So much for that structurally balanced budget Kasich’s been talking about. From Gongwer:
Ohio’s coffers started the first month of the new fiscal year slightly in the red compared to state analysts’ projections, with a dip in personal income and tobacco taxes the main culprits.
When income taxes, cigarettes, and non-auto sales tax all come below estimates, estimates the Kasich Administration claimed were already conservative in their growth, you’ve got an economic problem on your hand.
Now, let’s reiterate here. The last six months of Ted Strickland’s last budget showed the State consistently come in with above projected revenues. Kasich’s budget, right out the gate, has a deficit.
The first month of the Kasich budget and we already have a revenue problem.
We saw this coming. Just two days ago, I wrote that it’s only a matter of time before Kasich has to admit that his budget might be running a deficit.
Who said that cutting government spending at the state and local level would be a drag on the economy in Ohio? Only the Ohio Governor’s Economic Council in February 2011. Where did we find this quote? Oh, it was only buried in the Governor’s Executive Budget on page B-3 under that obscure budgetary chapter called “Economic Overview and Forecast.”
What does [bad consumer spending & manufacturing numbers for July] mean? Well, first it means there could be a chance that the State incurs a budget deficit if the economy slows down enough that revenues come in under the estimates which, again, were based on consumer spending and new orders for business equipment keeping a steady, consistent, strength in the economy. They also expected from June 2011 until June 2012 that unemployment would drop at least .5%. It’s gone up .2% already.
So, folks, what do you think Governor Kasich will do if the economy underperforms and that creates a deficit in his budget?
Ohio Governor John Kasich stands ready to cut state spending if revenue slows as the economy sputters following what the former congressman called the “chaos” surrounding the debt-ceiling debate in Washington.
Kasich, 59, a first-term Republican, has told his budget director to monitor revenue collections so any emerging deficit can be averted, he said yesterday in a telephone interview.
We have a revenue problem, not a spending problem. Our jobs report in June showed Ohio’s unemployment going up because budget cuts at the state and local government level caused by Kasich’s budget lead to massive layoffs. Now Kasich’s new jobs solution? Cause MORE layoffs!!! That will inspire confidence in the economy in Ohio, amIright?!?
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