COLUMBUS, Ohio – Ohio’s governor is pledging a new round of tax cuts, a push to lower the high school dropout rate and an effort to grant veterans college credit for their military training.
During his State of the State address in Medina last night, Gov. John Kasich proposed cutting Ohioans’ personal income taxes and the taxes paid by small businesses as part of the Mid-Biennium Review he will take to the Statehouse.
The review is a supplement to the $62 billion, two-year state budget Kasich signed in June, which cut Ohio’s income tax rates by 8.5 percent in 2013, another half percent in 2014 and another 1 percent in 2015. These were Ohio’s first downward revisions since 2009.
Kasich says tax cuts are key to fueling the state’s economic recovery and to keep people from leaving Ohio.
In this election year, Kasich’s political rivals were quick to point out what they say are flaws in the plan.
Democratic challenger Ed FitzGerald and other Democrats say income tax cuts mostly help the wealthiest Ohioans while burdening the middle class and poor with higher sales and property taxes.
“We do not want to disproportionately and unfairly burden our seniors on fixed incomes, single-heads of households with increases in sales taxes and lower wage workers with a larger percent of their income paying for the services that all enjoy,” Asst. Senate Minority Leader Charleta Tavares (D-Columbus) said.
See other reactions to the speech.
Americans for Prosperity – a conservative PAC funded by the industrialist Koch brothers – weighted in with its support: “While there is still work to be done, the state stands today as an example of what sound fiscal policies can do to better an economy,” said state director Eli Miller.
Will Petrik, of the liberal Advocates for Ohio’s Future says “Families and communities across Ohio still lack essential human resources.”
Kasich also proposed using $10 million in state casino revenue to pay for an effort to bring together parents, communities, religious groups, businesses and others to support children’s education.
Kasich says teachers often tell him that parents need to be more involved in their children’s education and communities need to do more to support their schools.
Kasich’s “Community Connectors” initiative provides $3 for every $1 local district pitch in to give more students access to mentors.
At the same time, he also announced a plan to tie higher education funding to course completion and graduation rates at the state’s publicly funded colleges and universities.
Calling the plan a big step forward, Kasich says it puts the right incentives in place for students and colleges to work together to achieve the goals of success and a job after graduation.
Under details of the plan first announced last year, universities won’t receive a portion of their per-pupil funding until the student has graduated. It moves incentives away from enrollment and toward finishing a degree, Kasich says.
During the speech, Kasich also announced a plan to give free academic credits to veterans for the training and experience they received during military service.
Kasich says the training veterans received from the Armed Forces has prepared them for many of Ohio’s most in-demand jobs.
He said veterans deserve thanks for the sacrifices they’ve made as they re-enter civilian life.
Kasich says those who have driven a truck from Kabul to Kandahar have earned the right to drive a truck from Cleveland to Columbus.
He also pledged to dedicate $35 million in new tobacco settlement dollars in the fight against smoking to help drive down medical costs and improve Ohioans’ health.