Name: Ohio Gov. Mike DeWine expects to spend state’s entire $2.7 billion rainy-day fund during coronavirus crisis
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Ohio Gov. Mike DeWine expects to spend state’s entire $2.7 billion rainy-day fund during coronavirus crisis

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NEW!398sharesCOLUMBUS, Ohio -- Ohio Gov. Mike DeWine expects to eventually spend down the state’s entire $2.7 billion rainy-day fund to offset revenue losses suffered during the coronavirus crisis, he said Tuesday.“We’re certainly going to use a lot of the rainy-day fund,” DeWine said during his daily coronavirus briefing. “By the time we get completely through this, I’m sure we’ll use all the rainy-day fund. And I’m thankful we have it.”DeWine inherited the rainy-day fund from former Gov. John Kasich, a Republican who filled the fund to its maximum level during his tenure, which occurred during a period of national economic expansion. As Kasich and his allies were fond of saying, the fund once contained 89 cents after Kasich’s predecessor, Democratic Gov. Ted Strickland, spent it down during a different economic crisis, the Great Recession.DeWine was asked about his plans for balancing the state budget Tuesday as Ohio enters its new fiscal year, which runs from July through June. DeWine in May , primarily affecting education and state Medicaid funding, that took effect the previous fiscal year. DeWine has said the new, lower level for K-12 school funding ,” and that his goal is to avoid any further cuts for school districts.A state budget hole emerged shortly after DeWine ordered widespread business closures in March in response to coronavirus. The slowdown in commerce quickly caused a sharp decline in state tax collections. But Ohio’s tax revenues are showing some signs of recovery as businesses have re-opened, new budget figures released Tuesday by the state show.State tax receipts rebounded strongly in June, coming in only $50.5 million behind pre-pandemic estimates, compared to a $866.5 million shortfall in April, according to DeWine’s Office of Budget and Management.DeWine said Tuesday the loss in state revenues currently looks like it might be “not as bad as we thought it might have been.”But Kim Murnieks, DeWine’s budget director, in an interview cautioned the June totals may have been artificially inflated. She said strong auto sales particularly boosted monthly tax collections, which she said could reflect pent-up demand as people sat on their wallets in previous months. State budget analysts expect consumer spending will level off to recessionary levels.“What I have cautioned is not to be overly exuberant about the results we saw in June,” she said, “because we do think those were some one-time effects, and we do know that this economic rebound will be a long haul.”Future uncertainties include whether the U.S. Congress will authorize a second round of stimulus spending, including an extension of enhanced unemployment benefits or additional direct payments to taxpayers, and how the economy will respond if Congress doesn’t act, she said. Overall, Murnieks said state budget analysts are projecting a $2.3 billion shortfall over the next year.“So it will be necessary to close that gap through combined spending measures and of course potential use of that rainy-day fund,” she said. As part of the cost-cutting measures, DeWine has ordered a and a hiring freeze for certain job categories. DeWine and Lt. Gov. Jon Husted have said , an amount roughly equal to the pay cuts absorbed by state workers. And last week, state officials announced they’d saved $350 million in interest payments by re-financing their long-term debt.Any significant reduction in state spending, though, likely will require reducing the state’s payroll. Murnieks said layoffs are a possibility, and didn’t have a general timetable on when the state may decide.“We are looking at all of the options to control our costs, especially on the state employee cost side,” she said.Read recent cleveland.com coverage:Note to readers: if you purchase something through one of our affiliate links we may earn a commission.

NEW!398sharesCOLUMBUS, Ohio -- Ohio Gov. Mike DeWine expects to eventually spend down the state’s entire $2.7 billion rainy-day fund to offset revenue losses suffered during the coronavirus crisis, he said Tuesday.“We’re certainly going to use a lot of the rainy-day fund,” DeWine said during his daily coronavirus briefing. “By the time we get completely through this, I’m sure we’ll use all the rainy-day fund. And I’m thankful we have it.”DeWine inherited the rainy-day fund from former Gov. John Kasich, a Republican who filled the fund to its maximum level during his tenure, which occurred...

Ohio Gov. Mike DeWine expects to spend state’s entire $2.7 billion rainy-day fund during coronavirus crisis

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