$55.5B plan endorsed by Ohio Chamber

By Marc Kovac

news@vindy.com

COLUMBUS

In September, the Ohio Chamber of Commerce broke with a century-old precedent and offered its endorsement for the state’s chief executive, siding with Republican (and eventual winner) John Kasich over Democratic incumbent Ted Strickland.

On Monday, the business organization, which represents upward of 4,000 Ohio companies, made a similar move, endorsing the $55.5 billion-plus spending plan that was developed by Kasich and tweaked by the GOP-controlled House.

Executive Vice President Linda Woggon said the chamber usually does not take a position on budget legislation, due to the size and complexity of the bills.

But, she added: “House Bill 153, as you know, is much more than a traditional two-year spending plan for our state. This budget makes tough choices. It rejects the status quo and embraces change — the transformative changes that are necessary to make Ohio great again.”

Woggon was among about 30 people who offered her comments before the House’s finance committee Monday, the last day for public testimony on the biennial budget.

Some speakers were opposed to plans backed by Kasich and House Republicans to fill an $8 billion hole in the coming state budget through a mix of pending cuts, program and policy reforms and state asset sales, the latter including up to six state prisons.

Democratic Rep. Matt Lundy, who joined representatives from Policy Matters Ohio, a nonprofit think tank, and the head of the Fraternal Order of Police during a midday press conference to voice concern about the prison sale. They said the timing of the sale and tax loopholes built into the biennial budget make this the wrong time to sell the state-owned facilities.

“It’s a raw deal for Ohio taxpayers,” Lundy said. “...This yard sale should be called off. Public prisons are doing the job and doing it well. The only motivation that I see here is that they want one-time money, and that is irresponsible for our state’s financial future.

And Mark Stansbery, a Columbus city employee who attended The College of Wooster, added during committee testimony concerning the overall budget plan, “Pirates have boarded the U.S.S. Ohio, and a proposed fire sale is under way on our common treasures and shared assets.”

But other groups countered during testimony Monday that the reforms outlined in the budget were needed to lessen Ohio’s tax rates and make the state more attractive for business growth.

Woggon said the two-year spending plan “is truly a reform budget. It not only ensures that state spending is aligned with existing revenue, it does so without increasing taxes. In order to fully recover from the most recent recession, it is imperative that we refrain from increasing taxes and do everything we can to lower the cost of doing business in Ohio.”

David Johnson, president and chief executive officer of Summitville Tiles Inc. in Columbiana County, voiced his support for the elimination of Ohio’s estate tax, which he said is hurting small- and medium-sized family businesses.

“Ohio’s tax system has, furthermore, led my parents to transfer their residency from Ohio to Florida, where there is no income tax and a very limited state inheritance tax,” he said. “So, ironically, Ohio’s onerous income and estate tax structure is, in many instances, being averted altogether as affected residents end up just moving out of Ohio. The tax that is supposed to capture revenue actually chases it away.”