$775 budget Cuts in Ohio
Governor DeWine proposed $775 billion in budget cuts – primarily hitting our schools ($355 million), higher education ($110 million) and healthcare ($200 million). These cuts will occur over the next two months so that the Ohio budget ends the fiscal year (June 30th) balanced.
What does this mean for Ohio’s budget?The budget year has two months left – ending on June 30th. These $775 million worth of cuts will be implemented in the next two months to allow the state to end the fiscal year with a balanced budget. Governor DeWine announced that he will not spend the rainy day fund now, and instead hold it for next fiscal year (which begins July 1st). To be clear, the $2.7 billion in the rainy day fund is not enough to fill the state and local government budget holes. Without federal relief, Ohio will have to cut our budget further. Potential solutions to state budget cuts:
1. State revenue: We need our state legislature right now to adopt a balanced approach to balancing the state budget. The Ohio legislature should consider reigning in tax loopholes, like the LLC loophole, to generate revenue and reduce future budget cuts. New state revenue is unlikely to be enough to fill the budget gaps created by the current crisis.
2. Federal Relief: In the end, Ohio will need federal relief for our schools, public transit, parks, and other vital community services. The current cuts in Ohio could have been avoided if Congress and the President would pass a meaningful relief package of at least $500 billion. Let’s hope they pass something before further cuts are made.