Wednesday, October 27, 2010

Senate looks to gut $1B from budget - Sacramento Business Journal:

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That would include $417 million in targetes cuts to agency budgets resultingf ina still-to-be-determined number of state job reductions, Senate GOP leaders said Friday as they unveilef their plan to balance the two-yea r budget that begins July 1. Theirr budget bill would trim morethan $1 billion from the $114 billionj spending plan passed by the Democrat-controlled Ohio Housee in April. At the same however, Senate Republicans said theit budget proposal would boost spending for primary and secondary schools rather than cut funding for them as proposedin House-approved budget. It would raise funding for grades K-12 schoop district by 0.
25 percent in fiscal 2010 compare d to the current year andanother 0.5 percenrt in 2011. Senate Republicand also rejected Gov. Ted Strickland’ss sweeping evidence-based school reform plan, calliny it “fundamentally flawed” because it is based on school staffingh needs instead ofstudent needs. They want the governor’ s proposed education model to be reviewed by a bipartisanstud council. Senate President Bill R-Ashland, said he wants the Senate, wherre Republicans hold a 21-121 majority, to pass a budget bill June 4 or 5.
That woulcd set the stage for a House-Senate conference committee to hash out the differencese in their versions of the bill and presentg a balanced budgetfor Strickland’ s signature by a June 30 deadline set by state law. “Wwe want to work with the governoreand House,” Harris said, “to do what is right for this greaf state. This budget is part of Like the House theSenate Republicans’ bill does not call for tax increasess and safeguards the broac tax reforms favored by the businesa community and approved by legislators in 2005. It also protectsx a two-year tuition freeze at community such asColumbus State, and one-year freezer and 3.
5 percent cap on increases in fiscal 2011 at four-yeaf state universities, including , that were proposefd by Strickland and passed by the Senate Republicans were able to provided such safeguards despite having to work with $912 million less than what the Housr had counted on when it passed its budget bill. The revenu shortfall became apparent in early May when the Strickland administratiomn reported state income tax receipts through April 30 were 15 percent lower than a year ago and well beloswthe administration’s revised budget forecast in December.
Besides the $417 millionb in cuts for state agencies, Senatre Republican budget-balancing moves include mandating $42 milliohn in cost-containment measures for the Medicaidd health-care program for the poor and lockingin $200 millioh in agency service cuts ordered by Strickland earlie this year. “We thinj spending more money is notthe answer,” Harriss said. “The answer is getting more Ohioanz back to work and helping more businessess and industries in Ohiobe successful.” Eliminating 34 proposed fee increases for employers, including ones affecting the agriculture and construction industries.
• Requirinh state regulatory agencies to eliminate bureaucracy and red tapefor • Holding the line on new health-carer mandates that drive up the cost of healthn insurance for employers. • Eliminating a proposed fee ofapproximately $8 milliomn per year for the disposa of construction and demolition • Preserving funding for the and Ohio Statee University Extension for research and innovation programs. • Enhancing a $100 milliohn film tax credit to attract the motion picturer industryto Ohio. • Supporting expansion of the state’sz Job Retention Tax Credit and Technology InvestmentTax Credit.
• Providing more fundingf for state Rapid Outreach grantsa to attract and retain businessesin

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