WASHINGTON Budget plan's effects on Ohio

Reps. Ted Strickland and Tim Ryan from the Valley oppose the budget proposal.
STAFF/WIRE REPORTS
WASHINGTON -- Ohio defense programs and some cleanup projects in the state benefited in President Bush's 2005 budget while funding for steel companies, Appalachian programs and grants for "empowerment zones" in urban areas would be cut or remain the same.
Meanwhile, federal aid to a farm insurance program that was spearheaded in Pennsylvania and is looking to expand to 12 other states would likely get a significant boost next year under the White House budget plan.
Bush sent his $2.4 trillion budget for the fiscal year beginning Oct. 1 to Congress on Monday. It featured big increases for defense and also a record $521 billion deficit.
"This budget is shameful," said Rep. Ted Strickland of Lisbon, D-6th, whose Ohio district includes Columbiana County and a portion of Mahoning County. "At times like these, the federal government should be doing everything it can to help communities rebound and bring jobs into distressed areas."
U.S. Rep. Tim Ryan of Niles, D-17th, also criticized the spending plan, saying it "shows a deep disregard for the struggles of the average American family."
The budget doesn't address additional war spending or a huge deficit and cuts education and funding for veterans, Ryan said.
"The President's budget does not address the issues that will bring jobs and financial security to those who need it most," he said.
The 1,268-page budget document is only a proposal and still must be approved by Congress.
Defense funding
For defense, funding for the Army's newest tank, the M1A2 SEP, would increase 62 percent to $292 million. That would help the Lima Army Tank Plant southwest of Toledo, which makes and upgrades the tanks.
Another big defense winner would be the Wright-Patterson Air Force Base near Dayton. Funding for the Air Force Materiel Command, which is headquartered at the base, would increase $9.6 billion to $120.5 billion. Wright-Patterson manages more than half of the Air Force Materiel Command's budget.
Bush's proposal also includes more money for the Portsmouth Gaseous Diffusion Plant in Piketon. The $289 million amount includes funds to keep the plant on cold standby so it could be restarted, start construction on a plant to convert nuclear waste into a stable form and clean old buildings that once housed centrifuge technology.
USEC Inc., which owns the plant, announced last month that it would build its new commercial uranium enrichment plant at Piketon in part because the president promised to clean the existing centrifuge buildings.
Cuts affecting Ohio
Bush's budget proposes a $35 million cut to a program Congress created to help strapped steel companies get private loans by providing guarantees of 85 percent to 95 percent. The program, which the president had tried to eliminate last year, was left with $18 million for next year, enough to cover one such loan.
The budget also would eliminate the "empowerment zones" program, which seeks to revitalize impoverished areas through grants as well as business tax breaks and credits. The president cut the program last year but Congress restored its funding.
The cut won't affect the federal tax break zone awarded to Youngstown two years ago, Ryan's office said.
The city received a renewal community zone designation, a parallel to empowerment zones but for smaller cities. Businesses located in a renewal community zone can receive big federal tax credits and deductions, exemption from capital gains taxes, no-interest loans and other incentives. Youngstown's zone includes all of downtown and a portion of the North Side.
Youngstown and Warren unsuccessfully tried twice in past years to win an empowerment zone, which involved a $100 million grant over 10 years.
Appalachian commission
The federal Appalachian Regional Commission, which helps attract new businesses and create jobs in some of Ohio's most economically strapped counties including Trumbull, Mahoning and Columbiana, would get the same level of funding, $66 million.
Last year, Bush had proposed slashing ARC funding in half to $33 million. Lawmakers opposed that idea and restored the commission's full funding.