Why Ohio’s Budget Cuts Are Not the Answer

Summary

The state of Ohio is facing significant budget cuts in education, Medicaid, and university funding, which disproportionately affects the vulnerable during the pandemic, while there is a $2.7 billion untapped rainy day fund available to mitigate these losses.

Abstract

The article critiques Ohio's decision to implement stringent budget cuts in the midst of a pandemic. These cuts severely impact already strained public services, such as education, Medicaid, and university funding, potentially exacerbating the suffering of the state's most vulnerable citizens. The article points out that Ohio's government, led by Governor Mike DeWine, plans to cut the state budget by $776.9 million due to losses in sales and income taxes. This is occurring despite the state having$ 2.7 billion in a rainy day fund specifically earmarked for such emergency situations. The author suggests that using these funds could not only cover the lost tax revenue but also allow for increased allocations to the aforementioned vital services, leaving a substantial reserve still intact. With the Republican Party holding strong majorities in both houses of the Ohio legislature, the proposed budget cuts are expected to pass, while alternative proposals to use the rainy day fund are not gaining traction. The author emphasizes the importance of using the current financial reserves to invest in the community, particularly in healthcare and education, as a crucial step in addressing the immediate challenges posed by the pandemic.

Opinions

Ohio's decision to impose budget cuts on essential services during the pandemic is seen as misguided and likely to increase hardship, especially for the vulnerable.
The article argues that it is inappropriate to cut funding for public education, Medicaid, and higher education when a substantial rainy day fund is available.
Governor DeWine's plan to cut $776.9 million from the state budget is deemed a poor choice when compared to the alternative of tapping into the$ 2.7 billion rainy day fund.
The author asserts that Ohio's rainy day fund should be used not just to cover the budget shortfall, but to enhance funding for critical programs during the crisis.
The current financial downturn is presented as an ideal time for the state to invest in its citizens' health and education.
There is criticism towards the Ohio legislature's Republican supermajorities for their resistance to using the rainy day fund, indicating a political barrier to potentially more beneficial fiscal strategies.
The author posits that Ohio's leadership, by choosing to implement budget cuts instead of utilizing available funds, is failing to exhibit the necessary political courage to support its residents in a time of unprecedented crisis.

Budget cuts to education, Medicaid, and university funding only exacerbate suffering — especially for the most vulnerable among us.

State budgets across the country have been strained by the current pandemic. It is no surprise that when the economy comes to a screeching halt, state governments are tasked with making tough financial choices in order to mitigate their losses. Unfortunately, states such as Ohio have decided that this mitigation will unnecessarily compound the misery already felt by our communities in the form of budget cuts to vital state programs. As people decide between paying rent or buying groceries, they should not too wonder if they will retain their Medicaid coverage or have fully resourced K-12 public schools to send their children when it is safe to return.

Yet, Ohio Governor Mike DeWine seems to think they should. Just last week, his office made public their intention to cut the state budget by $776.9 million. This amount reflects the lost revenue from both sales and income taxes due to Ohio’s quick closure of all non-essential consumer businesses and public schools in mid-March. The lost revenue is no small feat, but there is a more appropriate answer to the problem: the rainy day fund.

Currently, the untapped rainy day fund holds $2.7 billion and is specifically designed for periods of lost revenue due to unforeseen circumstances. To put this number in perspective, the state could cover all the lost tax revenue from this fund and expand the budgets for public education, Medicaid, and higher education by $100 million each with roughly $1.6 billion remaining.

This potential solution, or any solution offered which may take a cent from Ohio’s rainy day fund, is a non-starter. Currently, the Republican Party holds super-majorities in both legislative chambers in Ohio with a 61–38 member lead in the House and a 24–9 member lead in the Senate. As a result, the Governor’s proposed budget will certainly pass with few changes. Only the Democratic Caucus recognizes the role the rainy day fund could play in alleviating the state’s financial stress, but they do not have the votes to force the GOP’s hand.

Governor DeWine’s response to the coronavirus continues to garner nationwide attention as the blueprint for other states to implement stay-at-home orders and closures of non-essential businesses. So, if state governments continue to follow Ohio’s lead, then they likely will follow suit in massive budget cuts as well. As Ohio goes, so goes the nation, and that has never been truer than today.

If the Republican-controlled state legislature approves DeWine’s cuts, then the same people wondering if they will be able to pay rent will also be confronted with the possibility that their Medicaid coverage be terminated or greatly diminished. Amid a public health crisis by proportions not seen in a century, these cuts are a personal affront to every Ohioan and it should mortify us all.

I do not find myself as providing any breaking news concerning the priorities of Ohio’s government. The GOP’s oldest trick in the book is budget cuts.

Rather, my goal is to show that although state budgets are complicated, the answer to Ohio’s current financial troubles is simple. Making use of the rainy day fund on the most storm ridden period in a lifetime is the least we could do to alleviate suffering and build up already under-funded state programs.

An investment in our children and healthcare system is long overdue, but there is no time like the present. Ohio has been a beacon for the rest of the country since the beginning of this crisis, and we should continue to show how we take care of our own with an investment in our communities. Sadly, this will not happen until Ohio’s state leaders manifest an inkling of political courage.

Ohio Politics

Why Ohio’s Budget Cuts Are Not the Answer

Budget cuts to education, Medicaid, and university funding only exacerbate suffering — especially for the most vulnerable among us.