With the recent approval of the American Recovery and Reinvestment Act of 2009, Ohio will receive approximately $326 million of the $920 million for general government operations Gov. Ted Strickland (D) planned for his budget.
The Ohio Office of Budget and Management is still in the process of analyzing the $787 billion Recovery Act, which provides at least $8.2 billion for Ohio. Strickland spokesman Amanda Wurst said that provisions elsewhere in the act will free up state revenue and make up for the shortfall in the general operations funding.
The stimulus package provides Ohio with $3 billion in Medicaid reimbursements and $1.5 billion for education.
According to Wurst, the Medicaid and education funding will "allow Ohio to use state revenues in other ways."
Wurst said the governor is generally satisfied with the bill and its investments in Ohio.
"The stimulus resources will enable Ohio to make targeted investments in the critical sectors of our economy that will create and grow jobs," Strickland said in a Feb. 17 statement from his office.
April Corbett, spokesman for Ohio House of Representatives Minority Leader William Batchelder (R-Medina) said Republicans look forward to working with the governor to find a solution.
"The reliance on one-time funding was always a concern," Corbett said. "(But Batchelder has) all the confidence that the governor will balance the budget as constitutionally required."
According to the office of Sen. Sherrod Brown (D-OH), the bill is expected to create or save at least 133,000 Ohio jobs and provide some tax relief to 4.53 million Ohio workers.
In a Feb. 12 news release, Brown said infrastructure investment would be responsible for saving many of the jobs.
"(The bill) includes investments in Ohio's infrastructure which will provide immediate job creation and promote long-term economic development," Brown said in the release.
Brown was flown to Washington on a government plane Feb. 13 to cast the deciding vote to pass the bill.
The money for Medicaid, education and general government operations is part of $4.8 billion Ohio is receiving from the state fiscal stabilization fund for which Brown was a strong advocate.
In a Feb. 10 letter to members of the U.S. Senate conference committee for the bill, Brown cited a "substantial drop in the revenue states depend on for day-to-day operations" as a reason for giving more money to the states.
"Our national economic recovery hinges on state economic recovery," Brown said in the letter. "We cannot ignore the latter and expect to achieve the former."
According to estimates by the Federal Funds Information for States and the General Accounting Office, the stimulus plan includes $1.5 billion for Ohio infrastructure, an additional $981 million for education, $597 million for health and human services, $399 for energy and $75 million for law enforcement.
