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Ohio state budget (2010-2011)

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The governor signed the FY2010-11 state budget, which included general fund spending of $ 25.9 billion over the two years,[1] on July 17, 2009.[2] The state faced a structural budget shortfall that some expected could exceed $8 billion for the following biennium, which started July 1, 2011.[3][4] The 2011 budget utilized $8.4 billion of one-time funds.[5]

Ohio had a total state debt of $68,961,315,845 when calculated by adding the total of outstanding debt, pension and OPEB UAAL’s, unemployment trust funds and the 2010 budget gap as of July 2010.[6]

2011 State spending & deficit in billions[7]
Total spending Health and human services Education Protection Government and tax relief Transport Other
$56.6 $25.2 $13.8 $2.2 $13 $1.1 $1.2


2011 Local spending & deficit in billions[8]
Total spending Pension Healthcare Education Welfare Protection Transport Debt
$63.2 $0.2 $4.4 $22.1 $6.7 $7.5 $3.5 $46.3

FY2010-2011 State Budget

See also: Archived Ohio state budgets

Find the state’s FY2011 Comprehensive Annual Financial Report (CAFR) compiled by the state government.[9]

The state ended the year with a $125 million balance.[10] Three quarters of the way through the fiscal year revenue was 5.4% percent higher than estimates, approximately $627 million more than anticipated. In March of 2011, revenue was 13% higher than estimated.[11] Towards the end of FY2011, to save $176,000 annually, Kasich opted out of paying dues to the National Governors Association.[12]

H.B. 1 was Ohio’s operating budget for fiscal years 2010-2011. This measure was signed by Governor Strickland on July 17, 2009.[13][14] The budget reduced state government spending by an additional $2.5 billion.[14]

Appropriations

Function FY2010 FY2011 Total
Education $13,851,625,050 $13,836,359,709 $27,687,984,759
Health and Human Services $24,319,166,296 $25,211,761,939 $49,530,928,235
Justice and Public Protection $2,218,786,154 $2,202,006,316 $4,420,792,470
General Government/Tax Relief $12,892,377,781 $13,064,342,787 $25,956,720,568
Executive, Legislative and Judicial Branches $591,001,591 $587,680,662 $1,178,682,252
Transportation and Development $1,197,278,245 $1,174,419,750 $2,371,697,996
Environment and Natural Resources $606,251,971 $548,179,248 $1,154,431,218
TOTAL $55,676,487,088 $56,624,750,411 $112,301,237,498


Gambling

The state had an ongoing budget saga throughout 2009 created when the Ohio Supreme Court on Sept. 21, 2009 ruled that the Ohio General Assembly's video lottery plan to balance the FY 2010-2011 biennium budget violated the Ohio Constitution.[15] The General Assembly authorized installation of up to 17,500 video lottery terminals (VLTs) at Ohio horse racing tracks, but the Ohio Supreme Court found the plan had to be subject to a statewide voter referendum because it did not fall within any of the exceptions to the right of referendum.[16]

The 6-1 majority opinion of the Court stated, “We were not unmindful of the effect our decision may had on the state budget, nor of the commendable efforts of the members of the executive and legislative branches of state government to fulfill their constitutional duties to balance the budget in Ohio; however, our own constitutional duty was to ensure compliance with the requirements of the Ohio Constitution irrespective of their effect on the state’s current financial conditions.”[17][18]

Ohioans also approved casinos in November 2009, a few months after Gov. Strickland proposed adding video lottery machines to racetracks to generate new tax revenue. "If I had not been confronted with these difficult circumstances, I would have obviously opposed expanding gambling in Ohio," he said. He estimated the plan would raise $851 million over two years.[19]

Budget Background

See also: Ohio state budget and finances

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 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 House and the Senate must approve the budget bill before it can be signed into law by the governor.[20]

Ohio's "balanced budget" requirements come in the forms of a limit the issuance of debt and an appropriations cap that was tied to the actual revenue raised during previous years. Section 107.33 of the State law creates a cap on appropriations that was the previous year's revenue, adjusted for inflation and population growth, or the previous year's revenue plus 3.5%, whichever was 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 did 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.[21]


Budget figures

The following table provides a history of Ohio's expenditures and gross domestic product (GDP).

Fiscal Year Expenditures (billions) GDP (billions)
2000 $68.4[22] $372.0[22]
2001 $74.6[22] $374.7[22]
2002 $80.8[22] $389.8[22]
2003 $85.2[22] $402.4[22]
2004 $85.2[22] $423.7[22]
2005 $92.0[22] $439.3[22]
2006 $97.4[22] $451.6[22]
2007 $100.0[22] $466.3[22]
2008 $102.7[22] $481.7[22]
2009 $105.4*[22] $480.9*[22]

General Fund 2009-10[23]

Category FY2009 Amount in millions Actual FY 2010 Amount in millions Estimated
Beginning Balance 1,682 735
Revenues 26,685 25,572
Adjustments 0 0
Total Resources 28,367 26,307
Expenditures 27,362 26,307
Adjustments 0 0
Ending Balance 735 193
Budget Stabilization Fund 2 0

Fiscal 2010 Tax Collections Compared With Projections Used in Adopting Fiscal 2010 Budgets (Millions)[23]

Category Amount
Sales Tax Original Estimate 6,995
Sales Tax Current Estimate 6,995
Personal Income Tax Original Estimate 7,061
Personal Income Tax Current Estimate 7,479
Corporate Income Tax Estimate 100
Corporate Income Tax Estimate 100

Accounting principles

The Ohio Auditor of State was 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. Mary Taylor was elected Auditor of the State in 2006. Her office published the state's audit reports online, directly on the home page.[24]

Credit Rating Fitch Moody's S&P
Ohio[25] AA+ Aa2 AA+

See also

Footnotes

  1. ↑ Ohio Office of Budget and Management "H.B. 1 Represents the Lowest Growth Budget in Modern Ohio History"
  2. ↑ Office of the Governor "Governor Signs FY 2010-2011 Budget Bill" July 17, 2009
  3. ↑ Reuters.com "Ohio committee votes to end state worker strike rights" March 2, 2011
  4. ↑ The Toledo Blade "Temporary fixes had Ohio ahead of red-ink trend, but $8B gap likely next year" July 11, 2010
  5. ↑ The Columbus Dispatch "$8 billion in 'one-time money' used in current state budget" August 12, 2010
  6. ↑ State Budget Solutions “States Hide Trillions in Debt” July 22, 2010
  7. ↑ Office of Budget and Management, Budget Highlights
  8. ↑ USA Spending, State Guesstimated* Government Spending
  9. ↑ FY2011 CAFR
  10. ↑ The Columbus Dispatch "Ohio's key budget cuts some of biggest in nation" June 3, 2011
  11. ↑ The Columbus Dispatch "Higher tax revenue might ease state's budget cuts" April 13, 2011
  12. ↑ Canton Rep, Ohio says ‘Not for $176,000’, June 6, 2011
  13. ↑ [1]
  14. ↑ 14.0 14.1 FY 2010-2011 Operating Budget Highlights
  15. ↑ Ohio Office of Budget and Management, "Testimony of J. Pari Sabety, Director Ohio Office of Budget and Management On H.B. 318," October 28, 2009
  16. ↑ The Supreme Court of Ohio, "State ex rel. LetOhioVote.org v. Brunner," September 21, 2009
  17. ↑ The Supreme Court of Ohio, "State ex rel. LetOhioVote.org v. Brunner," September 21, 2009
  18. ↑ The 6-1 majority opinion
  19. ↑ The Wall Street Journal "Strapped States Find New Virtues in 'Vice'" May 11, 2010
  20. ↑ State of Ohio, "The Ohio Budget Process," accessed June 1,2009
  21. ↑ Ohio Budget Watch
  22. ↑ 22.00 22.01 22.02 22.03 22.04 22.05 22.06 22.07 22.08 22.09 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 US Government Spending, "Ohio State and Local spending," accessed June 1,2009
  23. ↑ 23.0 23.1 National Governors Association and National Association of State Budget Officers Fiscal Survey of States June 2010 (dead link)
  24. ↑ Ohio Auditor of the State Web site, accessed November 5, 2009
  25. ↑ State of Indiana, “State Credit Ratings-as of June 24, 2009"
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