More state spending cuts are possible

COLUMBUS — New sales tax statistics released by state officials aren’t pretty.

From January through May, collections were off nearly 7 percent from the same five-month period in 2008. May’s statewide collections were nearly 10 percent lower than the same month a year ago.

The results came on the heels of this month’s unemployment news — an 11.1 percent rate in June, up from 10.8 percent a month earlier and 6.4 percent in June 2008.

According to the Ohio Department of Job and Family Services, the number of unemployed workers in the state rose to 662,000 from 647,000 in May. About 279,000 Ohioans have joined the ranks in the past 12 months. The national rate for the month was 9.5 percent.

It’s those kinds of trends that have Statehouse dwellers chattering about when the next round of governmental spending cuts will occur.

Good face

Gov. Ted Strickland is still putting a good face on the biennial budget that he and lawmakers approved a few weeks back that relies on a potentially ill-fated slots plan for nearly $1 billion in revenues.

So are more cuts on the way?

“I don’t want to speculate on what might be,” the governor told reporters. “I think we have a good budget, and I am very hopeful that we will not have to face that. But if we do, we’ll do it responsibly and in a way that I think protects the essential, vital needs of our state.”

Strickland has been asked repeatedly about what will happen if the plug is pulled on video lottery terminals at Ohio’s horse racing tracks. One legal challenge on the issue is pending before the state’s high court, and more are expected.

But the governor has said repeatedly that he is confident that plan will hold up to legal challenges and move forward as planned, with a May 2010 startup.

He also said he — and not the Legislature — is the one who will make the ultimate decisions on future cuts.

“The governor will rebalance the budget if it needs rebalanced,” he said. “That’s the authority that’s given to the executive in Ohio.”

He added, “I think we have a budget that is responsible, but I will deal with whatever comes along in terms of the need to balance or rebalance the budget. I’ve done that over the last two and a half years, and I will continue to exercise my constitutional responsibility to do so going forward.”

X Marc Kovac is the The Vindicator’s Statehouse correspondent. E-mail him at mkovac@dixcom.com.