As is true in all states, Ohio's budget must balance. Due to the economic downturn (which shredded even pessimistic revenue projections from earlier this year) and tax reductions passed earlier this decade, Ohio faces a $3.2 billion gap in the budget for the next biennium, which begins less than a week from now. Strategies to plug the gap include placing slot machines at the state's race tracks, borrowing from the state employees' pension fund, reduction of the state's contribution to state employees' retirement, and draconian cuts to libraries, health care, preschool education, and other items.
Astute readers may have noticed that the budget-balancing strategies included no new sources of revenue other than slot machines. While I have no personal objection to gambling, and I understand the desire to slow the flow of Ohio citizens' money to other states' casinos and racetracks, I have a real problem with state government financing essential services on ignorance and greed. And what would happen to the state's budget if everyone wised up one day and realized that most gamblers lose more than they win? The budget crisis has forced Governor Ted Strickland, a long-time opponent of expanded gambling, to change his tune.
There aren't many politicians in Ohio or anywhere else who will state the obvious fact that we, as citizens, get what we pay for, and that if a service is important enough for the state to provide it is important enough for the people to support through their taxes. A few Democratic members of the Ohio House of Representatives have done just that, though it remains to be seen whether it will do much good.
A handful of House Democrats split from their leaders yesterday and called for tax increases to help avoid painful budget cuts, adding another twist to a negotiating process that is quickly running out of time.
"We're at the point where we've done enough cutting and we have to do this," said Rep. Ted Celeste, a Grandview Heights Democrat who noted that 23 other states have raised taxes already, and 13 more are considering it.
"Clearly we can't go through the kind of budget cuts people are talking about. It's going to be devastating."
Four House Democrats, including Celeste and Rep. Dan Stewart of Columbus, said they want a budget compromise to include fewer cuts and more taxes -- such as rolling back all or part of the 21 percent income-tax cut that has been phased in since 2005.
The Democrats said they cannot stomach Strickland's proposed cuts for 2010-11, which would slash services such as investigations of child and senior abuse, home care for the elderly, food pantries and libraries.
State-employee unions and advocates for the poor already have called for increased taxes to lessen the state budget pain.
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Rep. Ted Celeste and other House Democrats are encouraging legislative leaders to consider raising taxes in lieu of severe cuts to social service programs, libraries and state employee pensions.
"We're at the point where we've done enough cutting and we have to do this," said the Grandview Heights Democrat, who said his office has received 14,000 e-mails in the past 12 hours from supporters urging lawmakers not to cut Ohio's libraries by 50 percent.
Celeste said there are various tax increases that could be considered, but he is focused on the 21-percent income tax cut that has been phased in over the past five years.
"The income tax reduction really led to the big hole," he said. "It's clear, if you look at where we are and what has happened, that is one good place to look."
Lawmakers could roll back all or part of that tax cut, or roll it back only for income above $200,000, Celeste said. Rolling back half of the overall tax cut would raise about $2 billion over the biennium.
"Clearly we can't go through the kind of budget cuts people are talking about," he said. "It's going to be devastating."
Celeste, who is not a fan of expanded gambling, said a "number" of his colleagues are very concerned about the last round of suggested cuts.
"Taking (taxes) off the table, I think, is irresponsible," he said.
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