Showing posts with label Ohio budget. Show all posts
Showing posts with label Ohio budget. Show all posts

Thursday, December 03, 2009

GOP lawmakers give Gov. Strickland a choice: Cut a deal with us or cut education funding


GOP lawmakers give Gov. Strickland a choice: Cut a deal with us or cut education funding

December 1, 4:02 PMColumbus Government ExaminerJohn Michael Spinelli
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William G. Batchelder, House
Minority Leader (Photo/Ohio House)

COLUMBUS, Ohio -- The Republican president of the Ohio Senate, who said yesterday that he needs more convincing by Ohio Gov. Ted Strickland and allied Democrats on details related to renewal of a popular technology fund before he can endorse it to voters, was joined Tuesday by House Republican Leader William Batchelder of Medina, who said he also needs more time to learn whether a plan being proposed by House Democrats to renew the Third Frontier diverges significantly from past practices in a way that could further hurt the state's debt position or its credit rating.

Batchelder, Harris, GOP allies try to corner Strickland on budet fix

“It has come to our attention that for more than half a year the House Democrats have been drafting, working and reworking with their possible contributors on an arbitrary rewrite of the Third Frontier program," Batchelder (R-69th) said in prepared remarks.

Batchelder, a long-time fiscal conservative who returned to the House in 2007 after previously logging 30 years there and who could easily culminate his political career by becoming the next House Speaker if Republicans take back next year the few seats they lost in 2008, complained of the sparse time he and his caucus were given to fathom the ramifications of the bill before it comes to a vote.

He said Republicans are "uncertain of the details within the Democrat proposal, since we have not received it" and commented that the skeleton outline minority party members received "differs significantly from the original Third Frontier proposal," a high-tech funding initiative created by former two-term Gov. Bob Taft.

Batchelder, whose conspicuous eyeglasses are as much a part of his distinctive style as rock 'n roll legend Buddy Holley's black rimmed glasses were to him, said the original proposal for the Third Frontier program was a $1.6 billion dollar investment over 10 years with an average of $160 million per year and several sources of funding including a $500 million bond issuance, tobacco settlement money, General Revenue Fund (GRF) and excess liquor profits.

He said the current proposal calls for twice the bonds in half the time. He noted that $1 billion over five years produces an average cost of $200 million per year. "This is a departure from the original balanced proposal that bears further scrutiny," Batchelder said.

Batchelder said that to fully expose all ramifications of this critical proposal as it stands today, he and his caucus need more time to study and consult with bond counsel. Echoing a talking point from comments Senate President Bill Harris made yesterday that included concern for Ohio's debt payment burden and appetite by voters to take on yet more debt, Batchelder said he is "committed to protecting Ohio’s bond rating" and expressed worry about Ohio's credit rating taking another hit due to an unbalanced budget he laid squarely at the feet of Strickland, and by extension, his Democratic allies in the legislature.

He said that as soon as "the majority party provides us with the details of their proposal," he and his GOP caucus will "work across party lines just as we did with the extension of COBRA benefits in the transportation budget earlier this General Assembly.”

As Batchelder joins Harris in a political pincer movement against Strickland and colleagues, it came as no surprise that two Republican State Senators, Tom Niehaus of New Richmond and Bill Seitz of Green Township, told the Cincinnati Enquirer in an editorial board meeting Monday that Gov. Strickland can "either cut a deal with Ohio Senate Republicans to fill an $851 million budget hole in December or risk having to slash public education funding in a year when he is running for re-election."

Seitz, Niehaus give Strickland a Hobson's Choice: Cut a deal with us or cut education funding

To fill this yawning budget hole, Strickland wants to suspend the final year of a five-year cut in personal income taxes, a choice supported by his Democratic allies in the legislature and by an odd-couple assortment of business groups who normally follow the lead of GOP-centric interests.

Seitz and Niehaus told Enquirer staff that they are willing to give Strickland two-thirds of the tax-cut freeze he and supports have chosen as the best of a bad set of choices to fix this budget hole.

"We offered this as an alternative, expecting a discussion and instead it produced a hissy fit on the part of the governor,'' said Seitz, who is known for his rapier wit and ability to translate a complex issue into layman's language. "The governor said it would be his plan or nothing."

But the big problem Seitz and Niehaus have is that their own plan lacks enough support from their own majority caucus (21-12) to pass. For it to pass, all 12 Democrats would have to vote for it and that is beyond even fantasy.

The standoff between Strickland and legislative Republicans cannot last forever, for various reasons. One of those reasons, as articulated by Seitz and Niehaus, is that after Dec. 31, Strickland's tax cut plan turns into a pumpkin again, as it will be impossible under state law for Strickland to delay the scheduled income tax break. Then, the two said, Strickland would likely have to cut state funding for public education by 10 to 15 percent.

"I think we will come to an agreement, because (Strickland) doesn't want to have to do a 10 percent cut to schools when he's trying to run for re-election as the 'education governor,''' Seitz told the Enquirer editorial board.

For his part, a spokeswoman for Strickland told Howard Wilkinson that "the governor's door is open to any reasonable and realistic proposal.'' But for what Seitz and Niehaus are proposing, the word from Strickland is that it "does not qualify" because it "spends money we do not have".

Follow me on Twitter @ohionewsbureau. Read more stories on Ohio people, politics and government here.

Wednesday, November 18, 2009

Senator Harris offers Ohio Gov. Strickland 28 ideas for short, long term budget fixes


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:

  1. Allow one-third of the scheduled income tax reduction to go into effect rather than freezing the full reduction
  2. 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
  3. Restores $25 million in FY 10 and $35 million in FY 11 for chartered, nonpublic schools which were disproportionately cut in the budget process
  4. Transfer the casino licensure fees, approved by voters as ‘state issue 3,’ into the GRF to offset current regional job program expenditures
  5. Grant waivers for school districts regarding unfunded mandates for all-day kindergarten and class size reductions
  6. Allow school districts to privatize transportation services if they choose to do so
  7. Provide flexibility in state report cards for school districts that failed to meet adequate yearly progress (AYP) in certain sub groups
  8. Allow broader use of joint purchasing by education service centers and school purchasing consortia
  9. Inclusion of the SB190 ROTC high school credit provisions
  10. Inclusion of Ohio Construction Reform Panel recommendations as drafted by DAS (draft LSC 1411-3)
  11. Requirement that DAS implement paperwork reduction/cost savings strategies
  12. Inclusion of comprehensive sentencing reforms
  13. Establishment of an oil & gas drilling pilot program on state-owned land at Salt Fork
  14. Removal of pay cut language as it is now contained in SB20
  15. Create of a privatization commission to study state functions that could be privatized
  16. Specify that future collective bargaining contracts let by the state will coincide with the state’s biennial budget timeframe
  17. Require that three state agencies (DNR, EDU, and ODOT) undergo performance audits
  18. Study a state government restructuring plan similar to those proposed in SB52 and HB25
  19. Study potential cost savings and economic benefits to Ohio employers and injured workers by allowing private insurance companies to compete with the BWC
  20. 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
  21. Study cost savings which may be achieved if the state were to go to a four-day workweek
  22. Transfers functions of the School Employee Health Care Board to DAS and deletes GRF appropriation in EDU
  23. Transfer $15 million per FY from the liquor profits fund into the GRF
  24. Transfer $15 million per FY from the Housing Trust Fund into the GRF
  25. Transfer $1 million per fiscal year in total from three Public Safety education funds (83G0, 83N0, and 8440)
  26. Specify that the insurance settlement funds for the Lake Hope State Park lodge be used for the purpose of fixing that site
  27. Use half of the current scrap tire fee to provide funding to the state’s Soil & Water districts
  28. Ensures correct appropriation authority for the Department of Mental Health’s 408 line item.here.

Follow me on Twitter @ohionewsbureau. Read more stories on people, politics and government in Ohio here.