By Marc Kovac

news@vindy.com

COLUMBUS

Gov. John Kasich didn’t offer too many hints on provisions he might strike from the $71 billion-plus biennial budget finalized by lawmakers Friday.

“We try to be – and have been – pretty sparing,” the governor told reporters concerning his line-item veto authority. “There’s a couple of things we get concerned about, which is the erosion of executive authority and some things that people stick in and all that. ... We want to respect the Legislature in that, but there’s going to be some vetoes, and there probably will be some disagreement on the vetoes, but I think overall we’re going to be good.”

The governor and legislative leaders spoke from his statehouse Cabinet room a few hours after the Ohio House gave its approval to the biennial budget plan.

The House vote was 61-34, with Republicans mostly supporting and Democrats mostly opposing.

As they have in recent days, House Republicans touted $1.9 billion in tax relief, with a 6.3 percent across-the-board income-tax rate cut and the phase-out of taxes on the first $250,000 in small business income. Smokers will pay another 35 cents per pack in cigarette taxes.

A new Ohio 2020 Tax Policy Study Commission will develop recommendations for reforms, including consideration of shifting Ohio to a flat income-tax rate of 3.5 percent or 3.75 percent.

That panel also will have until Oct. 1 to issue a report to the general assembly concerning a potential increase in tax rates on oil and gas produced via horizontal hydraulic fracturing.

The spending plan includes an increase of about $950 million for primary and secondary schools over the biennium, with no district receiving less in state funding than amounts allocated during the current fiscal year.

The legislation also continues the governor’s expansion of Medicaid eligibility, though provisions call for additional reform efforts to reduce fraud and better target spending for the needy.

“I think this budget strikes a good balance of investing in the future through our education, continues to address many of the state’s problems and promotes business growth,” said Rep. Ryan Smith, R-Bidwell, chairman of the House Finance Committee.

But Democrats criticized the final spending plan, saying tax cuts benefit wealthier residents at the expense of low- and middle-income filers, among other issues.

Kasich likely will sign the budget into law late Tuesday, after striking lines he opposes.