Ohio’s HB 318

Late Wednesday, Ohio Senate Democrats rejected the latest Republican amendments to HB 318. The bill will attempt to fill the $851 million gap in the FY10-11 budget. The Senate Finance Committee has adjourned indefinitely--for time to enjoy a Thanksgiving Holiday while thinking this through. Too bad our federal Senators didn’t do the same--they could have used the T-holiday to read through 2074 pages commiting us to trillions of debt and the takeover of private businesses, all for the extremely small percentage of Americans who don't have health insurance (and that won't even change!). Then they could have enjoyed a turkey tryptophan stupor instead of gorging on this other turkey stuffed with pork and shredded taxpayers‘ investments.

Following are the provisions rolled into the substitute bill that were highlighted by Senate Finance Chairman Sen. John Carey (R-Wellston) during Wednesday evening's hearing. This information was provided by AIA Ohio which has a horse in this race, the Ohio Construction Reform Panel's recommendations which could determine how architects will do business with Ohio for the next decade. Notice the money hoped for from casino fees.

- Allows one-third of the scheduled income tax reduction to go into effect rather than freezing the full reduction. This nets the state $278.7 million in FY10 and $284.0 million in FY11.

- Creates a trigger mechanism by which an increased portion of or the full scheduled income tax rate reduction would occur if the governor moves forward on VLTs, or if excess casino revenues are generated within the biennium and could be used to offset GRF.

- Restores $25 million in FY10 and $35 million in FY11 for chartered, nonpublic schools that were disproportionately cut in the budget process.

- Transfers the casino licensure fees, approved by voters as 'State Issue 3,' into the GRF to offset current regional job program expenditures. This provides $200 million in FY11.

- Grants waivers for school districts regarding unfunded mandates for all-day kindergarten and class size reductions.

- Allows school districts to privatize transportation services if they choose to do so.

- Provides flexibility in state report cards for school districts that failed to meet adequate yearly progress (AYP) in certain sub groups.

- Allows broader use of joint purchasing by education service centers and school purchasing consortia.

- Includes SB190 ROTC high school credit provisions.

- Requires DAS implement paperwork reduction/cost savings strategies. This is estimated to save $10 million/year.

- Includes comprehensive sentencing reforms. This is estimated to save $20 million in FY10 and $30 million in FY11.

- Establishes an oil and gas drilling pilot program on state-owned land at Salt Fork. This is estimated to bring in $10 million in FY11.

- Removes pay cut language as it is now contained in SB209.

- Creates a privatization commission to study state functions that could be privatized.

- Specifies that future collective bargaining contracts let by the state will coincide with the state's biennial budget time frame.

- Requires that three state agencies (natural resources, education, and transportation) undergo performance audits.

- Studies a state government restructuring plan similar to those proposed in SB52 and HB25.

- Studies potential cost savings and economic benefits to Ohio employers and injured workers by allowing private insurance companies to compete with the Bureau of Workers' Compensation (BWC).

- Requires the auditor of state's office to determine if BWC has adequate reserves compared to industry standards and to recommend rebates if an over-reserve is determined to exist.

- Studies cost savings that may be achieved if the state were to go to a four-day workweek.

- Transfers functions of the School Employee Health Care Board to DAS and deletes GRF appropriation in the Department of Education. This saves $800,000/year.

- Transfers $15 million per fiscal year from the liquor profits fund into the GRF.

- Transfers $15 million per fiscal year from the Housing Trust Fund into the GRF.

- Transfers $1 million per fiscal year in total from three public safety education funds (83G0, 83N0, and 8440).

- Specifies that the insurance settlement funds for the Lake Hope State Park lodge be used for the purpose of fixing that site.

- Uses half of the current scrap tire fee to provide funding to the state's soil and water districts.

- Ensures correct appropriation authority for the Department of Mental Health's 408 line item.

There are many things in here that deserve a closer look--and it's happening in all states, not just Ohio. Like that Housing Trust Fund--that's created from real estate transfer fees, but is used in conjunction with federal funds for housing programs. 20 years ago no state had this--now about 40 do. The high unemployment rate is squeezing the flood of tax money to a dribble. During the boom years, did anyone at the state or federal or local level think they should have paid down their debt instead of adding more programs?