Gov. Strickland: More budget cuts loom for most state agencies

Pressured by a sluggish economy and diminished tax revenues, Ohio Gov. Ted Strickland this morning said at a press conference that a $540 million budget cut is imminent. This follows the $733 million budget "recalibration" cuts announced in January, and it brings the total cuts for this biennium budget to $1.27 billion.

"I believe this decision is the best way forward given the challenging economic environment we face in the months ahead," Strickland said. "We are making tough decisions, while also protecting the core priorities such as investing in education, children's health care and tax reform that I believe will help revitalize our economy in the long run."

The cuts will come quickly: According to today's Columbus Dispatch, agency heads are working under a Sept. 22 deadline to "identify their cuts and until Oct. 1 to implement them."

Although the governor praised state employees for their good work, he said that most agencies will take a 4.75 % budget hit to fill $201 million of the gap, while accounting changes will make up another $399 million. Indeed, who we elect in November will impact our national and state economic situations for better or worse.

"The best long-term solution is to get the national and Ohio economies moving again," Strickland said. "When you look at our $1.57 billion jobs bill and our recently-enacted energy bill, I believe Ohio is doing more than any other state. It's time for a more aggressive and more vigorous jobs stimulus package at the national level."

Strickland indicated that he will not tap the state's rainy day funds, because he thinks the situation may worsen and require those funds at a later date should the national economy continue its downward spiral.

"I think it's safe to say it's raining now, but I fear there's a larger storm looming ahead," Strickland said.

OCSEA will continue to work with state officials, as it has done during past budget crunch situations, to minimize job loss and protect valuable public services that Ohioans count on. Check out the union's budget section for updates in the approaching weeks and months.