Medicaid, Schools To Take Hit As Ohio Cuts Budget For Coronavirus

COLUMBUS, OH — Ohio's revenue was more than $750 million below budget in April, Gov. Mike DeWine announced Tuesday. The governor said the state will cut its spending by $775 million in the next two months.

Here's what DeWine said would be cut:

• Medicaid: $210 million
• K12 Foundation Payment Reduction: $300 million
• Other Education Budget Line Items: $55 million
• Higher Education: $110 million
• All Other Agencies: $100 million

"The more prudent, the more conservative action was to make these cuts now," the governor said. He indicated he did not want to delay and make future cuts more painful.

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The governor said he would not cut essential services to Medicaid users during the COVID-19 pandemic, but would cut from other parts of the program. He also said wraparound services would continue to be funded at Ohio schools.

Only the Ohio Department of Rehabilitation and Corrections, which makes up more than 7 percent of the budget, will not cut its budget, DeWine said.

DeWine said he would not draw money from the state's rainy day fund, but would instead make severe cuts to spending. He said the state would need the money in the rainy day fund for 2021 and 2022.

"I know that I have said that 'it’s raining,' but we do not want to tap into that fund yet. The 'rain' is not a passing spring shower — it could be a long, cold, lingering storm, and we should not use it until it is necessary," DeWine said.

All state agency directors have been asked to identify further budget cuts that could be implemented in 2020, 2021 and beyond. Contract services and travel will be suspended indefinitely, unless necessary to the agency's function. A hiring freeze has also been instituted at all state agencies, boards and commissions.

DeWine said he worked with members of the Ohio General Assembly on the cuts, but the decisions were his to make. The governor said he could not say whether there would be additional cuts to the budget in the future.

"This budget will need to be monitored constantly," he said. "We'll go through constant reviews as revenues come in."

The governor said his budget director would be available on Wednesday to provide details on how specific budget cuts will be implemented.

Tuesday's Numbers

Nearly 80 Ohioans died from COVID-19 complications over the past 24 hours, the state health department announced. There have now been 1,135 deaths connected to COVID-19 in Ohio since the outbreak began.

The state also confirmed 495 new cases on Tuesday, bring the state's total to 20,969.

Franklin County, home to Columbus, now leads the state in COVID-19 cases, with 3,097 in the county. Lucas County has seen the most death connected to COVID-19, with 133 confirmed deaths.

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