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Political Action
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State Budget
Your source on political action, legislation & voter info

Update on the budget correction bill

Feb. 21, 2003- OCSEA Government Affairs Director Kim Fellinger says it's important for members to be aware of the federal and state budgets, as both determines job security for state employees and quality of service for customers. Check out the OCSEA/AFSCME federal budget analysis.

Remember, the General Assembly's budget plan and the Controlling Board's decision to approve or reject the contract package next month are linked.

If you don't like what you read, take action.

Contact your community leaders, state legislators, governor, and even President Bush. Tell them what you think about Gov. Taft's budget plans. Remind them that State's need more federal support.

Here are the basics:

In mid-January, Gov. Bob Taft predicted a $720 million shortfall in the two-year budget that ends June 30. He did the following:

Announced $121. 6 million in cuts to government agencies.
Asked the legislature for $159 million in new taxes on cigarettes and alcohol.
Asked the legislature for $30 million in cuts to local government (townships, counties, cities and libraries).
Asked the legislature to speed up the collection of sales taxes, moving $288 million from next fiscal year's collections into this year's budget.
Asked the legislature to transfer $121.4 million from various state savings accounts and funds into the general fund.
Announced the closing of the Apple Creek Developmental Center, Lima Correctional Institute and other state facilities for savings in future years.

The House last week:

Passed a bill (House Bill 40) that did not raise taxes but provided for the speed-up of sales tax collections. Cuts to local government were not approved.
Required creation of a ``State Facilities Closure Commission'' to review proposed closings by the governor.
Prohibited the governor from making cuts in several key line items in the education budget.

The Senate on Wednesday:

Removed the House provision for a facilities commission.
Granted Taft's request for $30 million in cuts to townships, counties, cities and libraries, which already are dealing with their own budget shortfalls.
Prepared school districts for budget cuts by lifting restrictions on how $210 million in parity aid could be spent this year.
Gave retailers a bonus for speeding up the collection of sales taxes. Instead of receiving 0.75 percent of the money they collect, they would receive 1.5 percent.
Fell short of balancing the budget, according to Taft, by $162 million.

In January, Taft threatened the following cuts if the legislature did not pass a balanced budget, and said Wednesday he will choose from among them:

As much as $136 million to elementary and secondary education, affecting Ohio's poorest school districts the most.
As much as $39 million to higher education, forcing tight budgets at state universities and colleges that already charge some of the highest tuitions in the nation.
About $1.8 million from PASSPORT, a program that allows seniors to live at home rather than in nursing homes.

The bill, known as House Bill 40 of the 125th General Assembly, can be found online at:

http://www.legislature.state.oh.us/search.cfm