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HungerNetOhio #6.15: Christmas threat Undelivered; New Year Gratitude “in the Mail”
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Budget Deal: Where Praise is Due |
'Twas the week before Christmas when Governor Ted Strickland issued an invitation for December 25th. Actually, it was more of a threat and had nothing to do with the anniversary of Jesus' birth. Rather than to a manger, he told reporters he may order state senators back to the Statehouse on Christmas Day if they adjourn for the holidays without striking a deal on how to fill a crater in the state's budget. Under the Ohio Constitution, the Governor can call lawmakers into a special session by proclamation to resolve an impasse.
For the record, Ohio House and Senate have met on this holiday only one time, 1819. One other time, in 1804, Ohio lawmakers came together on Christmas Eve.
Some might say the mere suggestion of convening on an important holiday had its desired effect: A lengthy logjam was broken when legislators agreed to the Governor's proposal to delay a tax cut. While some may have disagreed on whether the passage of HB318 was a positive step forward, by the end of the week the Senate had passed and the House concurred with a compromise budget bill by respective votes of 17-15 and 54-42. A more jovial Santa's helper, Gov. Ted made it official on December 22nd, signing a bill that makes up for a $851 million budget shortfall by delaying this year's 4.2 percent income-tax cut.
Needless to say, the unnecessary mistletoe was quickly stored for another occasion and, to the relief of both parties, their Yuletide bash canceled. Thus, the General Assembly bypassed a Scroogy-mood reminiscent of Christmas-past. But, even more “God bless”-ed, countless Ohioans who depend upon State services which had already been severely cut were given at least a respite.
'Tis now the week after Xmas and life goes on. Although a persistently sluggish economy will likely lead to similar struggles over budget adjustments during the next 18 months, this is a unique end-of-the-year cause for celebrating suffering-averted. So, at least momentary relieved over the bad that didn't happen, why pass up this rare opportunity to reach out to our public officials to express appreciation for the good that did?
SHORT
CUT:
For
those who insist, "JUST TELL ME
WHAT TO
DO!"
For a welcome change, we could still use some up that tinseled paper with bright bows otherwise headed for the trash to wrap an after-Christmas package of simple gratitude! As an assuredly-welcomed, seasonally-consistent and hopefully contagious gift of courtesy that might carry a bit of good cheer into the New Year, let's send our public officials (*) a heart-felt “thank you.”
What Really Happened
Having in the spring clawed out $3.8 billion of State service funding, followed by months of continued partisan wrangling and stalling, the $851 million gap in the state budget has been patched and devastating cuts have been headed off.
The odyssey began when the Ohio Supreme Court ruled on September 21st against HB 1 containing the Governor's proposal to balance the budget through revenues generated by video slot machines at Ohio racetracks. That put the gambling plan on hold--subject to voter approval--and left the chasm in the budget.
Overcoming the new shortfall required additional revenue to avoid further trauma to public schools, universities, the poor and vulnerable.
A handful of Republican state senators eventually capitulated to the wishes of Democratic Gov. Ted Strickland and House Democrats to fill the hole with the proceeds from delaying a 4.2 percent state income tax cut set to begin this year. In return, GOP members got a trio of pilot state construction projects that will be built under new laws that they think will achieve big savings.
Under the revised bill, a family of four earning $60,000 will pay $78 more in income tax this year than if there was no change. Postponing the final installment of a 21 percent reduction in individual income tax rates and still benefiting from the 16.8 reduction since 2004, the same family will pay $7 less than 2008, because of an increase in the personal exemption.
In addition to the tax-cut delay, the bill allows three university projects to be completed under an overhaul of Ohio's 132-year-old public-construction law. Although disappointing countless families with young children, it also makes it easy for schools to delay until the 2011-12 school year a requirement to offer all-day, everyday kindergarten.
Voting "yes" on those tradeoffs were all Ohio House Democrats and state Senate Democrats plus these Republicans: Sens. Harris and Carey; David Goodman, of suburban Columbus; Mark Wagoner, of suburban Toledo; and Tom Niehaus, of suburban Cincinnati; and, in the House, Matt Dolan, of suburban Cleveland, and Ross McGregor, of Springfield.
In case you were following this debate earlier and curious about self-sacrifice gesture in the original house bill, a provision was removed that would have cut legislative salaries by 5 percent. It was placed into a separate bill, which has not yet passed.
Pivotal Protagonists
If you want to know the difference between constructive influence and hot air in this debate, here are four who might come close to being distinguished for their leadership. These were those who eventually took over the reigns of this dispute, championed the ultimate resolution, and, thereby, exemplified the true meaning of “leader(s) of the pack”:
Republican Senate President Bill Harris, of Ashland.
Democratic House Speaker Armond Budish, of Beachwood.
Democratic Gov. Ted Strickland.
Republican state Sen. John Carey, of Jackson County, southeast of Columbus.
Their hard work -- with crucial help from state Sen. Dale Miller, a Cleveland Democrat, Board of Regents Chancellor Eric Fingerhut and Ohio State University President E. Gordon Gee -- helped place the patch on Ohio's budget through ushering through crucial legislative tradeoffs.
Favorable Reactions
A number of policy advocates made favorable comments on the move. Here are three of the reactions to the compromise legislation that included a postponement of the final phase of an income tax reduction were:
The Ohio Civil Service Employees Association: “This was the right thing to do and the right time to do it. Ohio's system of government services is already being held together with duct tape and bailing wire. This was the only way to fix the budget without more job loss, more cuts in safety and security and more loss of services to Ohio's most vulnerable. We commend Gov. Strickland for fighting for it.”
o NAMI (National Alliance on Mental Illness) Ohio praised the Ohio General Assembly's vote which fixes an error in HB1 which had reduced the Ohio Department of Mental Health $14.7 million. These funds will be directed to community mental health services.
o The Ohio Education Association applauded Gov. Strickland, the Ohio House of Representatives and the Ohio Senate on this budget compromise:
“We have a governor who understands that education and innovation underpin our economy. He believes a strong investment in public schools and colleges is the first step on the path to revive Ohio. This legislation will help Ohio school districts avoid the layoff of tens of thousands of teachers and education support professionals. We have narrowly avoided the loss of at least $2.3 billion in funding, which would have forced massive school building closures and the reduction of services for our students.”
Ongoing Debate
Gov. Ted Strickland: "This bill balances the education budget and protects our schools from devastating cuts," Strickland said. "It advances construction reform at University System of Ohio institutions. And it affirms that education is the foundation of our plan to strengthen our economy and create opportunity for all Ohioans."
Republican John Kasich, who is expected to face Strickland in the 2010 election, criticized the plan for raising taxes and not addressing an anticipated future budget shortfall.
"With this agreement between the governor and the legislature, we are continuing the cycle and culture of tax and spend. It is a cycle I intend to break," said Kasich, who repeatedly refused to comment or offer alternatives during the budget debate.
Legislators: Most Republicans characterized it as a tax increase because the current rates are going up, while Democrats called it a tax freeze, because rates will be the same as in 2008. Don't be surprised by the collision of this kind of jargon in next year's election.
Next Challenge:
If Democrats and Republicans had a difficult time closing an $851 million hole in the state budget, wait until 2011 (a mere 12 months away) when they will likely face a much larger deficit. This bigger problem -- that as much as $7 billion in one-time money that helped balance the budget in this biennium will not be available for the next -- still looms. The governor and legislators have done nothing to anticipate that.
Ohio Governmental Contact
* To see how your legislator voted
http://www.legislature.state.oh.us/votes.cfm?ID=128_HB_318 (scroll down to 12/17/09 and click on “details” beside both “House - Senate Amendment” and Senate - Third Consideration”)
Ohio General Assembly: http://www.legislature.state.oh.us/
Governor Strictland: http://www.governor.ohio.gov/Assistance/ContacttheGovernor/tabid/150/Default.aspx
The Document: HB 318: 12.28.2009: Governor Strickland Signs Bills Passed in 128th General Assembly;
http://ohio.gov/news/2009/12/#122809
Articles
“Round the Rotunda: Ohio budget vote will be hot campaign topic”
http://www.cleveland.com/open/index.ssf/2009/12/ohio_budget_vote_will_be_hot_c.html
“5 is lucky number for GOP in Senate” http://www.ohio.com/news/top_stories/80155542.html
(Edtl) “Miles to go: Current state-budget problem is eased, but the deal ignores far bigger ills”
http://www.dispatch.com/live/content/editorials/stories/2009/12/20/BUDG2.ART_ART_12-20-09_G4_KPG1FTP.html?sid=101
“Perspective: Christmas sessions quite rare in Ohio”
by Julie Carr Smyth; Associated Press; December 23, 2009 http://www.zanesvilletimesrecorder.com/article/20091223/NEWS01/912230328
“Strickland signs bill to fill gap in budget”
THE COLUMBUS DISPATCH By Jim Siegel; December 23, 2009
http://www.dispatch.com/live/content/local_news/stories/2009/12/23/budget23.ART_ART_12-23-09_B1_UDG3A4T.html?sid=101
[haho] “Reactions Positive from Advocates on Compromise Budget” Story originally published in The Hannah Report on December 18, 2009. Copyright 2009 Hannah News Service, Inc. from Greg Kaspar: greg@pcsao.org
“State budget battle reveals Ohio's legislative leaders, and its safe-seat blusterers”
http://www.cleveland.com/opinion/index.ssf/2009/12/state_budget_battle_reveals_oh.html
(Edtl) “Soon, the big one: The governor and state lawmakers have closed the latest budget hole. Come 2011, the job will be exponentially more difficult”
http://www.ohio.com/editorial/opinions/79747587.html
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