06/23/2017

New Projection: State Revenue Falls $1 Billion Short of Estimate

One issue that will get attention is finding long-term help for local governments

Senate Republicans were wise to pass a budget this week that accounted for a $1 billion revenue shortfall, considering the new revenue estimate.

The Ohio Legislative Service Commission announced Thursday that it is revising its February estimate downward by $1.02 billion for the new two-year budget period that starts July 1. It also projects that the state will need to spend $59 million more for Medicaid than was originally forecast.

State Budget Director Tim Keen revised down his general-revenue fund estimate by $949 million, while also projecting the state’s share of Medicaid costs to increase by $138 million, due to shifts among programs that get different federal matching rates. Sluggish non-auto sales-tax and income-tax collections are driving the reduced revenue estimate, Keen said.

Please click here to read the complete article from The Columbus Dispatch.