Governor Strickland Unveils Possible “Worst Case” Scenario Budget Cuts

Last week, Governor Strickland released a document that listed possible areas of budget cuts if Ohio faces a “worst case” scenario $7.3 billion deficit for the biennium starting on July 1, 2009.  For purposes of the analysis, debt service, tax relief and Medicaid were not cut, which would require a 25% cut in funding from all other state agencies.  Below is a summary of how certain agencies could be affected:

            Ohio Department of Education – Funding would have to be reduced by $2 billion in FY 2010 (which starts on July 1, 2009). This would be a funding level similar to FY 2001.
            Ohio Board of Regents – Current funding for colleges is $2.83 billion; a 25% cut would be a reduction of $707 million.  There would be a reduction of state support per full-time student statewide of $1,987, meaning that student tuition and fees would need to be increased by almost $2,000.
            Ohio Department of Job and Family Services – With limited staff at the local level, there would be waits for food stamps and child care services, leaving people waiting for services when the need is immediate.  Approximately 56,000 children, a 40% reduction, would not have access to early care and education services.
            Ohio Department of Aging – PASSPORT (in home care alternative to nursing homes) reduction in 6,480 people served in FY 2010 and 6,800 in FY 2011.
Assisted Living – reduction from $9.5 million to $7.5 million in funding.
Ohio Department of Mental Health – Offices of Children’s Services and Prevention, Forensic Services and Residency programs would be eliminated. A behavioral health hospital could be closed.
Ohio Department of Alcohol and Drug Addiction Services – Eliminate alcohol and drug treatment services for over 10,000 consumers. Reduction of over 15,000 youths, college students and community residents would not receive prevention services.
Ohio Department of MRDD – reduce waiver expenditures by 10%, affecting 18,000 individuals and families.
Ohio Department of Health – Major staffing reductions and loss of federal funds based on grant matching guidelines.
Ohio Department of Rehabilitation and Corrections – Reduction of approximately $370 million in GRF funding in FY 2009, leaving a deficit of about $370 million for FY 2010.
Department of Youth Services -  $85.6 million in cuts resulting in the closing of 2 large juvenile correctional facilities and one private facility – 30% reduction in bed space.
Ohio Department of Development - $4.2 million reduction in Thomas Edison Program, $2.5 million reduction in Rapid Outreach Program, $4.2 million reduction in Third Frontier Action fund which would reduce private investment by $17 million, and reduction of $3.2 million in Workforce Guarantee training resulting in 3,200 workers not receiving training.
Ohio Department of Natural Resources – Closure of facilities; Division of Water would not be able to provide match for federal grant for Flood Plain Management Program; Soil and Water, Oil and Gas and Coal regulatory all negatively affected.
Ohio Department of Agriculture – Significant staffing cutbacks in Food Safety and Meat Inspection Divisions.
Adjutant General’s Department – Reduction of $3.2 million in FY 2009 and risk losing air bases if state support drops below minimum requirements; severely strain ability to maintain readiness of forces. If state cannot meet obligation to support the National Guard, the federal government may seek to reduce the size of National Guard in Ohio, putting at risk the $500 million in federal dollars that come to the state on an annual basis.

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