Senate outlines changes in proposed state budget

Some Ohio schools and local governments could receive fewer funding cuts under Senate-proposed budget changes that total $130 million, although it is unlikely Highland County will be heavily affected.  

The proposed changes of the 4,800-page document were released May 31 and must be finalized by June 30, prior to the start of the state's fiscal year on July 1. 

Ohio School Districts that are rated excellent or excellent with distinction would get a bonus of $17 per student at the end of the 2012 school year. In Highland County, Lynchburg-Clay is the only school with an excellent rating. Hillsboro City Schools and Greenfield Exempted Village Schools have a continuous improvement rating, and Fairfield Local and Bright Local are rated effective, according to the 2009-2010 state report card.  

Compared to the House-passed version of the budget, the Senate adds $30 million for some school districts and eases funding cuts for a number of districts by an estimated $85 million. 

According to The Columbus Dispatch, "The Senate also eliminated a $50-million-a-year fund created by the House to encourage governments to share services; instead, that money went directly into local-government funding. The Senate also would ensure that rural counties that get less than $750,000 a year in state funds do not see a cut. The total general-revenue fund in the Senate budget climbs by about $100 million, to $55.7 billion. The Senate picked up additional money by using estimates of revenue and the Medicaid caseload developed by the Legislative Service Commission instead of those by the state budget office." 

Ohio 17th District Sen. Dave Daniels, who is on the Senate finance committee, told The Highland County Press that only "the poorest in the state" would qualify to not have their funds cuts, and Highland County would still receive those cuts.  

According to Highland County Auditor Bill Fawley, the county receives an estimated $1.2 million.  

"The county keeps half and then gives the other half to municipalities and townships," Fawley said. "The schools get no money through local government funds. If they cut it 25 percent, that's $175,000 to $200,000 that will be cut each year." 

In the budget passed by the House, local government funds were to be cut by 25 percent each year, totaling a 50-percent cut over the two-year budget. The Senate-proposed changes makes a slight decrease in those cuts. 

"We put another $48.7 million on in 2012 and another $44.08 million in 2013 back into the local government fund," Daniels said. "So instead of a 25-percent cut across the board, that would reduce local government cuts to 21-22 percent."  

Daniels said that he thinks there are good strides being made to continue to provide state services within a balanced budget without raising taxes, but that everyone was going to feel the cuts in some way.  

"First thing, I think that we all wish we had more money than what we do," Daniels said. "What we've tried to do is balance the budget without raising taxes, which was a priority when we started this process. We've done that. The cuts that are coming down are going to affect almost everyone. We in the Senate have tried to funnel additional money into what we believe are priorities, (such as) K-12 education and local government funds. I am pleased at the way we are trying to meet the challenges that we face. Like I have said, these are difficult times, and difficult choices have to be made." 

Daniels said that he wishes there were even more funds that could be made available to education and local governments, and to programs such as PASSPORT, which is a Medicaid waiver program that assists older Ohioans in staying in their own homes. 

"(Those additional funds) just can't happen," Daniels said. "This is not a pleasant prospect for anybody to be going through, but we have to make these choices to come to a sustainable future budget situation. It is still a work in progress, and as we get through this process (there will be additional changes)." 

The Senate is expected to vote on the budget sometime next week, and then it will proceed to a joint House/Senate committee before the final version must be approved by June 30. 

"The Senate version has made changes (to) what the House sent over, (and) to what the governor proposed," Daniels said. "We will work through as many issues as we can and do the absolute best for the citizens of Ohio with the resources we've got." 

During a press conference on the Senate changes, Senator Chris Widener, R-Springfield, chairman of the Senate Finance Committee, said, “Naturally, when we’re trying to fill an $8-billion hole, we don’t have the resources to sustain previous funding levels for schools and local governments, but we’re doing everything we can to mitigate those reductions." 

According to a report from The Associated Press, the following changes were also made by the Senate in the proposed budget: 

EDUCATION

—Increases state aid to schools by $115 million, and assures no district receives less from the state than it did this year.

—Provides an additional $17 per student to districts rated excellent or excellent with distinction.

—Removes a host of teacher-pay provisions from the House, including teacher incentive pay, performance-based salary increases and an evaluation process similar to one contained in the new collective bargaining overhaul.

—Repeals a moratorium on new e-schools.

—Removes provisions exempting charter schools from state laws, allowing for-profit entities to sponsor charter schools and allowing the establishment of charter schools without sponsors.

—Caps tuition increases at $200 for community and technical colleges, rather than the 3.5 percent that applies to other institutions.

—Provides districts some flexibility in exams used to assess students for high school graduation.

GOVERNMENT & TAXES

—Retains elimination of Ohio's estate tax.

—Retains scheduled income tax reduction.

—Provides $1.7 billion in property tax relief.

—Streamlines local government merger process and subjects mergers to voter referendum.

—Provides $1.5 million in downsizing expenses to the Office of Consumer's Counsel; removes language that deleted the office's phone number from utility bills of ratepayers it represents.

HEALTH & HUMAN SERVICES

—Increases children's hospital funding by $4 million per year.

—Increases funding to the PASSPORT in-home nursing care program by $15 million over the biennium.

—Eliminates Ohio Commission on Fatherhood and sends $1.2 million funding stream to foster care.

—Increases maximum alcohol content for beer from 12 percent to 18 percent.

PRIVATIZATION

—Gives the state right of first refusal to buy back adult and youth prisons sold to private vendors and clarifies sold prisons are still subject to all state and local taxes.

—Abolishes the Workers' Compensation Council established after a state investment scandal to evaluate the impacts of legislation on the state injured worker insurance fund.

—Requires the Ohio Lottery Commission to contract with a private vendor and eliminates requirement that the percentage of funding the lottery sends to education appear on lottery tickets, TV ads and its web site.