Economic Crunch Continues - Ohio Budget Shortfalls
It was just about a month ago that leaders in Ohio were talking about expanding state subsidized health care coverage to children. Now, reality has set in.
Ohio is expecting a budget shortfall up to possibly $1.9 billion dollars by June of 2009. Major budget cuts are on the way and there is probably more budget cuts coming in the following years.
How did Ohio get in this financial mess? First, let’s look at Governor Ted Strickland’s ambitious plan to provide an expand homestead exemption for the disabled and senior citizens over age 65. This property tax break sapped $257 million dollars out of Ohio’s budget. But this action by our Democratic Governor is not the entire cause. Look back to Republican Governor Bob Taft, and his efforts to cut income tax rates by 21% might have something to do with the current financial problems.
Normally I would be overjoyed with tax cuts, because I believe Government is bloated from the local to federal level. But there is a difference between giving money back to the people and just being plain irresponsible. As citizens, we make financial sacrifices all the time. To buy that new TV, we eat out less often. To afford the heating costs of our homes, we turn the thermostat down. Why can’t any level of government see that reducing taxes requires reducing the size of government first? There must be cost savings elsewhere before cutting taxes.
In an attempt to balance Ohio’s budget, Governor Ted Strickland will slash up to 2,700 State jobs, close two mental hospitals, limit non-essential spending (travel, etc.), and here’s the kicker - add Keno to Ohio’s gambling monopoly called the Ohio lottery! Yes, you heard it. Keno is going to save Ohioans!
Governor Ted Strickland, the former Pastor educated at Asbury College, now supports adding Keno to the ever growing list of wasteful gambling options at the Ohio Lottery. This is expected to bring in a whopping $73 million dollars.
To save additional money, Governor Strickland has proposed tweaking the retirement requirements of non teaching staff at statewide schools. You can read more about it here.
Apparently Ohio is not alone in this financial mess. Nearly half the states in our country are looking at huge budget shortfalls.
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