The state is in a great financial position, with Ohio’s rating recently upgraded by Fitch Ratings Inc. (Fitch) and Moody’s Investors Service (Moody’s). In September, Fitch upgraded Ohio to AAA, its highest rating. Fitch noted the following in its decision to update Ohio’s rating:
- FY 2022 concluded with approximately $2.7 billion in operating surplus.
- State’s “rainy-day fund” remains untouched;
- The state’s action to increase the targeted balance of Ohio's rainy-day fund to 8.5 percent of prior-year general fund revenues from 5 percent; and
- Based on fiscal 2022 unaudited results, state officials now expect fiscal 2022-23 state source revenues to exceed the prior biennium by approximately $7 billion (14.3 percent).
For additional details included in the Fitch report, click here.
While economists discuss the potential for a recession, Ohio is in strong financial shape even if there is a mild or moderate recession. See analysis in Moody’s – “Stress-Testing States” – linked here.
As we head into the budget discussions, the state is in a good position to continue or accelerate the phase-in of the Fair School Funding Plan. The OASBO Legislative Committee is working to finalize talking points for districts’ use when meeting with legislators. These talking points will be finalized and released at the beginning of January. Please find additional resources for use in your advocacy linked below.
This is a pivotal time for public education in Ohio. We must work with all stakeholders, including our parents, staff, local communities leaders, legislators, and others, on the future of school funding and the continued implementation of the Fair School Funding Plan. As noted in a separate Advocacy eNews article, it is extremely important to contact your local legislators now to establish (or re-establish) a relationship to further these initiatives, as well as to inform discussions as we head into the biennium budget.
Resources:
- Fitch upgrades Ohio to AAA - report linked here
- Moody’s upgrades Ohio’s credit outlook – report linked here
- OpEd for local paper - click here
- Letters to community/stakeholder groups - click here
- Talking points for HB 290 (“Backpack Bill”) - click here
- Testimony template - click here