State Representative Jim Buchy...
An Explanation of Cuts to Balance the Budget  
September  8, 2011              

There has been a lot of talk about the balanced budget, but people never talk about the sacrifices made to balance the budget.  Throughout the process, my colleagues and I met with many citizens who discussed why their cause was important and why funds should be left intact for the program.  In those meetings, I never once was asked by anyone to seek an increase in funds.  Ohioans know the legislature and Governor Kasich are serious about turning Ohio around.  The trick to balancing this budget was making smart cuts. 

Over the past 25 years Ohio Government has ballooned while our population has dwindled in comparison with the other states.  We have witnessed our seats in Congress drop because Ohio has been back pedaling.  We must turn this state around.  Everything you have viewed in Columbus this past year has been part of that shift in ideology.  Ohio is open for business and a key part of the plan to turn around Ohio was a balanced budget that didn’t raise taxes.  Ohioans cannot afford a tax increase.  In this column, I will explain some of the cuts that were made, and what we have done to ensure services are still provided to citizens. 

Medicaid is a partnership program between governments at the state and federal levels. States are required by the federal government to fund certain services. When I came to Columbus in 1983, Medicaid was new to the state.  At that time a few of my wise colleagues proclaimed that Medicaid would one day bankrupt this state.  They were right. The level of funding fluctuates as the population shifts and as new mandates are added and eliminated. Due to more and more mandates being implemented, Medicaid has ballooned to nearly half the state’s budget. 

Education is the second largest item in our budget.  The federal influence in education is not nearly as impactful in education and thus to balance the budget Education has to feel a sting.  In the last budget law makers supplanted large cuts with one time stimulus dollars.  To close the 8 billion dollar budget deficit and increase education funding to make up for the loss of stimulus would be impossible. 

In lieu of increasing funding to match the levels of the previous budget, which included the stimulus and state dollars, my colleagues and I have actively worked to remove state mandates such as all-day kindergarten.  We also removed the mandate to purchase new textbooks.  The money set aside for those textbooks was released to administrators to make decisions for spending.  The folks on the ground are most capable of making financial decisions. At the state level we are working to provide them more ability to balance their budget as they see fit.  State funds are extremely tight but cuts were felt across the board.  Better tools and better money management will enable each agency to continue providing vital services to Ohioans. 

Another area of the budget with significant cuts was the Local Government Fund (LGF).  The LGF was cut by 50% for the 2012 Fiscal Year and in the 2013 Fiscal Year local governments will sustain another 25% cut of state monies.  Local governments receive much of their funding from the local tax base, but state monies that supplemented local operations are being cut substantially.  I know these were smart cuts because when it comes to working with our tax dollars our local officials are some of the most financially savvy individuals.  I have witnessed their preparation for tough budget times and they will be able to streamline operations to continue providing services. 

In addition, economists predict we will see an influx in dollars to local governments when we turn the state economy around.  The process has already begun.  The stream of bills passed and regulation changes over the past year have resulted in Standard and Poors increasing Ohio’s credit rating.  The momentum is there for Ohio to see a boom of economic activity and I trust it will make a substantial difference for our local governments. 

In my family business we always make a sacrifice at the top before asking employees to join in the hardship.  This is an attribute of leadership that has been engrained in me.  The Governor also holds this understanding.  The Office of the Governor was cut along with the Ohio Consumer’s Council, the Public Utilities Commission of Ohio, the Ohio Lottery Commission and numerous other agencies.  Budget cuts were felt from top to bottom, but along with those cuts we provided tools to help the agencies maintain services to Ohioans.  

Ohioans want this state turned around.  In state government we are making decisions that will bring business and jobs to this state once again.  Ohio has a great location and immense resources.  We must remove the laws, regulations, and tax burden that currently deter business from putting Ohioans to work.  The cuts in the budget were surrounded by tough decisions but the end result will be a better Ohio.