Glass City Jungle

Media releases on Ohio House passing Budget…

01 May 2009

I received a release from Representative Barbara Sears who does represent part of Northwestern Ohio and one from the Governor’s office and one from the Ohio Democratic Party. I’m including Sears first, then one of the others as a contrast:

Representative Sears Announces Passage of State Budget

COLUMBUS— State Representative Barbara R. Sears (R- Sylvania) yesterday announced the Ohio House of Representatives passed House Bill 1, the two-year, $54 billion state operating budget. The bill includes funding for the operation of state government agencies and services.

The House-passed version of House Bill 1 increases government spending by more than $1 billion over the next two years. House Democrats established the proposal using a more optimistic growth in tax revenue projections than the governor’s proposal, when all indicators point to a decline in revenues of the over two years. In addition, the plan maintains the governor’s original proposal to include more than $4.3 billion in one-time revenue sources, including approximately $2.2 billion in temporary federal funding and draining the state’s $1 billion rainy day fund.

“To expand programs and entitlements in this difficult economy is poor policy,” Sears said. “The House majority didn’t do its job and left the Senate with a mess to clean up.”

Ohio’s Medicaid expenditures are 40 percent higher than the national average. Yet, the House proposal continues the expansion of Medicaid without providing for any cost efficiency measures. Furthermore, the plan maintains the governor’s proposal to institute $1 billion in fees to raise funds for Medicaid and other government operations. For example, the House Democrats increased the governor’s proposed hospital franchise fee by $111 million, which is essentially a tax on hospitals to pay for Medicaid.

“I proposed roughly 25 amendments in the human services area that would have helped reduce costs and provide savings and cost management programs that are common in business,” Sears said. “The House Democrats wouldn’t discuss my proposals and wouldn’t even vote on them.”

While Medicaid spending increases, House Bill 1 flat funds state aid to Ohio’s local school districts. Overall, the proposal cuts state funding for education by $216 million and $167 million in fiscal years 2010 and 2011, respectively, compared to 2009 funding levels. In addition, House Democrats have underfunded their plan by $2.5 billion in fiscal year 2010 and $2.7 billion in fiscal year 2011.

“The House-passed budget is not sustainable,” Sears said. “It has set the stage for a train wreck as we start to budget for the 2012 budget process. We have raided any fund we could get our hands on, refinanced loans, delayed payments and made future promises that we can’t keep, just so we can say we accomplished something.

“I will be working hard over the next year and a half to promote legislation that will place cost containment programs in Medicaid, which by 2011 is projected to deplete 42 percent of our state budget.”

House Bill 1 was approved by a 53-45 vote. The bill now moves to the Senate for further consideration.

E-mail from the Governor:

Dear Friends,

I just wanted to send you a short note to share some great news.

Yesterday was a historic day for our state. The Ohio House of Representatives voted 53-46 to pass a budget which makes crucial investments in job creation while laying the foundation for future economic prosperity by reforming our schools. Led by Speaker Armond Budish and House Democrats, this budget enacts an education plan that will not only make sure our schools have the resources they need to succeed, but teach in a way that prepares our young people for our changing economy. Our education plan will ensure every child in Ohio will receive a 21st century education, regardless of where they live.

In addition to reforming education in Ohio, the budget will freeze tuition costs, expand access to health care and continue the job-creating tax cuts that will help lead Ohio out of this recession and into a new era of growth and prosperity.
This budget wisely uses federal stimulus dollars allocated by President Obama, which will help save Ohio jobs and prevent devastating cuts to the critical health and safety services that are crucial during this difficult time.

As the budget process continues, I will continue to work in good faith with House and Senate leaders to ensure that we have a budget that will help rebuild our economy and provide for future prosperity. As always, it’s an honor to be your governor, and thank you for all you do for our great state.

Sincerely,

Ted

E-mail from the Ohio Democratic Party:

OHIO HOUSE DEMOCRATS PASS HISTORIC BUDGET THAT LAYS FOUNDATION FOR FUTURE ECONOMIC GROWTH BY REFORMING EDUCATION

Includes key investments in jobs, healthcare, food banks, education, and seniors

COLUMBUS – Providing real solutions to the challenges faced by citizens across the state, Ohio House Democrats today approved a budget that makes key investments Ohio’s future while protecting those struggling in the current economic crisis.

“Ohio Democrats are making tough but strategic decisions to help ensure Ohio moves forward without leaving behind those who are struggling,” said Chris Redfern, Chairman of the Ohio Democratic Party. “By investing in job creation and increasing funding for healthcare, our schools, protecting our seniors, and keeping college affordable, Ohio Democrats are again proving they will help hard working Ohioans move through the tough times they now face.”

Building on Governor Strickland’s comprehensive work on education reform, the House budget will make sure that our schools have the resources they need to succeed while also making sure that Ohio builds a reformed school system that puts it at the front of the class nationally.

“The only contribution from House Republicans was criticism, even though the budget clearly makes the investments Ohio needs to make to rebuild our economy and prepare our families for the future. This shows that Republicans continue to be the Party of no ideas, no solutions, and no leadership,” said Redfern.

The House budget will help support Ohioans during this difficult time by increasing funding for food banks by $5 million, protecting our children and seniors with an additional $37 million in key investments, maintaining the tuition freeze for many public colleges and protecting those with Autism by ensuring corporate healthcare companies don’t discriminate against them.

“Through this budget, House Democrats are positioning Ohio to lead the nation in the 21st economy,” said Redfern. “This is something that for years Republicans refused to do and their lack of action only confirms that even now – when Ohioans are most in need – they can only offer criticism instead of solutions.”

3 Responses to “Media releases on Ohio House passing Budget…”

  1. 1
    LisaRenee Says:

    Media reporting on this yesterday state that the vote was down party lines:

    COLUMBUS — House Democrats rammed through a $56 billion state budget Wednesday that leans heavily on federal stimulus funding and rainy-day funds to tie together a package that reshapes education funding, expands Medicaid and adds new tax credits designed to spur job growth.

    In a party-line vote of 53-45, majority-party House Democrats approved the budget for the next two years over Republican howls that the blueprint was a shell game that relies on more than $6 billion in one-time money to pay the bills while leaving tough decisions for tomorrow.

    The state budget battle now shifts to the 33-member, Republican-controlled Senate, where deeper cuts to state programs and more changes to a revamping of Ohio’s school-funding plan are expected. The budget doesn’t have any tax hikes, but does raise dozens of fees and hijacks the state’s $1 billion rainy-day fund.

    .

    It was also reported last night that numbers used for the budget in relation to the amount of money that would be generated by the tobacco tax appear to be inaccurate:

    The latest headache for state lawmakers — a $129 million shortfall expected in future state tobacco revenues because of a federal 62-cents-a-pack tax, which is expected to have Ohioans puffing less. Because House Democrats leaned on a rosy tobacco tax projection from the Legislative Service Commission that didn’t factor in the expected loss, the plan they passed Wednesday was most likely out-of-whack upon arrival in the Senate this week.

    And that’s only one of the problems facing bean counters, with House lawmakers in both parties now admitting that another shortfall seems inevitable at the end of the state budget trail.

    Budget-watchers expect that revenue estimates for 2010 and 2011 — which were plugged in to “balance” the next state budget months ago — were too optimistic for Ohio’s falling income and sales tax revenue, acknowledged Rep. Michael Skindell, a Lakewood Democrat on the Finance Committee.

    That will mean a sizable hole to plug — as much as a $600 million or $700 million shortfall isn’t crazy talk — when a conference committee meets to hash out differences between the Senate and House versions, the last step before the budget is handed to Gov. Ted Strickland in June.

  2. 2
    Aji Green Says:

    I must say that this is a historic moment for rural and urban schools districts all over the state of Ohio especially a lot of the rural schools in Southeastern Ohio. Under the new plan no longer will minority and impoverished children be at a disadvantage to children in wealthier school districts. Just six months ago I completed research on the unconstitutionality of Ohio’s educational funding model that revealed huge disparities between the haves and the have-nots.
    The new budget doesn’t address all of the funding concerns present in public and rural schools, but the Governor and the Democratic Party made a valiant effort in attempting to put all schools on a level playing field. However, I strongly suspect that the budget will be reduced by two percent after the first year. I will just have to study the budget and the new funding model to see how it could affect Toledo Public Schools.

  3. 3
    LisaRenee Says:

    The level of the funding cuts considering the additional requirements is something that has been focused on here. Initially Toledo was the only urban school district that received no increase from the State, now of course other urban districts are receiving cuts. There is however still a large disparity from what Toledo is receive in State and Federal dollars compared to it’s urban counterparts.

    I reference this post in stating those concerns.

    The only urban district receiving less money than Toledo is Dayton and they have a much larger student enrollment drop than we do.

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