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.