New projection: State revenue falls $1 billion short of estimate

Senate Republicans were wise to pass a budget this week that accounted for a $1 billion revenue shortfall, considering the new revenue estimate.

The Ohio Legislative Service Commission announced Thursday that it is revising its February estimate downward by $1.02 billion for the new two-year budget period that starts July 1. It also projects that the state will need to spend $59 million more for Medicaid than was originally forecast.

State Budget Director Tim Keen revised down his general-revenue fund estimate by $949 million, while also projecting the state’s share of Medicaid costs to increase by $138 million, due to shifts among programs that get different federal matching rates.

Sluggish non-auto sales-tax and income-tax collections are driving the reduced revenue estimate, Keen said.

Read more: http://www.dispatch.com/news/20170622/new-projection-state-revenue-falls-1-billion-short-of-estimate