Kasich Discusses Tight Budget, Possibility Of Using Rainy Day Fund
Ohio’s tax revenue has fallen short of estimates in the past few months. And recently Gov. John Kasich has brought up the “R” word -- recession. Kasich is now using another term that’s become taboo on capitol square.
Kasich says Ohio and about 20 other states are seeing a drop in spending, leading to less state revenue. And he says that means this budget will be tough. Kasich even hinted for the first time that the state might turn to its savings account.
“You know the 'rainy day fund' is not just there to fund things willy-nilly. The 'rainy day fund' is there to deal with these kind of shortfalls in the middle of a budget so you can minimize disruption,” said Kasich.
Democratic lawmakers have been calling for the use of those funds to help struggling local governments and Republicans have wanted to dip into that pot for more tax cuts.