Ohio’s capital budget process takes place every two years. The state’s new capital budget will be unveiled in April and many expect it to boast nearly $2 billion in appropriations. Unfortunately, many also estimate that approximately $150 million of that budget will be set aside to fund local pet projects—otherwise known as pork.
Governor Kasich proposed an increase to Ohio’s severance tax on horizontal oil and gas drilling in his fiscal year (FY) 2016-2017 executive budget. This report briefly corrects four commonly held misconceptions about the impact of the severance tax proposal, in order to guide policymakers toward a better policy for Ohio’s economy.