One Ohio Now Calls On Conference Committee to Use Balanced Approach to Offset Biggest Budget Cuts in the Nation

For Immediate Release: June 8, 2011 andrea@oneohionow.org Contact: Andrea Fejes

614- 420-2027

Columbus, Ohio One Ohio Now is disappointed that the Senate did little to change the course set by the governor and the House that solves the states shortfall through cuts alone. The Senate failed to maintain investment in the public services that make Ohio a great place to live and work and protect the most vulnerable. Ohios children, seniors, sick and hard working families will suffer from this approach. The Conference Committee now has the opportunity to do the right thing and consider a solution that balances spending cuts with wise revenue investments that are needed to offset some of the largest budget cuts in the nation. As The National Governors Association and The National Association of State Budget Officers has reported, cuts proposed by Governor Kasich and leaders in the state legislature are some of the biggest in the nation. The proposed cuts rank fourth-highest in higher education, fifth for K-12 education, and second for other areas. Ohio is one of sixteen states suggesting cuts to K-12 education; one of 25 recommending cuts to higher education; one of fourteen considering cuts to prisons; one of seventeen proposing cuts to public assistance; and one of fourteen contemplating cuts to transportation. This report highlights that Ohios leaders are headed down a dangerous path of making drastic cuts to basic public services that a strong economy needs. The state needs high quality schools and universities to provide an educated workforce, strong infrastructure to move people and goods, and safe communities in order to attract businesses and families. It is not too late for the legislature to implement a balanced approach that includes revenue to maintain investment in these basic public structures. If our state leaders continue with a cuts-only approach, they threaten Ohios ability to create jobs and emerge strongly from tough economic times.

The Conference Committee should consider a balanced approach that includes revenue as they try to reconcile their differences in the budget. They can take the first step towards a balanced approach by revising a respectable provision added by the Senate that creates a committee to review tax expenditures. Unfortunately, the Senate missed the opportunity to consider revenue by failing to include a meaningful reduction of these tax exemptions, credits and deductions or a sunset measure for existing expenditures. These tax loopholes are spending by another name and many have not been reviewed for effectiveness in decades. It is only right to reduce tax breaks, credits and deductions that are not achieving goals when such draconian cuts are being made to basic public services. The Conference Committee should also ensure personal income and corporate taxes are adequate and equitable to meet todays needs and invest in what matters most to Ohio. A balanced approach is not new to Ohio or other states. Ohio has faced similar challenges in the past and every governor, whether Democrat or Republican, has responded with a plan that includes revenue. A majority of other states have also responded to this crisis with a balanced approach since the start of the recession. A balanced approach has helped before and we need it again. We need an approach that will meet todays growing needs and build a foundation for tomorrows prosperity.

-30One Ohio Now is a coalition of over 45 member organizations ranging from those involved in health and human services and transportation to education and labor who are advocating for a balanced approach to addressing the states budget.