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This week, House Democratic Whip and State Rep. Michael
Ashford (D-Toledo) marked the start of the state’s new
fiscal year and the one-year anniversary of the largest
General Revenue Fund budget in state history. Gov. Kasich
signed the last state budget bill on June 30, 2013. At the
time, House Democrats stood in opposition to the budget,
saying the toxic mix of tax hikes on working and middle
class Ohioans and funding cuts to schools and communities
would not create the economic opportunity Kasich and his
Republican colleagues promised.
Republicans used property and sales tax increases along with
funding cuts to schools and communities to target tax cuts
at the state’s top income earners—a policy they say helps
the state’s economy. Still, Ohio’s job creation rate trails
the national average, and the state ranks 38 out of 50 over
the last year in job creation according to the Arizona State
University W.P. Carey School of Business.
“Historic cuts to local schools and communities force an
extra burden on Ohio taxpayers with an increase in local tax
levies across the state,” said Rep. Ashford. “With slow
economic growth and a lack of good-paying jobs, regular
families in Ohio cannot afford the extra tax burden that the
state has placed on them. And our state’s slow economic
growth shows this.”
In recent weeks, news outlets throughout Ohio have reported
that the state continues to shift the tax burden to local
homeowners, seniors and farmers. Republicans accelerated the
problem through the last state budget when they cut close to
$600 million more from Ohio schools compared to 2011 levels.
They also continued to cut funding for local communities,
bringing the total amount of cuts since 2011 to some $1.1
billion.
Locals have largely viewed the cuts as irresponsible, while
the moves have allowed the state to reduce its
responsibility for education and essential services.
Increasingly, communities and schools are forced to seek
more levies from local taxpayers to make up the difference.
The non-profit policy think-tank Innovation Ohio calculates
that local taxes for schools alone have gone up 34 percent
since Gov. Kasich and his legislative allies started cutting
funding in 2011.
In addition to cuts, Republican lawmakers and Gov. John
Kasich increased the state’s sales tax by 4.5 percent while
raising property taxes by 12.5 percent for new and
replacement levies. The Kasich Administration estimates the
sales tax hike will cost Ohioans at least $425 million over
the course of the year, and the 12.5 percent property tax
increase could cost local taxpayers millions more.
During last year’s budget debate, House Democrats attempted
to invest in middle class Ohioans and reverse the trend of
shifting taxes to middleclass homeowners and seniors.
Democratic lawmakers have also unsuccessfully pushed the
GOP-controlled state government to prioritize schools and
communities by restoring state funding to pre-Kasich levels.
Last year’s budget highlights:
• Biggest budget in state history—$61.7 billion
• Solidified $532.7 million in cuts from public
schools ($1.8 billion cut in 2011)
• 436 school districts received less money than 2010
• $95 million more cut from local communities ($1
billion cut in 2011)
• Ended property tax relief for many Ohio seniors (New
homestead exemption limits)
• Raised state sales tax by 4.5 percent
• New taxes on digital downloads
• 12.5 percent tax increase on new and replacement
levies
• Defunded Planned Parenthood and similar women’s
healthcare clinics
• Forced ultrasounds to detect fetal heartbeats prior
to abortion
• Requires doctors to estimate and inform women of the
likelihood of a fetus being carried
to term
• Imposed civil and criminal penalties for doctors
that follow medical training instead of
new political laws
• Targeted specific women’s healthcare clinics for
closure
• Average $6,083 tax break for top 1 percent of
Ohioans
• Average $12 tax increase for bottom 20 percent of
Ohioans
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