Public Policy Advocates

Office of Budget and Management Director Pari Sabety and Tax Commissioner Rich Levin testified before the Senate Finance committee Thursday regarding the recent announcement that the state’s tax receipts for the month of April were almost $600 million short of estimates.  The Senators tried to ascertain how it was possible that receipts were so far below estimates. 

Commissioner Levin explained that since the Ohio Income Tax was established in 1971, the total dollars received by the state has increased every year except 1986, when revenues decreased by less than 4%.  Commissioner Levin and Director Sabety went on to explain that they had projected historic shortfalls, and had predicted a decrease of 9.4% from last year, almost three times greater than the worst year on record, 1986.  However, even these very pessimistic projections didn’t come close to the actual receipts, which fell by over 15%.