Senate budget keeps tax

Video slots would not generate as much money as the sales-tax increase.
By JEFF ORTEGA
VINDICATOR CORRESPONDENT
COLUMBUS -- The two-year state budget proposal by the Ohio Senate would keep a proposed temporary penny increase in the state's sales tax, majority Republicans say.
But the Senate's version of the proposed spending plan, to be unveiled today, would likely drop a previous plan to place video slot machines at horse-racing tracks, Republicans said.
Chairman Bill M. Harris of the Senate Finance Committee said Tuesday the proposed sales-tax increase would be in effect for both years of the new state budget, which is to be in place by July 1, under the Senate's version.
At the same time, Harris said, GOP staff members were seeking to drop the video-slots provision from the budget bill.
The trade-off
The two-year, $48.7 billion version of the budget that passed the House in April would have ended the sales-tax boost in the budget's second year if Ohio voters would approve a November ballot issue to place the video slot machines at racetracks.
But Harris said it has become clear that the state would need the money generated by the sales-tax increase.
According to estimates, the proposed increase would generate about $1.3 billion a year. Video slot machines are projected to generate about $500 million a year.
The Senate's version of the budget bill, scheduled to receive committee and full Senate consideration next week, would also seek to restore money cut by the House in education funding.
"We're looking at restoring substantial dollars, but at this point I'm not at liberty to say," Harris said.
As part of his two-year, $49.2 billion budget plan, Republican Gov. Bob Taft proposed spending $7.19 billion in the budget's first year and $7.5 billion in the second year.
In its version, the GOP-led House trimmed that to $7.16 billion in the budget's first year and $7.17 billion in the second year.
Education provisions
Expected to be stricken from the Senate budget was a controversial House-passed provision that would revise the attendance factor in the formula used to calculate state assistance for education.
The proposal, which was estimated to save the state $300 million, is expected to be referred to a task force for further review, under the Senate's bill.
In higher education, Taft proposed spending $2.5 billion on colleges and universities in the budget's first year and $2.59 billion in the budget's second year.
The House trimmed those amounts to $2.39 billion in the first year and $2.4 billion in the second year.
The Senate version could also make minimal changes to the corporate franchise tax, Harris said. Harris said the Senate could increase the minimum corporate income tax from the current $50.
Medicaid proposal
Still up in the air was a plan to cut optional services such as dental and vision for adults receiving Medicaid, the state and federal insurance program for the poor and disabled.
Taft proposed cutting those and other optional services.
Senate Democrats, outnumbered by the GOP 22 to 11, said it was too early to tell whether there would be Democratic support for the bill.
Senate Minority Leader Gregory L. DiDonato said there won't be any incentive for Democrats to supply votes unless some of their priorities on health care, criminal justice and prescription-drug issues are a part of the bill.
The current two-year state budget runs through June 30.