohio’s school districts, cities and other Ohio local government employers.

BWC would collect $21 million less under the proposal the agency made to its board of directors, Thursday, June 19.

The 12 percent reduction effective Jan. 1, 2019, would be the second largest decrease for the state’s public employer taxing districts since at least 1985.

“This proposal for yet another overall rate reduction for these 3,700 public employers could free up funds to invest in their communities,” said Chris Carlson, BWC chief actuarial officer. “In addition to significantly reducing costs next year, it also supports BWC’s goal of maintaining stable and predictable rates in the future.”

Carlson said the seven decreases for local governments since the start of 2011 total 41.8 percent for a combined statewide financial impact of $435 million. BWC is also delivering approximately $157 million in rebate checks to these employers during the month of July and has returned $8 billion to all Ohio employers since 2011.

A number of factors make the 2019 reduction possible, including declining claims and relatively low medical inflation costs that are combining for a favorable forecast for future average claim costs.

The decrease represents the change to the statewide average of the collectible rates for public employer taxing districts. The actual premium change for an individual public entity will differ based on several factors, including employer type or classification, recent claims history and program participation.

The board will vote on the proposal during its next meeting, scheduled for Aug. 24.