DeWine Unveils First Round Of Budget Cuts, Totaling $775M
Gov. Mike DeWine is proposing $775 million in budget cuts to offset the state's economic woes. The cuts are in response to a drop in revenue which was predicted when Ohio shut down non-essential businesses and ordered people to stay at home.
The state budget office reports that revenues are lagging behind estimates by about $775 million. That's a steep drop compared to the end of February when the Office of Budget and Management was showing revenues coming in $200 million above estimates, according to DeWine.
"As many of our businesses and citizens of the state of Ohio are having to make difficult decisions, it is incumbent upon us in government to make those same decisions," DeWine says.
DeWine announced budget reductions to reflect that downturn, the biggest cuts are being made in Medicaid, K-12 schools, and higher education.
"So if we do not make these cuts now over the next two months, the cuts we will have to make next year would have to be more dramatic," says DeWine.
The state has $2.7 billion in the Rainy Day Fund. DeWine says he will pull that money, but not in the next two months.
As DeWine explains, there's no telling how long the pandemic will last and says the state will need that Rainy Day Fund later.
More details on the reduction in spending are expected to be released Wednesday.