State Budget: Desperately Seeking Sources

Here's where we are with the revenue shell game being played within the State budget process.  The House version of the budget bill was passed last week and the Senate will take the next two months to craft a moderated and tax hike free version of the FY2010 state budget.

The issue of revenue was mitigated somewhat by replacing the administrations projections for tax revenue with the much friendlier estimates derived from the Legislative Service Commission.  Nothing has changed at the core of the budget outlook.  Ohio needs more revenue, preferably from increasing taxes.

Using some one time revenue sources and a newer parlor trick with State sponsored non-profits  being employed to dig up extra money for State agencies in the House Plan.  Willard covers the non profit plan here.  In the end tweaks and nuance can plug the budget hole for the temporarily but they will not erase a structural budget deficit.  

Sunday's Beacon editorial page joins my call to increase taxes, er, set them back to a responsible level:

The absence of stimulus cash. A structural deficit. A commitment to improving public education. Ohio needs a tax increase, one that can be crafted to enhance the state's prospects in the long run, one that reflects responsible stewardship of the state.

The latest battle cry from the reality challenged tax haters in the Ohio GOP is that the one-time revenue in the next biennial budget will lead to a tax hike.  Truth be told, it's the short sighted politically opportunistic tax reforms of 2005 that have gotten us to this low point in the revenue curve.  Think about that for a moment.

The Ohio Senate should meet us half way and address the structural deficit prevalent in the budget.  Find some more budget cuts that can reduce the level spending over the 2010-2011 budget period.  That's the easy part.  

The next step will require some of the more adult members (in both parties) of the Senate to step up and reset income tax rates to a realistic and sustainable level.  Let's face it, 2005 was a different time.  The days of ideological opposition to responsible tax rates is passing.  Let the tea baggers and Jon Kasich wage the losing battle against the income tax. 

The sooner we take these steps the sooner Ohioans can begin working on achieving the school funding reforms that are long overdue.