Gov. Mike DeWine announced Ohio’s Rainy Day Fund (RDF) has reached a balance never seen before in the fund’s history and has a cash balance of nearly $3.5 billion.
The Ohio Office of Budget and Management (OBM) Tuesday transferred $727 million into the fund to reach the historic number.
The fund, which is a reserve balance set aside to protect the state budget from cyclical changes in revenues and expenses that may occur during poor economic times, is capped at 8.5 percent of General Revenue Fund revenues. The transfer into the fund made Tuesday was authorized by the General Assembly in 134-HB45 (West-Roemer).
"The placement of this money in the Budget Stabilization Fund is sound fiscal policy," said Senate President Matt Huffman (R-Lima). "The release of several trillion dollars into the economy in the last two years will ultimately result in inflation. The state of Ohio must be prepared for the inevitable consequences. Raising taxes will not be the solution. Having this fund will allow the state to continue needed services."
"Taxpayers can rest assured knowing that the state of Ohio’s budget is balanced and our conservative approach to fiscal management is providing strong returns. This transfer ensures our long-term stability and provides us with the ability to meet citizen needs in times of future uncertainty,” said Kimberly Murnieks, OBM director and chief financial officer for the state.