In its latest monthly financial report, released this week, the Ohio Office of Budget and Management (OBM) projects the state’s Fiscal Year 2021 budget shortfall to be $2.43 billion. The state’s new fiscal year begins July 1. The DeWine administration has already initiated actions to control spending, including continuing freezes on state hiring.
Four taxes account for the bulk of the deficit. The auto and non-auto sales taxes are projected to fall 13% below estimates. The Commercial Activity Tax (CAT) and personal income tax are estimated to be roughly 10% and 7%, respectively, below forecasts.
For the current fiscal year, total General Revenue Fund receipts are $686.3 million (-2.2%) below estimates. Gov. Mike DeWine has said he expects to tap the state’s $2.7 billion rainy day fund at some point. 6/10/2020