Gov. Strickland warns of tough times ahead

Strickland said he supports a federal bailout of the auto industry.

COLUMBUS (AP) — Gov. Ted Strickland, who must put together a new state budget early next year, warned Friday that Ohio faces tough economic times that won’t be easily overcome.

Strickland, a Democrat expected to run again in 2010, says the state would likely have experienced moderate but steady growth had the nation not been hit by the financial crisis.

He says Ohio and other states are now paying the price of what he calls the irresponsible economic policies of the Bush administration.

“Now President-elect Barack Obama has to come in and clean it up,” Strickland said. “It’s not going to be quick. It’s not going to be easy. And it’s not going to be painless.”

A message was left with the White House seeking comment.

Asked about his prospects for a second term, Strickland acknowledged a campaign was likely.

“I’m not going to be coy about this,” he said. “I see no reason why I wouldn’t seek re-election.”

But he added he hasn’t made a final decision and said he’s focusing on the present for now.

The two years leading to that election could be tough for Strickland, who in 2006 was the first Democrat elected governor in Ohio in 20 years.

Even before the financial meltdown, Ohio faced a budget deficit of $540 million during the final year of the state’s two-year, $52 billion budget.

The next budget is likely to be extremely tight. Tax revenue in the state dipped 0.6 percent from July through September compared to the same period a year ago, according to a preliminary report by the State University of New York’s Rockefeller Institute of Government.

Ohio’s September unemployment rate was 7.2, 1.5 percentage points higher than a year ago.

With that as background, Strickland must not only deliver a balanced budget, he’s also expected to introduce his long-awaited school-funding plan next year.

He hinted at the tight times to come when asked what he expects out of the Legislature’s lame duck session this year.

“I’ll tell you what I don’t want it to bring, and that’s a lot of spending of resources that we don’t have,” Strickland said.

Also Friday, Strickland said he supports a federal bailout of the automotive industry but wants to make sure workers are protected and expectations are put on the automakers.

“I don’t want those resources used in ways that would benefit the shareholders of the auto companies while costing Ohio and Michigan jobs,” Strickland said. “I don’t want this to be one more example where shareholders and decision-makers were protected and the average worker is cast aside.”

Strickland said he got a call Thursday from a General Motors Corp. executive he wouldn’t name asking to support a bailout.

GM said Friday about 3,600 workers will be laid off indefinitely beginning early next year as the automaker slows down production at 10 of its assembly plants, including Ohio’s Lordstown plant.