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National Group Find Benefits in Using Leftover Ohio Rainy Day Funds

photo of Gov. Kasich rainy day funds
KAREN KASLER
/
STATEHOUSE NEWS BUREAU

There’s been a lot of discussion about when or if to use the $2 billion in the state’s rainy day fund. A national group has studied the impact of using rainy day funds in budget crises.

Ohio’s tax collections are $773 million below estimates for this fiscal year. The Pew Charitable Trusts looked into what might happen to a state’s credit rating when revenues are short. Jonathan Moody with Pew said in a scenario like Ohio’s when the rainy day fund was used, there was not only no credit rating hit, but the chances of a downgrade decreased.

“Lawmakers shouldn’t be afraid to tap their reserves during a period of downturn if that’s what the reserve is for, and as long as they’re taking the other steps that they should to try to mitigate the effects of a downturn,” he said.

Moody says those steps vary, but likely would include spending cuts or tax increases.

Karen is a lifelong Ohioan who has served as news director at WCBE-FM, assignment editor/overnight anchor at WBNS-TV, and afternoon drive anchor/assignment editor in WTAM-AM in Cleveland. In addition to her daily reporting for Ohio’s public radio stations, she’s reported for NPR, the BBC, ABC Radio News and other news outlets. She hosts and produces the Statehouse News Bureau’s weekly TV show “The State of Ohio”, which airs on PBS stations statewide. She’s also a frequent guest on WOSU TV’s “Columbus on the Record”, a regular panelist on “The Sound of Ideas” on ideastream in Cleveland, appeared on the inaugural edition of “Face the State” on WBNS-TV and occasionally reports for “PBS Newshour”. She’s often called to moderate debates, including the Columbus Metropolitan Club’s Issue 3/legal marijuana debate and its pre-primary mayoral debate, and the City Club of Cleveland’s US Senate debate in 2012.