Difference between revisions of "Ohio state budget"

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| credit= AA+ (as of May 2012)
 
| credit= AA+ (as of May 2012)
 
| percentchangedr =   
 
| percentchangedr =   
| expenses = $31.040 billion (estimated for FY 2013)
+
| expenses = $31.514 billion (estimated for FY 2013)
| all funds expenses = $57.921 billion (estimated for FY 2013)
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| all funds expenses = $58.268 billion (estimated for FY 2013)
| spending change =  
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| spending change = 0.60%
| change =
+
| change = up
| governor =  
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| governor = John Kasich
| % federal =  
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| % federal = 34.88%
| state debt =  
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| state debt = $321,340,764,000
| per cap debt =  
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| per cap debt = $27,836
 
}}{{tnr|limit=3}}This page contains information about '''budget processes and policy issues''' in [[Ohio]], including:
 
}}{{tnr|limit=3}}This page contains information about '''budget processes and policy issues''' in [[Ohio]], including:
 
* A summary of the budget drafting process
 
* A summary of the budget drafting process
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* Financial transparency measures
 
* 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).<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>
+
Between fiscal year 2009 and fiscal year 2013, Ohio's total expenditures increased by approximately $0.475 billion, from $57.793 billion in 2009 to $58.268 billion in 2013. This represents a 0.82 percent increase, below 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>
  
 
==Budget process==
 
==Budget process==

Revision as of 09:42, 30 April 2014

Ohio state budget

Flag of Ohio.png
Budget calendar:  Biennial
Current fiscal year:  2014
State credit rating:  AA+ (as of May 2012)
Current governor:  John Kasich
Financial figures
GF expenses[1]:  $31.514 billion (estimated for FY 2013)
All funds expenses:  $58.268 billion (estimated for FY 2013)
Spending % change:  Green Arrow Up Darker.svg0.60%[2]
% from federal funding:  34.88%
State debt:  $321,340,764,000
Per capita state debt:  $27,836
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 increased by approximately $0.475 billion, from $57.793 billion in 2009 to $58.268 billion in 2013. This represents a 0.82 percent increase, below the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[3][4]

Budget process

The state operates on a biennial budget cycle. The sequence of key events in the budget process is as follows:[5][6]

  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.

Ohio is one of 44 states in which the governor has line item veto authority.[6]

The governor is legally required to submit a balanced budget proposal. Likewise, the state legislature is legally required to pass a balanced budget.[6]

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:[7]

  • 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."[7]
  • 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."[7]
  • Federal funds: "Funds received directly from the federal government."[7]
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."[7]

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).[7] 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)[7]
State General fund Federal funds Other funds Bonds Total Per capita expenditures
Ohio $31,514 $12,630 $12,950 $1,174 $58,268 $5,035.78
Illinois $29,260 $15,407 $19,825 $1,955 $66,447 $5,158.07
Indiana $14,189 $10,357 $3,220 $0 $27,766 $4,225.60
Michigan $9,164 $19,295 $20,107 $182 $48,748 $4,926.22
Wisconsin $14,042 $10,815 $17,912 $0 $42,769 $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.[8][9]
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)[7]
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.[7][10][11][12][13] 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).[7] 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)[7]
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.[8]
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.[7][10] 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)[7][10]
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.[8][9]
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
House:April 18, 2013
Vote (lower house):61-35
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).[14]

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."[14]

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).[7][11]

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.[15][16]

Total state debt in Ohio[17]
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."[18]

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.[19][20][21][22][23]

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.[24]

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).[24]

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.[25]

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.[25]

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.[26]

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.[27][28]

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.[28]

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.[28]

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.[29] 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.[29]

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.[30]

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. Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
  2. This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
  3. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  4. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  5. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  6. 6.0 6.1 6.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  7. 7.00 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 7.11 7.12 7.13 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
  8. 8.0 8.1 8.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  9. 9.0 9.1 United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  10. 10.0 10.1 10.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  11. 11.0 11.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  12. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  13. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  14. 14.0 14.1 Reuters, "Ohio governor signs budget including tax cut, anti-abortion provision," June 30, 2013
  15. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  16. Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  17. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  18. Pew Center on the States, "Widening Gap Update: Ohio," June 18, 2012
  19. Ohio Public Employees Retirement System, "2012 Comprehensive Annual Financial Report," accessed November 18, 2013
  20. The School Employees Retirement System of Ohio, "2012 Comprehensive Annual Financial Report," accessed November 18, 2013
  21. State Teachers Retirement System of Ohio, "2012 Comprehensive Annual Financial Report," accessed November 18, 2013
  22. Ohio Police and Fire Pension Fund, "2012 Comprehensive Annual Financial Report," accessed November 18, 2013
  23. Highway Patrol Retirement System, "2012 Comprehensive Annual Financial Report," accessed November 18, 2013
  24. 24.0 24.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  25. 25.0 25.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  26. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  27. Institute of Government and Public Affairs at University of Ohio, "Home page," accessed February 21, 2014
  28. 28.0 28.1 28.2 Institute of Government and Public Affairs at University of Ohio, "Budget Transparency Profiles - All 50 States," September 2011
  29. 29.0 29.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
  30. Ohio Auditor of the State, "Home page," accessed November 5, 2009