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Kasich may have budget plans brewing again

Sep 16, 2011

After Ohio’s $55.8 billion budget was passed in June, Gov. John Kasich indicated that he didn’t necessarily plan to wait the standard two years before addressing budget issues again. Now it appears the governor may be preparing to talk about the budget again as the Ohio legislature returns from its summer break.

Kasich said his legislative agenda for the second half of 2011 will hopefully include a “mid-biennial review.” He indicated the review could be significant enough to require legislative approval. 

The current budget cuts funding for local governments by $633 million over two years, trims $779 million for schools, allows for the privatization of several state functions and transforms the state’s Medicaid program, among other things.

It is unclear when Kasich might unveil his mid-biennium budget – the halfway point for this biennium falls at the end of June.

Preliminary state tax revenue for August was 4.5% above estimates, leaving the state 1.9% ($51.4 million) over estimates for the fiscal year, which began July 1.

Whether revenue continues to come in above expectations – or takes a turn for the worse – will play a role in what changes Kasich and Republican lawmakers consider.

Kasich also said his administration is still considering a capital-projects budget – a budget separate from the general fund but that has been on hold since 2008 because of cash shortages – and will pursue upgrades to the state’s worker-training program.