Topic: State of Ohio Budget

[noozer]

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

[jam40jeff]

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

[moonloop]

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

[noozer]

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.

Read more at: http://www.dispatchpolitics.com/live/content/local_news/stories/2011/03/31/copy/schools-didnt-see-this-cutback-coming.html?adsec=politics&sid=101

[NBow37]

"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/

[CBC]

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.

Read more:
http://www.cleveland.com/open/index.ssf/2011/06/auctioneers_upset_over_new_lic.html

[Hts121]

I read the article and I still don't understand the rationale for this law.  Also, it is disappointing that Kasich would sign the Bill and not even realize this Amendment was in there.

[CBC]

Cronyism at it's best...

There was a piece on NPR last week or the week before on how the industry people are writing these amendments and the Ohio congressmen have no idea what they are actually inserting. However in this case, I would guess they knew what this would do. However they are probably are surprised it came to light so fast....

[Loretto]

Hey, politicians aren't here to serve the greater good, they're here to get results for people who vote and pay for their campaigns.  Government needs to function like a business and what better way to do that than to have businesses write the laws, just look at the fine State of Tennessee and how much help they're getting from the MPAA and RIAA among others.  Unlike our elected representatives we don't even have to pay them or their staff to write up these laws, so it's clearly a win win win. 

(Someone is having a giant dumpster delivered right out my window and the idiots can't seem to be able to get the damn thing off the truck and to the ground so I'm feeling snarky)

[diaspora]

Breaking down Ohio's budget
Written by
Barry Horstman and Jessica Brown

COLUMBUS - A $55.8 billion state budget that deeply cuts spending for local governments and schools, mandates new teacher evaluation standards, creates tax breaks for individuals and business investments, and alters funding for scores of programs could be on Ohio Gov. John Kasich's desk as early as Wednesday.

The two-year general revenue fund budget, about $5 billion bigger than the one that ends Thursday, also overhauls Medicaid, establishes guidelines for new charter schools, revamps Ohio's public-construction law and clears the way for sale of state prisons and privatization of the Ohio Turnpike and liquor operations.

I'm amazed at how much this is going to hit some of the townships around here. Delhi looks to be taking a more than 60% decrease based on the cut to local government and the estate tax?

[Quimbob]

County seeks levy for 911 service
Champaign officials cite funding cuts, say services will be reduced without levy.
"With the elimination of the Commercial Activity Tax, state revenue for the 911 center has declined by more than $78,000. The Ohio Wireless Tax was initially passed several years ago to help counties improve technology such as helping map the location of a cell phone in an emergency. It is expected to expire at the end of this year, which will mean a loss of an additional $85,000 in revenue by 2013.
“Now that they’re going away, it’s going to be really impossible to maintain the level of service we have without the levy,” Evans said."

http://www.springfieldnewssun.com/news/news/local/county-seeks-levy-for-911-service/nSTDz/