First Posted: 1/31/2015
COLUMBUS (AP) — Ohio Gov. John Kasich is slated to release the first budget proposal of his second term on Monday. The Republican governor has dropped some hints of what’s likely part of his two-year spending blueprint, including a package of tax changes and continued support for an expansion of the Medicaid health program. Here’s a look at ideas to expect when he makes his budget pitch:
TAX CHANGES
Kasich has said he will call for eliminating the tax on income for small businesses with annual gross receipts of $2 million or less. He also wants to boost the personal income tax exemption for low- and middle-income workers. So Ohioans earning less than $40,000 a year would see the exemption increase to $4,000 from $2,200 in 2015, while those earning between $40,000 and $80,000 a year will see it rise from $1,950 to $2,850.
The small business tax cut would cost the state about $700 million over two years and the income tax exemption an additional $372 million, a fraction of Ohio’s current $60 billion-plus budget. The governor hasn’t said how he’ll make up the cost. That’s expected to come Monday. In prior budgets, he has sought to increase the state’s tobacco tax and the tax rate on Ohio’s oil and gas drillers.
His budget plan is expected to result in a net $500 million tax cut, according to the administration.
HIGHER EDUCATION
One of Kasich’s higher education proposals would allow Ohio’s community colleges to be able to offer bachelor’s degrees in certain circumstances. The administration announced Friday that students would be able to get a bachelors’ degree from a community college when businesses express a need for workers with advanced training and a four-year university is unable to offer the necessary training.
A separate idea would let certain students use state-based financial aid to cover costs of attending college in the summer months, which aren’t covered by the federal Pell Grant. Kasich also wants to expand advanced-placement courses in high schools and credential more teachers.
STRICTER RULES FOR CHARTER SCHOOLS
Ohio leaders have called for tougher accountability and transparency for charter schools in the state.
Their concerns stem from several reports, including one from Stanford University’s Center for Research on Education Outcomes that found Ohio charter schools’ performance results are mediocre. The study found students attending charter schools fall behind their counterparts in traditional public schools by 14 days on average in reading and 43 days in math over the course of a school year.
Kasich, who supports vouchers and school choice, has said he won’t sit by and watch charter operations “making money at the expense of great education for our kids.”
MEDICAID EXPANSION
Kasich’s administration extended Medicaid eligibility in 2013 to cover thousands more low-income residents, as allowed under President Barack Obama’s health care law. But the governor needs legislative approval to continue to fund it after June.
The GOP-dominated Legislature balked when Kasich sought approval in his last spending plan. The state’s Controlling Board appropriated the money, not the full Legislature. House Speaker Cliff Rosenberger has said he views the Medicaid expansion debate not over whether it will be reauthorized, but in what form it will take as lawmakers seek sustainability for the program.
Obama’s law calls for Washington to pay the full cost of the Medicaid expansion through 2016, gradually phasing down to 90 percent. Roughly 451,000 Ohioans have enrolled.
ASSISTING LOW-INCOME OHIOANS
Kasich also has unveiled proposals to help economically struggling Ohioans move out of poverty.
One idea would make it easier for low-income families to keep child-care subsidies as their income increases. Normally, families lose eligibility for subsidies when their income tops 200 percent of the federal poverty level, or $3,298 a month for a family of three. Under Kasich’s proposal, the subsidies would be gradually phased out until income hits 300 percent, or $4,948 a month for a family of three.
Kasich wants to use $310 million in state and federal dollars to create more comprehensive county job programs that focus a variety of services based on individuals’ needs. He also has called for evaluation standards to see how well the state is helping Ohioans.
