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Ohio


Kasich celebrates his "unbelievable" budget
There's more for schools and Medicaid, as well as a shift in tax cuts and increases
by WKSU's STATEHOUSE BUREAU CHIEF KAREN KASLER


Reporter
Karen Kasler
 
Gov. Kasich celebrates what he says is a $9 billion-plus turnaround in the state budget.
Courtesy of KAREN KASLER
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Gov. John Kasich’s second budget features both tax cuts and what some argue is a tax increase on certain businesses.

What’s more, the governor says the budget includes a rainy day fund that will grow to nearly $2 billion at the end of two years.

KASICH says Ohio's made unbelievable progress

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“Two years ago, we were $8 billion in the hole, (with people saying) ‘No way can this be managed without a tax increase.’ Now we are at a $1.9 billion surplus. I mean that’s just totally unbelievable. You’ve gotta pinch yourself to think about this.”

The $63 billion spending plan Kasich revealed today includes income tax cuts of 20 percent for all Ohioans and 50 percent for small businesses over three years.

But the governor wants an increase in the tax on bigger oil and natural gas drillers. And he’s proposing sales taxes on certain services that are now exempt from them – including legal, advertising and marketing, accounting and lobbying services.

The budget also expands Medicaid and could bring hundreds of thousands of low-income people into that program.

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