COLUMBUS- State Representative Barbara R. Sears (R- Sylvania) yesterday
announced the Ohio House of Representatives passed House Bill 1, the
two-year, $54 billion state operating budget. The bill includes funding
for the operation of state government agencies and services.
The House-passed version of House Bill 1 increases government spending
by more than $1 billion over the next two years. House Democrats
established the proposal using a more optimistic growth in tax revenue
projections than the governor's proposal, when all indicators point to a
decline in revenues of the over two years. In addition, the plan
maintains the governor's original proposal to include more than $4.3
billion in one-time revenue sources, including approximately $2.2
billion in temporary federal funding and draining the state's $1 billion
rainy day fund.
"To expand programs and entitlements in this difficult economy is poor
policy," Sears said. "The House majority didn't do its job and left the
Senate with a mess to clean up."
Ohio's Medicaid expenditures are 40 percent higher than the national
average. Yet, the House proposal continues the expansion of Medicaid
without providing for any cost efficiency measures. Furthermore, the
plan maintains the governor's proposal to institute $1 billion in fees
to raise funds for Medicaid and other government operations. For
example, the House Democrats increased the governor's proposed hospital
franchise fee by $111 million, which is essentially a tax on hospitals
to pay for Medicaid.
"I proposed roughly 25 amendments in the human services area that would
have helped reduce costs and provide savings and cost management
programs that are common in business," Sears said. "The House Democrats
wouldn't discuss my proposals and wouldn't even vote on them."
While Medicaid spending increases, House Bill 1 flat funds state aid to
Ohio's local school districts. Overall, the proposal cuts state funding
for education by $216 million and $167 million in fiscal years 2010 and
2011, respectively, compared to 2009 funding levels. In addition, House
Democrats have underfunded their plan by $2.5 billion in fiscal year
2010 and $2.7 billion in fiscal year 2011.
"The House-passed budget is not sustainable," Sears said. "It has set
the stage for a train wreck as we start to budget for the 2012 budget
process. We have raided any fund we could get our hands on, refinanced
loans, delayed payments and made future promises that we can't keep,
just so we can say we accomplished something.
"I will be working hard over the next year and a half to promote
legislation that will place cost containment programs in Medicaid, which
by 2011 is projected to deplete 42 percent of our state budget."
House Bill 1 was approved by a 53-45 vote. The bill now moves to the
Senate for further consideration.
