Innovation Ohio released a study that concludes that Kasich’s “Jobs Budget” will cost Ohioans 51,000 jobs directly, the indirect number of job losses caused by the ripple in the economy was not calculated. Here’s Dale Butland, Innovation Ohio’s Communication Director:
When Ohioans hear Gov. Kasich boast about his ‘jobs budget’, they mistakenly think he means a budget that creates jobs — not destroys them. But if the legislature enacts all the cuts contained in the Governor’s proposed budget, the 51,000 jobs we stand to lose is more than double the 22,000 jobs Ohio has gained since Gov. Kasich took office. The effect could be catastrophic to Ohio’s still-fragile economic recovery.
"School districts and local governments will, of course, do everything possible to avoid laying people off. But they’ve already made the easy cuts and pared their budgets dramatically. So when the Governor proposes to cut school funding by $3 billion and local government funding by 50%, firing workers or raising local taxes are the only realistic choices they have left. By stubbornly insisting that an $8 billion deficit must be closed through cuts and one-time money alone, Gov. Kasich is intentionally pursuing a policy that will cost tens of thousands of Ohioans their jobs. But attacking workers — whether through a job-killing budget or the unfair Senate Bill 5 — will not fix Ohio. It will only destroy the middle class. And that’s not what Gov. Kasich was elected to do."
Note, one of the assumption in the study is that local school districts and governments do not raise taxes in response to Kasich’s budget. Ordinarily, I’d argue that’s an unfair assumption, but since it’s what the Administration has indicated they specifically want the local governments not to do, it’s fair game.
The study notes that job losses under Kasich’s budget have already started before it has even been passed out of the House Finance Committee:
Shortly after the Kasich budget was introduced, Princeton Schools in Cincinnati announced that they will cope with state funding reductions by cutting 111 jobs, including 70 teachers. Delaware City Schools say they
will cut 14 jobs, ask voters for an 8.5 mill property tax increase and eliminate German and Latin foreign language classes. The Ohio Department of Taxation has notified 99 employees that their jobs will be eliminated,v and the Department of Rehabilitation and Corrections has said that 171 employees will likewise lose their jobs.
Nearly half of the job losses, Innovation Ohio projects, will come from positions in K-12 education alone. Over 2,000 positions in higher education are projected to be eliminated, and over 4,000 in the public safety sector. Nearly 14k local government workers and nearly 6k State workers are projected to have their jobs eliminated under Kasich’s budget.
When asked nearly a month ago at the budget unveiling whether the Kasich’s “Jobs Budget” would result in “mass layoffs” (always a sign you’re winning the messaging war), OBM Director Tim Keen answered emphatically “No.” Either the man is incompetent or in serious need of a dictionary. You’re pick.