Fiscal Responsibility: Slowest Growing Budget in 42 Years
Over the two-year span of the budget, spending will increase a modest average of 2.2 percent annually. That’s lower than any budget in the last 42 years. Eleven state agencies will absorb a funding cut over the biennium, and 20 others will make do without any additional funding. Making these tough choices allows us to target our resources to address our greatest needs and our greatest opportunities.
Health Care: Access to Health Care for Every Ohio Child
Governor Strickland’s budget provides Medicaid insurance coverage for Ohio children whose parents make up to 300 percent of the federal poverty line, and the opportunity for parents above the limit to buy into coverage. We will provide access to affordable health coverage for every single child in Ohio. The budget also provides for an expansion of Medicaid eligibility for low-income parents and pregnant women, and an expansion of the PASSPORT program.
Higher Education: Zero Tuition Increase in ’08; Less than 3 Percent Increase in ‘09
Today, the state spends less on instructional support for our universities than it did in 2001. Governor Strickland’s budget proposes a Higher Education Compact in which state will increase funding for the basic instructional subsidy by 5 percent next year, and 2 percent the following year and public universities and colleges will agree to no tuition increase in 2008 and less than a 3 percent increase in 2009.
Education: State Contribution to Local Schools will reach 54 percent
Under Governor Strickland’s budget, the foundation funding per pupil amount will be increased by 3 percent in each of the next two years. Second, the budget will focus the state’s aid formulas to put the emphasis on meeting students’ needs. Third, over two years, the budget increases parity aid by 8 percent, and targets it to the 60 percent of districts most in need. Fourth, the budget will increase poverty-based assistance by 22 percent over the biennium. And the budget increases access to early learning opportunities by opening programs to those whose families make up to 200 percent of poverty. Coupled with the homestead property tax expansion, the state contribution to local schools will reach 54 percent.
Property Tax Relief: Average 25 Percent Property Tax Cut for 1 Out of 4 Ohio Homeowners
Governor Strickland’s budget will securitize Ohio’s tobacco settlement funds and use the GRF freed up through the $ 5 billion proceeds to finance a 20-year expansion of Ohio’s homestead exemption, as well as to complete the construction commitments of the Ohio School Facilities Commission. $2.2 billion will be used to meet School Facilities commitments. The remaining $2.8 billion will be used to generate $250 million in savings on debt service each year for the next 20 years, which will be dedicated to expanding the Homestead Property Tax Exemption so that homeowners 65 and older and disabled homeowners won’t pay taxes on the first $25 thousand of the value of their homes -- a property tax cut for one in every four Ohio homeowners.