The committee working out the differences between the House and Senate versions of the state budget now has updated estimates on tax revenues and Medicaid. Those numbers were higher than estimates, but they came with a caution.
The Office of Budget and Management estimates $709 million more in tax revenues above the original forecast, but budget director Tim Keen says after payments to the federal government for unemployment benefits, transfers to the rainy day fund and other issues are paid, there will only be about $397 million extra to do more tax cuts or spending.
“We will have to carefully review the policy choices that we make in order to ensure that we maintain an appropriate structural balance,” says Keen.
The House budget has a 7% income tax cut – the Senate version has a 50% small business tax cut. Conference committee co-chair Ron Amstutz, a Republican of Wooster, says the warning from Keen was received.
“It’s going to be probably a more modest package than simply adding the two together,” says Amstutz.
Amstutz hopes the committee will have recommendations early next week. The deadline is July 1.