“We are delivering on our promises to Ohioans with conservative management and sound budgeting,” DeWine stated in a release. “Businesses and investors can be assured that Ohio’s finances are in order, and we are planning for the long term. Filling up our rainy day fund is another way that we are showing strong results for our citizens.”
The Ohio Budget Stabilization Fund is a reserve balance that is set aside to protect the state budget from cyclical changes in revenues and expenses that may occur during poor economic times. Ohio law caps the Budget Stabilization Fund at 8.5% of General Revenue Fund revenues.
“Balanced budgets and saving for a rainy day are foundational elements of running a responsible government,” Husted stated. “We are growing the Ohio economy, and as a result of that growth, we have been able to fund state government, cut taxes and balance the budget.”
The financial outlook also led to recent positive rating actions from two prominent credit rating agencies. Fitch Ratings increased Ohio’s long-term Issuer Default Rating to “AAA” and Moody’s Investors Service elevated its outlook to “Positive” on Ohio’s “Aa1″ Issuer rating.
“This transfer ensures our long-term stability and provides us with the ability to meet citizen needs in times of future uncertainty,” said Kimberly Murnieks, the director of the Office of Budget and Management and Chief Financial Officer for the state.
To learn more about the Budget Stabilization Fund, visit obm.ohio.gov.
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