YOUNGSTOWN Taft blames naive legislators for blocking state budget cuts

The governor says some legislators aren't realistic about the state's financial crisis.
By DAVID SKOLNICK
VINDICATOR POLITICS WRITER
YOUNGSTOWN -- Gov. Bob Taft says one of the biggest obstacles he faces in trying to close a projected $1.495 billion shortfall during the next two years is dealing with inexperienced state legislators who believe the state's financial condition will miraculously improve.
"We don't think you can sit around and wait" for the economy to improve, Taft said Wednesday during a meeting with Vindicator writers.
"Some people think it's going to get better, but we don't see that. We need to act now, not that we won't act later, too.
"It could get worse."
Taft said it will be a challenge convincing his fellow Republicans, who control the House and Senate, to implement his cuts, but he sees no other alternatives.
"The House has a lot of legislators who, quite frankly, haven't gone through this before," Taft said. "They're hoping it's not real. I'm trying to convince them we need to do this. They're reluctant to face up to the reality that we have to address this."
Proposed cuts: Taft's plan would cut spending in most state agencies by 3 percent to 6 percent in each budget year; close some tax loopholes to save $110 million next year; use $192 million of the state's Budget Stabilization Fund, known as the rainy-day fund, next year and $87 million from it for 2003; use $100 million from the state's tobacco settlement, and join a multistate lottery game to raise $41 million in 2003.
Taft said some legislators do not understand how bare-boned the state is right now.
"They don't have the experience and familiarity of the departments," he said. "They haven't worked with them. They don't realize if you cut too deeply, you jeopardize Ohio."
Major factors: Also, Taft acknowledges that his proposed cuts don't take two major factors into account.
First, the uncertainty of the state's school funding situation is not included in the projected budget shortfall.
"We'll cross that bridge when we come to it and then figure it out," Taft said. "We're not sure where it's going."
The other factor is the long-term impact on the state as a result of the Sept. 11 attacks. The governor said his budget cuts take the attacks into account somewhat, but it's impossible to predict the long-range fallout.
Taft said the state is suffering through a recession and although he is optimistic Ohio will emerge from it shortly, he does not have much confidence that it will occur immediately.
The recession also makes it extremely difficult to move ahead with new initiatives, Taft said.
Rainy days: Taft wants to use $279 million of the state's $1 billion rainy day fund to offset some projected shortfalls during the next two years, but there are some legislators who are hesitant to go along with the plan, he said.
"It's raining, it's pouring," Taft said of using the fund. "We have to use some of the rainy day fund. They're right to be careful. The rainy day fund is one-time money. The more you use it, the deeper the hole you dig."
The state has no plans to cut school funding or touch Medicaid, Taft said. He is also hesitant to make further cuts to higher education.
One financial drain on the state's finances is its union contracts that call for a 3.5 percent cost of living increase next year, Taft said. The governor would love to renegotiate the contract, but says it is not a realistic option.
"We don't think they're going to touch that to save a few jobs at the margins," he said. "They won't agree to forgo raises for 90 percent of the workforce. We're looking for some givebacks with some departments, but [not taking the raise] is a nonstarter issue."
skolnick@vindy.com