Our Governor, John Kasich, has announced that due to tax revenue coming in below reported estimates that Ohio is likely headed to a recession—saying just that to the Ohio House, “We are on the verge of a recession in our state.”
According to the latest tax receipts and numbers from The Dispatch — revenues for November came in at $99 million which is below estimates by nearly 5 percent.
The Ohio income taxes came in more than 10 percent under projections. This is inline with October trends when revenues were reportedly off by $88 million, or 4.7 percent.
These bad months have totally ruined the year for Ohio—dragging the state revenue down to nearly 3 percent below estimates, off by $259 million according to The Dispatch. The fiscal year runs until June 30th, 2017.
The declining tax revenue on top of lawmakers and legislators dealing with an estimated $1.1 billion hit from the loss of Medicaid dollars — not including the President-elect’s proposed legislation that could take make the hit even larger.
The end of Ohio charging sales tax on Medicaid managed organizations which in the past has allowed Ohio to rake in additional hundreds of millions in matching funds has led to the aforementioned $1.1 billion loss in the next two-year budget which is why we’ll be pinching pennies. More losses are expected for counties and transit authorities, reportedly up to $400 million.
Kasich’s new two-year budget is due at the end of January.
What do you think, can Kasich pull us out of this potential recession?