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State budget weighs heavily on governor
Ted Strickland is facing his most challenging situation as governor since he took office in January 2007.
The state must approve a two-year budget by Tuesday and finds itself with at least a $3.2 billion deficit.
This is nothing new as the national recession has hit Ohio hard. Under Strickland’s guidance, the state cut about $2 billion in spending since January 2008.
Despite the contention from politicians that they’re running a lean operation, there is still plenty that can be cut from the state’s $53.6 billion budget. But those cuts don’t come anywhere close to $3.2 billion.
And with the deadline to adopt a budget only days away, Strickland, a Democrat, rolled out a plan late last week that has proven to be unpopular with many factions, groups, organizations and individuals who support the governor.
Strickland is insistent he won’t seek to raise taxes, something he hasn’t done in the two-plus years he’s served as governor.
Instead, the governor wants to balance the budget through $2.43 billion worth of cuts to programs and services as well as legalized gambling at the state’s seven racetracks.
Strickland estimates the state would receive $765 million during the first two years of legalized video lottery terminals.
If he received the estimates from the same people who didn’t anticipate a $3.2 billion deficit, the state is going to be in trouble.
Also, Strickland is looking to impose legalized gambling when Ohio voters have repeatedly rejected legalized gambling — including this proposal.
It’s unlikely Strickland’s projection will be realized.
There’s legalized gambling in states surrounding Ohio. Is someone from the Mahoning Valley going to travel to Cleveland to play the slots or continue to go to Mountaineer, which is much closer and offers more gambling options?
Credibility
Then there’s Strickland’s credibility at stake.
He’s opposed the past few gambling initiatives on the ballot.
“This has been a difficult choice for me, but I believe a necessary one,” he said. “It is contrary to what I ever thought I would have to do.”
Strickland called for the state Legislature to approve his plan — which is vague — by Tuesday. [Tuesday isn’t a drop-dead date on legalizing gambling because the Legislature can adopt an interim budget and then make changes.]
Capitalizing on Strickland’s flip-flop on gambling, Republicans, who control the Senate, say the governor should issue an executive order on his proposal and doesn’t need legislative approval.
Strickland used an executive order last year to legalize Keno games, something that hasn’t been terribly profitable for the state.
The other part of Strickland’s plan to balance the budget is $2.43 billion in state government cuts.
That means more state job cuts, probably closing two state prisons, closing several state parks and reducing funding to various programs.
One cut that’s drawn a tremendous amount of attention is the proposed $112 million annual reduction of library funding.
That would cause library systems throughout the state to make significant cuts with some of completely shutting down.
In Mahoning County, a cut that deep would likely leave only the downtown Youngstown main library open as well as two branches. The county has 15 branches in addition to the main library.
Optimism?
While Strickland is optimistic about the state’s economic future, there aren’t signs of an economic turnaround in Ohio.
Imagine the state’s economic position if it wasn’t receiving nearly $6 billion from the federal stimulus package. That money will disappear in two years.
With Ohioans struggling financially and seeing the state experience one economic crisis after another, Strickland’s re-election bid next year suddenly becomes a legitimate challenge.