Gov. DeWine Not Ready To Use "Rainy Day" Fund; Announces $775 Million Budget Reduction

Tuesday, May 5, 2020 at 3:22 PM

DeWine says the cuts will help the state maintain a balanced budget over the next two months.

(Columbus, Oh.) - Ohio Governor Mike DeWine is not ready to tap into the state’s “rainy day” fund.

Speaking at the Statehouse on Tuesday, DeWine acknowledged that “it’s raining,” alluding to the impact COVID-19 has had on the health of the public and the state economy.

DeWine went on to announce a $775 million budget reduction in General Revenue Fund spending for the remainder of the fiscal year.

The following cuts are expected to occur over the next two months:

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

“Decisions like this are extremely difficult, but are part of my responsibility, as your governor, to make,” said DeWine. “While we do not know what the coming months will hold, we do know that COVID-19 is here with us and will be here for quite some time.”

DeWine added that he decided not to draw money from the rainy day fund because the cuts will allow officials to maintain a balanced budget for the next two months.

“We are going to need the rainy-day fund for next year, and possibly the next,” said DeWine.

Of the money in the budget that is Ohio taxpayer-funded, only 9.4 percent is spent on operating expenses of state agencies. Over 85 percent goes across the state to schools, higher education, Medicaid services, local governments and more.

Regarding state agencies, Governor DeWine instituted an immediate hiring freeze for state employees in state agencies, boards and commissions on March 23. He also ordered a freeze on pay increases and promotions of unclassified and exempt staff.

“I have asked each agency director to continue to identify savings in their budgets for the remainder of this fiscal year and next fiscal year,” said DeWine. “Moving forward, all state agencies will continue the hiring freeze as well as the freeze on pay increases and promotions.”

To date, Ohio has reported 20,969 positive COVID-19 cases and 1,135 deaths.

For more information, visit https://coronavirus.ohio.gov/wps/portal/gov/covid-19/home.