Budget forecast illustrates challenges
Published 9:42 am Tuesday, November 9, 2010
There has been much talk over the past several months about the projected $8 billion hole in the 2012-2013 biennial state budget, which the Legislature and Governor must pass by June 30 of next year.
Voters sent a clear message on Election Day that they expect state leaders to work together to balance the budget using existing resources, while taking steps to reduce spending, eliminate waste and make government operate more efficiently.
I have spoken with several school treasurers who have taken proactive steps to prepare for cuts in state funding.
Most school districts received a modest reduction in state assistance last budget cycle, but it will probably be more substantial this time around.
This past week, I was invited to participate on a panel of legislators and other state officials from both political parties called Searching for Billions: The 2011 Biennial Budget Process.
The group discussion was part of the 2010 Impact Ohio Conference in Columbus which brings together hundreds of state leaders, policy experts, media members, educators and other interested parties every two years to talk about major state issues and provide a look forward to the upcoming session of the General Assembly.
My message to the panel, which included both Republicans and Democrats, was that those who are funded by state government need to become more efficient and effective.
It will be difficult, and there will be good programs that must be cut or eliminated, but I think Ohioans are not in the mood for any excuses.
The economy has forced many families in our state to make tough choices, and they believe government should do the same.
State Representative Vernon Sykes from Akron, chairman of the House Finance & Appropriations Committee and also a member of the Impact Ohio panel, stated that people do not realize the impact that government spending has on their lives. I think Ohioans do know, and they have had enough.
It was Bill Clinton who said during his presidency that “the era of big government is dead.”
I do not know if it is dead, but the pendulum of public opinion is swinging back toward a belief in personal responsibility. No form of government can guarantee happiness, but our nation’s Constitution provides for the right of every citizen to pursue happiness.
It is my hope that through common sense regulatory reform, more aggressive marketing efforts and a renewed commitment toward economic development, state leaders can help local businesses, from the mom and pop hardware store to large corporations, expand and locate in Ohio.
If this effort is successful in growing our state’s economy, many of the services that may be in danger of cuts in the upcoming budget will no longer be necessary.
As we discuss strategies for balancing the 2012-2013 budget, it is important to remember that the governor and lawmakers have a constitutional responsibility to maintain public safety, provide for education and meet federal mandates for health care and assistance for the poor. It is not going to be easy.
Current federal and state spending levels are simply not sustainable with the revenues that we are expected to generate. That means that we must establish budget priorities based on what the state is legally required to provide and make tough policy decisions about how resources are allocated.
The process of arriving at a balanced budget should also include input from local officials about how to best provide needed services with significantly fewer dollars.
For example, costly unfunded mandates in Governor Strickland’s evidence-based school funding model, such as the 15-to-1 student-teacher ratio and a requirement that schools add certain staff positions outside of the classroom, must be eliminated. In addition, the 3C passenger rail project connecting Cleveland, Columbus, Dayton and Cincinnati is something that Ohio cannot afford to subsidize. Implementing shared services among some government agencies and eliminating others is also a cost-saving idea but it must be done in a reasonable way that maintains essential resources.
This is a time that Ohioans must come together on a common mission to promote our state and local communities for job creation, cut spending and create an environment that entices people to stay or move to Ohio.
Our state motto is: “With God all things are possible.”
We better start praying. I know that God helps those who help themselves. I will do my best to listen and respect each idea I hear during the upcoming budget process, whether it is from a small business owner in Gallia County, a colleague in Columbus or a family in Jackson County, and will work with Governor-elect John Kasich and members of the Legislature from both sides of the aisle to do what is best for the people of our region and the rest of Ohio.
John A. Carey is a member of the Ohio Senate and represents the 17th District. He can be reached at Ohio Senate, Statehouse, Columbus, Ohio 43215 or by phone at (614) 466-8156.