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Is it ‘mo money, mo problems’ with Kasich’s new Ohio budget?

Is it ‘mo money, mo problems’ with Kasich’s new Ohio budget?

Yesterday, Gov. Kasich presented his two-year, $72.3 billion state budget. And while Ohioans had a few ideas what might be in store, it looks like Kasich is taking a big stance on service-based tax increases and education. We went through the proposed budget (or as much as we could understand about state financing), and below are the highlights:

  • Tax increase for cigarettes and drilling (oil)
  • More spending on K-12 and high education
    • High schools add more AP classes (earn college credit earlier)
    • Community colleges can offer BA’s (in areas where training isn’t available at 4yr school)
  • Capping tuition increases at 2% (in 2016)
    • Freezing tuition rates (in 2017)
  • Creation of $120 million fund for reduced accumulated student debt
  • More spending on development disabilities and mental health
  • Continued Medicaid expansion
  • Income tax rate cut by 23% (over next 2 yrs)
  • Increase in Ohio’s CAT (commercial activity tax) to 0.32%
  • Increase sales tax (by half-cent)
    • More items added under sales tax: cable TV, parking, travel packages

Kasich’s proposed budget isn’t finite yet. Today, the Ohio House will start hearings on the budget and once the chamber passes its version of the bill in the spring, it goes to the Ohio Senate (where it’ll pass its version). Any and all disagreements in the two versions will go to a conference committee in the summer, but the budget must be in place by June 30th. Isn’t there a “School House Rock” song that helps me understand the budgeting process? (deb)

[symple_button url=”http://www.nbc4i.com/story/28005866/kasich-unveils-two-year-budget-proposal” color=”red” button_target=”_blank”]More at NBC4[/symple_button]

Previously Feb. 2, 2015

Time for Kasich to balance the state checkbook

Gov. Kasich will release his two-year budget plan later today. And while we wait to see what’s in store for the upcoming years, we do know some details:

  • Tax cuts for small businesses
  • Tax increases for state sales tax, cigarette tax, severance tax, and other service taxes
  • Medicaid changes on co-pays and premiums
  • Charter school reforms
  • High education reform

(deb)

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