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Gov. John Kasich’s
2012-13 Budget
For detailed information on the actual budget numbers, click here.
See below for reaction around the state
Cleveland Plain Dealer
Schools, local
governments take hit in Gov. John Kasich’s budget proposal
Tuesday, March 15, 2011, 12:50 PM
By Aaron Marshall, The Plain Dealer
Photo: Marvin Fong, The Plain Dealer
COLUMBUS, Ohio -- Local governments and schools districts are hit hard,
facing nearly $2 billion less in total payments from the state in 2012
and 2013 under Gov. John Kasich’s budget proposal, according to details
released shortly after noon.
The Local Government Fund is cut by $555 million in the $120 billion,
two-year budget which amounts to a 25 percent cut in the first year and
a 50 percent cut in the second year. Additionally, the Kasich budget
makes tax policy changes raiding a trio of reimbursement fund payments
that local governments and schools receive, costing the entities
roughly $1.3 billion.
The tax changes quicken the pace of phase-outs of payments to local
governments and school districts for previous changes in state policy.
The changes were made during electric deregulation in 1999 and when
lawmakers overhauled business taxes in the 2005 budget. That $1.3
billion is then moved into the state’s general revenue fund to pay for
state government programs.
Kasich’s budget also includes extensive privatization moves, including
selling off five state prisons for $200 million and the leasing of the
state’s liquor distribution network to JobsOhio, Kasich’s private
development board.
The budget proposal takes steps to prepare for the possible sale of the
state turnpike, but the sale proceeds are not included in the budget.
The main payment made by the state to school districts -- known as the
state’s foundation formula -- goes up slightly in Kasich’s budget --
1.4 percent in 2012 and 1.3 percent in 2013.
However, the total amount that school districts get drops by 11.5
percent in 2012, and 4.9 percent in 2013. That adds up to a drop of
$3.14 billion over both years combined -- a sum that includes the loss
from the tax policy changes as well as the loss of federal stimulus
funds used to prop up the current budget.
Library funding under Kasich’s plan drops by 5 percent each year for a
total cut of $168 million over both years.
Timber sales and oil and gas drilling on state parkland is included in
Kasich’s plan and a sentencing reform piece that keeps low-level
offenders out of jail is also part of the two-year spending blueprint.
At the Ohio Department of Job and Family Services, the state’s largest
single agency, a $6 million pot of money for funding children’s
hospitals is zeroed out.
It isn’t immediately clear how expected Medicaid restructuring within
ODJFS shakes out in Kasich’s budget, but major savings are expected to
come in this area.
The state’s Medicaid program, which serves 2.1 million low-income
children, families, older adults and Ohioans with disabilities,
represents roughly 30 percent of the state’s general revenue fund
budget.
Overall, the state’s “all-funds” budget is $120 billion, a drop of 5.3
percent in the first year and a 1.3 percent rise in the second year
when compared with the state’s current all-funds budget. In terms of
the state’s general revenue fund numbers, the budget rises by 5.1
percent in 2012 and 6.3 percent in 2013.
The Kasich administration says in the budget proposal that it is
expecting continued modest economic growth, with employment rising by
1.1 percent in 2012, and 1.3 percent in 2013. The tax policy changes
that hit local governments and schools, combined with natural tax
revenue growth, will mean revenues growing by 7 percent in each year of
the budget.
Read it at the Cleveland Plain Dealer
Kasich Budget Plan Released
WHIO-TV Channel 7
School superintendents react to Kasich’s budget proposal
News-Herald (Cleveland)
Kasich’s budget cuts local government fund in half
Fremont News Herald
CMSD interim head reacts to Kasich’s budget
Newsnet5 (Cleveland)
Kasich Budget Kills Jobs, Shields Wealthy, Hikes Middle Class Taxes
InnovationOhio
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