Ohio lawmakers will have to cut $800 million from the two-year budget they’re pounding out.
Gov. John Kasich, flanked by GOP legislative leaders and budget director Tim Keen, said Thursday that slow economic growth nationally and in Ohio are responsible for tax revenues lagging behind estimates.
As of the end of March, yearly tax revenue collections were $615 million below estimates, which were already revised downward in June.
At a Thursday news conference, Kasich, House Speaker Cliff Rosenberger and Senate President Larry Obhof said nothing is off the table when considering what to cut. But they said state efforts to combat the state’s opioid abuse and overdose epidemic will not likely be affected.
“This is something we can manage while still making the key targeted investments that we think are the most important in the state of Ohio,” Obhof said. “It’s far too early for us to speculate what we’re going to do or not going to do.”
Kasich and legislative leaders did rule out one option Democrats have suggested: Spending some of the $2 billion in the state’s rainy day fund.
The $800 million reduction over two years is a fraction of the $67 billion budget Kasich proposed in January. Lawmakers in the Ohio House have been vetting the bill since then and plan to make changes later this month before sending it to the Senate.
Typically, state budget officials update their projections in June, when both chambers are putting the finishing touches on the behemoth budget bill. Keen warned lawmakers last week those numbers would be revised down.
Kasich, Keen, Rosenberger and Obhof said they’re trying to get ahead and consider all options in advance of the June 30 deadline to pass a budget. Even with the reductions, Kasich said, the overall state budget will slightly increase over current funding levels.
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