State to cut $640 million more by June 30; Ohio predicts $7-billion hole in next budget

Although Ohio already has cut more than $1 billion from the current budget, Gov. Ted Strickland today said an additional $640 million must be cut from the 2-year budget that ends June 30.

Still, the economic forecast grows even darker as projections indicate that most Ohioans' incomes will drop in the next two years, Budget and Management Director Pari Sabety told reporters today.

In fact, Ohio could face a $7 billion deficit for the 2009 - 2011 budget. She noted that even if the state agencies reduce their budgets by 10 percent, Ohio will still come up short by $4.7 billion, according to this afternoon's Plain Dealer.

"This has never happened in Ohio history," [Sabety] said.

The governor met this morning with the union's top officers to brief them before the afternoon press conference. He shared budget information with OCSEA President Eddie Parks, Secretary Treasurer Kathy Stewart, and Vice President Chris Mabe. Strickland says that currently two things will factor into the depth of future cuts: Fiscal aid from the federal government and consumer spending this holiday season.

Take time now to write a letter to the U.S. Congress to ask for fiscal relief for state and local governments.