We have been curious about Governor Kasich’s $2 Billion “rainy day” fund, and how he has impacted Lake County. We wrote in a previous post that Governor Kasich reduced the amount of State funding for Local Government funds. Since 2009, Lake County has experienced a $70 million decrease in State funding that required increases in local taxation.
We were reviewing the State of Ohio’s FY 2016 financial report and uncovered these facts:
Here is a page from the State’s FY 2016 Financial Report:
State of Ohio FY 2016 Balance Sheet
- The State had a $9.09 billion deficit in “unrestricted government activities”.
- Of the $9.09 billion deficit, $8.08 billion is bond debt issued for future construction projects not yet completed.
- There is an unfunded pension liability for State employees of $3.8 billion.
- The State’s Budget Stabilization Fund (Rainy Day Fund) balance of over $2 Billion in included in the “unrestricted government activities”. [$8.08 + $3.8 – $2.0 = ~$9.09]
(Comment: When I hear that we have a balanced budget from politicians, I take it with a “grain of salt”. To me when you show a negative balance in the “unrestricted” position that is not balanced. Perhaps it is just “government math”….as a friend once told me: “You just do not understand government math”…….maybe he is right. However, I raise a warning flag to all citizens about the looming crisis of unfunded pension liabilities through-out our state, local governments, and public schools.)