Ohio’s rainy day fund has hit an all-time high. Gov. John Kasich on Thursday filled the account with a deposit of nearly $996 million, bringing the total to $1.48 billion. The deposit, made possible by a nearly $2 billion surplus in Ohio’s General Revenue Fund, marks the first time in more than a decade that the fund has reached its maximum.
The rainy day fund, officially known as the Budget Stabilization Fund, is used to set aside state money during good economic times that can be used during unexpected economic downturns.
“The reason why we’re here is, one, we’ve managed the government effectively,” the Republican governor said Thursday at a news conference.
Most of the surplus will be used to help pay for the small-business and income tax cuts included in the state’s new budget.
The administration will use a portion of the of the surplus to pay interest on federal money borrowed to extend unemployment benefits. And some will be tucked away for emergency and disaster preparedness, said Tim Keen, director of the Ohio Office of Budget and Management.
Rep. Chris Redfern, chairman of the Ohio Democratic Party, said the money could be put to better use.
“Instead of using tax dollars for stunts, shouldn’t the governor be working to restore the cuts he made to schools, public safety, and other vital local government services,” Redfern asked.
Modest revenue and spending estimates, controlled Medicaid costs and bolstered efficiency led to the surplus, Kasich said.
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