Kasich defends budget proposal

The administration of Ohio Gov. John Kasich is saying that its budget proposal, rolled out last week, will not only balance the current biennial budget, which faces an $8 billion shortfall, but also will fix long-term structural problems in Ohio’s system of funding government.

At a town hall meeting March 15, the day Kasich revealed blue books for what he is calling “The Jobs Budget,” the governor, a Republican from Westerville, said his plan is to transform Ohio for economic growth.

“I promised that I would work to set us on a path to growth,” Kasich told the crowd. “That’s where we have to be, folks. We can’t tax our way to prosperity. We can’t cut our way there either. What we have to do is set a platform. We need to set Ohio in a position where people want to expand the jobs here in our state.”

Kasich claimed the state has lost out on $14 billion worth of payroll taxes because of population flight over the past four years.

The governor applauded the budget proposal for maintaining a series of tax cuts that were passed by Republicans in 2005, as well as eliminating regulations that he said kill entrepreneurship in Ohio.

“We have balanced this budget with no smoke and mirrors, and we have done it with a reform agenda that will put Ohio on a path to growth,” he said.

He said he and a group of advisors began work as long as three years ago with the goals of balancing the budget, reduce taxes and create jobs.

Kasich claimed the proposal was put together without the politics of favoritism. He said that people can accept change if it is distributed fairly and honestly.

Protecting the most vulnerable was a goal, Kasich said, pointing to Ohioans with developmental disabilities.

“Our developmentally disabled, maybe the most fragile people in our society, we looked out for them,” he said. “And if there’s a hole or a mistake, we’ll come back later to figure it out.”

The first big line of applause at the town hall came when Kasich said that, based on state aid, he slightly increased the amount of funds going toward K-12 education. However, according to the numbers in the proposal, because no stimulus monies from the federal government will be included this budget, as they were last year, in real dollars Ohio K-12 schools will see an 11.5 percent decrease in 2012 and a 4.9 percent drop in 2013. Basic aid will drop by around $1.3 billion over the two years, with 12.2 percent less the first year and 7.6 percent less the second year.

“We couldn’t replace all that stimulus money,” Kasich said. “But you don’t run a family on one-time money; nor do you run any operation on one-time money.”

Turning to higher education, Kasich said universities need to be reformed to provide a curriculum that allows students to meet job availability needs in Ohio. He said this is something Ohio doesn’t do well at all.

As for Medicaid, Kasich said his plan would put Ohio on a 21st century path.

“Medicaid occurred in seven separate agencies of the government,” he said. “It’s our biggest program…. Try running a business like that.”

He said his team found that 4 percent of the population drives half of the costs of Medicaid.

“We don’t have to make cuts for everybody; we just have to deal with the part of the population that has special needs,” he said. “One percent you can’t control, they need the services. But the other 3 (percent), if you coordinate the care… it’s just common sense, folks.”

With regard to his plan to sell of some of Ohio’s prisons, Kasich said that this will manage the population at the end of the day.

“We have too much violence in our prisons,” he said.

Also, he said, the division of liquor control will be transferred into Kasich’s privatized development office, JobsOhio. He said this would create a revenue stream that would help put Ohio “on the offense.”

Kasich said the first year of his budget will be the toughest, and the second year will get better.

“I want to do a budget every year,” he said. “We’re going to do a budget every year because we can continue to improve the systems. We can continue to reduce taxes. We can do so many things in this state. And what I’ve found is that we haven’t been managed right in this state for an awful long time.”

He said he’s taking the opportunity to bring a “business-like” approach to government in Ohio.

“Let me say to you all tonight, this is a long process,” he said. “This is how you do a budget…. If we can deal with our challenges today and not pass them down the road together, then I know that we can save this great Buckeye State.”