COLUMBUS (AP/WCMH) -Gov. John Kasich warned on Tuesday the state could be on the brink of a recession after November revenue came in sharply below estimates. Kasich, a Republican, issued the warning during a rare visit to the Ohio House, where he said the state’s future will be tough. “We’re on the verge of a recession in our state,” Kasich said.
Kasich’s warning followed new numbers from the state budget office showing November tax receipts were $99 million, or 5 percent less than estimates. That follows a weak October, with revenues $88 million below estimates.
Kasich and the Republican-controlled legislature have been taken an aggressive stance on tax cuts in recent years and Democrats argue those tax reforms have been harmful to the middle class and the under-employed.
House Minority Leader, Rep. Fred Strahorn from Dayton says the state has not been investing in the right things to grow the economy and empower people to get back to work. “Demand drives an economy not tax breaks for rich people and if we’re not investing in the things that create demand, then sooner or later that cycle’s going to come back around,” Strahorn said.
Kasich will introduce the next two-year budget, his last as governor, early next year. He also said he wants to leave the budget in good hands for his successor.
Worthington Republican Mike Duffey wants to see a more detailed analysis of state tax revenues but says lawmakers are prepared to hold the line, “There’s a difference between not having any additional money and having to cut services and we’re hoping it’s not the latter,” Duffey said.
Withholding, sales and use taxes are down, according to the Office of Budget and Management. Budget director Tim Keen has said existing financial cushions will keep the state from going into the red through the current budget.
