© 2021 The Statehouse News Bureau
RSS
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
Government/Politics

OBM Director To Conference Committee: Budget Shortfall Will Be Nearly A Billion Dollars

keen_rosenberger_kasich_obhof_2_-_credit_kasler.jpg
Karen Kasler
/
Budget director Tim Keen (far left), House Speaker Cliff Rosenberger (R-Clarksville), Gov. John Kasich and Senate President Larry Obhof (R-Medina) announce in April the budget needed to be cut by $800 million.

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.

A conference committee of lawmakers is working out the difference between budgets passed by the House and Senate. State budget director Tim Keen told them he’s estimated state tax revenues are down $949 million from his office’s initial forecasts – with most of that shortfall in income tax collections. And he’s also revising down growth for the next two years by 1%. "As a rough rule of thumb, this reduces the combined income and sales tax revenues by about $170 million per year from what they otherwise would be.”

Keen says the sluggish economy and what he called “tax revenue weakness” led his estimates to be off. The shortfall right now is $841 million dollars, with new numbers coming after the fiscal year ends next week.

Related Content