Ohio: State Budget News and Discussion

Posted March 15, 201114 yr

This story also has pdf links to three budget documents:

Kasich's budget slashes aid to local goverments, libraries

Tuition hikes limited for higher education

Tuesday, March 15, 2011 11:10 AM

Updated: Tuesday, March 15, 2011 02:05 PM

By Jim Siegel and Alan Johnson

The Columbus Dispatch

Local governments would see a cut of 25 percent per year and state colleges and universities would be limited to 3.5 percent tuition increases under Gov. John Kasich's new two-year budget.

That move would cost counties, municipalities and townships $167.1 million the first year and $388.2 million starting in the second year. Kasich said those governmental units will get money back by sharing services and relief from the state on such issues as requirements to pay prevailing (union) wages.

Meanwhile, 400 school districts are expected to see increases in state-generated funding.

March 15, 201114 yr

Here's a link to all of the budget documents:

http://obm.ohio.gov/SectionPages/Budget/FY1213/ExecutiveBudget.aspx

March 15, 201114 yr

Updated Dispatch story....

Kasich's budget slashes aid to local governments

Tuition hikes limited to 3.5% for higher education

Tuesday, March 15, 2011 11:10 AM

Updated: Tuesday, March 15, 2011 03:50 PM

By Jim Siegel, Darrel Rowland and Alan Johnson

The Columbus Dispatch

Local governments would see a cut of 25 percent per year and state colleges and universities would be limited to 3.5 percent tuition increases under Gov. John Kasich's new two-year budget.

That move would cost counties, municipalities and townships $167.1 million the first year including an estimated $5 million for Columbus and $388.2 million starting in the second year, when the full 50 percent reduction would take effect.

For example, Circleville, which received $687,000 from the state's local government allocation last year, budgeted for $638,000 this year, or about 13 percent of its overall total. The real number under the state budget would total $515,000, with a drop to $343,000 the following year.

March 16, 201114 yr

Deep cuts, privatization fill Kasich’s first budget

He is reducing aid to cities and selling several state assets.

By Laura A. Bischoff  and Christopher Magan, Staff Writers

Updated 6:14 AM Wednesday, March 16, 2011

COLUMBUS — Gov. John Kasich’s two-year, $55.5 billion operating budget calls for cutting funding for local governments, capping college tuition increases, refocusing the massive Ohio Medicaid program, selling off five state prisons, and injecting more choices in how K-12 schools are run.

The spending plan, which must be approved by the General Assembly by June 30, does not include tax increases.

“This budget is woven with one reform after another. It is, I would guess, the most reform-oriented budget in modern Ohio history,” Kasich said.

But while Kasich and his supporters praised the reforms, his critics derided them.

Graphics at: http://www.daytondailynews.com/news/ohio-news/deep-cuts-privatization-fill-kasichs-first-budget--1109000.html?bigName=&bigPhotog=&bigCap=&bigDeclCap=&bigCred=&bigUrl=http%3a%2f%2fwww.ohio-share.coxnewsweb.com%2fmultimedia%2fdynamic%2f00891%2fbudgetoverviewgdC2_891392c.jpg&superSizeImage=y

http://www.daytondailynews.com/news/ohio-news/deep-cuts-privatization-fill-kasichs-first-budget--1109000.html?bigName=&bigPhotog=&bigCap=&bigDeclCap=&bigCred=&bigUrl=http%3a%2f%2fwww.ohio-share.coxnewsweb.com%2fmultimedia%2fdynamic%2f00891%2fbudgetoverviewgdC_891449c.jpg&superSizeImage=y

March 16, 201114 yr

Kasich plan: Budget cuts, program restructuring

Written by Jon Craig

10:44 PM, Mar. 15, 2011|

COLUMBUS — For weeks, Gov. John Kasich

threatened to call for state budget cuts that

no one would be happy about.

Only a handful of state agencies and public

advocacy groups complained Tuesday after

Kasich introduced his first two-year

budget, but many details remain elusive.

Kasich’s top advisers sidestepped

questions about annual spending

increases.

Calling his budget plans a work in

progress, Kasich promised more ideas for

profit-making endeavors – including

privatizing management of the Ohio Lottery

Commission – as state legislators begin to

review and balance the budget by June 30.

March 16, 201114 yr

Closing an $8 billion gap.. at what cost to you?

By Stephanie Warsmith

Beacon Journal staff writer

Published on Wednesday, Mar 16, 2011

COLUMBUS: Gov. John Kasich introduced his much anticipated and feared two-year state budget Tuesday that — as promised — included sweeping changes to fill an $8 billion shortfall.

His proposals include selling five Ohio prisons, cutting funding to local governments, revamping Medicaid, doubling the number of vouchers to send children to private schools, lifting the cap on charter schools and leasing the Division of Liquor Control to help pay for the new, private JobsOhio economic development program.

Kasich also wants to give parents and teachers the opportunity — with a majority vote — to take over underperforming schools.

''This budget is woven on one reform after another,'' he said during a news conference attended by about 40 journalists from news organizations across the state. ''It's the most reform in a budget in Ohio history.''

March 16, 201114 yr

Fantastic! No new taxes. Wait.... how are the local governments going to fill their budget shortfalls now that state aid is cut in half?

March 16, 201114 yr

Local government leaders slam plan

Cumulative impact of funding cuts will be onerous, officials contend

Wednesday, March 16, 2011 03:09 AM

By Doug Caruso, Elizabeth Gibson and Randy Ludlow

THE COLUMBUS DISPATCH

Cities and counties, villages and townships take a disproportionate hit in Gov. John Kasich's proposed budget, local government leaders said yesterday.

The two-year budget would cut state funding for local governments about 25 percent in the first budget year, starting on July 1, plus another 25 percent approximately in the second year. In all, the Kasich budget would cut $555.3 million in local-government funding through June 30, 2013.

For Columbus, the state's largest city, that would be a hit of about $5 million this year, $15 million in 2012 and $20 million in 2013.

March 16, 201114 yr

How much, on average, of a city or municipality budget is made up of state aid?

For example, the numbers at Columbus, reductions of $5 mill this year & $15 mill next year, what % is that of their entire budget?

I'd be interested to see the numbers for all the large cities in Ohio if anyone knows or has access...

March 16, 201114 yr

It depends. The smaller and more rural the city, the more likely it relies on state aid. I have absolutely no problem privatizing liquor control and the lottery. Privatizing prisons seems like a bad idea all around.

March 16, 201114 yr

It is also highly relevant how that money is spent. In a lot of communities, for example, state aid is used to prevent safety force layoffs. This will likely have to be done through operating budget levies if Kasich gets his wish.

March 16, 201114 yr

^and forcing communities to actively engage in more shared services

March 16, 201114 yr

^and forcing communities to actively engage in more shared services

I didn't get a chance to listen to long today, but Ed Fitzgerald was on Sound of Ideas this morning discussing the effect of the budget, and he indicated that he saw sharing services as one of the cost saving measures he was going to have to advocate heavily for in order to cut expenses.

http://www.ideastream.org/soi/entry/39072#

March 16, 201114 yr

Hopefully these shared services are a precursor to consolidations. Otherwise we're cutting Indians but leaving all the Chiefs in place.

March 16, 201114 yr

Fantastic! No new taxes. Wait.... how are the local governments going to fill their budget shortfalls now that state aid is cut in half?

By layoffs and service reduction. And SB 5 will give local governments the upper hand in dealing with their public employee unions, which could help contain personnel costs.

Or they could put on new tax levys, which puts the decision on how much local government people want in the peoples laps, via referenda.

I am actually starting to like Kaisich, after that 3-C stupid move.

March 16, 201114 yr

^and forcing communities to actively engage in more shared services

As 327 hits at above, if that results in joint fire districts and the like, with a consolidation at the top, I would be all for it. If it means that 20 cops will be patroling Cleveland Hts and South Euclid, as opposed to 15 cops on each beat, I would not be. Similarly, I can also see this leading to massive increases in classroom sizes in school that already have overcrowded classrooms. But, hey, as long as Preston Wellington III doesn't have to worry about a tax on father's estate, I guess that makes everything all wight.

March 16, 201114 yr

Kasich's budget

GOV. John Kasich labels his new spending plan a "jobs budget" that he says will transform Ohio for growth while addressing what he calls state government's gravest fiscal crisis "in our lifetime."

But the two-year, $55.5 billion general fund budget Mr. Kasich proposed Tuesday seeks to close the state's $8 billion revenue gap largely by shifting the problem to local governments and school districts. While he demands sacrifices from poor, disabled, and elderly Ohioans who depend most on basic public services, he wants to maintain unbalanced tax cuts that the state cannot afford just now. As lawmakers consider the governor's proposal, they must resolve to improve it.

Mr. Kasich's plan would slash the Local Government Fund by 25 percent in the fiscal year that begins July 1, and by an additional 25 percent the following year. The state would reduce other payments to local governments and school districts, just as they face the end of federal stimulus aid administered by the state. It would divert more public-school aid to voucher programs and charter schools.

Read full editorial at: http://www.toledoblade.com/Editorials/2011/03/16/Kasich-s-budget.html

March 16, 201114 yr

Or they could put on new tax levys, which puts the decision on how much local government people want in the peoples laps, via referenda.

Or it puts more of a burden on each municipality for its own public services, which hurts the poorer cities and helps the wealthier ones. Which fits in perfectly with Kasich's other actions.

March 16, 201114 yr

Well, the population, and political power, is going to the suburbs, which is Kasichs constituency.

Or it puts more of a burden on each municipality for its own public services, which hurts the poorer cities and helps the wealthier ones.

If a muncipality really can't afford to offer the full range of services it needs to cut services, or even surrender its charter and de-incorporate, shifting the services burden onto counties, which sort of is a back-door way into consolidation and streamlining.

March 16, 201114 yr

Having a charter or not having a charter does not determine whether your services come from the county.

March 16, 201114 yr

wow, this going to be a painful couple of years

March 16, 201114 yr

Well, the population, and political power, is going to the suburbs, which is Kasichs constituency.

Or it puts more of a burden on each municipality for its own public services, which hurts the poorer cities and helps the wealthier ones.

If a muncipality really can't afford to offer the full range of services it needs to cut services, or even surrender its charter and de-incorporate, shifting the services burden onto counties, which sort of is a back-door way into consolidation and streamlining.

The whole point of government services is that they are necessary and the cost should be shared. Those who can afford to pay more do. However, the Republican method of getting around this is to consolidate into pockets of wealth (suburbs) and then "localize" government. This way, wealthy people only pay for the services they use and don't have to help subsidize these services for the poorer people they so despise (even though they often create a higher demand for these services by abandoning the neighborhoods the poorer people live in, leaving an overbuilt infrastructure, abandoned buildings, and rampart poverty behind). It's selfishness and greed at its best and defeats the whole purpose of having public services in the first place. And Kasich is implementing this policy faster and more directly than any politician I have seen in a while.

March 17, 201114 yr

Wow, among the dumbest of the many terrible op-ed pieces Kevin O'Brien has written for the PD over the years:

http://www.cleveland.com/obrien/index.ssf/2011/03/an_honest_budget_like_it_or_no.html

Well, this is different.

Ohio has a governor who isn't sugarcoating a fiscal crisis and isn't frantically mining the couch cushions for one-time nickels and dimes to stave off the inevitable.

Will be a neat trick to see Kasich sell off the same prisons every year.

March 18, 201114 yr

Pension changes risk fund's long-term solvency

Gov. Kasich’s proposed changes are designed to help balance the state’s budget.

By Lynn Hulsey and Laura A. Bischoff, Staff Writers

Updated 10:02 PM Thursday, March 17, 2011

A budget proposal by Gov. John Kasich would save governments and school districts money they now spend on employee pensions, but a state pension expert said the change could make it harder for the pension funds to remain solvent for the 30 years required by state law.

The governor’s proposal would reduce the amount of money public employers contribute to employee pensions by 2 percent and increase the employee contribution by the same amount. It would save state and local governments, universities, school districts and libraries an estimated $1.1 billion over the two-year budget, said Rob Nichols, Kasich spokesman.

However, the proposal could create long-term solvency issues, said Aristotle Hutras, director of the Ohio Retirement Study Council, which provides legislative oversight of Ohio’s five public pension funds. Cutting 2 percent from the amount employers contribute to the fund is problematic because employees who withdraw from the system before they are vested are entitled to their share of the contribution, Hutras said. The fund would take a hit because the employers during that time would be contributing a smaller amount under Kasich’s proposal.

March 18, 201114 yr

Amazing that a 2% shift from employer (state) contribution to the employee saves $1.1 billion over two years.

If the fund is currently solvent for the next 30 yrs, I'd think it should continue to be. The proposed changes by Kasich and SB 5 will make it less attractive to be in these types of jobs and consolidating services should require less of them down the road.

March 18, 201114 yr

And HCR will lower the federal deficit.... if you believe the guesstimates submitted by proponents of the legislation.

And I have no idea why you would want to make public sector jobs less attractive. I would think the opposite would be favorable. The less attractve the job, the smaller and less talented job applicant pool you will get. Recently, well over a thousand people took the civil service exam for cleveland firefighter position knowing full well the city will take 100 recruits tops into the academy. Even though the job pays considerably less than many suburban dept jobs, the applicant pool is encouraging because the city gets to choose from the best and the brightest to protect the city's citizenry and infrastructure.

March 18, 201114 yr

So basically it's an extra two percent paycut on top of whatever is coming down the line due to the new budget numbers. Tricky. What was the total perecntage of salary that the state is current contributing to the pension? I didn't see that anywhere. Is this 2% of salary shift a 10% reduction or is it more like a 50%?

The impact of the shift of the payments to the Pension funds will add another level of volitility to the calculation of it's 30 year solvency. Interesting.

March 18, 201114 yr

So basically it's an extra two percent paycut on top of whatever is coming down the line due to the new budget numbers. Tricky. What was the total perecntage of salary that the state is current contributing to the pension? I didn't see that anywhere. Is this 2% of salary shift a 10% reduction or is it more like a 50%?

The impact of the shift of the payments to the Pension funds will add another level of volitility to the calculation of it's 30 year solvency. Interesting.

Don't quote me, but I believe the state currently contributes 10%, so it seems like a 20% reduction. And yes, it's a 2% salary reduction, but I'm sure they'll ignore that in the future when they push for further reductions in salary and/or benefits down the road.

March 18, 201114 yr

It's actually a split of 14% (state) and 10% (employee). The proposal is to make it 12%-12% split.

March 18, 201114 yr

Flaw found in proposed pension shift

Changes could raise concerns on solvency mandate, state adviser says

Friday, March 18, 2011 03:06 AM

By Darrel Rowland

THE COLUMBUS DISPATCH

Gov. John Kasich's plan to dock public employees another 2 percent for their pensions could upset the fiscal health of the state's pension systems and force at least some of them into noncompliance with Ohio law.

"There would be a loss for the pension funds," said Aristotle L. Hutras, director of the Ohio Retirement Study Council, which advises state and public officials.

"It's all an actuarial ballet ... Whenever you pull something, you have to make sure that tower doesn't come tumbling down."

March 29, 201114 yr

Kasich's budget accepted by House committeeTuesday, March 29, 2011 02:49 PM

Updated: Tuesday, March 29, 2011 03:18 PM

By Joe Vardon

Language spelling out Gov. John Kasich's biennial budget was delivered to and accepted by the House Finance and Appropriations Committee today.

The language for the measure, House Bill 153, can be viewed on the Web at http://bit.ly/gRKmaS.

The bill itself was introduced a full two weeks after Kasich released details on the March 15 deadline for submitting his biennial budget.

March 29, 201114 yr

Posted on Monday, March 28, 2011

States broke? Maybe they cut taxes too much

WASHINGTON — In his new budget proposal, Ohio Republican Gov. John Kasich calls for extending a generous 21 percent cut in state income taxes. The measure was originally part of a sweeping 2005 tax overhaul that abolished the state corporate income tax and phased out a business property tax.

The tax cuts were supposed to stimulate Ohio's economy and create jobs. But that never happened once the economy tanked. Instead, the changes ended up costing Ohio more than $2 billion a year in lost tax revenue; money that would go a long way toward closing the state's $8 billion budget gap for fiscal year 2012.

"At least half of our current budget problem is a direct result of the tax changes we made in 2005. A lot of people don't want to hear that, but that's the reality. Much of our pain is self-inflicted," said Zach Schiller, research director at Policy Matters Ohio, a liberal government-research group in Cleveland.

March 30, 201114 yr

Schools may take $852M hit

Latest breakdown of state cuts puts Franklin County districts at $92M

Wednesday, March 30, 2011 03:06 AM

By Jim Siegel, Alan Johnson and Joe Hallett

THE COLUMBUS DISPATCH

Over the next two years, Franklin County schools would lose $74 million in state funding through reduced state tax reimbursements, on top of the nearly $18 million they stand to lose through changes in basic state operating funds, according to new data released last night by the state budget office.

Statewide, schools would lose an additional $579million in reimbursements over two years, on top of the $273 million cut in basic per-pupil funding - an $852 million drop in all.

March 30, 201114 yr

I have to imagine this will disproportionately affect the poorer school districts.

March 30, 201114 yr

I have to imagine this will disproportionately affect the poorer school districts.

...by design.

March 30, 201114 yr

Scandalous relief

While schools and others confront deep budget reductions, the state plans to dole out $15 billion in tax breaks for the biennium

Published on Monday, Mar 28, 2011

There's a scandal in Ohio: The state grants $7.5 billion a year in tax exemptions, credits and deductions, and yet, they receive little, if any, scrutiny, even though some date to the 1950s, even the '30s. The contrast was striking. John Kasich recently unveiled his budget plan, including spending reductions for schools, universities and local governments. With the proposal came a second document, ''The Tax Expenditure Report,'' an accounting of 128 tax breaks, totaling $15 billion for the biennium.

Might the governor, or now state lawmakers, find a measure of relief in this sum for the many priorities facing the budget ax?

Unfortunately, the answer is no. The governor who trumpets change held firmly to the past, signaling business as usual in this realm. When Team Kasich talks about putting all state spending under the microscope, that evidently doesn't include this trove of tax relief. Yet the state Department of Taxation made the point: ''Tax expenditures result in a loss of tax revenue to state government, thereby reducing the funds available for other government programs. In essence, a tax expenditure has the same fiscal impact as a direct government expenditure.''

That quote was included in an analysis by Policy Matters Ohio, released last week, shining a light on the many exemptions, credits and deductions. The Cleveland-based think tank has attempted in the past to draw attention to this folly in policymaking. The latest examination amounts to timely reinforcement.

Full editorial at: http://www.ohio.com/editorial/opinions/118757199.html

March 30, 201114 yr

More supply-side economics. As if the income gap isn't wide enough already.

March 30, 201114 yr

Concentrated wealth and concentrated power is the only way to go. They create all the jobs after all . . .

March 31, 201114 yr

Schools didn't see this cutback coming

Thursday, March 31, 2011 03:09 AM

By Charlie Boss and Catherine Candisky

THE COLUMBUS DISPATCH

Numerous central Ohio schools are reeling from what several education leaders call "a broken promise" that has districts losing more money than they expected from the state.

Given Ohio's projected $8billion budget shortfall, districts had anticipated the loss of federal stimulus funds and a drop in state aid. But they did not foresee dramatic cuts to the tangible personal-property tax and utility-tax reimbursements, which equal a $96million loss over the next two years for central Ohio schools.

That comes on top of the two-year loss of $27.5 million from the stimulus and state aid - putting the overall impact to the region's 49 districts at nearly $125million.

June 9, 201114 yr

"State Rep. Armond Budish says Kasich's budget amounts to Ohio's second largest spending increase in Ohio History" - PolitiFact Ohio checks this as "Mostly True"

http://www.politifact.com/ohio/statements/2011/jun/09/armond-budish/state-rep-armond-budish-says-kasichs-budget-plan-c/

June 21, 201113 yr

More Shenanigans...

Auctioneers upset over new licensing requirements slipped into transportation budget bill

Published: Monday, June 20, 2011, 10:00 PM

Updated: Tuesday, June 21, 2011, 8:25 AM

Reginald Fields, The Plain Dealer By Reginald Fields, The Plain Dealer

COLUMBUS, Ohio -- Ohio auctioneers are crying foul over a little-known amendment slipped into the state transportation bill that would give a single auction firm -- a giant of the industry -- the exclusive right to handle the sale of construction equipment.

"Why are we passing legislation that is favoring one firm over 3,000 licensed auctioneers in the state of Ohio?" asked Jeff Bub, of Jeff Bub Auctions in Brunswick.

"We all want this amendment appealed," said Bub, who has held an auction license since 1984. "We want it off the books so we can continue doing what we have been legally able to do all of our auctioneering life."

Bub is upset over an amendment that creates a new, separate license for auctions of construction equipment. The qualifications for the license come with some heavy-duty requirements: the firm must be on over 90 acres containing an operating facility that is at least 60,000 square feet and grosses more than $1 million a year in Ohio auctions.

Sign In

Ohio: State Budget News and Discussion

Featured Replies

Recently Browsing 0

Account

Navigation

Search