Gov. DeWine announces 2020 fiscal year reduction in budget expenditures

On May 5, 2020, Governor DeWine announced a reduction of $775 million in General Revenue Fund (GRF) expenditures for the remainder of the 2020 fiscal year. Tax receipts were lagging due to declining economic activity caused by the COVID-19 pandemic.

The Ohio General Assembly, through H.B. 197, authorized a one-time transfer of funds from the state’s rainy day fund, but Governor DeWine explained that his administration will decline to draw down from the fund at this time, in part because they expect that it may be needed down the road if the state continues to face fiscal challenges.

The cuts are reached through a reduction of:

• $210 million in Medicaid
• $300 million in K-12 education
• $55 million in other education
• $110 million in higher education
• $100 in other state agencies and programs

Governor DeWine also said that the state would keep a hiring freeze in place, as well as limited travel and contracting restrictions, and he has asked cabinet directors to seek additional cuts.

For the media, Senate President Obhof outlined the Ohio Senate’s immediate priorities. These measures include appropriating federal dollars and getting them to local governments, adding money to the state unemployment fund, easing the ability for pharmacists to adjust patient’s medications, and limiting liability for businesses that accidentally expose employees or customers to COVID-19.