House Democrats Pass Tax Freeze Bill Joined by Two Republicans
On Wednesday, the House approved HB 318, a bill enacting Governor Strickland’s proposal to delay the final phase of tax cuts, set to take place this year. The bill passed by a vote of 55-44, including all Democratic representatives and Reps. Matt Dolan (R-Novelty) and Ross McGregor (R-Springfield). The bill will move to the Senate, where legislative leaders have concerns about whether this is the best course of action to fill the expected $850 million budget gap. The Senate has scheduled its first hearing on the measure for this Wednesday at 9:30am.
Much of the debate on the floor of the House was over whether this bill raises taxes. House Republicans argued that since Ohioans will pay more than they might have expected to pay in taxes this year, it is a tax increase. House Democrats disagreed, claiming that since Ohioans will pay the same rate of taxes in 2009 as they paid in 2008, this bill would not result in a tax increase. House Republicans also offered a number of amendments aimed at decreasing the size of state government by reducing the number of state agencies from 24 to 11, and reducing the number of state employees by approximately 8,000. However, House Democrats argued that these proposals are not realistic, because beginning them would require considerable funds and no savings would be achieved during this biennium. They also argued that these cuts would be detrimental to the state’s ability to provide services to its citizens.
We sat down with Assistant Minority Whip Cheryl Grossman (R-Grove City) to discuss the tax freeze bill, among other topics. The video of that interview can be found here.
Workers’ Compensation Administrator Presents Study on Group Rating Discounts
Bureau of Workers’ Compensation Administrator Marsha Ryan testified before the Senate Insurance, Commerce, and Labor Committee regarding a recent study on BWC practices performed by Deloitte. Administrator Ryan explained the recommendations and findings of the Deloitte Study, which included the elimination of the drug-free workplace discounts for employers and the reduction of group rating discounts to 65%. Until recently, companies could earn up to a 95% discount in group rating. That discount has been reduced over the last few years to where it currently stands, at 85%. The BWC Board of Directors is expected to meet Friday, October 30 to accept the results of the Deloitte Study and implement its suggestions. However, members of the committee voiced concern about the effects that reducing group rating discounts and eliminating the drug-free workplace discount would have on worker safety. Senators also expressed fear that the increase in workers compensation premiums on the state’s safest employers would be a disincentive for the best companies to move or stay in Ohio.
Telecommunications Regulation Bill Opposed by AARP
House Bill 276, aimed at relaxing government regulation of telephone utilities, heard opposition from AARP during a committee hearing last week. Ron Bridges, of AARP Ohio, said that the de-regulation in the bill would adversely affect seniors more than other segments of the population because seniors are more likely to have landlines. Provisions in the bill include increasing the minimum time required to repair service outages from 24 to 72 hours, and removing current legislation which requires phone companies to automatically credit customers’ accounts for periods of interrupted service. Mr. Bridges claimed that these provisions could leave seniors disproportionately affected by service interruptions.