DeWine: Budget cuts the result of ‘cruel nature’ of economic tumult

COLUMBUS — Gov. Mike DeWine on Tuesday described "the cruel nature of an economic downturn" and its impact on the state's most vulnerable.

"A time when you're in need of a social safety net is also a time when government revenues shrink," he said, as he announced the state is cutting $775 million, largely in Medicaid and K-12 and higher education subsidies, over the next two months in order to balance the budget for fiscal year 2020.

The COVID-19 pandemic has caused a nearly $1 billion swing in state revenues, the governor said. At the end of February, state revenues were ahead of estimates by about $200 million. In just two months, they're now in the red by about $777 million.

Here is a breakdown of what's being cut:

• Medicaid spending: $210 million
• K-12 foundation payments: $300 million
• Other education budget line items: $55 million
• Higher education: $110 million
• All other state agencies: $100 million

The Ohio Department of Rehabilitation and Correction is the only state agency that will be exempt from the cuts, DeWine said. Freezes on hiring and contracting, wage increases and non-emergency travel at all state agencies will continue, he said.

DeWine on Tuesday added Ohio will hold up on drawing from the state's Rainy Day Fund, currently sitting at about $2.7 billion, anticipating it will be needed to weather the next year or two.

"I have said it's raining. ... This rain is not a passing spring shower. It could be a long, cold, lingering storm. We should not use the Rainy Day funding until we have to."

Subsidies comprise 86.2 percent of the state's budget; administrative costs, 9.4 percent; and debt service, 4.5 percent, officials said.

DeWine assured Ohioans currently drawing from Medicaid and who have been "hurt by this pandemic" won't lose essential services, adding he's "confident" the $210 million can be cut from elsewhere in the subsidy package.

The K-12 cuts announced Tuesday represent a total about 3.7-percent decrease in primary and secondary education funding over the previous fiscal year, DeWine said. Each school system will on their own face varying levels of reductions based on the state's school funding formula, adding he's most concerned for students in poor districts.

Of the about $30.8 billion for K-12 and higher education systems included in the federal CARES Act relief package, Ohio is estimated to receive $105 million in grant funding to distribute to school districts and higher education institutions that have been hardest-hit by the virus and $489 million for new virus-related strategies like remote learning technology.

Local school administrators told Mahoning Matters Tuesday they weren't ready to weigh in on the education cuts until Kim Murnieks, Ohio Office of Budget and Management director, offers more specifics on the plan.

Denise Dick, Youngstown City Schools spokesperson, said, "Obviously cuts to education isn't what any of us wants to hear, but we don't yet know how deep the cuts to YCSD will go."

Though DeWine said Murnieks would be available today to answer reporters' questions on the education cuts, his administration — for the first time since early March — doesn't intend to deliver a daily update today on the state's coronavirus response.

Additionally, DeWine said he is currently reviewing plans to re-open daycares, restaurants and bars and hair salons and barbershops and could announce more details during Thursday's briefing.

Below are key indicators and 21-day trends on coronavirus in Ohio presented Tuesday and taken from the state's COVID-19 dashboard. To view a full-sized version, click the icon in the upper-right:

Here are other recent developments around the state and nation:

• According to the latest figures Tuesday from the Ohio Department of Health, the state is reporting 20,072 confirmed cases of the coronavirus. There have been 999 confirmed cases in Mahoning County; 356 in Trumbull County; and 292 in Columbiana County.

• Statewide, there have been 1,038 confirmed deaths, including 92 in Mahoning County; 35 in Trumbull; and 28 in Columbiana. Mahoning County's 92 reported COVID-19 deaths on Tuesday was third-highest among Ohio's 88 counties; Lucas County had 133; Cuyahoga County reported 128 deaths.

• Mahoning County Public Health has approved three different plans for graduation ceremonies for the Class of 2020: virtual ceremonies, drive-thru graduations and limited in-person graduations. The summer rental and catering industries that surround Mahoning County graduates each year is also bracing for a socially distant summer. Some are finding ways to fill revenue gaps left by the state's ban on mass gatherings, while others are awaiting federal relief that remains nebulous.

• Southern Park Mall will reopen May 12 with shorter hours and additional protocol to prevent coronavirus spread. It will be open Monday to Saturday from 11 a.m. to 7 p.m. and on Sunday from 11 a.m. to 6 p.m.

• Waypoint 4180 and CTW Development Corp. sponsored a free pizza giveaway for local first responders on Tuesday. The first 500 firefighters, EMTs, police officers and nurses who visited the Canfield banquet center received a free pizza lunch.

• In his latest message to the community Tuesday, YSU President Jim Tressel announced several initial actions including personnel and budget reviews, a hiring freeze and salary cuts, led by his 15 percent reduction.

• YSU's athletics director Ron Strollo told Mahoning Matters he's also grappling with his department's $16 million budget at a time when college sports seasons and revenues remain up in the air.

• In nearby counties: Stark reported 414 cases and 57 deaths; Portage reported 254 cases and 43 deaths; and Ashtabula reported 160 cases and 17 deaths

• According to the Pennsylvania Department of Health on Tuesday, there are 50,957 COVID-19 cases in the state which have led to 3,012 deaths. There are 67 cases in Lawrence County with 7 deaths; 67 cases in Mercer County with 1 death.

• New York, New Jersey, Connecticut, Massachusetts, Pennsylvania, Rhode Island and Delaware have created a regional supply chain partnership for personal protective equipment, coronavirus testing and other medical equipment. The partnership will seek out regional and American manufacturers to provide the needed equipment.

This story was originally published May 6, 2020 at 4:26 AM with the headline "DeWine: Budget cuts the result of ‘cruel nature’ of economic tumult."