State May Need Twice The $2.7 Billion In Rainy Day Fund To Recover From Coronavirus
Nearly a million Ohioans have filed for unemployment, which means the state has lost almost a fifth of the jobs it had a month ago.
Last month’s preliminary state revenue was down 10.5% from estimates, off by $159.4 million. The Office of Budget and Management said sales and use taxes missed projections by more than 8%, or $68 million. Personal income taxes were off by more than 5%, or $22.3 million.
Lt. Gov. Jon Husted said the at-capacity rainy day fund may not be even close to enough to cover everything.
“Based on current projections, that $2.9 billion, we might need twice that amount just to balance the budget over the next 15 months.”
State agency directors have been ordered to find cuts of up to 20% in their budgets, though some, like Medicaid, will likely need more money.
Husted said mayors are telling him they’re expecting cuts between 15% and 25%, which he said will mean reductions in police, fire and other important local services.
Copyright 2020 The Statehouse News Bureau