Public Policy Advocates

The Governor, House and Senate leaders continue to meet to discuss how to address the estimated $3.2 billion shortfall. Until decisions are made, the Conference Committee will not begin the public portion of the process, which they expect will begin the middle of next week. If so, that will allow less than a week for the Conference Committee to meet the June 30th deadline.

It has been reported that the Administration has shared with House leadership a potential $2 billion cut scenario, which includes reductions or eliminations to TANF Title XX, child care, kinship care, PASSPORT and PACE programs for seniors, Medicaid optional services, Medicaid provider rates, MR/DD Services, the children’s Buy-in Program, as well as others. The Administration did not share these scenarios with the Senate, and is not making this information public at this time.

Ohio leaders continue to deny the possibility of a tax hike to address the budget deficit. They prefer to pursue budget cuts and reductions due to the economic implications of increasing taxes during the current recession.  However, several legislators are beginning to promote revenue enhancement ideas within their caucus, such as a temporary sales tax increase, an increase in cigarette tax or expanded gaming, as possible ways to generate revenue.

Yesterday, Pennsylvania’s Governor Rendell announced a proposal to increase his state’s personal income tax by a half percent to address its  $3.2 billion deficit.

Tags: Budget, Governor