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COLUMBUS, Ohio -- With Gov.-elect John Kasich and soon-to-be House Speaker Bill Batchelder rising to power in January, a no-new-taxes pledge signed by both suddenly has huge implications for the next state budget.
The pledge requires signers to "oppose and vote against any and all efforts to raise taxes." It was signed by Kasich, Batchelder and at least 21 other Republicans beginning new terms in the Ohio House in January, including Rep. Tim Grendell, the state senator from Chester Township who will jump chambers because of term limits.
The pledge, created by the group Americans for Tax Reform, became a virtual must-sign for Republicans running for Congress across America.
But down at the Ohio Statehouse -- where Kasich and GOP legislative leaders will hammer out a plan to address a shortfall in the next state budget that could approach $8 billion -- the pledge could have the most profound implications.
Unlike the federal budget, the state budget must be in balance when the two-year spending blueprint is passed next summer. So taking tax hikes completely off the table limits the options available to policy makers.
"He's not going to increase the tax burden on Ohioans, period," said Kasich spokesman Rob Nichols.
However, that doesn't mean that Kasich couldn't eliminate some loopholes in the state tax code that give exemptions to special interests. For example, financial planners and lobbyists are exempt from paying state sales tax.
Under the terms of the pledge, Kasich could eliminate some of the hundreds of millions of dollars in tax exemptions in the state tax code -- but there's a big catch. He would have to offset those moves with tax cuts, so he wouldn't gain a cent of new revenue.
"John said throughout the campaign that everything is under the microscope," Nichols said.
Anti-tax pledges add intrigue to upcoming Ohio budget process | cleveland.com
Ohio is in the middle of a two-year budget cycle. The governor signed the FY2010-11 state budget, which included general fund spending of $25.9 billion over the two years,[1] on July 17, 2009.[2] The state finished the first year of the current budget cycle on June 30, 2010, in the black. However, many sources, both inside and outside the state government, project a structural budget shortfall that could exceed $8 billion for the next two-year budget that would start on July 1, 2011.[3] The current budget utilizes $8.4 billion of one-time funds.[4]
Function FY2010 FY2011 Total Educat...,676,487,088 $56,624,750,411 $112,301,237,498
Ohio state budget - Sunshine Review
(Believe me, I have tried hard to google the different types and amounts of State of Ohio revenues without success....if you know of a web site that has this data, please advise.)
So what has been suggested? Increasing fees on Ohioans for such things as hunting licenses. But enough to generate $8 Billion? We'd have to have fees so high, only a millionaire could afford to pay them.
My idea is, go through the criminal code and decriminalize whatever behavior this state's residents can tolerate. Such things as marijuana and prostitution (I would create a new crime regarding creating an unsafe condition in one's neighborhood, but failing this new standard applying, the behaviors should be legal.) As to each such behavior newly decriminalized, release from custody or probation and parole any resident who was charged under that former crime and automatically expunge their record. This state spent $49,530,928,235 on Justice and Public Protection in the last billing cycle; it seems likely and/or possible that a wide-ranging decriminalization plan would be able to shave 16% off that amount. In this same vein, eliminate the death penalty and associated costs will fall considerably, as LWOP is much less expensive.
Your thoughts?
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