Tax collections exceeded forecasts by about $32 million in December, bringing the FY23 surplus past half a billion dollars ahead of Gov. Mike DeWine’s introduction of his next budget proposal in a few weeks, according to preliminary data from the Office of Budget and Management (OBM).
Strong income tax and Commercial Activity Tax (CAT) collections offset a slight miss in sales tax revenues to bring total collection in 1.4 percent ahead of estimates. For the fiscal year so far, tax collections are up $510.3 million or 3.8% versus estimates, reaching almost $14 billion.
The income tax generated $1.03 billion versus estimates of $997.6 million, a performance 3.9% or $39 million over forecasts.
The CAT yielded $15.8 million versus $12.3 million expected.
Kimberly Murnieks , director of OBM, described Ohio as being in a strong position headed into the next biennium but said the administration is taking a cautious and conservative approach given economic uncertainty. The Budget Stabilization Fund, aka Rainy Day Fund, was topped off again recently in 134-HB45 (West-Roemer), she noted.
As of the November financial report, published in early December, OBM has used $553.8 million of the $1.5 billion authorized in the capital budget, 134-HB687 (Oelslager), for cash spending on capital projects. Given higher interest rates, that use of cash is estimated to save about $250 million in interest costs.