COLUMBUS, Ohio -- In a media release distributed shortly after 7 pm Wednesday, after another frustrating day of closed door meetings on how to fill an immediate hole in Ohio's budget while also devising long term solutions both parties can agree on, Senate President Bill Harris (R-Ashland) said he is willing to meet Gov. Ted Strickland "more than half way if he will pledge to put politics aside and work with us on the bigger budgetary problems that we all know are ahead of us."
But what's reasonable to Harris was characterized as not being responsible by a spokesman for Strickland, who told William Hershey of the Dayton Daily News that the package of GOP proposals "is not a responsible way to address the serious budget challenges facing the state and Ohio’s schools.” Amanda Wurst, Strickland’s spokeswoman said, "…the governor believes that the Senate has the responsibility to either put forward a realistic and responsible proposal or adopt the tax freeze, even if that means working through the weekend.”
At issue is how to fill a budget hole of more than $900 million over the remaining months of Ohio's two-year fisal year that ends June 31st. Dollar Information sent along with tonight's announcement pegs the shortfall at $911.5 million. To help plug that gap, Harris proposes to allow one-third of the scheduled income tax reduction, or $284 million, to go into effect rather than the full freeze. He also wants to use $200 million in casino licensing fees, made possible by Ohio voters approving the construction of four casinos, one each in Toledo, Cincinnati, Cleveland and Columbus. Another $30 million would come from sentencing reform savings, while amounts of $10 and $15 million would come from other reforms.
The statement from Harris said Senate Republicans, who control the upper chamber 21-12 over Democrats, continued to work to address the shortfall of about $851 million in state education funding.
He said he and his Republican caucus offered the Governor and his fellow Democrats a "reasonable compromise that addresses the shortfall in state education funding, ensures Ohio taxpayers will see approximately $280 million of the tax reduction they were promised over tax years 2009 and 2010, and takes important steps toward long-term cost savings for the state that will help in balancing the next state budget when federal stimulus and other one-time funding will not be available."
During the budget debate this spring, Republicans warned Strickland not to rely on one-time federal stimulus funds to prop up the budget because it would only lead to even harsher cuts in the next two-year budget cycle when manna from Washington dries up, and lawmakers would be faced with either cutting government down further than Strickland has already done or increasing revenues, which, as Harris emphasized again, goes against the grain of their economic policies.
“It is no secret that Senate Republicans have serious concerns about going back on the income tax cuts Ohioans are already enjoying today," Harris said, adding that he and his political cohorts "believe that allowing Ohioans to keep more of their hard-earned money during a recession should continue to be a priority for leaders in state government."
To demonstrate the size of the olive branch they have offered Strickland, Harris reiterated that he has committed to "passing sentencing reform and construction reform," proposals he said Strickland has already endorsed.
Harris, underscoring the need to find common ground in order to "address today's shortfall, but in saving state and local governments hundreds of millions of dollars in the long run," said he has delivered on the challenge made by Strickland that if Republicans didn't like what he was offering, they should present their own plan.
“The Governor told us to present our ideas. We have done that," Harris said, referring to the 28 amendments he proposes to put forward, that may or may not gain any votes from Senate Democrats. The Minority Caucus said if Harris wanted to gain their 12 votes and provide five of his own to reach the magic number of 17 to approve legislation, he would have to reach out to them. Harris countered by saying that his caucus had a Plan B that does not need a single Democrat to vote for it to pass it.
Harris encouraged Strickland to "give serious consideration to what we have put forth and rather than dismissing it out of hand, offer his constructive ideas so we can reach a truly bipartisan agreement. We owe it to the people of Ohio to work together and resolve our differences in a fiscally responsible manner.”
A draft synopsis of proposed amendments to HB 318 – the bill the Ohio House passed to fix the budget hole -- follow:
- Allow one-third of the scheduled income tax reduction to go into effect rather than freezing the full reduction
- Create a trigger mechanism by which an increased portion of or the full scheduled income tax rate reduction would occur if the Governor moves forward on VLTs, or if excess casino revenues are generated within the biennium and could be used to offset GRF
- Restores $25 million in FY 10 and $35 million in FY 11 for chartered, nonpublic schools which were disproportionately cut in the budget process
- Transfer the casino licensure fees, approved by voters as ‘state issue 3,’ into the GRF to offset current regional job program expenditures
- Grant waivers for school districts regarding unfunded mandates for all-day kindergarten and class size reductions
- Allow school districts to privatize transportation services if they choose to do so
- Provide flexibility in state report cards for school districts that failed to meet adequate yearly progress (AYP) in certain sub groups
- Allow broader use of joint purchasing by education service centers and school purchasing consortia
- Inclusion of the SB190 ROTC high school credit provisions
- Inclusion of Ohio Construction Reform Panel recommendations as drafted by DAS (draft LSC 1411-3)
- Requirement that DAS implement paperwork reduction/cost savings strategies
- Inclusion of comprehensive sentencing reforms
- Establishment of an oil & gas drilling pilot program on state-owned land at Salt Fork
- Removal of pay cut language as it is now contained in SB20
- Create of a privatization commission to study state functions that could be privatized
- Specify that future collective bargaining contracts let by the state will coincide with the state’s biennial budget timeframe
- Require that three state agencies (DNR, EDU, and ODOT) undergo performance audits
- Study a state government restructuring plan similar to those proposed in SB52 and HB25
- Study potential cost savings and economic benefits to Ohio employers and injured workers by allowing private insurance companies to compete with the BWC
- Require the Auditor of State’s Office to determine if BWC has adequate reserves compared to industry standards and to recommend rebates if an over-reserve is determined to exist
- Study cost savings which may be achieved if the state were to go to a four-day workweek
- Transfers functions of the School Employee Health Care Board to DAS and deletes GRF appropriation in EDU
- Transfer $15 million per FY from the liquor profits fund into the GRF
- Transfer $15 million per FY from the Housing Trust Fund into the GRF
- Transfer $1 million per fiscal year in total from three Public Safety education funds (83G0, 83N0, and 8440)
- Specify that the insurance settlement funds for the Lake Hope State Park lodge be used for the purpose of fixing that site
- Use half of the current scrap tire fee to provide funding to the state’s Soil & Water districts
- Ensures correct appropriation authority for the Department of Mental Health’s 408 line item.here.
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