Gov. John Kasich’s administration took a swing at the budget plan passed by his fellow Republicans on Wednesday, claiming the $131.6 billion proposal threatens Ohio’s economic recovery.
“Their spending increases and rosy budget projections threaten the progress Ohio has made in the past four years, and the rejection of tax reform is a missed opportunity that, if allowed to remain, would erode our improving economic climate,” Kasich spokesman Rob Nichols said in a statement.
“After the fiscal crisis subsides, people think it’s okay to slip back to old habits,” Nichols continued. “The governor will do everything possible to prevent that from happening.”
Nichols stated that Kasich “looks forward” to the budget being taken up in the Ohio Senate, which is planning to ignore both the House and administration budget plans and effectively start from scratch using the budget for the current fiscal year.
Earlier this month, House members ripped out most of the governor’s tax proposal, which sought to cut income taxes by 23 percent by raising and expanding the state’s sales tax, as well as increasing taxes on cigarettes, commercial activities, and oil and gas fracking.
The House’s budget proposal seeks a more modest 6.3-percent income tax cut and would make permanent a 75-percent deduction on small-business income.
If passed, the House’s plan would be the largest budget in state history, according to the Office of Management and Budget, and is about $600 million larger than the governor’s original proposal.
One reason that the House’s budget plan is bigger is that it contains about $280 million more in primary and secondary education spending than what the governor’s budget called for.
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