Public Policy Advocates

Governor Ted Strickland, Speaker Armond Budish and President Bill Harris announced this afternoon they have reached a compromise on House Bill 318, the Income Tax Freeze Bill which has been the source of great controversy over the last two months.  The bill, which must be passed by Dec. 31 in order to take effect for the 2009 tax year, is expected to be taken up this evening by the Senate Finance Committee.  The compromise includes the original tax freeze proposal contained in the House-passed version.  However, the 5% pay cut for legislators will be removed, and several new measures will be added to the bill. 

The most significant addition to the bill is language to allow for the Chancellor of the Board of Regents to establish criteria to determine three capital projects at University System of Ohio institutions to utilize alternative construction management methods.  The criteria will be based on the findings of a study council created by Governor Strickland to demonstrate that new construction management methods would result in significant cost savings for the state.  Also included in the additions are proposals to allow schools with fiscal challenges to apply for a waiver the all-day kindergarten requirement included in HB 1, and to direct any budget surpluses to funding for non-public, Chartered schools, whose funding was cut severely in HB 1.  A full explanation of the changes to HB 318 can be found here.