States are adjusting their budget projections as the best hiring stretch in five years is helping states narrow budget gaps after two of the toughest years in decades, according to a national report released Thursday.
The National Governors Association and the National Association of State Budget Officers say tax revenue will increase 2.1 percent to $655.6 billion in the next budget year, which for Ohio and most states begins July 1. That would follow a projected 5.9 percent increase for the 2011 budget year.
Ohio’s recovery lags many other states. Ohio’s monthly financial report for May showed tax receipts up 6.1 percent but other revenue estimates down 5.5 percent. Overall, the state is 1.9 percent or $430.2 million ahead of revenue projections.
The economic recovery is “painfully slow,” said Dave Pagnard, spokesman for Ohio’s Office of Budget and Management. Because of the many unknowns, like the unemployment rate and oil prices, “The rosy scenario might not hold up,” Pagnard said.
A more complete picture for the state will emerge in about two weeks when new projections are provided to a House-Senate conference committee that will hammer our a compromise version of the state budget.
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