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Ohio’s Budget Impasse Continues

posted by admin
July 7, 2009

Political tensions grew to an all time high yesterday with the Governor accusing the Senate republicans of game-playing and using the budget for political advantage. During the House Finance and Appropriations hearing, democrat members continued to accuse the Senate republicans for delaying the budget process by not accepting the Governor’s video lottery terminal (VLT) proposal. Meanwhile, the Senate Select Committee on VLT continued its hearings on the Governor’s proposal, and have identified major areas of concerns.   There is a “clawback” provision that would return the $65 million license fee paid by each racetrack owner ($455 million of the estimated $933 million the proposal is to generate for the state) if a competing casino issue that will be on the ballot in November passes.  The Governor stated he does not support the “clawback” provision, but it is included in the draft legislation the Senate was asked to approve. Sen. Husted, a member of the Senate panel, responded, “If that’s not the plan, what is the plan?” The Committee is scheduled to meet again today at 10:00AM to review constitutional issues.
 
Yesterday, the Senate passed HB 245, which is another one-week interim budget. The bill provides 70% funding for the state to continue to operate from July 7th-July 14th. This will provide another week for Ohio’s leaders to finalize the budget. Sen. Harris and Speaker Budish are scheduled to meet this afternoon to try to work through some of the issues. There is speculation that government could shut down if a deal is not agreed to this week. The Governor has stated his concerns about a third interim budget and the federal funding the state loses everyday. Without a full operating budget, a part of government would have to shut down.


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