Some cuts to K-12 schools, universities restored
Gov. Mike Dewine has moved to soften pandemic-related budget cuts to Ohio’s K-12 schools and public universities and colleges.
The governor on Friday signed an executive order restoring $160 million to schools’ basic state aid and $100 million to the bottom line of higher education.
But, his order preserved $390 million in previous budget cuts made by state agencies for the fiscal year ending June 30. No new reductions were ordered.
The state was able to restore some education funding because Ohio’s tax take has not been as badly harmed by the COVID-19 pandemic as originally envisioned.
Dewine cut $776 million in state spending last spring for the prior fiscal year as state revenues nose-dived after the start of the virus and forced business closures led to record unemployment claims. The cuts included $300 million to schools’ foundation formula funding. Higher education sustained a $110 million cut.
Those cuts carried over into the current fiscal year, but now have been partially restored.
“As many schools, colleges and universities return to in-person learning, it’s important that the funding be reinstated,” Dewine said in a statement.
Details on how the increased funding breaks down for individual schools and universities and colleges were not available Friday.
Office of Budget and Management
Director Kimberly Murnieks said the fiscal good news largely is the product of sales tax collections coming in higher than estimated this fiscal year amid shifting spending during the pandemic.
“It’s largely driven by federal stimulus (payments), which served to support consumer spending, as well as a shift away from spending on services to goods,” she said, noting most services are not assessed sales taxes.
State tax collections through the first half of the fiscal year through the end of December were $458 million or nearly 4% higher than estimated.
Dewine’s proposal for the new twoyear state budget beginning July 1 is scheduled to be unveiled on Feb. 1. rludlow@dispatch.com @Randyludlow