Ohio’s budget basics

According to the National Association of State Budget Officers (NASBO), Ohio’s total expenditures in fiscal year (FY) 2022 were $90.0 billion, including general funds, other state funds, bonds, and federal funds. NASBO reported that total expenditures across all states in FY 2022 were $2.9 trillion, ranging from $5.6 billion in Wyoming to $510.0 billion in California.

Each state allocates spending and taxes differently among different levels of governments, and local governments often administer programs with state funds, so combined state and local government data show a more complete picture of individual benefits and contributions when comparing states.

Per the US Census Bureau, Ohio’s combined state and local direct general expenditures were $120.9 billion in FY 2021 (the most recent year census data were available), or $10,274 per capita. (Census data exclude “business-like” activities such as utilities and transfers between state and local governments.) National per capita direct general expenditures were $11,087.

(Note: We cite data from both NASBO and Census to provide a broader picture of each state’s fiscal situation. However, these sources detail spending from different levels of government in different years, and the COVID-19 pandemic and the federal government’s response to it significantly affected these totals in different ways in different years. Please only use one source if you are looking for historical comparisons.)

Ohio’s largest spending areas per capita were public welfare ($2,976) and elementary and secondary education ($2,331). The Census Bureau includes most Medicaid spending in public welfare but also allocates some of it to public hospitals. Per capita spending is useful for state comparisons but is an incomplete metric because it doesn’t provide any information about a state’s demographics, policy decisions, administrative procedures, or residents’ choices.

Ohio’s combined state and local general revenues were $131.6 billion in FY 2021, or $11,190 per capita. National per capita general revenues were $12,277. Ohio does not levy a corporate income tax but reports some revenue because it has a special tax on financial institutions. Ohio’s main business tax is its gross receipts tax. (Census counts gross receipts tax revenue as general sales tax revenue or selective sales tax revenue.) After federal transfers, Ohio’s largest sources of per capita revenue were property taxes ($1,552) and charges ($1,530), such as state university tuition and highway tolls.

Ohio’s politics

Governor Richard Michael DeWine, a Republican, was elected in 2022 with 62 percent of the vote. The next gubernatorial election is in 2026.

Republicans control both the House of Representatives (67 Republicans to 32 Democrats) and Senate (26 Republicans to 7 Democrats), with veto-proof majorities in both houses. Control of the governor’s mansion and each house of the legislature gives Republicans a trifecta in Ohio. All Ohio House seats are on the ballot in 2024 because representatives serve two-year terms. Senators serve four-year terms; roughly half the senatorial seats are on the ballot in 2024, and the other half will be up for election in 2026.

Ohio’s budget institutions, rules, and constraints

Ohio uses a biennial budget. The legislature must pass a balanced budget, but it can carry a deficit over into the following year. Ohio further limits spending growth with a budget rule based on the previous year’s spending, inflation, and population growth. The rule is binding and requires a two-thirds legislative supermajority to override it. Ohio also limits total authorized debt and debt service incurred by the state.

(Note: Some states have informal budget institutions that constrain overall spending growth or a specific expenditure’s growth.)

Ohio’s current budget

Governor DeWine released his FY 2024-2025 biennial budget proposal and gave his state of the state address in January 2023.

Ohio enacted its FY 2022-2023 biennial budget in June 2021. The enacted budget included $80.8 billion in total spending for FY 2022 and $81.1 for FY 2023. Ohio passed a series of tax cuts in calendar year 2021, including lowering the state’s top individual income tax rate from 4.797 percent to 3.99 percent.

Under the American Rescue Plan, Ohio will receive $5.4 billion in direct state fiscal aid and $4.4 billion in local government aid from the federal government. As of January 2022, Ohio had spent part of its ARP funds on unemployment insurance, capital construction, and public health programs.

According to NASBO, Ohio’s recent expenditure totals (general fund spending/total spending, including federal transfers) were:

• FY 2022: $23.9 billion/$90.0 billion
• FY 2021: $22.9 billion/$81.2 billion
• FY 2020: $22.5 billion/$74.6 billion
• FY 2019: $22.8 billion/$71.0 billion

For more on Ohio’s budget, see

• the Ohio Office of Budget and Management,
   
• Ohio’s Interactive Budget,
   
• the Ohio Treasurer, and
   
• the Ohio Legislative Service Commission.

Ohio’s economic trends

Ohio’s per capita income (per the Bureau of Economic Analysis) was $57,880 in 2022, ranking 34th among the states. It was below both the national average of $65,423 and the Great Lakes regional average of $59,346. The state’s median household income (five-year estimate) was $61,938 in 2021, ranking 36th among the states and below the national average of $69,021. Ohio’s poverty rate was 13.4 percent in 2021 (five-year estimate), above the national rate of 12.6 percent.

Although Ohio’s averages tell a story about the entire state, Ohio is composed of diverse localities. For example, the city of Warren’s median household income was $30,377, and its poverty rate was 34.6 percent; the city of Dublin’s median household income was $145,828, and its poverty rate was 1.9 percent.

Ohio’s unemployment rate historically tracks the national average.

Unemployment rates (like other economic indicators) often vary significantly by race and ethnicity. In Ohio, the average unemployment rate in 2022 was 3.4 percent for white residents, 7.1 percent for Black residents, and 4.4 percent for Hispanic or Latino residents.