State Senate unveils biennial budget bill

May 29, 2013 at 12:00a.m.

COLUMBUS

The Republican- controlled Ohio Senate has shifted tax cuts to small businesses, postponed action on a proposed Medicaid expansion and continued discussions on reforming the state’s school- funding formula, under a substitute biennial budget bill unveiled Tuesday.

The amended legislation also would allow less- restrained ownership of spider monkeys, more taxation of liquor-infused gelatin, 70 mph speed limits on more Ohio highways and country-of-origin disclosures for pipes used in the oil and gas industry.

Senate President Keith Faber of Celina, R-12th, and Senate Finance Chairman Scott Oelslager of North Canton, R-29th, said upward of 300 amendments were made to the $61 billion-plus, two-year spending plan.

Additional amendments will be made next week, setting up a floor vote in the chamber. A subsequent conference committee of the Ohio Senate and House will negotiate a final version in following weeks. Gov. John Kasich must sign the bill into law before July 1, the start of the new state fiscal year.

On Tuesday, Senate Republicans removed an across-the-board 7 percent personal income-tax cut, replacing it with the governor’s proposed 50 percent tax cut on the first $750,000 of small-business net income.

Not included were the governor’s other tax proposals, including an increase in rates on oil and gas produced via horizontal hydraulic fracturing, or fracking.

The substitute legislation offered Tuesday did not include any major changes to public-school funding. Faber said those amendments would be offered next week.

The amended legislation also left in place a study commission to review the state’s Medicaid policies rather than Kasich’s desired eligibility expansion.

Faber said lawmakers are discussing the issue.

Among amendments added in the House but removed by the Senate on Tuesday was language that would have required colleges to charge in-state tuition to out-of-state students who requested and received letters of residency for voter-registration purposes.

The Senate-amended budget also would:

Allow speed-limit increases to 70 mph from 65 on additional highways, namely four-lane, divided roads not included in speed-limit increases that were part of the transportation budget OK’d earlier this year. Faber said the change would cover U.S. Highway 30 and other highways.

Remove spider monkeys from the list of dangerous wild animals regulated by the state.

Authorize the spending of $1.2 million during the next fiscal year for Statehouse security.

Broaden the definition of “intoxicating liquor” to include gelatin shots, chocolates laced with liquor and other food products that contain alcohol.

Enable school districts to seek levies for safety and security costs.

Require companies to file disclosures with the state as to the country of origin of pipes used in oil and gas drilling.

Sen. Joe Schiavoni of Boardman, D-33rd, who sits on the Senate Finance Committee, said he supports some provisions in the amended budget, including a full restoration of Clean Ohio funding.

But he was more critical on other big-ticket issues.

“At the end of the day, they didn’t address school funding; they’re punting on the Medicaid expansion,” Schiavoni said. “And he’s continuing to say that we’re trying to create jobs, and that’s where they’re sinking that $1.4 billion for the small-business cuts. Small-business cuts are something that can prove to be positive to the economy. ... Helping local governments and helping public schools and all the people that took the deep cuts in the past budgets, that’s where the money should go to. Even if you’re going to keep the small-business cuts, it’s important to reach into this rainy-day fund and use it to help public schools and to help local governments.”