Gov. DeWine Announces Cuts to State Budget Amid Coronavirus Pandemic

 

Gov. DeWine announced on Tuesday that he is slashing Ohio’s budget for the remainder of the 2020 Fiscal Year due to the state general suffering heavy revenue loss due to COVID-19.

Before the Chinese coronavirus came to Ohio, “state revenues for the fiscal year were ahead of estimates by over $200 million. As of the end of April, Ohio’s revenues were below the budgeted estimates by $776.9 million,” according to the governor’s press release.

Ohio is required by law to balance the state budget. In an effort to do this, the state has made the following cuts to these areas:

  • Medicaid: $210 million
  • K12 Foundation Payment Reduction: $300 million
  • Other Education Budget Line Items: $55 million
  • Higher Education: $110 million
  • All Other Agencies: $100 million

“Decisions like these are extremely difficult, but they are decisions that are part of my responsibility, as your governor, to make,” DeWine said. “We believe that instituting these cuts now will provide the most stability moving forward, however, I am greatly concerned about the cuts we must make in education. We have an obligation to our schools to give them as much predictability as we can, but if we don’t make these cuts now, future cuts would be more dramatic.”

Ohio is not using money from its rainy day fund to balance the budget, according to DeWine’s press release.

Last month, DeWine ordered the immediate hiring freeze for all agencies, boards, and commissions under his control. Also, the governor halted pay increases and promotions for certain state employees.

“I know that I have said that ‘it’s raining,’ but we do not want to tap into the rainy-day fund yet,” said Governor DeWine. “The ‘rain’ is not a passing spring shower – it could be a long, cold, lingering storm, and we should not use the fund until it is necessary.”

Ohio Office of Budget and Management (OBM) Director Kim Murnieks projects the “state’s revenues will continue to be below estimates in the coming months as Ohio moves through the COVID-19 crisis,” according to the governor’s press release.

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Zachery Schmidt is the digital editor of Star News Digital Media. If you have any tips, email Zachery at [email protected].
Background Photo “Ohio Statehouse” by Mj. CC BY-SA 4.0.

 

 

 

 

 

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One Thought to “Gov. DeWine Announces Cuts to State Budget Amid Coronavirus Pandemic”

  1. William Delzell

    Make these austerity burdens fall on the rich instead of on those with low- and middle-incomes! I am fed up with these greedy plutocrats forcing everybody but themselves make all the sacrifices! I have far more respect for grocery deliverers, postal service personnel, medical personnel, police traffic controlers, fire-fighters, etc., than I do for these wealthy financial brokers and stock-holders who control our government. What does it take for the common American to rise up against these plutocrats and militarists? It COULD happen as it did in France in 1789 and in Russia over a century later. Beware the pitchforks.

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