Ohio tax collections for the fiscal year that ended last month were more than $850 million off estimates. But the state ended the year with a balance of nearly $171 million. And almost a third of that was transferred from 15 pools of money held within various state agencies.
The state budget director took a lot of heat for tax collections that came in nearly a billion dollars below his projections. That office is trying to make sure it doesn’t miss with its forecast for the new budget. But as he notes on "The State of Ohio" this weekend, there are still a lot of economic uncertainties to deal with.
The state budget director was off by almost a billion dollars in its projections on tax collections for the fiscal year. But his prediction that the year that ended last week would close in the black was right.
New numbers from the state budget office show Senate Republicans were correct in saying they needed to close a billion dollar hole in the upcoming budget. And the trend of the state having less money to spend will continue.
An income tax break for Ohio’s small businesses in recent years is under fire from Democrats and some Republicans. They say the current budget situation shows it’s time to end that tax cut. Gov. John Kasich is firmly rejecting those suggestions.
As the state’s budget shortfall approaches a billion dollars, a tax cut adopted four years ago is getting close attention. The small business tax cut promoted by Republican leaders has saved business owners money – but has gained a lot of criticism in the process.
Local government leaders believe municipalities are taking some big hits in the latest state budget proposal. Those advocates say this could create a domino effect for cities and towns around the state.
The Senate has unveiled its version of the two-year state budget. It dedicates even more money for the state to fight the opioid epidemic and includes more money for most schools. But it also comes with spending cuts for state agencies and outright elimination of some programs.
Senators will unveil their version of the state budget today – they needed to trim hundreds of millions of dollars to make sure it’s balanced. But critics are pointing to a small business tax cut as the reason the state’s tax revenues are short by nearly a billion dollars.
The Senate’s changes to the House version of the upcoming state budget will be released soon. And those changes will be important, since Gov. John Kasich told lawmakers they’d have to cut $800 million from his initial budget because of falling tax revenues.
State lawmakers have been working to find ways to trim $800 million in spending from the next two-year budget. And that’s one reason why a $5 million allocation to a new program at Ohio State University has gotten some attention. Another is it came from the House Speaker.
Senators are preparing to put out their version of the state budget, in which they need to trim hundreds of millions of dollars to make sure it’s balanced. And now the state budget office is reporting another big loss in tax collections for the current fiscal year.
The Republican leaders of Ohio’s House and Senate and Republican Gov. John Kasich have come up with a way to deal with the $615-million-dollar revenue shortfall that’s expected by the end of this fiscal year.