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Economic crisis bad news for Strickland
Since taking office in January 2007, Gov. Ted Strickland has seen a significant downturn in the state’s economy.
The problem isn’t isolated to Ohio. The nation is supposedly coming out of a recession that is the worst economic downturn since the Great Depression.
There are a few signs of economic recovery in Ohio, but the state still has one of the highest unemployment rates in the country.
In sports, when a team is losing, a typical move is to fire the manager or coach, regardless of whether that person is at fault.
In politics, when a state is in trouble, voters typically blame those in leadership and vote them out of office.
This is what Strickland is facing a little over a year from his November 2010 re-election bid.
The news just keeps getting worse for Strickland — and his opponents say it’s because of his inability to stay on top of the state’s economic problems.
In his defense, Strickland supporters say the Republican-controlled Senate is uncooperative and is doing all it can to hurt the governor’s re-election bid.
Also, John Kasich, the leading 2010 Republican gubernatorial candidate, claims he can get the state’s finances under control if he’s elected next year.
It was only a week ago that he scoffed at the five-year, 21-percent income tax cut that is in its final year.
“It’s not been enough,” he told me. “It’s not getting anybody’s attention.”
It’s interesting that Strickland is proposing to freeze the last of that tax cut, 4.2 percent, this year [and in 2010] to fill an expected state deficit of about $850 million.
I think people are paying attention to it now.
The budget shortfall is an issue because the Ohio Supreme Court ruled last week that the slot-machine initiative at the state’s seven horse racing tracks Strickland pushed must be placed in front of voters.
The slot idea was ill-advised from the start.
The belief that the state would receive about $850 million over two years from slot machines was unrealistic.
If Ohio wasn’t surrounded by states with legalized gambling, with some offering more than slot machines, perhaps that number would be accurate.
Those who live in the Mahoning Valley can take a short drive to Mountaineer Casino, Racetrack and Resort in Chester, W.Va., and do a lot more than play the slots and bet on the ponies.
If Ohio was going to legalize slot machines, it should have been done years ago.
That riverboat already sailed.
Strickland, who’s repeated said he wouldn’t raise taxes, said Wednesday that he had three choices in closing that deficit.
Strickland said he could increase the state’s sales tax, cut funding for education and programs that would “hurt the most vulnerable Ohioans,” or “find another source of revenue.”
He chose the latter.
Republicans say his proposal effectively raises taxes.
“The governor can call this whatever he wants, but he’s asking Ohioans to pay $844 million more today than they were obligated to pay yesterday,” said Ohio GOP Chairman Kevin DeWine. “That’s a tax increase.”
In his announcement Wednesday, Strickland said: “Of course some will try to score political points by branding this delay as a tax increase. But again, tax rates are staying the same as last year.”
Strickland has taken steps to get the state’s ailing budget in order.
The state reduced government spending by nearly $2 billion compared to actual spending in the two-year budget it passed in July under Strickland’s leadership.
But it hasn’t been enough.
And it’s not coming at a good time politically for Strickland.