Massachusetts, New Hampshire and Texas are holding elections next week. Find out what's on your ballot in our latest report.

Ohio Budget Planning and Management Commission for FY2012-13

From Ballotpedia
Jump to: navigation, search

The Ohio state legislature formed the Budget Planning and Management Commission, panel of Republicans and Democrats formed to find solutions to Ohio's looming state budget deficit, which has been estimated as high as $8 billion.[1] The group's purpose was to make recommendations for the 2011-13 budget "designed to provide relief to the state during the current difficult fiscal and economic period" by Nov. 30, 2010.[2] The Commission held only four hearings[3] and did not meet for the first 11 months after it was formed.[4] The commission's report was due November 30, 2010, but the report was late.[5]

The commission failed to reach a consensus and in mid-December it issued two sets of recommendations, one authored by Republicans and another by the Democrats.[6]

One-Time Money

At the first meeting, legislators focused on the amount of budget money coming from one-time sources, with answers varying between $4.8 billion and $8.9 billion.[1] Several months later, the nonpartisan Legislative Service Commission placed the amount at $8.4 billion.[7] The amount is more than double the one-time money used to balance any budget going back to 2002.[7] One-time money cannot be counted on beyond the end of the fiscal year, which creates a potential shortfall in the next budget, especially if government wants to continue offering the same services.[7]

In Dec. 2010, Senate Finance Chairman Sen. Chris Widener said that the amount of one-time funds probably goes beyond the $8.4 billion.[8]


The third meeting of the commission focused on Medicaid, the single-largest area of state spending in the budget and is estimated to grow 30% by June 2011.[9] "I think our challenge is to find those things we can do in the short term, which aren't pretty, that set the stage for the longer-term reforms," said Sen. Shannon Jones, commission co-chair.[10]

The commission plans to complete a report by the end of November 2010.[1]

Ohio will receive approximately $880 million from the federal government for Medicaid and education.[11]

Medicaid is the largest and fastest growing segment of Ohio's state government, accounting for more than a quarter of the state budget. Taxpayers spent $14.7 billion in FY2010 to pay for Medicaid. In 2000, approximately 10% of Ohioans were covered by Medicaid. In 2010, Medicaid provides insurance to 20% of Ohioans, or 2.1 million residents.[12]

K-12 Education Budget

In July 2010, the Ohio Department of Education offered the first spending proposal for the 2012-13 budget. It recommended that schools receive an addition $929 million in state funding, a 4.5% increase for FY2012 and 3.4% for FY2013. The education budget for FY2010-11, however, includes $845 million in stimulus funds. Those funds would have to be provided by the federal government or be replaced by the state before any increase could be made. Without the federal stimulus money, the department's proposed funding increase would cost the state more than $1.7 billion.[13]

Increases in state aid to Ohio's 614 school districts, however, would be capped at no more than 1.5 percent each year. Certain programs such as transportation are exempt from the limit. A portion of the increase in funds would pay for the governor's evidence-based funding model, which he says would be phased in over the next eight years to give Ohio a constitutional school-funding system.[13] Also included are:

• A 72% increase, $119.4 million, in state aid for gifted education for FY2012, to compensate for a $1.6 million drop in federal aid, with a 3% increase for FY2013.

• A jump of more than 27% in state spending on curriculum and assessments for development of tests to go with new academic guidelines required in the current budget.

• $3.1 million both years to support about 2,200 first-generation college students each year.

• $11.5 million for a teacher-residency program to train mentors to develop and evaluate a new assessment for determining whether resident teachers can advance to professional educators.

• A 1.1% increase in voucher and charter school support in each year of the budget.

Higher Education

The Strickland administration decided to delay a $127.5 million higher-education payment until the 2012 budget.[14] The state plans to make only 11 payments in FY2011 and 13 in FY2012, though many legislators and administrators have questioned just how the state will afford the extra payment in a budget cycle in which state leaders are facing a loss of $8 billion in one-time state and federal funds.[14]

See also