Monday, January 31, 2011

Ohio Budget

Governor Kasich's first homework assignment is due in 6 weeks.  I am sure counties, cities, villages, school districts and libraries are waiting with baited breath.  The potential $8-10 billion budget hole was scary enough, without figuring in the governor's promise to put in place the final installment of the income tax cut which was put on hold to balance the budget last year.  Why he is insisting on pushing through that final bit, in the face of the giant deficit, I just don't understand.  Unless the governor privatizes everything he can get his hands on (which I think will only screw over taxpayers in the long haul), schools and local governments will be forced to cut jobs and provide a drag against any private sector rehiring. Cuts in Medicaid will put greater strains on hospitals and nursing homes. Cutting the income tax only makes the problem $400 million dollars worse each year.  March 15 will be an interesting day, but there will still be a lot of haggling before things are finalized June 30.  In the meantime, schools and local governments will be scrambling to figure out how to fill in the holes for any cuts in the local government fund.  That will be a major undertaking, and will probably cancel out the minor improvements we've seen in the private sector.  Good luck, governor.

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