OUR THOUGHTS ON:

Ohio Ends Fiscal Year with a $2.2 Billion Surplus

State and Local Tax

By William Vohsing

According to reports from the Ohio Office of Budget and Management, Ohio closed fiscal year 2013 with a surplus of $2.268 billion. The surplus was mainly due to a positive $1.088 billion difference in actual expenditures compared to estimates and tax receipts exceeding estimates by $671million.

Comparison to Budget

Revenues: Tax receipts were $671 million greater than budget estimates for the fiscal year. Personal income tax receipts comprised the bulk of the difference, totaling $537.8 million more than budget.

Expenditures: Public Assistance and Medicaid accounted for the bulk of the variance in spending. Total spending in this category was $933 million less than budget.

Comparison to Last Year

Revenues: Tax receipts were $2.010 billion greater than fiscal year 2012. Personal income tax ($1.075 billion), CAT ($372.8 million) and sales and use tax ($357.8 million) were the main sources of revenue that exceeded prior- year receipts.

Expenditures: Spending for fiscal year 2013 was $836 million more than fiscal year 2012. Spending significantly increased in Public Assistance and Welfare ($329 million), debt service ($451.8 million) and primary and secondary education ($116.3 million).

The disposition of the ending fund balance is governed by the Ohio revised code. A carryover balance of 0.5%, or $147.8 million, will become the starting balance for fiscal year 2014. The Budget Stabilization fund will receive $995.9 million; and $963.1 million will be carried over to fiscal year 2014 to accelerate the permanent income tax cuts.

© 2013 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

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© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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