Ohio will cut $775 million from state budget over next two months
The state of Ohio will cut $775 million from its budget over the next two months to make up for the shortfall created by the COVID-19 shutdown efforts, Governor Mike DeWine announced Tuesday.
With many businesses ordered closed and subsequent decreases in consumer spending in the midst of a crisis, tax revenue is down significantly.
Unlike the federal government, state governments can't print money to offset their budgets. With tax revenue down, spending needed to be cut.
"If we don't make these cuts now, the cuts we will have to make next year will be more dramatic," Gov. DeWine said. "With regard to our state agencies, each of our agencies (with the exception of the Department of Rehabilitation and Corrections) is taking cuts, including the Governor’s office."
Here's a breakdown of where those cuts will be made in Ohio:
• Medicaid: $210 million
• K-12 Foundation Payment Reduction: $300 million
• Other Education Budget Line Items: $55 million
• Higher Education: $110 million
• All Other Agencies: $100 million
• Total cuts: $775 million