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Tax Cuts

So, the Columbus Dispatch, has more details on exactly how the Senate GOP would fill the gap with less than a full freeze of the final income tax cut:

  • Raids $30 million from the Housing Trust Fund
  • Removing the requirement that schools provide all-day kindergarten starting next school year, and the requirement that they meet class size restrictions.
  • Restoring $25 million this year and $35 million next year to private, chartered schools, most of which are Catholic. The schools were hit with significant cuts in the two-year budget.
  • Creating a commission to study state functions that could be privatized.
  • Requiring the departments of Education, Natural Resources and Transportation to undergo performance audits.
  • Creating a study to look at allowing private insurance entities to compete with the state Bureau of Workers’ Compensation.
  • Studying the potential cost savings of a four-day work week (I’m assuming for just government workers, not the rest of us.)
  • The plan also counts on $10 million from allowing oil and gas drilling at Salt Fork State Park, $50 million in savings from a variety of changes to prison sentencing, $30 million in liquor profits transfers, $7.5 million in “cash management,” and the transfer of $30 million in liquor profits.

So in anticipation of Sarah Palin’s booksigning, the Ohio Senate GOP has given us “Drill, Baby, Drill” in its’ Ohio form.  Where suddenly, without explanation, the Salt Fork State Park has turned into the Ohio version of ANWR.  No debate, no legislative findings, no real basis to believe that we could get that much money (or shouldn’t go more.)  But more importantly, a complete ignorance of why Teddy Roosevelt, a Republican President, created the National Park System which inspired Ohio’s park system:  to preserve nature, not a government land grab in the hopes that there’s liquid gold in them thar hills when the state’s budget needs balancing.

The GOP plan actually calls for MORE government spending, but, of course, it’s for PRIVATE interests.  Yes, nothing will help Ohio’s economy better if we took a step back and didn’t push for all-day kindergarten or do anything regarding class sizes.

Basically, this is a bad deal.  All the Senate GOP is doing is putting every ideological rider they can on this bill because they know they couldn’t pass these things on their own.  I do have to ask the obvious question: if these things were so great for Ohio, why didn’t the GOP do these things when they controlled both houses of the General Assembly and the Governor’s office?

I question whether these provisions are even constitutional.  Unlike the federal constitution, the Ohio constitution requires that a bill in a legislature essentially deals with the same subject.   The intent of the provision is to prevent the very kind of riders the Senate GOP is attempted to do.  I have a feeling that their Plan B is to pass a bill with these riders and probably gut education.  I’m surprised the Senate GOP didn’t get in something about abortion and “teh gays” while they were at it.

Make them do this.  The Senate GOP’s proposal is a bad plan.  Maybe that’s why they’ve had to announce that any vote on it won’t take place until next week.

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Despite their best efforts, the Senate GOP Caucus could not unite behind an alternative plan to Governor Strickland’s proposal to freeze the implementation of the final phase of the state income tax cuts begun in 2005.  Therefore, they have resigned themselves to giving the Democrats the five votes necessary to pass their modified version of the House’s plan.

According to the Cleveland Plain Dealer, the Senate GOP plan delay implementation of a majority of the tax cut with the remaining hole filled by other sources, such as the casino licensing fees being paid now that Issue 3 has passed.

Senate Finance Committee Chairman John Carey is briefing the Governor on the Senate GOP’s this morning with a vote in his committee roughly this hour and an expected floor vote by the full Senate this afternoon.

The Senate GOP will provide just enough support, with the full backing of the Democratic Senate caucus, to get it passed.  Regardless, this fact is not enough to change the fact that the Senate Republicans, regardless of how they vote, now have equal ownership in the solution because their leadership could not find an alternative that could pass with their sizeable majority support alone.

[UPDATE:]  The Columbus Dispatch is reporting that the Ohio Democratic caucus has not yet signled that it will support the Senate GOP’s plan.  Former Senator Minority Leader Ray Miller has stated he won’t, and Minority Leader Capri Cafaro was noncommital while entering into the Caucus Room for the Senate Democrats to deliberate.  Senate President Bill Harris claims that the Senate Republicans have a “Plan B” that they believe it can pass with little or no Democratic support.  I’m doubtful.  If they had such a plan and the votes, why wouldn’t be their Plan A?

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…and in better news, the state Obama is speaking in here (Michigan) was surrendered to the Obama camp yesterday. Red sirens going off in the McCain headquarters. Those 17 EVs lost is going to tighten up their math quite a bit. Especially given the dynamics of the electoral race. Their campaign has even so much as admitted the only way they win is by the slimmest of margins.

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