Today, Governor DeWine announced a $775 million budget reduction for the remainder of Fiscal Year 2020 (ends June 30, 2020). This is due to the economic downturn caused by the Covid-19 health crisis. The DeWine administration decided to not use funds from the $2.7 billion Rainy Day Fund for Fiscal Year 2020 stating that they will be needed for Fiscal Year 2021.
The cuts include:
- $300 million (or a $3.7% reduction) in K-12 education foundation payments
- $55 million in other education programs
- $110 million in higher education
- $210 million in Medicaid
- $100 in other state agencies and programs
However, Ohio does expect approximately $490 million in federal CARES Act funds for education, 90 percent of which would be allocated to schools based of the Title I formula. While the Title I funding formula is different than the state foundation funding formula, these federal funds could mitigate some of the state reductions.
OEA Government Relations will provide an update once additional details are available.
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