Economic impact of education cuts in the Kasich budget proposal: An inputoutput analysis
The $2 billion in cuts to Ohio’s primary, secondary and higher education proposed in House Bill 153, the biennial budget bill for fiscal years 2012-13, may be expected to eliminate 47,291 jobs across the public and private sector as the economic impact sweeps through suppliers and local businesses. Policy Matters Ohio commissioned a study of the direct, indirect and induced impact of the cuts to education that are proposed in Ohio’s biennial budget for fiscal years 2012 and 2013. Public schools are labor intensive, so spending cuts go directly to payroll. The proposed cut of $1.821 billion to primary and secondary education (as compared to funding levels of 2011) will result in the loss of 29,133 direct jobs. As schools cut purchases from suppliers, another 1,835 jobs will be lost. As laid-off workers spend less on household purchases, 12,387 more jobs will vanish from grocery stores, day care centers and restaurants. In total, the economic impact of the proposed spending cuts to K-12 education will destroy 43,355 jobs. This is in addition to drastic quality reductions to one of the most critical services society provides for the next generation.