It is hard to believe, but I am now finishing my first year as your State Senator.

I have greatly enjoyed the challenge and look forward to continuing my service throughout 2004.

I have learned so much while talking with folks at hundreds of events and meetings as well dozens of open door sessions that I have had throughout the district.

I believe we have accomplished so much this year, and know that the New Year will certainly bring many new challenges.

However, many of the concerns my fellow lawmakers and I had for this year will continue to be a burden well into 2004.

I wanted to take this opportunity to review a couple of the major topics we have touched on throughout the year, and encourage every one of you to share your concerns and ideas with me.

Health care was certainly a topic of discussion in the past year, and I am sure it will continue to be in the forefront of all our minds in the next year and beyond.

During this small break in Senate session over the holiday season, I have been using the opportunity to meet with many community members and tour businesses in the area.

It was a great opportunity to hear what is on the mind of employers. Health care undoubtedly seems to be the major problem facing small and large businesses as well as local and state governments, including schools.

Rising rates of health care costs have been one reason state government has cut personnel - there are 3,000 less state employees now than compared to two years ago.

And I think you will continue to see state government to look at ways to reduce its size.

The difficulty is that 75 percent of the state budget is education and Medicaid.

Any significant cuts may very well impact these two areas.

I think in the long term we need to look at different ways to deliver health care.

One employer that I spoke with is now exploring flexible medical accounts, which are now allowed by federal law.

The move has also been to keep people in their homes if possible as an alternative to nursing home care.

These shifts will take time but we as a state and as a nation have to look at ways to contain health costs and to spend health care dollars as wisely as possible.

I was pleased to see the Ohio's Best Rx Legislation passed into law a couple of weeks ago.

I believe this program, which will provide a discount on prescription drugs for Ohio's seniors and the uninsured, will greatly benefit those who are eligible to participate.

Ohio's Best Rx will mean that many Ohioans will have greater access to prescription drugs at a more affordable price.

School funding was also a topic of much debate over the past year. As a member of the Senate Finance Committee, I was involved extensively with crafting a state budget for the next two years that funded schools to our highest ability.

Four of my columns in November dealt with this issue - I wanted to inform all of you of the complexities that are involved in the school funding issue.

Since the DeRolph litigation surfaced over 10 years ago, progress has been made, but a number of complications continue to exist as we work to improve Ohio's system of funding public schools.

During the past year, I was surprised to see so many from school districts across the state converge upon the Statehouse to protest the "cuts" they believed legislators were making to education funding in the most recent budget.

I think that what so many did not see, is that in reality, Ohio's schools received increases in state funding, and the word "cuts" was being used by some because they did not get as big as an increase as they had hoped to receive.

And progress is certainly being made to address the constitutionality of Ohio's school funding formula.

The Governor's Blue Ribbon Task Force is working to recommend a school funding system for public elementary and secondary education in Ohio and appropriate mechanisms for paying for such a system.

This is an endeavor that has been going on for over 150 years but I am hopeful that some new ideas and bold approaches will come out of this committee.

As for me personally, I am still working on Medicaid, mental health and real estate legislation.

I will be sure to update you when these are nearing introduction.

Looking back on this year, it was difficult but we made it.

These issues will remain on our plate for the New Year, and hopefully things are going to be better in 2004 for our economy and our state.

I hope you and your family have a happy and safe New Year.

State Sen. John Carey represents Ohio's 17th District. Write him at: Senator John A. Carey, Ohio Senate, Statehouse, Columbus, Ohio 43215, or call (614) 466-8156.