Ohio budget deficit may hit $10 billion

Ohio budget deficit may hit $10 billion

While many Ohioans have grown accustomed to hearing about a pending $8 billion deficit in the state budget, one Ohio lawmaker is predicting it could be worse. A lot worse.

Incoming Senate Finance Chairman Sen. Chris Widener, R-Springfield, said Thursday, Dec. 23 that it probably goes beyond the $8.4 billion that Senate Republicans had estimated.

According to a report in The Cleveland Plain Dealer, that estimate represents the amount of one-time money – such as federal stimulus dollars – used to balance the current two-year state budget of $50.5 billion. Lawmakers can't count on that money being there next time around.

"I don't want to be alarmist and throw a number on it, but I do want everyone to understand, the $8.4 billion budget deficit number really is just the use of one-time money in this budget that we don't expect to be there in the next budget," Widener told The Plain Dealer. "There is also a series of other things swirling around out there impacting our budget above and beyond one-time money. We have other expenditures we are committed and obligated to make."

Widener pointed out that Ohio remains obligated to pay a $180 million interest payment to the federal government in September 2011 for a loan to fund the state's unemployment compensation. In addition, Medicaid growth would add more than $1 billion to the budget deficit over the next two years if caseloads continue to grow at the 9 percent annual rate that they have since 2007. 

These expense increases bring the actual deficit to approximately $10 billion.

Widener, an architect, represents the 10th Senate District, which includes Madison, Clark and Greene counties. Before coming to the Senate, he served three terms as the state representative for the 84th House District. 

While many Ohioans have grown accustomed to hearing about a pending $8 billion deficit in the state budget, one Ohio lawmaker is predicting it could be worse. A lot worse.

Incoming Senate Finance Chairman Sen. Chris Widener, R-Springfield, said Thursday, Dec. 23 that it probably goes beyond the $8.4 billion that Senate Republicans had estimated.

According to a report in The Cleveland Plain Dealer, that estimate represents the amount of one-time money – such as federal stimulus dollars – used to balance the current two-year state budget of $50.5 billion. Lawmakers can't count on that money being there next time around.

"I don't want to be alarmist and throw a number on it, but I do want everyone to understand, the $8.4 billion budget deficit number really is just the use of one-time money in this budget that we don't expect to be there in the next budget," Widener told The Plain Dealer. "There is also a series of other things swirling around out there impacting our budget above and beyond one-time money. We have other expenditures we are committed and obligated to make."

Widener pointed out that Ohio remains obligated to pay a $180 million interest payment to the federal government in September 2011 for a loan to fund the state's unemployment compensation. In addition, Medicaid growth would add more than $1 billion to the budget deficit over the next two years if caseloads continue to grow at the 9 percent annual rate that they have since 2007. 

These expense increases bring the actual deficit to approximately $10 billion.

Widener, an architect, represents the 10th Senate District, which includes Madison, Clark and Greene counties. Before coming to the Senate, he served three terms as the state representative for the 84th House District.