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Ohio Governor Orders Job Cuts
By EmploymentCrossing
Two months into the new fiscal year, Ohio’s Democratic Governor Ted Strickland is ordering a new round of budget cuts to fill a $540 million-dollar hole in the state budget. The move highlights the sorry state of Ohio’s economy, coming on the heels of his call in February to fill a $733 million budget shortfall.
Cuts to accomplish that resulted in hundreds of layoffs, the closing of two state mental hospitals, and an expansion into Keno gambling. Strickland yesterday ordered a 4.75% cut to state agencies, without affecting direct funding for K-12 education, universities, Medicaid, prisons, and other priority areas. Agencies have until Sept. 22 to identify their cuts and until Oct. 1 to implement them.
Since July 1, state tax revenues have fallen $167.3 million below estimates, or six percent, with the income and sales taxes making up the bulk of the shortfall. Ohio has lost nearly 24,000 jobs so far this year, and the July unemployment rate, 7.2%, was the highest since 1992.
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