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Is Ohio racing toward a financial cliff?

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By William Hershey, Staff Writer Updated 10:34 PM Tuesday, July 14, 2009

Even before Gov. Ted Strickland signs the budget the legislature approved, analysts are warning that Ohio could be headed off a financial cliff just two years from now.

Lawmakers balanced the $50.5 billion two-year budget they sent to Strickland with spending cuts, projected money from video slot machines, one-time federal stimulus cash and delaying debt service.

But Rick Yocum, president of the Ohio Public Expenditure Council, said on Tuesday, July 14, that two years from now the state could face a shortfall as high as $8 billion unless more programs are cut, taxes are raised or the economy makes an unexpectedly quick and robust recovery.

“I feel like the state is an automobile traveling at 100 miles an hour toward a cliff that’s five miles away and we’re all confident that when we get there, there’s going to be a bridge,” said Yocum, whose nonpartisan, business-supported research group provides budget and tax information to community and political leaders.

The problem, said Yocum, is that he doesn’t think there’s a bridge: “We’re going to be lucky if the cliff has not collapsed and we’re just four miles away.”

State Rep. Vernon Sykes, D-Akron, chairman of the House-Senate budget conference committee, disagreed with Yocum. Fixes in the current budget buy time, said Sykes.

“We’re hopeful that we’re going to bottom out soon and start back up, progressing in growth which will increase tax revenues,” he said.

Sykes acknowledged that a speedy recovery isn’t guaranteed.

“It’s a possibility that the economy will get worse and we’ll be challenged as leaders even more so to try to take additional measures to help us bridge that gap,” Sykes said.

Keep reading: Budget critics say tough decisions still loom

Contact this reporter at (614) 224-1608 or  whershey@DaytonDailyNews.com.

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Close corporate tax loopholes. Permit and tax hemp. Tax religion (the gods will make do somehow). Parole all non-violent drug offenders.

kett-sam
9:39 PM, 7/15/2009

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Dale: You can't reason with ignorance. There will always be a segment in society that needs help, but it's not Jennie. She needs to get her butt to work.

Lollipop10
5:24 PM, 7/15/2009

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I live in Dayton and I don't mind telling you that it is a scary sight to see all of our businesses leaving the area. There is nothing left here. The people are out of work and that causes a lot of crime. Raising taxes isn't going to help if no-one is working to pay them.

Sophia
4:47 PM, 7/15/2009

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I agree with the statement "at least half of the people currently on welfare that could get a job.". I was on SSI a decade or so ago after a major surgery. I was back at work and off of SSI within a year. Now half of the apartments where I live are HUD subsidized and all full. I see them partying and having a good ole time while while their 8 kids and 12 different fathers run around and act a fool. As I sit there and watch a whole paycheck+ go to rent that I actually pay. Put them to work I say.

Agreeable
4:39 PM, 7/15/2009

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Not my problem jennie. Period!

Dont have 8 kids with 12 different fathers!

kelly
4:05 PM, 7/15/2009

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