Cincinnati Enquirer Exclusive
Kasich says 2-year budget has $1B surplus
Expect fight on whether to spend or save doubled 'rainy day fund'
Written by Paul E. Kostyu

Jan 30, 2013 

COLUMBUS — When the governor publicly releases his proposed two-year operating budget on Monday, it will show a $1 billion surplus, he says. 

But until then, no one will know just how Gov. John R. Kasich and his staff arrived at that figure. That’s because they’re not telling anyone about the two-year budget proposal – including legislators and their leaders in either party. 

It means the surplus – called the rainy day fund – will double from its current $500 million. When he took office two years ago, the surplus was 89 cents, he said. 

In an exclusive interview Tuesday with The Enquirer editorial board, Kasich would not talk about the details of his budget nor of the school funding proposal he plans to release Thursday. But his hints about the possibility of expanded Medicaid coverage – in addition to the surplus – will likely occupy the Legislature for some time. 

And expect a fight over what to do with that surplus: Save it or spend it. 

Since 2011, the state has reduced spending to schools and local governments, consolidated services and tried assorted other measures to keep the budget balanced. 

The possibility of that sizable a surplus already has both sides gearing up for a fight. 

“Save it,” Kasich said when asked what should be done with the reserve fund. 

He doesn’t want legislators from either party eyeing it for projects. 

But leading Democrats were equally clear when they met with The Enquirer board. They want some of the money to go to schools, local governments and infrastructure projects to make up for “devastating” cuts in state funding in Kasich’s last budget. 

Read the rest of the article at the Cincinnati Enquirer