OH House Democratic Caucus: State’s Fake Budget Built on Broken Economic Outlook

From Ohio House Democratic Caucus: Amid a more than $1 billion financial shortfall, Ohio’s legislative Republicans pushed state budget negotiations closer to the brink Tuesday and today with eleventh hour horse-trading over a Medicaid lockout and complex money maneuvers, leaving Gov. John Kasich less than 48 hours to review the state budget, House Bill 49, before the start of the new fiscal year.

“We have a constitutional responsibility to pass a stable state budget plan, but Ohio’s Republican leaders raced the fiscal clock, scrambling to fill a massive revenue hole by shifting money that belongs to other agencies and local communities,” said House Assistant Minority Leader Nicholas J. Celebrezze (D-Parma).

“Stealing money from local communities to pay for Columbus’ bills will only increase local taxes. This budget is just more of the same misguided GOP tax policies that have been holding Ohio back.” To shore up the state’s deteriorating financial outlook, Republican lawmakers raided numerous special funds, ended local grant programs, delayed payment of certain bills and counted on a glowing economic forecast the next two years – though Ohio spent the last 54 months trailing the nation’s job growth.

“While the rest of America is recovering from the global recession, six years of Republican mismanagement have held us back from solving real problems like attracting better-paying jobs, reducing healthcare costs, and strengthening our children’s schools,” said House Democratic Leader Fred Strahorn (D-Dayton). “Our economy continues to underperform and people at home are feeling it. The state is on a downward spiral to recession.”

GOP lawmakers even loosened future access to agency funds, like the Bureau of Worker’s Compensation fund, should the state budget bust before the end of the next fiscal year. The unusual move has been widely criticized and is believed by House Democrats to be illegal and unconstitutional.

“I voted against the state budget because the revenue stream is dishonest and irresponsible,” said Rep. Kent Smith (D-Euclid). “State tax collections have missed revenue projections 10 times in 11 months. In doing so, it shortchanges our future. The Republican philosophy of tax cuts for the wealthiest Ohioans while cutting schools, communities and services hasn't created economic stability, better paying jobs or real economic growth. Under Governor Kasich, Ohio has trailed the national average in job growth for 54 consecutive months. This budget follows the same failed course. On the road to forever we don't know the way.”

Republicans also propped up the state’s ledger by taking $35 million in local community funding used to fight opioid addiction and locking working people out of expanded Medicaid healthcare coverage. If federal approval is granted for the Medicaid lockout, the state estimates at least half-a-million people would lose healthcare. “This budget is chock-full of the same old recycled and ill-conceived tax-shifting policies that we’ve seen time after time. In fact, we’ve seen these policies proposed in the last three budgets from this administration,” said House Minority Whip Nickie Antonio (D-Lakewood).

“Quite frankly, this budget passed by Republicans will restrict access to healthcare for veterans, single mothers and other hard-working low-income people. We know that restricting access to care has never made anyone safer, healthier or more financially stable, and it won’t start now. We cannot cut ourselves to prosperity.” During the months-long budget process, House Democratic lawmakers called on Republicans to come together on economic and tax reforms that would put $200 million in real money against opioid addiction while walking back six years of tax-shifting that have seen Ohio trail the nation in job creation and shift to poverty-wage jobs.

Democrats also said the state could better attract new businesses and good-paying jobs by rebuilding local communities and prioritizing education funding for every student to earn the skills they need to compete.

“An opportunity was missed to provide an economic lift for poor and hardworking Ohioans and maintain critical healthcare coverage for Ohio’s most vulnerable citizens,” said Rep. Stephanie Howse (D-Cleveland). Though Republican lawmakers are seeking a six-year federal waiver for a new Medicaid tax that would keep counties and transit authorities from losing $200 million per year, local communities and schools have still had to ask local taxpayers for more money after the state cut almost $2 billion and $1 billion, respectively, during the last six years.

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