New budget forecast grim; OCSEA leaders brace for news

May 15, 2009 - Another massive budget hole for the current fiscal year has OCSEA leaders on edge as budget discussions wrap up and the state Senate finishes up work on its version of the budget.

While the Ohio House version passed in late April has
few damaging funding cuts to state services and OCSEA members, new budget projections are anticipating at least a $1 billion shortfall for FY 2009 and as much as $3 billion for FY 2010-2011 that will have to be made up somehow.

Speculation is rampant about how Gov. Ted Strickland will fill the gap, but many assume the Rainy Day Fund will be used, which will leave a gaping hole in the House and Governor’s proposed budget for the next biennium. Strickland had proposed using most of the Rainy Day Fund for the 2010-2011 budget along with other one-time money from the federal stimulus.

But if the Rainy Day Fund is tapped now, the question becomes how will the next biennium budget make it up.

Officeholders on both sides of the aisle are warning that it is likely that cuts will again have to be made to state government since both parties agree that raising taxes is not in the best interest of Ohioans right now.

How those cuts will shake out is anyone’s guess, but the deficit will likely set the stage for a knockdown, drag out fight in conference committee.

Union leaders said those cuts should not come from the rank and file. “OCSEA and allies of public services believe that cutting essential services would not be in the best interests of Ohioans,” said OCSEA Pres. Eddie L. Parks.

“As we’ve said time and again, we gave at the office,” said Parks of talk about further cuts. “Not only will our contract save $250 million over the next two years, but joint labor/management cost savings committees in nearly every agency are working around the clock to come up with ways to save,” he added.

In ODJFS, a joint labor/management committee recommendation has the agency moving forward with office consolidations that will merge seven facilities into existing worksites. The move will save in lease costs, utilities and upkeep.

In DR&C, OCSEA leaders and management are looking at ways to save money by merging the private DUI facility, NCCTF, into Grafton Correctional Institution.

In DYS, a cost saving group has made recommendations to bring down medical costs in that agency.

“As jobs continue to shrink in Ohio and credit markets dry up, there is little good news for the average Ohioan right now. But downsizing state government and eliminating safety net services would be the nail in the coffin for struggling families,” said Parks.

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