UPDATE Dec. 17: Ohio legislators worked overnight and have reportedly agreed to a plan to fill the state budget deficit. Please read your news media of choice over the next two days for confirmation of the plan.
---the story below was posted late Dec. 16----
Staff and faculty have likely seen news stories about the $851 million deficit in Ohio's budget that must be filled by Dec. 31.
It may be remembered that when the state budget was passed in summer it carried a significant deficit with a plan to fill it using funds from a proposed new system of 17,500 video lottery terminals.
On Sept. 21, that funding source was put on hold for this fiscal year when the Ohio Supreme Court ruled that a group of people called LetOhioVote.org had the right to solicit signatures to place the video lottery plan on a ballot.
After the Supreme Court decision, Ohio Gov. Strickland proposed instead delaying the third-year portion of a 4.2 percent three-year income tax reduction for Ohioans in order to restore approximately $700 million to the state’s coffers. The Ohio House has passed legislation that would delay the tax cut.
A senate budget plan includes a recommendation to allow one-third of the planned income tax reduction to go into effect and to tap other sources of cash to replenish the state budget.
While figures have been made public about how much money K-12 and higher education stand to lose without a budget solution, Miami officials say it’s premature to implicate more cuts to school funding. “It’s unfortunate that the state still faces a deficit but we trust that the legislature will pass legislation delaying the tax cut and further cuts in state support will not be needed,” said David Creamer, vice president for finance and business services.