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Budget Negotiations in Ohio May Extend Beyond June 30 Deadline

Key legislators in Ohio's budget discussions have been unable to reach any compromise this weekend, cancelling a planned meeting for Saturday to begin sorting through the nearly 600 areas of dispute while also contending with a $3.2 billion revenue shortfall. The situation is now beginning to spark speculation that Ohio lawmakers may pass a continuing reasolution to keep the state government afloat while negotiations continue on past the June 30 end of the fiscal year on Tuesday.

Such a situation has only occurred three times in the last 38 years, and in all three instances, it resulted in a tax hike. However, Gov. Ted Strickland as well as legislative leaders oppose a tax hike in these economic conditions.

If talks continue beyond Tuesday, the state would have to impose interim budgets with spending cuts that would last a week to 45 days. Tax collections continue to fall, so lawmakers cannot reasonably expect to save money in the meantime by simply freezing spending at current levels for the next month or so.

Gov. Strickland and legislative leaders, as well as their staff, have been meeting behind closed doors to hash out a compromise between the Senate and House passed versions of about a $54 billion budget.

One of the major issues of contention include education funding models. Strickland supports an "evidenced base model" of funding K-12 education, which emphasizes traditional public schools. The Senate passed and supports a "per pupil" approach, in which state aid follows the student, even those who opt out for a charter school.

Severe cuts to library budgets, amounting to nearly 50 percent, have also sparked outrage amongst both libraries and constituents. Other hot issues include painful cuts to numerous human service programs, and issues related to nursing homes and hospitals. The governor's plan also proposes to temporarily reduce state contributions to government workers' pensions, as well as introduce slot machines at existing racetracks to raise an estimated $933 in funds.

The six-member House-Senate conference committee canceled today's meeting. They will begin making choices between positions taken by both chambers, and are expected to attend the scheduled meeting on Sunday. At this point, however, the chances of the two sides coming to an agreement by Tuesday look less and less likely.

The last time continuing resolutions were enacted in Ohio were in:

  • 1971 under Democratic Gov. John Gilligan
  • 1981-82 under Republican Gov. James Rhodes
  • 1991 under Republican Gov. George Voinovich

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