Difference between revisions of "Ohio state budget"

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(State Budget for FY2012-13)
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{{budget infobox|
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{{budget infobox2|
state = Ohio |
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| state = Ohio  
image = Flag of Ohio.png|
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| image = Flag of Ohio.png|
budgetcal = Biennial |
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| budgetcal =
fiscalyear = 2012-2013 |  
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| fiscalyear =
datelaw= June 30, 2011 |
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| credit=
lasteraltered =  |
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| percentchangedr =   
revenue = |
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| expenses =
Percentchangedr = |
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| all funds expenses =
Expenses =  |
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| spending change =
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| change =
}}{{tnr}}
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| governor =
The [[Ohio]] legislature passed a new biennial $55.8 billion budget for FY2012-13 on June 30, 2011, the last possible day to do so before the start of the new fiscal year on July 1, 2011.<ref>[http://www.dispatch.com/live/content/local_news/stories/2011/06/30/ohio-house-passes-55-8-billion-reform-oriented-budget.html?sid=101 The Columbus Dispatch "Ohio House passes $55.8 billion 'reform-oriented' budget' June 30, 2011]</ref>  Gov. [[John Kasich]] signed the budget bill, found [http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_153 here], into law four hours before the start of the fiscal year, after he had vetoed seven items in the budget.<Ref>[http://www.cleveland.com/open/index.ssf/2011/06/gov_john_kasich_signs_two-year.html The Cleveland Plain Dealer "Gov. John Kasich signs two-year state budget, but vetoes seven items first" June 30, 2011]</ref>
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| % federal =
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| state debt =  
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| per cap debt =
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}}{{tnr|limit=3}}This page contains information about '''budget processes and policy issues''' in [[Ohio]], including:
 +
* A summary of the budget drafting process
 +
* Trends in expenditures and revenues
 +
* Current and past fiscal year budget developments
 +
* Financial transparency measures
  
The state operates on a biennial budget cycle and the fiscal year begins on July 1.<ref>[http://www.ncsl.org/issues-research/budget/state-experiences-with-annual-and-biennial-budgeti.aspx National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting" April 2011]</ref>
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Between fiscal year 2009 and fiscal year 2013, Ohio's total expenditures XXincreased/decreasedXX by approximately $XXX billion, from $XXX billion in 2009 to $XXX billion in 2013. This represents an XXX percent increase, Xoutpacing/below/equivalent toX the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).<ref>[http://www.bls.gov/cpi/cpid1402.pdf ''Bureau of Labor Statistics'', "CPI Detailed Report Data for February 2014," accessed April 9, 2014]</ref><ref>[http://inflationdata.com/Inflation/Inflation_Calculators/Cumulative_Inflation_Calculator.aspx ''InflationData.com'', "Cumulative Inflation Calculator," February 28, 2014]</ref>
  
As of August 2012, Ohio had a total state debt of approximately $239,540,635,000 when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans, and the FY2013 state budget gap.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-third-annual-state-debt-report-shows-total-state-debt-over-4-trillion State Budget Solutions "State Budget Solutions' third annual State Debt Report shows total state debt over $4 trillion" Aug. 28, 2012]</ref> The FY2013 state budget was down slightly from the FY2012 state budget debt total of $240,236,606,000.<Ref>[http://www.statebudgetsolutions.org/publications/detail/report-reveals-aggregate-state-debt-exceeds-4-trillion-2 State Budget Solutions “Report reveals aggregate state debt exceeds $4 trillion” Oct. 24, 2011]</ref>
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==Budget process==
 +
{{Ohio budget process}}
  
To balance the FY2012-13 budget, Gov. Kasich and legislators had to address an $8 billion gap between revenue and projected expenditures. However, as revenue projections improved, the budget gap decreased. State lawmakers, however, took criticism for increasing spending. The biennial general revenue budget grew from $50.7 billion under former Gov. Strickland to Kasich's $55.5 billion plan.<ref> [http://news.cincinnati.com/article/20110605/NEWS0108/106050349/How-Ohio-subtracts-by-adding?odyssey=tab|topnews|text|FRONTPAGE/ Cincinnati Enquirer, How Ohio subtracts by adding, June 5, 2011] </ref>
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==Expenditures==
 +
===Definitions===
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{{Budget types background}}
 +
===2013 expenditures===
 +
[[File:Ohio total expenditures 2013.png|right|thumb|500px|Breakdown of expenditures in FY 2013.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).<ref name=expenditures2013>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2011-2013," accessed February 21, 2014]</ref> Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.
  
In October of 2012, Ohio's total state debt per capita was $20,748.52.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-debt-more-than-37000-per-private-worker-13000-per-capita State Budget Solutions "State debt more than $37,000 per private worker, $13,000 per capita" Oct. 2, 2012]</ref>
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{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="7" align="center" style="background-color:#008000; color: white;" | Total state expenditures, FY 2013 ($ in millions)<ref name=expenditures2013/>
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | General fund
 +
! valign="bottom" style="background-color:#444; color: white;" | Federal funds
 +
! valign="bottom" style="background-color:#444; color: white;" | Other funds
 +
! valign="bottom" style="background-color:#444; color: white;" | Bonds
 +
! valign="bottom" style="background-color:#444; color: white;" | Total
 +
! valign="bottom" style="background-color:#444; color: white;" | Per capita expenditures
 +
|-
 +
|'''Ohio''' || '''$31,040''' || '''$13,135''' || '''$12,293''' || '''$1,453''' || '''$57,921''' || '''$5,035.78'''
 +
|-
 +
|[[Illinois state budget|Illinois]] || $29,257 || $19,407 || $14,944 || $2,122 || $65,730 || $5,158.07
 +
|-
 +
|[[Indiana state budget|Indiana]] || $13,579 || $9,272 || $3,454 || $0 || $26,305 || $4,225.60
 +
|-
 +
|[[Michigan state budget|Michigan]] || $8,619 || $17,549 || $20,844 || $274 || $47,286 || $4,926.22
 +
|-
 +
|[[Wisconsin state budget|Wisconsin]] || $13,381 || $10,572 || $17,371 || $0 || $41,324 || $7,447.53
 +
|-
 +
|align="left" colspan="8" | <small>Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.<ref name=2013census/><ref name=2009census>[https://www.census.gov/popest/data/historical/2000s/vintage_2009/index.html ''United States Census Bureau'', "Vintage 2009: Annual Population Estimates," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
:: ''See also: [http://www.statebudgetsolutions.org/state/detail/ohio The Ohio State Budget on State Budget Solutions]''
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===Expenditures by function===
 +
[[File:Ohio expenditures by type 2012.png|right|thumb|500px|Breakdown of expenditures by function in FY 2012.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
State expenditures in Ohio can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.
  
==Federal Aid to State Budget==
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{| class="wikitable" style="text-align:center; width:55%;"
 
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! colspan="8" align="center" style="background-color:#008000; color: white;" | Expenditures by function, FY 2012 (as percents)<ref name=expenditures2013/>
The chart below represents how much of the state’s budget comes from the federal government. The number is the corresponding ranking in relation to the rest of the nation (if #1, the state receives the highest percentage of federal funding in the nation):
+
|-
{| class="wikitable sortable"
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! valign="bottom" style="background-color:#444; color: white;" | State
| align="center" style="background:#f0f0f0;"|'''State'''
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! valign="bottom" style="background-color:#444; color: white;" | Elementary and secondary ed.
| align="center" style="background:#f0f0f0;"|'''2008'''
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! valign="bottom" style="background-color:#444; color: white;" | Higher ed.
| align="center" style="background:#f0f0f0;"|'''2009'''
+
! valign="bottom" style="background-color:#444; color: white;" | Public assistance
| align="center" style="background:#f0f0f0;"|'''2010'''
+
! valign="bottom" style="background-color:#444; color: white;" | Medicaid
| align="center" style="background:#f0f0f0;"|'''2011'''
+
! valign="bottom" style="background-color:#444; color: white;" | Corrections
 +
! valign="bottom" style="background-color:#444; color: white;" | Transportation
 +
! valign="bottom" style="background-color:#444; color: white;" | Other
 +
|-
 +
|'''Ohio''' || '''20.6%''' || '''4.2%''' || '''1.5%''' || '''24.4%''' || '''3.1%''' || '''5.1%''' || '''41.2%'''
 +
|-
 +
|[[Illinois state budget|Illinois]] || 15.8% || 5.5% || 0.1% || 19.7% || 2.2% || 8.5% || 48.1%
 +
|-
 +
|[[Indiana state budget|Indiana]] || 32.9% || 6.5% || 1.5% || 27.3% || 2.9% || 9.3% || 19.7%
 +
|-
 +
|[[Michigan state budget|Michigan]] || 27.2% || 4.1% || 0.9% || 26.1% || 4.7% || 6.9% || 30.2%
 +
|-
 +
|[[Wisconsin state budget|Wisconsin]] || 16.7% || 14.1% || 0.4% || 16.5% || 2.9% || 6.9% || 42.5%
 
|-
 
|-
| Ohio || 31.22% (#19) || 35.18% (#16) || 38.85% (#19) || 38.93% (#15)
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|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 
|}
 
|}
 
*Figures were calculated by dividing each state’s intergovernmental revenue into its general revenue.<ref>[http://www.census.gov/compendia/statab/cats/state_local_govt_finances_employment/federal_aid_to_state_and_local_governments.html '''US Census''' Federal Aid to State and Local Governments]</ref><ref>[http://taxfoundation.org/blog/monday-map-federal-aid-state-budgets ''Tax Foundation''' "Monday Map: Federal Aid to State Budgets. Accessed October 15, 2013]</ref>
 
  
==State Budget for FY2014-15==
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===Expenditure trends===
 +
From 2008 to 2012, higher education and transportation spending fell by 1.10 and 2.30 percent respectively. During the same period, elementary and secondary education spending rose by 1.40 percent. The table below details changes in expenditures from 2008 to 2012.<ref name=expenditures2013/><ref name=expenditures2011>[http://www.nasbo.org/sites/default/files/2010%20State%20Expenditure%20Report_0.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009-2011," accessed February 24, 2014]</ref><ref name=expenditures2012>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report%20%28Fiscal%202010-2012%29.pdf ''National Association of State Budget Officers'', "State Expenditures Report, 2010-2012," accessed February 24, 2014]</ref><ref name=expenditures2009>[http://www.nasbo.org/sites/default/files/2009-State-Expenditure-Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009," accessed February 24, 2014]</ref><ref name=expenditures2008>[http://www.nasbo.org/sites/default/files/FY08%20State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2008," accessed February 24, 2014]</ref> Figures are rendered as percents, indicating the share of the total budget spent per category.
  
[[John Kasich|Gov. Kasich]] released his proposed FY2014-15 state budget on February 4, 2013.  
+
{| class="wikitable" style="text-align:center; width:65%;"
 +
! colspan="8" align="center" style="background-color:#008000; color: white;" | Expenditures from 2008 to 2012 (as percents)
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | Year
 +
! valign="bottom" style="background-color:#444; color: white;" | Elementary and secondary ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Higher ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Public assistance
 +
! valign="bottom" style="background-color:#444; color: white;" | Medicaid
 +
! valign="bottom" style="background-color:#444; color: white;" | Corrections
 +
! valign="bottom" style="background-color:#444; color: white;" | Transportation
 +
! valign="bottom" style="background-color:#444; color: white;" | Other
 +
|-
 +
|2012 || 20.6% || 4.2% || 1.5% || 24.4% || 3.1% || 5.1% || 41.2%
 +
|-
 +
|2011 || 17.7% || 4.6% || 1.7% || 23.2% || 3.2% || 4.9% || 44.7%
 +
|-
 +
|2010 || 20.2% || 4.9% || 1.8% || 21.3% || 3.4% || 4.9% || 43.5%
 +
|-
 +
|2009 || 21.7% || 5.2% || 2.2% || 24.3% || 3.4% || 7.3% || 35.9%
 +
|-
 +
|2008 || 19.2% || 5.3% || 2.3% || 23.2% || 3.6% || 7.4% || 39.0%
 +
|-
 +
|style="background-color:black; color:white"|'''Change in %'''
 +
| style="background-color:black; color:white" align="center"|'''1.40%''' || align="center" style="background-color:black; color:white"|'''-1.10%'''|| align="center" style="background-color:black; color:white"| '''-0.80%''' || align="center" style="background-color:black; color:white"|'''1.20%''' ||align="center" style="background-color:black; color:white"| '''-0.50%''' || align="center" style="background-color:black; color:white"|'''-2.30% ''' || align="center" style="background-color:black; color:white"|'''2.20% '''
 +
|-
 +
|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
'''Tax changes'''
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==Revenues==
 +
===2013 revenues===
 +
[[File:Ohio GF revenues 2013.png|right|400px|thumb|Breakdown of general fund revenue sources in FY 2013.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).<ref name=expenditures2013>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2011-2013," accessed February 21, 2014]</ref> Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.
  
The proposal is expected to include features several tax changes, including:
+
{| class="wikitable" style="text-align:center; width:55%;"
*a 20 percent income tax cut to be phased in over three years, which would begin with a 7.5 percent cut in 2013, another 7.5 percent in 2014 and a final 5 percent cut in 2015;<ref name=unveils>[http://woub.org/2013/02/04/kasich-unveils-state-budget WOUB.com "Kasich Unveils State Budget" Feb. 4, 2013]</ref>
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! colspan="8" align="center" style="background-color:#008000; color: white;" | Revenue sources in the general fund, FY 2013 ($ in millions)<ref name=expenditures2013/>
* reduction in the state sales tax rate from 5.5 percent to 5.0 percent;<ref name=unveils/>
+
|-
*small businesses up to $750,000 will have a 50 percent exclusion;<ref name=unveils/>
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! valign="bottom" style="background-color:#444; color: white;" | State
*shifting from a goods-based sales tax structure to a service-based tax structure.<ref name=unveils/>
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! valign="bottom" style="background-color:#444; color: white;" | Sales tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Personal income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Corporate income tax
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! valign="bottom" style="background-color:#444; color: white;" | Gaming tax
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! valign="bottom" style="background-color:#444; color: white;" | Other taxes and fees
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! valign="bottom" style="background-color:#444; color: white;" | Total
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! valign="bottom" style="background-color:#444; color: white;" | Per capita revenue**
 +
|-
 +
|'''Ohio''' || '''$8,445''' || '''$9,508''' || '''$262''' || '''$0''' || '''$11,344''' || '''$29,559''' || '''$2,554.62'''
 +
|-
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|[[Illinois state budget|Illinois]] || $7,335 || $16,630 || $3,086 || $340 || $8,899 || $36,290 || $2,817.08
 +
|-
 +
|[[Indiana state budget|Indiana]] || $6,796 || $4,978 || $968 || $555 || $1,165 || $14,462 || $2,200.92
 +
|-
 +
|[[Michigan state budget|Michigan]] || $1,832 || $5,844 || $438 || $0 || $1,075 || $9,189 || $928.59
 +
|-
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|[[Wisconsin state budget|Wisconsin]] || $4,410 || $7,497 || $925 || $0 || $1,254 || $14,086 || $2,452.85
 +
|-
 +
| align="left" colspan="8" | <small>Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.<ref name=2013census>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk ''United States Census Bureau'', "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
'''Medicaid expansion'''
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===Revenue trends===
 +
The table below details the change in revenue sources in the general fund from 2009 to 2013.<ref name=expenditures2013/><ref name=expenditures2011/> Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.
  
Kasich's budget also includes the state extension of Medicaid benefits to low-income Ohioans, with the caveat that the state would roll back plans to expand Medicaid if the federal government changes the rules on reimbursing Medicaid costs.<ref name=unveils/>
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{| class="wikitable" style="text-align:center; width:65%;"
 +
! colspan="8" align="center" style="background-color:#008000; color: white;" | Revenue sources in the general fund, Ohio ($ in millions)<ref name=expenditures2013/><ref name=expenditures2011>[http://www.nasbo.org/sites/default/files/2010%20State%20Expenditure%20Report_0.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009-2011," accessed February 24, 2014]</ref>
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | Year
 +
! valign="bottom" style="background-color:#444; color: white;" | Sales tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Personal income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Corporate income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Gaming tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Other taxes and fees
 +
! valign="bottom" style="background-color:#444; color: white;" | Total
 +
! valign="bottom" style="background-color:#444; color: white;" | Per capita revenue**
 +
|-
 +
|2013 || $8,445 || $9,508 || $262 || $0 || $11,344 || $29,559 || $2,554.62
 +
|-
 +
|2012 || $8,087 || $8,433 || $117 || $0 || $10,549 || $27,186 || $2,353.15
 +
|-
 +
|2011 || $7,578 || $8,120 || $237 || $0 || $11,828 || $27,763 || $2,403.77
 +
|-
 +
|2010 || $7,077 || $7,247 || $142 || $0 || $10,484 || $24,950 || $2,161.03
 +
|-
 +
|2009 || $7,113 || $7,628 || $521 || $0 || $11,423 || $26,685 || $2,311.86
 +
|-
 +
|style="background-color:black; color:white"|'''Change in %'''
 +
| style="background-color:black; color:white" align="center"|'''18.73%''' || align="center" style="background-color:black; color:white"|'''24.65%'''|| align="center" style="background-color:black; color:white"| '''-49.71%''' || align="center" style="background-color:black; color:white"|'''0.00%''' ||align="center" style="background-color:black; color:white"| '''-0.69%''' || align="center" style="background-color:black; color:white"|'''10.77%''' || align="center" style="background-color:black; color:white"|'''10.50%'''
 +
|-
 +
|align="left" colspan="8" | <small>Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.<ref name=2013census/><ref name=2009census>[https://www.census.gov/popest/data/historical/2000s/vintage_2009/index.html ''United States Census Bureau'', "Vintage 2009: Annual Population Estimates," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
State Budget Director Tim Keen asked agency heads to start planning for the 2014-15 budget by preparing two budget options: One spending estimate for that two-year cycle should be for no increase over current levels, and the second estimate reflecting a 10 percent reduction in spending.<ref>[http://www.mariettatimes.com/page/content.detail/id/545209/Ohio-still-tightening-its-belt.html?nav=5004 The Marietta Times "Ohio still tightening its belt" July 5, 2012]</ref>
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==State budgets by year==
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{{See budget bill|Link=[http://www.legislature.state.oh.us/BillText130/130_HB_59_EN_N.html HB 59]}}
The governor's administration estimated in July 2012 that  the federal health care law will have a $940 million impact in 2014 and 2015 with increased numbers of Medicaid enrollees. The governor has proposed taxing oil and gas companies drilling in the state's shale areas to generate tax revenue that would permit a personal income tax cut.<ref>[http://www.cleveland.com/open/index.ssf/2012/08/ohio_budget_projections_for_th.html The Cleveland Plain Dealer "Ohio budget projection takes a big jump, rosier outlook could prime Gov. John Kasich's tax cut proposal" Aug. 8, 2012]</ref>
+
===Fiscal years 2014 and 2015===
 +
{{Budget bill box
 +
|State = Ohio
 +
|Year = 2014-2015
 +
|Link =http://www.legislature.state.oh.us/BillText130/130_HB_59_EN_N.html HB 59
 +
|Introduced =February 12, 2013
 +
|Days =
 +
|State House =April 18, 2013
 +
|Vote lower house =61-35
 +
|State Senate =June 6, 2013
 +
|Vote upper house =23-10
 +
|Conference =June 27, 2013
 +
|Conference upper house vote =21-11
 +
|Conference lower house vote =53-44
 +
|Governor = [[John Kasich]]
 +
|Signed =June 30, 2012
 +
|Vetoed =
 +
}}
  
==Capital Budget==
+
[[Ohio Governor|Governor]] [[John Kasich]] signed into law the biennial budget covering fiscal years 2014 and 2015 on June 30, 2013. The budget totaled approximately $62 billion and included a $2.6 billion reduction in personal income tax (this reduction was expected, over the course of three years, to amount to a 10 percent reduction). The budget as signed also provided for an increased sales tax rate (from 5.50 to 5.75 percent).<ref name=2014passed>[http://www.reuters.com/article/2013/07/01/us-usa-ohio-budget-idUSBRE96003A20130701 ''Reuters'', "Ohio governor signs budget including tax cut, anti-abortion provision," June 30, 2013]</ref>
  
The governor proposed a $1.74 billion capital budget on March 12, 2012.<ref name=capital>[http://obm.ohio.gov/SectionPages/Budget/FY1213/Budget.aspx?Link=3 Office of Budget and Management "Governor Kasich’s Proposed Capital Budget" 2012]</ref>  It was the first capital budget in four years and focuses on the state’s educational and public-service infrastructure.<ref name=capital/>
+
The budget also included an abortion provision that "effectively [stripped] funding from Planned Parenthood, [blocked] public hospitals from arranging transfer agreements with abortion clinics, and [required] abortion providers to provide ultra sounds on women seeking abortions."<ref name=2014passed>[http://www.reuters.com/article/2013/07/01/us-usa-ohio-budget-idUSBRE96003A20130701 ''Reuters'', "Ohio governor signs budget including tax cut, anti-abortion provision," June 30, 2013]</ref>
  
The Governor's Capital Budget Fact Sheet can be found [http://www.governor.ohio.gov/Portals/0/pdf/MBR/FINAL%20Capital%20Bill.pdf here].
+
===Fiscal years 2012 and 2013===
 +
::''See also: [[Ohio state budget (2011-2013)]]
  
==Budget transparency==
+
===Fiscal year 2011===
Ohio currently has no statewide, official spending database online.  However, [http://www.legislature.state.oh.us/bills.cfm?ID=127_HB_420 House Bill 420] would make this information available.
+
::''See also: [[Ohio state budget (2010-2011)]]
===Government tools===
+
  
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
+
===Fiscal year 2010===
 +
::''See also: [[Ohio state budget (2009-2010)]]
  
{|style="width:100%" class=wikitable
+
==Historical spending==
|+ '''Criteria for evaluating spending databases'''
+
State budget historical spending below was compiled by the National Association for State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).<ref name=expenditures2013/><ref name=expenditures2012/>
!State Database!![[Criteria for evaluating databases|Searchability]]!![[Criteria for evaluating databases|Grants]]!![[Criteria for evaluating databases|Contracts]]!![[Criteria for evaluating databases|Line Item Expenditures]]!![[Criteria for evaluating databases|Dept/Agency Budgets]]!![[Criteria for evaluating databases|Public Employee Salary]]
+
{{State budget historical spending
|-
+
|State=Ohio
|align=center|[http://transparency.ohio.gov/ Ohio.gov Transparency]||{{yes}}||{{yes}}||{{yes}}||{{no (Sunshine Review)}}||{{yes}}||{{yes}}
+
|totalbudgets= 3
|}
+
|2011-2012genfund=31040
 +
|2011-2012otherfund=12293
 +
|2011-2012fedfund=13135
 +
|2011-2012bonds=1453
 +
|2011-2012budgettotal=57921
 +
|2010-2011genfund=31653
 +
|2010-2011otherfund=12010
 +
|2010-2011fedfund=14553
 +
|2010-2011bonds=2099
 +
|2010-2011budgettotal=60315
 +
|2009-2010genfund=25401
 +
|2009-2010otherfund=16864
 +
|2009-2010fedfund=14237
 +
|2009-2010bonds=1128
 +
|2009-2010budgettotal=57630
 +
}}
  
In June 2012, the state started providing information on its Bonds and Investor Relations Portal [http://obm.ohio.gov/SectionPages/bondsdebt/default.aspx here].  It includes credit reports and state financial reportsThe site does state that it does not purport to present full and fair disclosure with respect to state debt or any of the state's bond programs within the meaning of applicable securities laws.<ref>[http://obm.ohio.gov/SectionPages/bondsdebt/default.aspx Bonds and Investor Relations Portal visited July 10, 2012]</ref>
+
==State debt==
 +
According to a January 2014 report by the nonprofit organization State Budget Solutions, Ohio had a state debt of over $321 billion. Its state debt per capita was $27,836. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded [[public pensions]].<ref>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-fourth-annual-state-debt-report ''State Budget Solutions'', "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014]</ref><ref>[http://washingtonexaminer.com/exography-unfunded-public-employee-pensions-are-driving-state-debts-skyward/article/2542548 ''Washington Examiner'', "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014]</ref>
 +
{{State debt box
 +
|State = Ohio
 +
|totaldebt=$321,340,764,000
 +
|totaldebtrank=5
 +
|percapdebt=$27,836
 +
|percapdebtrank=4
 +
|expenditures = $43,333,000,000
 +
|expendituresrank =2
 +
}}
  
:: ''See also: [[Evaluation of Ohio state website]]''
+
===Public pensions===
 +
::''See also: [[Ohio public pensions]] and [[Ohio public employee salaries]]''
  
===Multi-Measure Budget Transparency Profile===
+
A 2012 report from the Pew Center on the States noted that [[Public pensions in Ohio|Ohio's pension system]] was funded at 67 percent at the close of fiscal year 2010, well below the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."<ref name=ohiopew>[http://www.pewstates.org/research/state-fact-sheets/widening-gap-update-ohio-85899399321 ''Pew Center on the States'', "Widening Gap Update: Ohio," June 18, 2012]</ref>
  
The [http://igpa.uillinois.edu/ Institute of Government and Public Affairs] at the [http://www.uillinois.edu/ University of Illinois] has created a [http://igpa.uillinois.edu/system/files/Ohio_Profile_IGPA_093011.pdf multi-measure transparency profile for Ohio], which measures state transparency as of September 2011 using indicators from a range of organizations, including Sunshine Review.  These indicators measure both website transparency and other recognized facets of governmental transparency.  In addition, IGPA presents four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.
+
Taken together, the funding ratio for the state's pension systems decreased from 82.28 percent in fiscal year 2006 to 67.35 percent in fiscal year 2011, a 14.93 percent drop. Likewise, unfunded liabilities increased from just under $30 billion in fiscal year 2006 to more than $70 billion in fiscal year 2011.<ref name=OPERSCAFR>[https://www.opers.org/pubs-archive/investments/cafr/2012-CAFR.pdf ''Ohio Public Employees Retirement System'', "2012 Comprehensive Annual Financial Report," accessed November 18, 2013]</ref><ref name=SERSCAFR>[http://www.ohsers.org/financial-reports-1 ''The School Employees Retirement System of Ohio'', "2012 Comprehensive Annual Financial Report," accessed November 18, 2013]</ref><ref name=STRSCAFR>[https://www.strsoh.org/_pdfs/annualreports/cafrs/2012_cafr.pdf ''State Teachers Retirement System of Ohio'', "2012 Comprehensive Annual Financial Report," accessed November 18, 2013]</ref><ref name=PFPFCAFR>[http://www.op-f.org/Files/CAFR2012.pdf ''Ohio Police and Fire Pension Fund'', "2012 Comprehensive Annual Financial Report," accessed November 18, 2013]</ref><ref name=HPRSCAFR>[https://www.ohprs.org/ohprs/downloads/Annual%20Reports/2012.pdf ''Highway Patrol Retirement System'', "2012 Comprehensive Annual Financial Report," accessed November 18, 2013]</ref>
  
In addition to the individual state profile, IGPA offers a [http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf 50-state comparison] and [http://igpa.uillinois.edu/content/state-transparency-profiles profiles for other states].
+
===Credit ratings===
===U.S. PIRG "Following the Money" report===
+
States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.<ref name=credit>[http://www.pewstates.org/projects/stateline/headlines/infographic-sp-state-credit-ratings-20012012-85899404785 ''Stateline: The Daily News Service of The Pew Charitable Trusts'', "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012]</ref>
{{Following the Money 2014 Report by State|State=Ohio|Grade=D-|Score=51|Level=lagging}}
+
  
==Budget Background==
+
The table below lists the Standard and Poor's credit ranking for Ohio from 2001 to 2012 (grades from surrounding states are provided for additional context).<ref name=credit/>
Ohio operates on a biennium, covering two fiscal years at a time. For example, the 2009-2011 biennium consists of year 1, July 1, 2009 to June 30, 2010, and year 2, July 1, 2010 to June 30, 2011. For the [[Ohio Legislature|legislature]], work on the budget occurs during the first six months of the first regular session of the General Assembly. First, though, individual state agencies submit their budget requests along with past expenditures and revenue to the [[governor]] who proceeds to issue a budget recommendation for the upcoming fiscal year to the Legislature. In the years in which a new governor takes office, the report can be presented as late as March 15. Both the [[Ohio_House_of_Representatives|House]] and the [[Ohio_Senate|Senate]] must approve the budget bill before it can be signed into law by the governor.<ref>[http://olrs.ohio.gov/ASP/olrs_BudgetProcess.asp ''State of Ohio'',"The Ohio Budget Process," accessed June 1,2009]</ref>
+
  
Ohio's "balanced budget" requirements come in the forms of a limit the issuance of debt and an appropriations cap that is tied to the actual revenue raised during previous years. Section 107.33 of the State law creates a cap on appropriations that is the previous year's revenue, adjusted for inflation and population growth, or the previous year's revenue plus 3.5%, whichever is greater. Article 8, Sections 1 and 2 of the 1851 Constitution permit the state to contract debts, to supply casual deficits or failures in revenues, or to meet expenses not otherwise provided for as long as those costs do not exceed $750,000. Title 1, Section 126.05 of the State law requires the director of the budget to notify the governor each month on the status of available revenue receipts and balances. The governor must then prevent expenses of state agencies from exceeding those revenue receipts. Ohio law forbids the carrying over of a deficit from one year to the next.<ref>[http://ohio.statebudgetwatch.org/2009/12/30/ohio-budget-analysis/ Ohio Budget Watch]</ref>
+
{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="6" align="center" style="background-color:#008000; color: white;" | S&P credit ratings from 2001 to 2012
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" |
 +
! valign="bottom" style="background-color:#444; color: white;" | '''Ohio'''
 +
! valign="bottom" style="background-color:#444; color: white;" | Illinois
 +
! valign="bottom" style="background-color:#444; color: white;" | Indiana
 +
! valign="bottom" style="background-color:#444; color: white;" | Michigan
 +
! valign="bottom" style="background-color:#444; color: white;" | Wisconsin
 +
|-
 +
| 2012 || AA+ || A+ || AAA || AA- || AA
 +
|-
 +
| 2011 || AA+ || A+ || AAA || AA- || AA
 +
|-
 +
| 2010 || AA+ || A+ || AAA || AA- || AA
 +
|-
 +
| 2009 || AA+ || A+ || AAA || AA- || AA
 +
|-
 +
| 2008 || AA+ || AA || AAA || AA- || AA
 +
|-
 +
| 2007 || AA+ || AA || AA+ || AA- || AA-
 +
|-
 +
| 2006 || AA+ || AA || AA+ || AA || AA-
 +
|-
 +
| 2005 || AA+ || AA || AA || AA || AA-
 +
|-
 +
| 2004 || AA+ || AA || AA || AA+ || AA-
 +
|-
 +
| 2003 || AA+ || AA || AA+ || AA+ || AA-
 +
|-
 +
| 2002 || AA+ || AA || AA+ || AAA || AA-
 +
|-
 +
| 2001 || AA+ || AA || AA+ || AAA || AA
 +
|-
 +
|}
  
==Accounting principles==
+
==Federal aid to state budget==
::''See also: [[Ohio government accounting principles]]
+
::''See also: [[Federal aid to budgets in the 50 states]]''
The [[Ohio Auditor of State]] is responsible for auditing all public offices in Ohio, more than 6,500 entities including cities, counties, villages, townships, schools, state universities and public libraries as well as all state agencies, boards and commissions. [[Dave Yost]] was elected Auditor of the State in 2010. His office publishes the state's audit reports online, directly on the home page.<ref>[http://www.auditor.state.oh.us/ ''Ohio Auditor of the State Web site'', retrieved November 5, 2009]</ref>  
+
The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.<ref name=federalaid>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=COG_2012_FIN009&prodType=table ''United States Census Bureau'', "State Government Finances: 2012," accessed February 24, 2014]</ref>
  
[http://www.truthinaccounting.org/ The Institute for Truth in Accounting] (IFTA) rates Ohio “Worst” in filing the state’s [[Comprehensive Annual Financial Report]] (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Ohio's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.<ref>[http://truthinaccounting.org/news/listing_article.asp?section=451&section2=451&CatID=3&ArticleSource=567 ''Institute for Truth in Accounting'', “The Truth About Balanced Budgets—A Fifty State Study,” Page 35]</ref> Ohio's [http://obm.ohio.gov/SectionPages/FinancialReporting/CAFR/2008/Default.aspx CAFRs] are prepared and published online by the [http://obm.ohio.gov/default.aspx Ohio Office of Budget and Management]. J. Pari Sabety  is the Director of the Ohio Office of Budget and Management.<ref>[http://obm.ohio.gov/default.aspx ''Ohio Office of Budget and Management Web site'', retrieved November 5, 2009]</ref>
+
State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, [[Mississippi state budget#Federal aid to state budget|Mississippi]] received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, [[Alaska state budget#Federal aid to state budget|Alaska]] received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.<ref name=federalaid/>
  
{| {{table}}
+
{| class="wikitable" style="text-align:center; width:50%;"
| align="center" style="background:#f0f0f0;"|'''Credit Rating'''
+
! colspan="4" align="center" style="background-color:#008000; color: white;" | Federal aid to state budgets in 2012
| align="center" style="background:#f0f0f0;"|'''Fitch'''
+
| align="center" style="background:#f0f0f0;"|'''Moody's'''
+
| align="center" style="background:#f0f0f0;"|'''S&P'''
+
 
|-
 
|-
| Ohio<ref>[http://www.in.gov/ifa/files/StateCreditRatings.pdf ''State of Ohio'', “State Credit Ratings-as of June 24, 2009"]</ref>  ||AA+||Aa2||AA+
+
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | Federal aid as % of general revenue
 +
! valign="bottom" style="background-color:#444; color: white;" | Total federal aid
 +
! valign="bottom" style="background-color:#444; color: white;" | National rank
 +
|-
 +
| '''Ohio''' || '''34.88%''' || '''$20,687,909,000''' || '''17'''
 +
|-
 +
| [[Illinois state budget|Illinois]] || 25.66% || $15,646,844,000 || 43
 +
|-
 +
| [[Indiana state budget|Indiana]] || 32.96% || $10,441,125,000 || 27
 +
|-
 +
| [[Michigan state budget|Michigan]] || 33.74% || $17,849,942,000 || 24
 +
|-
 +
| [[Wisconsin state budget|Wisconsin]] || 28.19% || $8,855,079,000 || 38
 
|-
 
|-
|
 
 
|}
 
|}
 +
 +
===Stimulus===
 +
Between February 2009 and June 2013, Ohio received $7,873,180,000.00 in federal funding.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery.gov'', "Stimulus Spending by State," accessed February 21, 2014]</ref>
  
Ohio currently has no statewide, official spending database online.
+
==Budget transparency==
 +
{| class="wikitable" style="float:right; margin:1em 1em 1em 1em; text-align:center; width:15%;"
 +
! colspan="2" align="center" style="background-color:#008000; color: white;" | Transparency evaluation
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" |
 +
! valign="bottom" style="background-color:#444; color: white;" | Ohio.gov Transparency
 +
|-
 +
|[[Criteria for evaluating databases|Searchability]] || {{Yes (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Grants]] || {{Yes (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Contracts]] || {{Yes (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Line item expenditures]] || {{No (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Dept./agency budgets]] || {{Yes (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Public employee salaries]] || {{Yes (Sunshine Review)}}
 +
|-
 +
|colspan="2"|<small>Date of last evaluation unknown.</small>
 +
|}
 +
::''See also: [[Evaluation of Ohio state website]] and [[Constitutional provisions regarding reading of bills]]''
  
==Stimulus==
+
The table to the right is helpful in evaluating the level of transparency provided by a state spending and transparency database.
Between February 2009 and June 2013, Ohio received $7,873,180,000.00 in federal funding.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery'', "Stimulus Spending by State"]</ref>
+
  
==Public Employees==
+
===Multi-measure budget transparency profile===
::''See also: [[Ohio public employee salaries]]
+
The Institute of Government and Public Affairs at the University of Ohio created a multi-measure transparency profile for Ohio, which measured state transparency as of September 2011 using indicators from a range of organizations.  These indicators measured both website transparency and other recognized facets of governmental transparency.  In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.<ref>[http://igpa.uillinois.edu/ ''Institute of Government and Public Affairs at University of Ohio'', "Home page," accessed February 21, 2014]</ref><ref name=allstates>[http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf ''Institute of Government and Public Affairs at University of Ohio'', "Budget Transparency Profiles - All 50 States," September 2011]</ref>
::''See also: [[Ohio public pensions]]
+
 
According to 2008 Census data, the state of Ohio and local governments in the state employed a total of 750,760 people.<ref name=census>[http://www2.census.gov/govs/apes/08stloh.txt 2008 Ohio Public Employment U.S. Census Data]</ref> Of those employees, 539,008 were full-time employees receiving a net pay of $2,188,567,523 per month and 211,752 were part-time employees paid $208,806,484 per month.<ref name=census/> More than 54% of those employees, or 409,618 employees, were in education or higher education.<ref name=census/>
+
IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Ohio tied for 20th in the nation with 12 other states, earning five out of eight possible points.<ref name=allstates/>
 +
 
 +
{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="2" align="center" style="background-color:#008000; color: white;" | Ohio - IGPA score for budget process, contents and disclosure
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | Budget transparency indicator
 +
! valign="bottom" style="background-color:#444; color: white;" | Yes or no?
 +
|-
 +
| Performance measures || {{No (Sunshine Review)}}
 +
|-
 +
| "Generally Accepted Accounting Principles" budget || {{Yes (Sunshine Review)}}
 +
|-
 +
| Multi-year forecasting || {{Yes}}
 +
|-
 +
| Annual cycle || {{no (Sunshine Review)}}
 +
|-
 +
| Binding revenue forecast || {{No (Sunshine Review)}}
 +
|-
 +
| Legislative revenue forecast || {{Yes}}
 +
|-
 +
| Non-partisan staff || {{Yes (Sunshine Review)}}
 +
|-
 +
| Constitution or statutory tax/spend limitations || {{Yes (Sunshine Review)}}
 +
|-
 +
| '''TOTAL''' || '''5'''
 +
|-
 +
|}
 +
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.<ref name=allstates/>
 +
 
 +
===U.S. PIRG "Following the Money" report===
 +
{{Following the Money 2014 Report by State|State=Ohio|Grade=D-|Score=51|Level=lagging}}
 +
 
 +
==Accounting principles==
 +
::''See also: [[Ohio government accounting principles]]''
 +
The [[Ohio Auditor of State]] is responsible for auditing all public offices in Ohio, encompassing more than 6,500 entities including cities, counties, villages, townships, schools, state universities and public libraries, as well as all state agencies, boards and commissions. [[Dave Yost]] was elected Auditor of State in 2010. His office publishes the state's audit reports online.<ref>[http://www.auditor.state.oh.us/ ''Ohio Auditor of the State'', "Home page," accessed November 5, 2009]</ref>  
  
Mental health professionals and IT workers are the most highly paid public salaries in the state, exceeding $100,000 annually.<ref>[http://redtape.msnbc.com/2010/09/in-bell-calif-residents-of-the-relatively-poor-mostly-hispanic-city-staged-a-near-riot-after-discovering-that-their-city.html#posts ''MSNBC's Red Tap Chronicles'', Does your city manager earn $800,000?, Sept. 23, 2010]</ref>
+
==Contact information==
 +
Ohio Office of Budget and Management<br>
 +
30 East Broad Street, 34th Floor<br>
 +
Columbus, Ohio 43215<br>
 +
Telephone: 614-466-4034<br>
  
The [[Buckeye Institute]] posted a state employee salary database [http://buckeyeinstitute.org/state-salary here] and a local employee salary database [http://buckeyeinstitute.org/local-salary here].
+
==See also==
 +
* [[Ohio government sector lobbying]]
 +
* [[Ohio public pensions]]
 +
* [[Governor of Ohio]]
 +
* [[Ohio State Senate]]
 +
* [[Ohio House of Representatives]]
  
 
==External links==
 
==External links==
{{colbegin|3}}
 
 
*[http://www.statebudgetsolutions.org/state/detail/ohio State Budget Solutions, Ohio]
 
*[http://www.statebudgetsolutions.org/state/detail/ohio State Budget Solutions, Ohio]
*Model transparency legislation from the [[American Legislative Exchange Council]] is available [http://www.showmethespending.org/uploads/Taxpayer_Transparency_Act.pdf at this link.]
+
*Model transparency legislation from the [[American Legislative Exchange Council]] is available [http://www.showmethespending.org/uploads/Taxpayer_Transparency_Act.pdf here]
 
*[http://www.buckeyeinstitute.org/ Buckeye Institute for Public Policy Solutions]
 
*[http://www.buckeyeinstitute.org/ Buckeye Institute for Public Policy Solutions]
 
*[http://www.obm.ohio.gov/ Ohio Office of Budget and Management]
 
*[http://www.obm.ohio.gov/ Ohio Office of Budget and Management]
Line 134: Line 407:
 
*[http://www.buckeyeinstitute.org/ Buckeye Institute for Public Policy Solutions]
 
*[http://www.buckeyeinstitute.org/ Buckeye Institute for Public Policy Solutions]
 
*[http://policymattersohio.org Policy Matters Ohio]
 
*[http://policymattersohio.org Policy Matters Ohio]
{{colend (Sunshine Review)}}
 
  
==Additional reading==
+
===Additional reading===
*[http://www.governor.ohio.gov/GovernorsOffice/StateoftheState/StateoftheState2009/tabid/984/Default.aspx ''Gov. Ted Strickland'',"2009 State of the State," accessed June 1,2009]
+
*[http://uspirg.org/reports/usp/following-money-2014 ''U.S. PIRG'', "Report: Transparent & Accountable Budgets," April 8, 2014]
*[http://www.forbes.com/feeds/ap/2009/05/18/ap6435496.html ''Associated Pres'',"Perspective: Ohio budget hurt by economy, politics," May 18, 2009]
+
*[http://www.nytimes.com/2014/02/03/us/battles-loom-in-many-states-over-what-to-do-with-budget-surpluses.html?hp&_r=0 ''The New York Times'', "Battles loom in many states over what to do with budget surpluses," February 3, 2014]
*[http://www.daytondailynews.com/news/politics/state-lawmakers-hold-noses-approve-budget-203975.html ''Dayton Daily News'',"State lawmakers hold noses, approve budget," July 14, 2009]
+
*[http://www.cbpp.org/cms/index.cfm?fa=view&id=3067 ''Center on Budget and Policy Priorities'', "Policy Basics: The ABCs of State Budgets," February 7, 2013]
 +
*[http://www.daytondailynews.com/news/politics/state-lawmakers-hold-noses-approve-budget-203975.html ''Dayton Daily News'', "State lawmakers hold noses, approve budget," July 14, 2009]
 +
*[http://www.governor.ohio.gov/GovernorsOffice/StateoftheState/StateoftheState2009/tabid/984/Default.aspx ''Gov. Ted Strickland'', "2009 State of the State Address," accessed June 1, 2009]
 +
*[http://www.forbes.com/feeds/ap/2009/05/18/ap6435496.html ''Associated Press'', "Perspective: Ohio budget hurt by economy, politics," May 18, 2009]
  
 
==References==
 
==References==
Line 145: Line 420:
  
 
{{State budgets}}
 
{{State budgets}}
 +
{{Ohio}}
  
 
[[category:Ohio]]
 
[[category:Ohio]]
 
[[Category:Budget information by state]]
 
[[Category:Budget information by state]]

Revision as of 10:19, 30 April 2014

Ohio state budget

Flag of Ohio.png
Budget calendar:  
Other state budgets
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Policypedia Budget Policy-logo-no background.png
This page contains information about budget processes and policy issues in Ohio, including:
  • A summary of the budget drafting process
  • Trends in expenditures and revenues
  • Current and past fiscal year budget developments
  • Financial transparency measures

Between fiscal year 2009 and fiscal year 2013, Ohio's total expenditures XXincreased/decreasedXX by approximately $XXX billion, from $XXX billion in 2009 to $XXX billion in 2013. This represents an XXX percent increase, Xoutpacing/below/equivalent toX the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[1][2]

Budget process

The state operates on a biennial budget cycle. The sequence of key events in the budget process is as follows:[3][4]

  1. Budget instruction guidelines are sent to state agencies in July of the year preceding the start of the new biennium.
  2. State agencies submit their requests to the governor in September and October.
  3. Agency hearings are held in October and November.
  4. The governor submits his or her proposed budget to the state legislature in February (this deadline is extended to mid-March for a newly-elected governor).
  5. The legislature typically adopts a budget in June. A simple majority is required to pass a budget. The biennium begins July 1 of odd-numbered years.

In Ohio, the governor may exercise line item veto, item veto or appropriations, or item veto of selected words authority.[4]

The governor is legally required to submit a balanced budget proposal. Likewise, the state legislature is legally required to pass a balanced budget.[4]

Expenditures

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[5]

  • General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
  • Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
  • Federal funds: "Funds received directly from the federal government."
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[5] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[5]
State General fund Federal funds Other funds Bonds Total Per capita expenditures
Ohio $31,040 $13,135 $12,293 $1,453 $57,921 $5,035.78
Illinois $29,257 $19,407 $14,944 $2,122 $65,730 $5,158.07
Indiana $13,579 $9,272 $3,454 $0 $26,305 $4,225.60
Michigan $8,619 $17,549 $20,844 $274 $47,286 $4,926.22
Wisconsin $13,381 $10,572 $17,371 $0 $41,324 $7,447.53
Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[6][7]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

State expenditures in Ohio can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percents)[5]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
Ohio 20.6% 4.2% 1.5% 24.4% 3.1% 5.1% 41.2%
Illinois 15.8% 5.5% 0.1% 19.7% 2.2% 8.5% 48.1%
Indiana 32.9% 6.5% 1.5% 27.3% 2.9% 9.3% 19.7%
Michigan 27.2% 4.1% 0.9% 26.1% 4.7% 6.9% 30.2%
Wisconsin 16.7% 14.1% 0.4% 16.5% 2.9% 6.9% 42.5%
Source: National Association of State Budget Officers

Expenditure trends

From 2008 to 2012, higher education and transportation spending fell by 1.10 and 2.30 percent respectively. During the same period, elementary and secondary education spending rose by 1.40 percent. The table below details changes in expenditures from 2008 to 2012.[5][8][9][10][11] Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)
Year Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
2012 20.6% 4.2% 1.5% 24.4% 3.1% 5.1% 41.2%
2011 17.7% 4.6% 1.7% 23.2% 3.2% 4.9% 44.7%
2010 20.2% 4.9% 1.8% 21.3% 3.4% 4.9% 43.5%
2009 21.7% 5.2% 2.2% 24.3% 3.4% 7.3% 35.9%
2008 19.2% 5.3% 2.3% 23.2% 3.6% 7.4% 39.0%
Change in % 1.40% -1.10% -0.80% 1.20% -0.50% -2.30% 2.20%
Source: National Association of State Budget Officers

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[5] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[5]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
Ohio $8,445 $9,508 $262 $0 $11,344 $29,559 $2,554.62
Illinois $7,335 $16,630 $3,086 $340 $8,899 $36,290 $2,817.08
Indiana $6,796 $4,978 $968 $555 $1,165 $14,462 $2,200.92
Michigan $1,832 $5,844 $438 $0 $1,075 $9,189 $928.59
Wisconsin $4,410 $7,497 $925 $0 $1,254 $14,086 $2,452.85
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[6]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[5][8] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Ohio ($ in millions)[5][8]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $8,445 $9,508 $262 $0 $11,344 $29,559 $2,554.62
2012 $8,087 $8,433 $117 $0 $10,549 $27,186 $2,353.15
2011 $7,578 $8,120 $237 $0 $11,828 $27,763 $2,403.77
2010 $7,077 $7,247 $142 $0 $10,484 $24,950 $2,161.03
2009 $7,113 $7,628 $521 $0 $11,423 $26,685 $2,311.86
Change in % 18.73% 24.65% -49.71% 0.00% -0.69% 10.77% 10.50%
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[6][7]
Source: National Association of State Budget Officers

State budgets by year

DocumentIcon.jpg See budget bill: HB 59

Fiscal years 2014 and 2015

Ohio state budget -- 2014-2015
Ohio State Legislature
Text:HB 59
Legislative History
Introduced:February 12, 2013
State House:April 18, 2013
Vote (lower house):61-35
State Senate:June 6, 2013
Vote (upper house):23-10
Conference:June 27, 2013
Conference Vote (upper house):21-11
Conference Vote (lower house):53-44
Governor:John Kasich
Signed:June 30, 2012

Governor John Kasich signed into law the biennial budget covering fiscal years 2014 and 2015 on June 30, 2013. The budget totaled approximately $62 billion and included a $2.6 billion reduction in personal income tax (this reduction was expected, over the course of three years, to amount to a 10 percent reduction). The budget as signed also provided for an increased sales tax rate (from 5.50 to 5.75 percent).[12]

The budget also included an abortion provision that "effectively [stripped] funding from Planned Parenthood, [blocked] public hospitals from arranging transfer agreements with abortion clinics, and [required] abortion providers to provide ultra sounds on women seeking abortions."[12]

Fiscal years 2012 and 2013

See also: Ohio state budget (2011-2013)

Fiscal year 2011

See also: Ohio state budget (2010-2011)

Fiscal year 2010

See also: Ohio state budget (2009-2010)

Historical spending

State budget historical spending below was compiled by the National Association for State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[5][9]

Historical state budget spending in Ohio ($ in millions)
Fiscal year General Fund Other funds Federal funds Bonds Budget totals
Total % of Budget Total % of Budget Total % of Budget Total % of Budget
2011-2012 $31,040 53.6% $12,293 21.2% $13,135 22.7% $1,453 2.5% $57,921
2010-2011 $31,653 52.5% $12,010 19.9% $14,553 24.1% $2,099 3.5% $60,315
2009-2010 $25,401 44.1% $16,864 29.3% $14,237 24.7% $1,128 2% $57,630
Averages: $29,364.67 50% $13,722.33 23% $13,975 24% $1,560 3% $58,622
General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.

State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Ohio had a state debt of over $321 billion. Its state debt per capita was $27,836. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.[13][14]

Total state debt in Ohio[15]
Type Totals U.S. rank
Total state debt $321,340,764,000 5
Per capita debt $27,836 4
State and other fund expenditures $43,333,000,000 2

Public pensions

See also: Ohio public pensions and Ohio public employee salaries

A 2012 report from the Pew Center on the States noted that Ohio's pension system was funded at 67 percent at the close of fiscal year 2010, well below the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."[16]

Taken together, the funding ratio for the state's pension systems decreased from 82.28 percent in fiscal year 2006 to 67.35 percent in fiscal year 2011, a 14.93 percent drop. Likewise, unfunded liabilities increased from just under $30 billion in fiscal year 2006 to more than $70 billion in fiscal year 2011.[17][18][19][20][21]

Credit ratings

States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.[22]

The table below lists the Standard and Poor's credit ranking for Ohio from 2001 to 2012 (grades from surrounding states are provided for additional context).[22]

S&P credit ratings from 2001 to 2012
Ohio Illinois Indiana Michigan Wisconsin
2012 AA+ A+ AAA AA- AA
2011 AA+ A+ AAA AA- AA
2010 AA+ A+ AAA AA- AA
2009 AA+ A+ AAA AA- AA
2008 AA+ AA AAA AA- AA
2007 AA+ AA AA+ AA- AA-
2006 AA+ AA AA+ AA AA-
2005 AA+ AA AA AA AA-
2004 AA+ AA AA AA+ AA-
2003 AA+ AA AA+ AA+ AA-
2002 AA+ AA AA+ AAA AA-
2001 AA+ AA AA+ AAA AA

Federal aid to state budget

See also: Federal aid to budgets in the 50 states

The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.[23]

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[23]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid National rank
Ohio 34.88% $20,687,909,000 17
Illinois 25.66% $15,646,844,000 43
Indiana 32.96% $10,441,125,000 27
Michigan 33.74% $17,849,942,000 24
Wisconsin 28.19% $8,855,079,000 38

Stimulus

Between February 2009 and June 2013, Ohio received $7,873,180,000.00 in federal funding.[24]

Budget transparency

Transparency evaluation
Ohio.gov Transparency
Searchability Y
600px-Yes check.png
Grants Y
600px-Yes check.png
Contracts Y
600px-Yes check.png
Line item expenditures N
600px-Red x.png
Dept./agency budgets Y
600px-Yes check.png
Public employee salaries Y
600px-Yes check.png
Date of last evaluation unknown.
See also: Evaluation of Ohio state website and Constitutional provisions regarding reading of bills

The table to the right is helpful in evaluating the level of transparency provided by a state spending and transparency database.

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Ohio created a multi-measure transparency profile for Ohio, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[25][26]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Ohio tied for 20th in the nation with 12 other states, earning five out of eight possible points.[26]

Ohio - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures N
600px-Red x.png
"Generally Accepted Accounting Principles" budget Y
600px-Yes check.png
Multi-year forecasting
{{{1}}}
Annual cycle N
600px-Red x.png
Binding revenue forecast N
600px-Red x.png
Legislative revenue forecast
{{{1}}}
Non-partisan staff Y
600px-Yes check.png
Constitution or statutory tax/spend limitations Y
600px-Yes check.png
TOTAL 5

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[26]

U.S. PIRG "Following the Money" report

See also: Following the Money 2014 Report

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[27] According to the report, Ohio received a grade of D- and a numerical score of 51, indicating that Ohio was "lagging" in terms of transparency regarding state spending.[27]

Accounting principles

See also: Ohio government accounting principles

The Ohio Auditor of State is responsible for auditing all public offices in Ohio, encompassing more than 6,500 entities including cities, counties, villages, townships, schools, state universities and public libraries, as well as all state agencies, boards and commissions. Dave Yost was elected Auditor of State in 2010. His office publishes the state's audit reports online.[28]

Contact information

Ohio Office of Budget and Management
30 East Broad Street, 34th Floor
Columbus, Ohio 43215
Telephone: 614-466-4034

See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  4. 4.0 4.1 4.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  5. 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
  6. 6.0 6.1 6.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  7. 7.0 7.1 United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  8. 8.0 8.1 8.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  9. 9.0 9.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  10. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  11. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  12. 12.0 12.1 Reuters, "Ohio governor signs budget including tax cut, anti-abortion provision," June 30, 2013
  13. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  14. Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  15. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  16. Pew Center on the States, "Widening Gap Update: Ohio," June 18, 2012
  17. Ohio Public Employees Retirement System, "2012 Comprehensive Annual Financial Report," accessed November 18, 2013
  18. The School Employees Retirement System of Ohio, "2012 Comprehensive Annual Financial Report," accessed November 18, 2013
  19. State Teachers Retirement System of Ohio, "2012 Comprehensive Annual Financial Report," accessed November 18, 2013
  20. Ohio Police and Fire Pension Fund, "2012 Comprehensive Annual Financial Report," accessed November 18, 2013
  21. Highway Patrol Retirement System, "2012 Comprehensive Annual Financial Report," accessed November 18, 2013
  22. 22.0 22.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  23. 23.0 23.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  24. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  25. Institute of Government and Public Affairs at University of Ohio, "Home page," accessed February 21, 2014
  26. 26.0 26.1 26.2 Institute of Government and Public Affairs at University of Ohio, "Budget Transparency Profiles - All 50 States," September 2011
  27. 27.0 27.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
  28. Ohio Auditor of the State, "Home page," accessed November 5, 2009